Becoming an Amazon Seller is a great way to build a sustainable passive income stream for years to come.
But there are 2 million active sellers on Amazon worldwide. Most product niches are over-saturated, and it has become challenging for small business sellers to find the right products to sell on Amazon.
But although the competition on Amazon is super high, most sellers make a lot of money on Amazon. In fact, 63% of sellers earn more than $1,000 a month, and 22% make more than $10,000 a month.
If you also want to sell on Amazon and find the best Amazon products to sell, you’ve come to the right place.
Here’s what you’ll learn in this article:
- What Products You Need to Sell
- What You Need to Know to Succeed on Amazon
- A Strategy To Find The Best Products To Sell On Amazon
- Best Product Categories On Amazon
You Need To Sell These Products…
What are the best Amazon products to sell? Honestly, it depends on your budget and goals – especially if you’re a beginner.
Do you want to make $2,000 a month or $20,000?
Is your budget $1,000 or $10,000 to purchase new products from alibaba?
All of this influences what products to sell on Amazon.
However – for most beginners – the best products to sell are so-called evergreen products.
What are evergreen products?
Evergreen products are profitable products that sell consistently right now and will sell consistently in the future.
It doesn’t make sense to jump on a trend if you want to build a sustainable business and earn money for years to come.
In general, such popular products are more competitive because most sellers know that thousands of people want to buy them.
However, if you use the product research strategy I’ll show you in a minute, you can find Amazon products that are not so competitive and still have a huge demand.
Important: Selling items with a small profit margin on the Amazon marketplace doesn’t make sense. If you don’t make money selling Amazon products, you should stop selling. Amazon seller fees can eat up your entire profit. You need to make sure that your products have a positive profit margin.
You Need To Know This To Succeed on Amazon…
You need to know that you’ve to promote your product over weeks to get it to the first page of Amazon search results.
You have to invest in Amazon PPC and SEO when you’re launching your product heavily.
I don’t think that you’ll be able to run a profitable Amazon business within one week.
In fact, the average Amazon seller needs about half a year to turn a profit:
In the beginning, you need to invest time and money into your Amazon business to be profitable in the long run.
If you want to launch a more competitive product, you will have to invest more money and time in the promotion.
If you want to sell a less competitive product, you’ll need to invest less money and time in the promotion.
It’s that simple.
In most cases, the best-selling products are always more competitive. A product that only makes $200 in revenue won’t be that competitive as a product that makes you $20,000 a month.
A Strategy To Find The Best Products To Sell on Amazon
As already mentioned, you need to find products with high demand and low competition.
Imagine there’s a product all people want to buy, and nobody sells.
This could be your chance.
Unfortunately, it’s not possible to find such a product on Amazon.
Several niches are over-saturated, and it’s hard to stand a chance against established sellers.
However, here’s a step-by-step strategy that you can use to find private label products with high demand and low competition.
First of all, you need Jungle Scout’s Extension. It’s an excellent research tool to identify trending products. You can get it here for $29.
You can also buy the annual subscription with a 30% discount here. However, if you’re new to Amazon, it’s not necessary.
Next, here’s what to do:
First of all, search for a product by going through Amazon’s bestseller list. Let’s look at the bestseller list for “Kitchen and Dining”:
Choose any interesting product. For example, I choose a rack set:
Identify the most important keyword:
Put it into the search bar:
Next, open Jungle Scout’s Chrome Extension and search for all keywords that people are also looking for.
To do that, open Jungle Scout’s keyword cloud:
Let’s choose the keyword “wood”:
Put it another time into the search bar:
Amazon suggests the keyword wooden dish rack and drainboard set. You can perform a search for this keyword:
There are only 398 search results which indicates low competition.
However, Jungle Scout tells me not to go for this product because they say it’s highly competitive:
Finally, you shouldn’t sell this product. Yet, I think the process of this strategy is clear now. Use this “keyword-strategy” to search for a product with low competition and then check the revenue with Jungle Scout.
Over-size and Expensive Products
Usually, if you’re starting to sell online, you should consider the size and price of a product.
Over-size products are way more expensive than standard-size products. You also have to pay more shipping costs and Amazon FBA fees when selling over-size products.
On the other hand, selling over-size or more expensive products could be a great idea.
When we analyzed the number of product listings (Amazon US) by price range, we found some interesting results:
There’s much less competition for more expensive products than for low-cost products!
However, keep in mind that you’ll need a high budget if you want to sell over-size or more expensive products. You’ll need more money for manufacturing, shipping, FBA fees, and so on.
Demand and Penetration Rate
To decide which product categories are best to enter for your online store, we’ve analyzed different types of products based on two main aspects.
Demand and penetration rate.
Here’s what it is:
Demand: You know what demand is.
Penetration Rate: The market penetration rate is the percentage of target customers that make at least one purchase over a specific period. (Source) If there’s a niche where 99% of potential customers already bought a product, you’ll do hard to sell yours. But if only 1% of potential customers have made a purchase, it will be a hundred times easier for you.
The data we use applies to the entire eCommerce marketplace and comes from Statista.
Best Product Categories on Amazon
Amazon made $25.207 billion from its subscription services, $45.37 billion from its Amazon Web Services (AWS) segment, and generated an estimated $10.4 billion during their annual Prime Day sales event in 2020.
But did you know that Amazon initially started as a bookselling company?
In 1994, Jeff Bezos founded Amazon.com as an online bookselling company, and in 1995 Amazon sold the first book Fluid Concepts and Creative Analogies: Computer Models of the Fundamental Mechanisms of Thought by Douglas R. Hofstadters.
That’s why we start with the product category books:
Although there are things like ebooks and iPads nowadays, people always want to read real books.
That’s why according to Statista, the book sector is going to grow up to 144,504 million USD by the year 2024.
Chart in EUR
The penetration rate will be 35% by 2024.
Selling books on Amazon is easy, and you don’t have to create a listing on your own. You can easily list your book by clicking on this button here:
And you’ll also have good chances to win the Amazon Buy Box. The disadvantage is that you have to sell books in bulk to make a real profit every single month.
Here’s a guide showing you how to sell books on Amazon.
An excellent idea is to sell baby products on Amazon because people will always buy stuff for their *new* babies.
In 2018, there were 3,79 million births in the US alone.
According to Statista, there’ll be a revenue growth to 241,012 million USD in the Toys & Baby sector:
Chart in EUR
The penetration rate will be under 15%:
Selling baby articles will always work. But keep in mind that there’s a lot of competition, and therefore, you’ll need a high budget to invest in promotion and outrank your competitors on Amazon in the long run.
If you’re looking for an easy game, selling baby articles isn’t your best bet.
It’s the same with pets. People will always have pets, and they will always love it to buy new stuff for them.
And this doesn’t seem to have an end.
By 2024, the pet and garden industry will have a revenue of 122,392 million USD worldwide.
Chart in EUR
The penetration rate will be under 13%:
However, there are also already thousands of sellers who offer pet products on Amazon. To succeed, you need to find a super niche product or invest a lot of money.
People love to go out into the fresh air and do activities like hiking. Like the fitness trend, this trend continues to increase.
By 2024, there’ll be a worldwide turnover of 207,091 million USD.
Chart in EUR
Also, the penetration rate of approx. 15% is not bad.
Most people enjoy cooking.
Kitchen lovers are always in favor of buying a new gadget to make everyday life in the kitchen easier.
For this reason, there’ll be a worldwide revenue of 146,658 million USD by 2024.
Chart in EUR
The penetration will be about 24%.
What to sell on Amazon: Criteria
Here are some criteria you need to consider before choosing products you want to sell on Amazon:
- Choose items with high demand: at a minimum, any product should sell at least 10 sales per day.
- Avoid really trendy/seasonal products if you want to achieve sustainable growth.
- Find a niche with consistent demand: look for products with steady monthly sales volumes and low competition.
- Consider products that are inexpensive to acquire/make.
- Test the product quality before investing in the item.
- If you want to keep your shipping costs low be careful about items that are fragile, breakable or prone to damage.
- Expensive products can be more difficult to ship and to sell but make a big profit
Where Can You Find Items to Sell on Amazon?
With every e-commerce business, it’s uber important to understand what products you should sell to increase your revenue. However, it’s as important that you know at which places you can get your products from.
- alibaba (perfect for private label products)
- Aliexpress (low Minimum Order Quantities/also suited for dropshipping)
- Brick and Mortar Stores (perfect for retail arbitrage)
- Other Online Marketplaces like eBay (perfect for online arbitrage)
To summarize what you’ve learned, here’s everything important:
- It depends on your budget and goals, which products you should sell
- You’ll need money for promotion
- Selling evergreen products is always a good choice
- Keep ROI in mind
- Stay away from high competition if you don’t have a high budget
Now that you’ve got some product ideas you know everything to find top selling products on your own with the help of the product research tool Jungle Scout.
FAQ – Frequently Asked Questions
If you want to know which are the best products to sell on Amazon you need to take a look at our article above. We looked up the best product categories on Amazon for you.
There are always product categories which sell better than other categories. If you want to know what these categories are you need to read the chapter Best Product Categories on Amazon.
Which products are most successful on Amazon depends on many things. There are no such products which are selling all by themselves. But there are so called Evergreen Products that sell consistently right now and will sell consistently in the future. If you want to know more about successful products on Amazon you need to read the chapters above in this article.