Discover the Secrets to Finding Profitable Amazon Products

Discover the Secrets to Finding Profitable Amazon Products

Table of Contents:

  1. Introduction
  2. Understanding the Importance of Product Selection
  3. Factors to Consider in Product Selection 3.1 High Demand 3.2 Low Competition 3.3 High Profitability 3.4 Improvement Potential 3.5 Ease of Selling 3.6 No Legal or Liability Issues
  4. Different Business Models on Amazon 4.1 Wholesale 4.2 Arbitrage 4.3 Dropshipping 4.4 Private Label
  5. Starting with Private Label 5.1 Explanation of Private Label 5.2 Benefits of Private Label 5.3 Selling in Different Countries 5.4 Investment Required to Get Started
  6. Finding Profitable Products on Amazon 6.1 Importance of Data-Driven Decisions 6.2 Using Jungle Scout for Product Research 6.3 Setting Filters to Find Good Products
  7. Analyzing Product Niche and Competition 7.1 Determining Product Demand 7.2 Evaluating Competition 7.3 Ensuring Profitability
  8. Reaching Out to Suppliers 8.1 Obtaining Real Quotes for Product Costs 8.2 Working with Suppliers to Finalize Products
  9. Conclusion

How to Find Profitable Products to Sell on Amazon


Becoming a successful Amazon seller starts with selecting the right products to sell. Many aspiring sellers struggle to find good product ideas, which often becomes a barrier to getting started. In this article, we will guide you through the process of finding profitable products that meet specific criteria. We'll also discuss different business models on Amazon and the benefits of private label. By the end, you will have a clear understanding of how to find, analyze, and choose the best products to sell on Amazon.

Understanding the Importance of Product Selection

The success of your Amazon selling journey depends on the products you choose to sell. Selecting the wrong products can lead to wasted time, money, and effort. It is crucial to have a clear understanding of what makes a good product and the factors you should consider during product selection.

Factors to Consider in Product Selection

  1. High Demand: Finding products with high demand ensures a consistent flow of sales. Look for products that many shoppers consistently buy on Amazon. Use tools like Jungle Scout to estimate the number of monthly sales and aim for at least 300 units per month.

  2. Low Competition: Identifying products with low competition gives you a better chance to outrank and outperform existing sellers. Focus on products with a low number of reviews but still have significant sales. Look for products with less than 100 reviews and over 300 monthly sales.

  3. High Profitability: Selecting products that are highly profitable is essential for building a sustainable business. Ensure that your product allows for healthy profit margins by pricing it between $20 and $70. Avoid products with low profitability as they may become unviable if Amazon increases fees or shipping costs.

  4. Improvement Potential: Products with improvement potential give you an opportunity to stand out from the competition. Look for products that have a decent sales volume despite having a poor star rating. Consider making slight tweaks or enhancements to make the product better than existing options.

  5. Ease of Selling: Starting with products that are easy to sell reduces complexities and potential headaches. Choose products that are simple to manufacture, not easily breakable, and have small and lightweight packaging. Avoid oversize products to minimize additional fees imposed by Amazon.

  6. No Legal or Liability Issues: Ensure that the product you select does not infringe on existing patents or trademarks. Avoid selling products that have the potential for legal disputes, such as safety-related items. Cross off any product that could potentially result in liability issues.

Different Business Models on Amazon

Before diving into the product selection process, it's essential to understand the different business models available on Amazon. These models will significantly impact the factors you should consider during product selection.

  1. Wholesale: The wholesale model involves buying products in bulk directly from established brands and reselling them on Amazon. This model requires less effort in terms of product development, but it also offers limited control over branding and customization.

  2. Arbitrage: Arbitrage involves purchasing discounted products from retailers, either in-store or online, and reselling them on Amazon. This model can offer quick and easy entry into selling on Amazon, but it requires continuous scouting for discounted products.

  3. Dropshipping: Dropshipping involves purchasing products from online suppliers and having them shipped directly to customers upon receiving an order. This model eliminates the need for inventory storage and fulfillment, but it can be challenging to find reliable and efficient suppliers.

  4. Private Label: Private Label is considered the best and most popular business model on Amazon. With private label, you take a generic product and place your own brand on it. This model allows you to build a unique brand and have full control over the product's features, packaging, and pricing.

Starting with Private Label

Private label is the recommended business model for long-term success and brand building on Amazon. It offers several advantages, including brand ownership and the potential to sell the entire business in the future. Here are the key aspects to consider when starting with private label:

  1. Explanation of Private Label: Private label is the process of taking a generic product and branding it with your own label. By utilizing Amazon's Fulfilled by Amazon (FBA) service, you can have your supplier ship the product directly to Amazon's warehouses, where they handle the fulfillment on your behalf.

  2. Benefits of Private Label: Private label allows you to build a real brand that cannot be easily replicated. You have control over the product's quality, branding, and customer experience. Private label products often have higher profit margins compared to wholesale or arbitrage models.

  3. Selling in Different Countries: One major advantage of selling on Amazon is the ability to sell in countries where you don't live. Research and understand the tax laws and regulations of the country you plan to sell in. Don't be limited to selling in your home country as expanding globally can significantly increase your market reach.

  4. Investment Required to Get Started: Getting started with private label can require an initial investment. You can start with as low as $1,000-$2,000, but having more capital will give you more flexibility and potentially higher-profit opportunities. Keep in mind that there are additional costs involved, such as product photography, design, and trademark registration.

Finding Profitable Products on Amazon

Now that you understand the importance of product selection and the private label business model, let's dive into the process of finding profitable products on Amazon.

  1. Importance of Data-Driven Decisions: The biggest mistake many beginners make is relying on personal opinions rather than data-driven decisions. Use tools like Jungle Scout for accurate and insightful product research. It provides estimated sales, costs, profits, and more, removing the guesswork from product research.

  2. Using Jungle Scout for Product Research: Jungle Scout offers two powerful tools for product research: the Product Database and the Chrome extension. The Product Database provides access to every product on Amazon, while the Chrome extension provides real-time sales estimates and other helpful data on product listing pages.

  3. Setting Filters to Find Good Products: To find profitable products, it's essential to set specific filters based on the factors mentioned earlier. Use filters to narrow down your product search based on high demand, low competition, high profitability, improvement potential, ease of selling, and no legal or liability issues. Adjust filters to find products that meet your specific criteria.

Analyzing Product Niche and Competition

After finding potential product ideas, it's crucial to analyze the product niche and competition to ensure a viable market for your chosen product. Follow these steps to evaluate the product niche and competition:

  1. Determining Product Demand: Search for your potential product on Amazon to get a sense of its demand. Look for keywords that accurately describe the product and paste them into the search bar. Use the Jungle Scout Chrome extension to uncover the main keywords customers are using to find similar products. Look for a total of around 3,000 monthly sales among the top ten listings on page one.

  2. Evaluating Competition: Examine the competition by looking at the number of reviews/ratings and the average price of products in your chosen niche. Aim for an average of no more than a thousand reviews among the top ten listings, with a few listings having less than a hundred reviews. Ensure that the market is not dominated by a couple of listings, indicating a healthy distribution of sales.

  3. Ensuring Profitability: Assess the profitability of your potential product by calculating the return on investment (ROI). Use the Jungle Scout profit calculator to input your estimated per unit product cost and Amazon fees. Aim for a minimum ROI of 100% to ensure a sustainable and profitable business. Consider the rule of thirds to simplify the calculation.

Reaching Out to Suppliers

Once you've narrowed down your product ideas and estimated their profitability, it's time to reach out to suppliers. Obtain real quotes from different suppliers to determine the exact product costs and shipping fees. Work closely with suppliers to finalize product specifications and packaging.


Finding profitable products to sell on Amazon is a crucial step towards building a successful online business. By understanding the significance of product selection and considering various factors such as demand, competition, profitability, and ease of selling, you can make informed decisions and increase your chances of success. Combine data-driven research with the private label business model to build a unique brand and unlock long-term potential on Amazon. Remember to analyze product niches and reach out to suppliers to bring your product ideas to life.

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