5 Proven Methods for Finding a Profitable Product to Sell on Amazon

Selling on Amazon may seem overwhelming at first, but with the right approach, it can be a lucrative opportunity for businesses and individuals alike. Fortunately, the e-commerce giant offers a wealth of resources and tools to help sellers find the perfect product to offer. In this guide, we'll walk you through the top product categories on Amazon and five proven methods for conducting research to ensure success as a third-party seller.

Top Product Categories on Amazon

• Home & Kitchen
• Clothing, Shoes & Jewelry
• Electronics
• Beauty & Personal Care

Before we dive into the research methods, let's take a closer look at these top-selling categories on Amazon and what makes them so popular.

Home & Kitchen

Home and household appliances are in high demand, with a projected global retail sales of $448 billion in 2021. This category accounts for 32% of Amazon sellers, but it's also highly competitive. To be successful in this category, your product must have exceptional quality and fill a specific niche.

Clothing, Shoes & Jewelry

A 35% share of all online apparel sales is held by Amazon, making this category another popular choice for third-party sellers. Shoppers on Amazon tend to prefer casual clothing over luxury brands, and top-selling brands include Hanes and Amazon Essentials. However, competition can be tough, so it's crucial to offer a unique product at a competitive price to stand out.

Electronics

With the ever-evolving world of technology, there is always a demand for the latest gadgets, making the electronics category a promising option for sellers. Almost half of electronics sales occur online, and Amazon offers competitive prices on popular products. If you have the means to purchase electronics in bulk, this could be a profitable category for you.

Beauty & Personal Care

Despite a 15% decrease in global sales in 2020, the beauty and personal care industry has bounced back with a revenue increase of nearly $3 billion in 2021. This category encompasses a wide range of products, from makeup and skincare to fragrances and hair care. While there is competition from 23% of third-party sellers in this category, those specializing in handmade cosmetics may have an advantage.

How to Determine What to Sell on Amazon

Now that we've explored the top categories on Amazon, let's dive into the methods for finding the perfect product to sell.

1. Manually research on Amazon.com

To start, browse through Amazon's best-selling items in a specific category and explore sub-categories to identify profitable niches. You can also check the "Customers also bought" section for similar product ideas. Create a list of potential products and use tools like Google's keyword planner to determine search volume and demand. Alternatively, you can use Sellerapp's product intelligence tool, which offers a free seven-day trial, to conduct keyword research specifically for Amazon and further narrow down your list.

2. Use a Chrome extension

Jungle Scout and Unicorn Smasher are two popular Chrome extensions that can assist with keyword research on Amazon. Jungle Scout provides monthly sales volumes for products and highlights low-competition items.

3. Utilize Amazon's own tools

Amazon offers various tools, such as the Amazon Best Sellers list, Amazon Movers & Shakers, and Amazon Top Rated, to provide insight into popular and trending products on the platform.

4. Research the competition

Investigate your competitors' products and customer reviews to determine ways to differentiate your product and offer a unique value proposition.

5. Look for untapped niches

Consider niche markets that may have minimal competition on Amazon. Tools like MerchantWords or Sellics can help you find keywords with high search volume and low competition.

By utilizing these methods, you can confidently find the perfect product to sell on Amazon and establish yourself as a successful third-party seller on the platform. With some research and perseverance, your business can thrive on one of the world's largest e-commerce platforms.

How to Find the Perfect Product to Sell on Amazon

Finding the perfect product to sell on Amazon can seem like a daunting task, but there are helpful tools and strategies available to make the process easier. One such tool is Jungle Scout, which provides valuable analytics and helps identify potential products or industries to excel in. However, if Jungle Scout is not in your budget, there is a free alternative called Unicorn Smasher that can also be a useful resource for gathering estimated monthly sales and revenue for Amazon products.

1. Look for gaps in the market

To find a gap in the market, you can use a Chrome extension like Jungle Scout or Unicorn Smasher to research products with high sales volume and low competition. Alternatively, you can also discover a gap through a simple organic search on Amazon. For instance, a general search for "perfume" yields over 30,000 results, but if you search for a more specific term like "natural vegan amber perfume," there are only 247 results. This shows that sometimes narrowing down your search can uncover a unique niche on Amazon. Keep an eye out for specific scents, styles, or features that may be missing and in demand among customers.

Additionally, reading customer reviews in your product niche can be an effective way to identify a gap in the market. Even if there are similar products already available, customers may express dissatisfaction with the existing options, giving you the opportunity to offer something different and fill that gap.

2. Choose products with less competition

Trying to sell a product with 100,000 search results on Amazon can be a challenge when it comes to standing out and achieving desired sales. That's why it's crucial to find a niche within a larger market that has less competition. This way, your product is more likely to be found by shoppers searching for more specific keywords. Additionally, these shoppers are more likely to make a purchase since they had to use a more specific search term to find your product.

In Conclusion

Selling on Amazon can be highly profitable, but simply listing any product will not guarantee success. To truly thrive on the platform, it's crucial to offer something unique and in demand. By utilizing the tips above, you can effectively find the perfect product to sell on Amazon and watch your sales soar. So, don't hesitate to do your research and find that untapped market gap waiting to be filled.