The Best Products To Sell On Amazon To Succeed in 2020

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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 extremely hard for sellers to find new niches to enter.

But although the competition on Amazon is super high, most sellers make a lot of money on Amazon. In fact, 74% of sellers make more than $1,000 a month and 34% make more than $10,000 a month.

If you also want to sell on Amazon and find the best niches to enter, you've come to the right place.

Here's what you'll learn in this article:

  • Which products should you sell?
  • How to find great product niches
  • The *rarely mentioned secret* to succeed on Amazon
  • The best product categories to enter

Let's start.

You Need To Sell These Products...

What are the best products to sell on Amazon? Honestly, it depends on your budget and goals. 

Do you want to make $2,000 a month or $20,000?

Is your budget $1,000 or $10,000?

All of this influences what products to sell on Amazon.

However, I think for most of you the best products to sell are so-called evergreen products.

What are evergreen products?

Evergreen products are products that sell consistently 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.

You've to sell products that have an enormous demand right now and for the coming decades.

In general, such products are more competitive than others, because most sellers know that thousands of people want to buy them.

However, if you use the strategy I'll show you in a minute, you’ll be able to find products that are actually not so competitive and still have a huge demand.

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.

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:

Time It Takes to Be Profitable on Amazon

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In the beginning, you need to invest time and money into your 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 promotion.

If you want to sell a less competitive product, you’ll need to invest less money and time in promotion.

It’s that simple.

In most cases, more competitive products make you more money. A product that only makes $200 in revenue won't be that competitive as a product that makes you $20,000 a month. 

At the end of the day, it all comes down to the ROI.

ROI (= Return on Investment) is a financial metric to analyze the efficiency of an investment. (Wiki)

And unless a niche is not super competitive and you will never stand a chance to rank on the first page of search results, the higher the revenue, the higher the ROI.

If you keep this in mind, head over to the next section because I'll show you a research strategy to find money-making products with low competition easy:

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 it yet.

This could be your chance, right?

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 strategy that you can use to find products with high demand and not so high competition:

First of all, you need Jungle Scout's Extension. You can get it here for $19.

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":

Kitchen and Dining

Choose any interesting product. For example, I choose a rack set:

Sweet Home Collection

Identify the most important keyword:

Rack Set

Put it into the search bar:

Rack Set Search

Now, you should see all search results for this keyword. Next, open Jungle Scout's Chrome Extension and search for all keywords that people are also searching for.

To do that, open Jungle Scout's keyword cloud:

Keyword Cloud

Let's choose the keyword "wood":

Rack Set CounterPop

Put it another time into the search bar:

Rack Set Wood

Amazon suggests you the keyword wooden dish rack and drainboard set. You can perform a search for this keyword:

Results Set Wood

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:

Jungle Scout Rack Set 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 that has low competition and then also check the revenue with Jungle Scout.

Think Out Of The Box

Normally, if you're just starting, you should consider the size and price of a product.

Over-size products are way more expensive than standard-size products. Plus, you also have to pay more for shipping and Amazon's FBA service if you sell over-size products.

On the other hand, selling over-size products and more expensive products could be a great idea.

When we analyzed the number of products (Amazon US) by price range, we found some interesting results:

Amount of products on Amazon by Price Range

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Yeah, you're right. There's much less competition for more expensive products than for low-cost products!

What you've to keep in mind is that you'll need a high budget if you want to sell over-size products. You'll need more money for manufacturing, shipping, FBA fees, and of course promotion.

Demand And Penetration Rate

To decide which product categories are best to enter, we've analyzed all categories 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 of time. (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 is provided by Statista.

Best Product Categories On Amazon

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:

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.

Books Revenue

Chart in EUR

The penetration rate will be 35% by 2024.

Books Video PR

Selling books on Amazon is easy. You don't have to create a listing on your own. You can easily list your book by clicking on this button here:

How To Sell Books on Amazon

And you’ll also have good chances to win the Amazon buy box to quickly sell your stuff. The con 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 and make a profit every single month.

Baby

A great 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:

Baby Rev

Chart in EUR

The penetration rate will be under 15%:

Baby Pr

Selling baby articles will always work. But keep in mind that there’s a lot of competition. 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.

Pets

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.

Garden and Pet supplies rev

Chart in EUR

The penetration rate will be under 13%:

Garden and Pet supplies pr

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.

Outdoor

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.

Sport and Outdoor

Chart in EUR

Also, the penetration rate of approx. 15% is not bad.

Sport Outdoor Penetration

Kitchen

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.

Home Kitchen Revenue Forecast

Chart in EUR

The penetration will be about 24%.

Home Kitchen pr

In Conclusion

To summarize what you've learned, here's everything that's 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 the budget

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