Looking for the best products to sell on Amazon FBA? You are in the right place.
In this blog post, you will learn the ins and outs of finding a potentially winning product.
If you are a new Amazon FBA seller, there are things you need to know before diving head first into finding Amazon products.
Choosing the Best Products to Sell on Amazon FBA
Here are four criteria you should look at when looking for the best Amazon FBA products:
Starting off with money because pricing is a very important factor for a lot of Amazon FBA sellers.
Pricing is not as easy as new sellers think.
You find a winning product, take the cost into account, decide on what’s a profitable markup, and voila, you have a nice return.
Far from the truth.
Know that there are so many other costs involved in doing an Amazon FBA business.
If you disregard pricing, there’s a greater chance that you end up losing money, even if you jacked up your product’s selling price.
Here’s a typical product pricing example:
“You are looking to sell a product for $20. The product costs $5 to purchase. Each item costs $3 to ship. Import duties and taxes are $1 per item. FBA warehouse delivery fee is $1 per item. Amazon FBA fulfillment fees are $4 per item. Closing fee is 15% of the sale price, so that’s $3. VAT is around 10% for $1.”
In this case, you may not be losing. But despite the four times markup, you are only getting $2 in profit per item, which is NOT ideal.
This is an example of a product that’s badly calculated.
For me, a good profit margin is at least 25% after all costs.
This should be sufficient to cover returns, chargebacks, unexpected expenses, and still make decent bucks.
Fees of Amazon FBA can be quite confusing to do manually.
Check every product you want to sell to ensure you are getting good returns.
But how do you know if the item you are looking at is worth trying?
Set maximum and minimum price limits.
Maximum Price Limit
There’s no guarantee for all types of products to sell out on Amazon.
So when starting out with new products, it’s best to order in small quantities.
No more than $5,000 would be my personal recommendation.
For each item, I personally set my maximum price limit at $100 or £100.
The higher the price of the item, the bigger risk you have of losing money if there are a few returns.
With a few returns, it might also be tough to crack the bestseller list and get a bunch of good reviews.
Minimum Price Limit
In the U.S., the ideal minimum price limit is $20.
Free delivery is available for all orders of at least $25.
The bigger fixed fees could mean it’s hard to net a 25% profit margin on items below $20.
In the U.K., the ideal minimum price limit is £20 since there is free delivery on orders of at least £20.
Standard delivery costs between £3.99 and £4.75 for orders below £20.
This means it is cheaper for your customer to purchase your product at £20 than it is at £17.
The additional fees and VAT make it impossible to achieve a 25% profit margin on sales under £17.
2. Size and Weight
There’s no hard and fast rule on size and weight ceiling.
But big items, apparently, cost so much more to import, store and fulfill at Amazon FBA.
Find products that you can carry with one hand if you can.
Even if you decided to go beyond the recommended size and weight, see to it that you get a fair and accurate quote for the shipping from your supplier to Amazon FBA.
A lot of Amazon FBA sellers have been burned by non-compliant products.
Remember the rise of hoverboards?
And how it quickly went from a cool device for kids to the worst nightmare for parents?
As hoverboards quickly became a trend, many Amazon FBA businesses were able to outsource cheap models via Alibaba.
They plastered their name on it and started selling them on Amazon for a large markup.
Now many of these toys were not certified and compliant with U.S. and U.K. laws.
Despite suppliers claiming to have their products checked by Chinese regulatory boards, Amazon FBA sellers weren’t cautious enough to foresee the problem.
Countless accidents and multiple houses burnt down were some casualties of the hoverboard fad.
The lesson is written all over the wall.
Don’t just jump on the bandwagon. Take time to understand how the product works and how it’s built.
Make sure to assess the compliance of your supplier to laws and regulations both in your country of origin and from where your product is manufactured.
Low competition products with a huge popularity potential are the name of the game.
But these kinds of products can be to come by.
Regardless, you can still find a lot of them on Amazon.
You just have to be resourceful and curious.
If a product is popular, can you still go after them?
But you need to do your assignment. And like any detective work, it usually takes more time and effort.
The best way to find out the number of units your competitors are disposing of is through the bestseller rating (BSR).
All categories have a bestseller list. And each product is ranked from 1 to infinity — 1 being the top product.
Here’s a visual representation of the estimated number of units sold per day in various categories on Amazon U.S. with distinct BSRs courtesy of product research tool Jungle Scout:
Note that these are just rough estimates. These numbers can be too small or too big.
For instance, let’s open a product listing on Amazon.
At the bottom, you can see the product details like so:
This particular product currently ranks number 3,796 in the Sports and Outdoors category.
Looking at Jungle Scout’s estimates, we can conclude that this product is selling 15+ units per day.
The item also has 772 good customer reviews.
That’s quite too many!
In this case, it’s best to avoid competing against this product.
Meanwhile, we have another product that’s completely farther from the top.
From the looks of it, this product could be selling around 5 units per day.
And it has fewer reviews.
If this was at least a 4 star-rated item, this could be a great product to sell.
You can still sell a product like this. Just make sure to read the reviews and take note of where the product went wrong and improve on that.
Now that we have the product research criteria out the way, let’s talk about that one thing why you are here.
How do you know what to sell on Amazon FBA?
That’s what we are going to address in the next section.
How to Spot the Best Products to Sell on Amazon FBA
Let’s dive right into the process of hunting the best Amazon FBA products.
1. Manual Product Research
Manual lookup is the best way to go when looking for the next big thing on Amazon.
And it’s also the best way to find uncharted or underexploited niches.
However, manual product research requires a lot of time, a lot of effort, a lot of back and forth.
Prepare a spreadsheet.
Make a list of the following:
- Size (small, large, extra-large)
- Number of reviews
- Average review
- Amazon seller ranking
Head over to the bestseller list on Amazon.
Go through the subcategory, and add every product to your spreadsheet along with the corresponding details above.
After that, sift through the spreadsheet based on your product criteria.
It could be this amount of reviews, that amount of sales, etc.
Warning — this is going to take so much time, and you might be frustrated along the way.
But hey, you gotta risk it to get the biscuit!
2. Product Research Tool
If you have zero ideas on what to sell on Amazon FBA, and you want to take the burden off manually going through each bestseller product on Amazon…
A product research tool is here to save the day!
One that I highly recommend is Jungle Scout.
Jungle Scout plans start at $39 per month. Trust me, it’s the best $39 you will ever spend on your Amazon FBA business.
There are so many other product research tools out there, but Jungle Scout by far is miles ahead of the competition.
Jungle Scout has a ton of features you can use. But one we will look at in this case is the product database.
The database is pretty much like a filled version of the spreadsheet you made earlier.
You can use it to search and sort through each product on Amazon according to the criteria I mentioned above.
Follow these for some tips:
- Price – set a limit from $15 to $100
- Estimated sales – filter from 90 to 1,000 sales per month (too low is not worth the hassle; too high might be too competitive)
- Number of reviews – filter from 10 to 30 reviews (depends on how much work you are willing to put in)
- Weight – set a limit to 5 kg maximum
- Size – set to standard
- Seller – choose Fulfilled by Amazon
Using these filters, you can get a couple thousand search results, depending on your niche.
It should be enough to find potential best products to sell on Amazon FBA.
This is what’s good about a paid tool like Jungle Scout, compared to doing manual labor.
And that is how to find the best Amazon FBA products!
Whether you are using the manual method or the product research tool method, it always pays off to keep all the criteria in mind.
Have you found the best products to sell on Amazon FBA yet?