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What to Sell On Amazon: To Make Easy Money Complete Guide

finding what to sell on amazon
April 17, 2024 15 mins to read

Do you struggle with what to sell on Amazon and wonder how to get started?

It’s a common challenge for many aspiring entrepreneurs. 

The good news is that there’s a solution, and it’s not as complicated as it may seem. 

In this guide, we’ll show you how and where to discover the perfect products to sell on Amazon. Whether you’re looking for your first product or aiming to expand your Amazon business, we’ve got you covered. 

Let’s get started on your path to Amazon success!

Quick Guide

  1. Most Popular Product Categories on Amazon
  2. How to Know What to Sell on Amazon?
  3. Six Characteristics Your Products Need to Sell Well on Amazon
  4. Where to Buy Products for Selling on Amazon
  5. Conclusion

Most Popular Product Categories on Amazon

Amazon is one of the biggest marketplaces globally, with around 310 million buyers and nearly 9.7 million sellers. It’s a great place to sell products. But, before you start selling on Amazon, there’s a big challenge – finding the right products to sell.

To help you understand, we’ve listed down the top 10 best-selling categories on Amazon, along with the percentage of sellers operating within each category. These categories can give you a good idea of what customers like to buy on Amazon. 

Electricals – 28.6%

This category includes a wide range of electronic and electrical products, from gadgets to appliances. It’s no surprise that the ever-evolving world of technology captures a significant share of Amazon sales.

Fashion and Apparel – 25.7%

Clothing, accessories, and footwear hold a substantial place in Amazon’s market. The convenience of online shopping has made fashion a top-selling category.

Leisure and Entertainment – 12.3%

Consumers turn to Amazon for their leisure and entertainment needs, which can encompass books, games, movies, and more.

Home and DIY – 10.4%

Products for home improvement and do-it-yourself projects find a significant audience on Amazon. From tools to decor, this category thrives.

Other – 6.4%

The “Other” category encompasses a wide range of products, reflecting the diversity of items available on Amazon.

Health and Beauty – 6.6%

Beauty products and health-related items attract a substantial customer base. This category is known for its consistent demand.

Edible Grocery – 3.6%

With the convenience of online grocery shopping, this category garners significant attention, and it’s likely to see further growth.

Household and Pet Care – 3.3%

Products for households and pet care are essential items for many consumers, contributing to the popularity of this category.

Office – 3%

Office supplies and equipment are in demand, especially among businesses and remote workers.

These numbers give us a peek into the most popular products people buy on Amazon. But remember, Amazon has a lot more products to sell than just these top 10 categories. Learning about what sells well is just the start of your Amazon selling adventure. 

To learn more about the best-selling product categories on Amazon, read this article.

How to Know What to Sell on Amazon?

Wondering how to find the right products to sell on Amazon? Well, you have a few options. One of the best ways is to use special software to help you with your product research.

You can use a tool like SellerApp’s Product Research Tool. It can find products that match your goals and even discover high-potential products. Here are some other ways to figure out what to sell on Amazon:

1. Manually Research on Amazon.com

One way to figure out what to sell on Amazon is by manually researching the platform. Here’s how you can do it:

Explore Amazon’s Vast Marketplace

Start by going to Amazon’s website and looking at the wide range of products available. You can navigate through different categories and subcategories to see what’s popular and in demand.

Identify Best Sellers

Check out Amazon’s “Best Sellers” lists, which showcase products that are currently trending and have a proven track record of success. These are the items many customers are buying.

how to know what to sell on amazon

Examine New Releases

Don’t forget to explore the “New Releases” section within various categories. New products can present opportunities because they might have less competition compared to established items.

what to sell on amazon for profit

Analyze Customer Reviews

Pay attention to the reviews and ratings of products. Reading both positive and negative reviews can help you understand what customers like and dislike about existing products. This insight can guide you in identifying areas for improvement.

Consider ‘Amazon’s Choice’ Products

Keep an eye out for products labeled as “Amazon’s Choice.” These are often items that are popular and highly rated by customers, indicating their potential for success.

Study Product Listings

Dive into the listings of products within your chosen niche. Pay attention to product titles, descriptions, images, and pricing strategies of successful products. This analysis can help you understand how to effectively identify market trends, optimize your listing, and gain a competitive edge.

By manually exploring Amazon in this way, you can gather valuable information about what products are currently popular and in demand. 

2. Find a Gap in the Market

Another effective way is by finding a gap in the market. Here’s how you can do it:

Unique Product Variations

Look for opportunities to offer unique variations of existing products. For example, if you’re considering selling smartphone accessories, you might focus on a specific niche like eco-friendly phone cases. By offering a product that stands out from the competition, you can attract customers looking for something different.

You can also look on social media platforms for discussions and comments about products in your category. This can give you hints about what’s missing or in demand. 

You can read product reviews on websites. See what customers say about similar products and identify common themes in their feedback.

Also, keep an eye on market trends and shopping behaviors. Things change, and by observing these shifts, you can spot fresh product opportunities.

Innovative Improvements

Another approach is to innovate on existing products by improving their design, functionality, or quality. Consider how you can address common customer pain points or offer a better user experience. 

For instance, you might develop a better-designed water bottle with added features that customers desire after looking at customer reviews on existing products

To understand your room for improvement, you can use SellerApp’s Opportunity Score

This powerful tool analyzes a product based on six critical metrics: Demand, Competition, Profit Margins, Revenue Potential, Overhead Costs, and PIS Index. 

what to sell on amazon for beginners

Using SellerApp’s Opportunity Score alongside your market gap analysis can significantly improve your product selection process. 

Finding a gap in the market allows you to find a specific product category in which you can sell your product. By offering something unique or addressing unmet needs, you can attract a dedicated customer base and achieve success on Amazon. 

3. Find Profitable Products

Profitability is a crucial factor when deciding what to sell on Amazon. Here’s how to determine if a product is likely to be profitable:

Cost Analysis

Calculate all the costs associated with sourcing, shipping, and selling the product on Amazon. This includes the cost of purchasing the product, shipping fees, Amazon’s referral fees, fulfillment fees, and other expenses. Ensure that there is a reasonable margin between your total costs and the selling price to ensure profitability. Also, if you want to efficiently and accurately determine the total costs associated with selling a product on Amazon, check SellerApp’s FBA Calculator. It empowers you to make data-driven decisions about pricing, ensuring that you maintain a reasonable margin for profitability in your Amazon business.

Competitive Pricing

While ensuring profitability, aim to offer competitive pricing. Study the pricing strategies of your competitors in the same product category. Position your product at a price point that makes it attractive to customers while maintaining your desired profit margin.

Finding profitable products is a key part of building a successful Amazon business. It’s essential to conduct a thorough financial analysis to ensure that your chosen products not only generate revenue but also leave you with a healthy profit after all expenses. 

For example, Imagine you’re considering selling a popular kitchen gadget, the “SuperChef Spoon,” on Amazon. To determine if this product is profitable, you need to conduct an analysis. Here’s how it works:

Product Cost: You source the “SuperChef Spoon” for $10 per unit.

Amazon Fees: Amazon charges a referral fee of 15% on the selling price, and the “SuperChef Spoon” is listed for $30. This results in an Amazon referral fee of $4.50 (15% of $30).

Fulfillment Fees: You decide to use Amazon’s Fulfillment by Amazon (FBA) service, which has fulfillment fees. Let’s say it costs $3 per unit for storage and shipping.

Shipping to Amazon: You have to ship your products to Amazon’s fulfillment center. Shipping costs for 100 units are $200, which amounts to $2 per unit.

Miscellaneous Expenses: You also have some miscellaneous expenses, such as packaging materials, which add up to $1 per unit.

Now, let’s calculate the total costs per unit:

Product Cost: $10

Amazon Referral Fee: $4.50

FBA Fulfillment Fee: $3

Shipping to Amazon: $2

Miscellaneous Expenses: $1

Total Costs per Unit: $10 + $4.50 + $3 + $2 + $1 = $20.50

Now, let’s analyze the potential profit:

Selling Price: $30

Total Costs: $20.50

Profit per Unit: $30 – $20.50 = $9.50

With this analysis, you’ve determined that for each “SuperChef Spoon” unit you sell, you make a profit of $9.50. This calculation ensures that you not only generate revenue but also leave you with a healthy profit after considering all expenses. It’s a critical step in identifying profitable products for your Amazon business.

By following these steps, you can get the information you need to make good choices about what to sell on Amazon. Just remember that success on Amazon often means you’ll need to keep learning and making changes as the market changes.

Six Characteristics Your Products Must Meet to Sell Well on Amazon

To increase your chances of success when selling products on Amazon, you should look for products with specific characteristics. Here are six detailed characteristics that products should ideally have:

1. Low Competition

Having low competition is a key characteristic for a product to perform well on Amazon. This means that there are relatively few sellers offering the same or similar products in the marketplace. Here’s why low competition is important:

  • Higher Visibility: When there’s less competition, your product is more likely to stand out in search results and category listings. This increased visibility can lead to more potential customers discovering your product.
  • Pricing Control: With fewer competitors, you have better control over your pricing strategy. You can set competitive prices while maintaining healthy profit margins, as there’s less pressure from price wars.
  • Easier Market Entry: Low competition makes it easier for new sellers to enter a market and establish their presence. It reduces the barriers to entry, allowing you to gain a foothold and grow your business.
  • Niche Opportunities: In niches with low competition, you can target specific customer segments and cater to their unique needs. This specialization can lead to a dedicated customer base.

To identify products with low competition, thorough market research and analysis are essential. By finding products in niches where there are fewer competitors, you can increase your chances of success on Amazon.

2. Price Range between $25 and $50

This characteristic highlights the ideal price range for products that perform well on Amazon, typically falling between $25 and $50. Here’s why this range is important:

  • Balanced Price Point: Products in this price range strike a balance between being affordable for customers and generating a reasonable profit for sellers. It’s a sweet spot that attracts a broader customer base.
  • Impulse Buying: Many customers are more likely to make impulse purchases when the product falls within this price range. It’s not too expensive to deter impulse buying, but it’s significant enough to drive sales.
  • Competitive Advantage: Products priced between $25 and $50 often face less intense competition than very low-priced or high-priced items. This can give you a competitive advantage in the marketplace.
  • Healthy Profit Margins: Selling products within this range allows you to maintain healthy profit margins. You can earn a decent profit while still offering value to customers.

Choosing products that retail from $25 – $50 can enhance your chances of success on Amazon by attracting a broad customer base, encouraging impulse purchases, and providing a competitive edge in the marketplace.

3. Small and Lightweight

This characteristic emphasizes that products that are compact and weigh relatively little tend to perform better on Amazon. Here’s why this is important:

  • Lower Shipping Costs: Small and lightweight products are less expensive to ship, reducing shipping costs. This can help maintain healthy profit margins.
  • Faster Shipping Times: Since these products are easier and cheaper to ship, you can often offer faster delivery to customers. Quick shipping is a competitive advantage on Amazon.
  • Storage Efficiency: Small and lightweight products take up less storage space, which can be cost-effective if you’re using Amazon’s fulfillment services. It also allows you to manage your inventory more efficiently.

By choosing small and lightweight products to sell on Amazon, you can enjoy cost savings, quicker shipping, and efficient storage, ultimately enhancing your competitiveness and success on the platform.

4. Easy to Manufacture

This characteristic highlights the importance of choosing products that are straightforward to produce. Here’s why this matters:

  • Cost-Efficiency: Products that are easy to manufacture tend to have lower production costs. This can result in better profit margins, making your business more financially sustainable.
  • Consistency: Simple manufacturing processes are often more consistent, leading to reliable product quality and fewer defects. This can help maintain customer satisfaction and reduce returns.
  • Scalability: When your products are easy to manufacture, it’s easier to scale your business. You can increase production without encountering complex or costly production challenges.
  • Faster Time-to-Market: Products with straightforward manufacturing can be brought to market more quickly, allowing you to respond to changing trends and demands with agility.

Selecting products that are easy to manufacture offers cost-efficiency, product consistency, scalability, and faster time-to-market, all contributing to your success on Amazon.

5. High Demand and Low Seasonality

This characteristic highlights the significance of choosing products with consistent and strong demand throughout the year without being heavily affected by seasonal trends. Here’s why it’s crucial:

  • Steady Sales: Products with high and consistent demand experience steady sales, reducing the risk of significant revenue fluctuations.
  • Year-Round Profitability: These products can be profitable year-round, ensuring a stable income stream for your business.
  • Reduced Inventory Challenges: You won’t face the challenge of managing excess inventory during off-seasons, helping you maintain cost-efficiency.
  • Customer Base Retention: Products with consistent demand attract a loyal customer base, encouraging repeat purchases and building brand loyalty.

6. Good Reviews

This characteristic underscores the importance of your products receiving positive feedback and reviews from customers on Amazon. Here’s why this is essential:

  • Trust and Credibility: Products with good reviews are perceived as trustworthy and credible by potential buyers. Positive reviews can build confidence in your product and brand.
  • Improved Visibility: Amazon’s algorithm often favors products with high ratings and good reviews, leading to better visibility in search results and increased chances of being featured as “Amazon’s Choice.”
  • Customer Decision-Making: Customers frequently rely on reviews to make purchase decisions. Positive reviews can influence potential customers to choose your product over competitors.
  • Brand Reputation: Consistently positive reviews contribute to building a strong brand reputation, which can extend beyond individual products.

It’s important to note that while these characteristics can increase your chances of success, no product is guaranteed to thrive on Amazon. 

Where to Buy Products For Selling on Amazon

When looking for products to sell on Amazon, you have various options, each with its advantages and considerations. Here’s a detailed explanation of where to buy products for selling on Amazon:

1. Alibaba

Alibaba is a leading online marketplace that connects manufacturers and wholesalers from around the world with potential buyers. It’s an excellent platform for sourcing products in bulk.

The platform offers a vast array of products, and you can often find suppliers willing to work with Amazon sellers. You can negotiate prices and minimum order quantities, making it suitable for scaling your Amazon business.

2. AliExpress

AliExpress is the same as Alibaba and is more focused on retail sales. It’s ideal for finding small quantities of products, including drop-shipping options. AliExpress provides an accessible entry point for Amazon sellers, especially those who are just starting. You can purchase single units, test product demand, and have products shipped directly to customers.

3. Brick-and-Mortar Stores

Traditional physical stores, including department stores, boutiques, and specialty shops, can be excellent sources for unique, locally sourced, or niche products. Buying products from brick-and-mortar stores allows you to find products with limited online competition. It’s also an opportunity to discover locally popular or trending items.

4. Other Online Marketplaces

In addition to Alibaba and AliExpress, there are other online marketplaces like eBay, Walmart Marketplace, and Shopify, where you can source products for your Amazon business. These platforms often host a variety of sellers, offering a diverse range of products. You can explore different options for both resale and dropshipping.

Also read: Launch an Amazon Wholesale Business in 2024: The Complete Guide

Conclusion

Finding the right products to sell on Amazon is a tough journey that requires diligent research, strategic decision-making, and adaptability. 

If you look for products with low competition, low investment requirements, small and lightweight, ease of source, and good reviews, you will have a better chance of building a successful e-commerce business in the long run.

Keep in mind that success on Amazon isn’t guaranteed, and market conditions can change at any time. With the right products, a good business plan, and dedication, you can navigate the complexities of the Amazon marketplace and uncover profitable opportunities. 

Happy selling!

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8 Comments on “What to Sell On Amazon: To Make Easy Money Complete Guide”

  1. Aja
    May 11, 2021

    Good article. I absolutely love this site. Keep it up!

    1. Arishekar N
      June 15, 2021

      Glad you liked the article.

  2. Sakoda
    May 11, 2021

    Really helpful for my amazon business.

    Thank you, for sharing

    1. Arishekar N
      June 15, 2021

      Thank you.

  3. Fermin Arflack
    December 26, 2022

    I love how you’ve emphasized the importance of understanding Amazon’s fees and FBA when deciding what to sell.

    1. Arishekar N
      January 17, 2023

      Thanks for your thoughtful comment. I really appreciate your input.

  4. Tyron Adaway
    December 26, 2022

    Great post on what to sell on Amazon! One tip I’ve learned is to look for products with a high sales rank and good profit margins. This can help ensure that you’re picking a product with a good chance of selling well on the platform.

    1. Arishekar N
      January 17, 2023

      Thank you for taking the time to leave a comment. Your perspective is always enlightening.

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