How to Find a Profitable Product to Sell On Amazon

By EB

How to find a product that has a higher demand and low competition to sell on Amazon? Here is a practical strategy to find profitable products to sell on Amazon.

Jump straight to the content lineup How to find a winning products to sell on Amazon ⇩, or read my story below 🙂


How to find a product sell on Amazon? To be honest, with more than 8 years of experience, still finding the right product to sell online is the most overwhelming task for me. 😐

So, over the past years, I made a strategy to find winning products to sell on Amazon (or any other online platform).

I really love my hard earned money. And, I do not want to waste that money on some failed project. So, I always make sure that I make the very best decision when finding a product to sell on Amazon. I mean, finding the right product is the starting point of any business. If you make a mistake right at the beginning, all your investments for the branding, marketing and developments will be wasted.

And, here I am going to share my strategy with you. 🙁

Well, I don’t want to. But, to be honest, I need my blog to be more popular. So, giving away this strategy is kind of an investment for me.

So, here we go!


How to find a product to sell on Amazon?

  • See what is trending on Amazon or Trendhunter.
  • Check the trend of demand.
  • Verify the size (envelop to shoe box packing) and price ($25-$50).
  • Check the potential profit margin.
  • Check the average CPC (cost per click) and SEO difficulty.
  • Check reviews to find customer’s pain points.
  • Define your unique selling prepositions.
  • Check for marketing opportunities.
  • Add a pilot listing on eBay or Amazon for a single product.

It might look like a complicated process. Yes, I must admit that may be a bit complicated process. But, it works!

See what is trending on Amazon and Trendhunter

When I first started dropshipping, I spent months searching for the products without any competition. So, I thought I could easily dominate the market. But, later I realized these two things.

No competition = No demand

No demand = No (less) sales

So, I realized, rather than wasting my time finding the products without any competition, I should start surfing the trend.

Well, here is how this market works. There are a lot of intelligent people in this world. And, there are a lot of people who spend thousands of dollars on marketing research tools. So, I believe if these people can find some profitable product, they will start selling that product. Those big players usually work as trend-setters. They can spend a lot of money on their marketing campaigns to make something popular.

So, it is much safer for the micro-scale sellers like me to piggy-back those trends and sell with those trends.

That is the reason why I always start to find a product to sell on Amazon, by looking at Amazon best sellers or Amazon most wished for lists.

Also, recently I have started using the Trendhunter tool. It uses big data, human research and AI to identify the consumer insights and opportunities. Their free data is more than enough for me to find a product to sell on Amazon.

P.S. Other than the Amazon trending products, recently I have realized that trending projects on Kickstarter also get good traction on Amazon within just a few months. So, it is good information about near-future trends.

Check the trend and demand

Do you remember the Fidget spinners? Well, if you don’t know, check it on Google, it is a 2017 thing.

In mid-2017, these fidget spinners went viral. I think every single teenager had one back then. But, where is it now? It is dead.

As I told you earlier, I always play safe with the new products. If I select a product to sell, I always try to find an evergreen niche. That means, I always look for the products that have the potential to maintain its popularity for at least a couple of years.

So, after I find the trending products, I usually use Google trends to filter-out the products like Fidget spinners.

This is the trend for Fidget spinners. Can you see the spike? Everything in this world follows a bell-curve (it is just one of my own theories). If the rise is too steep, the fall is steep too.

find products to sell on amazon - impulse trends

Also, I think you should avoid any seasonal trends too. For example, if you start selling Christmas decorations, you will only get the sales during the Christmas season. And, the worst part is, usually during such seasons, the big sellers with a huge marketing budget can easily steal the spotlight.

Verify the size and price

As a rule of thumb, I always pick the products that can be packed in an envelope or a shoe box (the smaller, the better). That makes your life so much easy when it comes to the shipping.

By choosing a small product, you can get cheap shipping rates and order fulfillment rates.

Also, I don’t usually sell anything above $50. The reason is, if you sell something above $50, your customers expect an extraordinary after-sales service from you. This doesn’t mean that you should not provide excellent customer service! But, it is much easy to work with the customers, when the order price is less than $50.

Also, I don’t usually go below $25. Otherwise, your efforts to sell a single product won’t worth it.

Check the potential profit margin

Pricing the products to sell on Amazon is a broad subject area. But, at this stage, you can quickly have a rough calculation based on the below points

  • Supplier Price (I usually use the Aliexpress price)
  • Shipping Cost 
  • Marketing Costs (Typically around 30% of the price, for the Facebook ads)
  • Amazon seller plan charges
  • Transaction fees
  • Currency exchanges margins
  • Taxes
  • Allocation for refunds (Typically 5%)
  • Running costs for any other tools or apps in use
  • Your profit margin (40% – 50%)

As I have mentioned in this list, I usually try to keep a margin of 40-50% for the profits.

Once I do this calculation, if the selling price became out of range from the average price in the market, maybe you should try some another product.

After all, the price is the most dominant factor for your customers purchasing decision.

Check average CPC (cost per click) and SEO difficulty

I usually use the CPC for the keywords of the selected products as a confirmation of the popularity. CPC is the average amount of money that you need to pay to ad publishers (usually the Google) to be seen as an ad.

If you have a higher CPC, that keywords have a higher competition.

But, this part is a bit tricky. Even though it is good to have a competitive niche, at the same time your ad costs will be higher with high CPC keywords. So, you need to find the correct balance between your ad budget and competition. Usually, for a $25-$50 product, I target a CPC around $2-$3. But, this depends on the product you select.

Also, if you are planning to run a separate business site to promote your products, it is essential to evaluate the SEO difficulty too.

By running a separate site, you can use content marketing to promote your products. You can maintain a blog to drive traffic to your site. Marketing strategies that are involved with SEO take a lot of time to provide results. But, unlike the paid ads, your ROI from SEO marketing strategies are much better.

Check reviews to find customer’s pain-points

Over the past few years, I have learned an important thing about online marketing.

That is, you should never try to sell a product or a service through your marketing campaigns. The best way to market a product is by offering a solution to your customer’s problems.

For example,

Let us assume that you sell quick prep baby food. So, you should never create your ad copies to sell just the quick prep baby food. What you can do is, you can address a problem that your potential customers are suffering from.

In this example, your potential customers can be working moms, who are so busy and they don’t have time to prepare meals for their kids.

So, that is a customer pain point.

Now, in your ad copy, you can try to offer a solution to this problem. Rephrase the customer pain points as questions in your ad copy. Then, subtly provide your solution.

But, where can you find the customer pain points? Easy; just read the reviews of your competitor products.

Amazon review sections are gold mines for online marketers. People truly express their opinions, and you can easily pick a few great ideas for your marketing campaign from these reviews.

So, when you find a product to sell on Amazon, make sure to go through your competitor’s product reviews.

Define your USPs (Unique Selling Prepositions)

Your USPs (or Unique Selling Prepositions) make your product to stand out from the competition. You can set your USPs to address the pain points of your customers.

It doesn’t matter whether you are going to sell your product on Amazon or any other online marketplace. You can always build your own brand. For example, if you sell makeup products, you can always re-sell cosmetics from other brands, while maintaining your own store’s branding.

The magic behind growing your own brand is your USPs. When you select a product to sell on Amazon, make sure to evaluate your possibilities to build USPs.

I’ll give an example, if you are thinking of selecting a makeup product to sell on Amazon, you can pick vegan products and make that your store’s specialty.

So, what I would do is, I would search for the secondary products in that niche, to sell with my up-selling and cross-selling strategies. And, if I can find a good range of products, the first product will be qualified to be sold.

Check for the marketing opportunities

To be honest with you, I found that it is super easy to build my marketing strategies on social media. There are 2.5 billion people, waking up to social media. I have never seen such an engagement anywhere else.

Since people are already live on social media, social media is the best place to sell your products. So, when I select a product to sell on Amazon, I always think about how I can build a social media marketing campaign for that product.

Usually, the products with an eye-catching appearance intrigue social media users. Also, such eye-candy products can be sold easily on Instagram too.

Bonus tip: You can have an extreme amount of engagement for your ads if you can use pet videos to market your products. So, see how you can include a car or a dog to sell the product of your choice.

Add a pilot listing on eBay or Amazon for a single product

If you have gone through my strategy to find products to sell on Amazon, you would have noticed that I am not selecting products to sell only for a couple of months.

So, before investing my time and hard-earned money, I always do a litmus-test for my products.

What I usually do is, I create a product listing on eBay or Amazon, for just a single product, and use my personal social media accounts to promote that listing.

If I have done my homework right, usually I can sell this product within a couple of days. If I couldn’t sell this product, then I start analyzing my process. Maybe there is something wrong with my product description. Or, maybe there is something wrong with the photos.

So, before I go for a full-paid ad campaign, I use this pilot test to make sure that everything works fine.

Extra Reading:

How to find a product to sell on Amazon, did you get the strategy?

Amazon offers an unparalleled marketplace to sell online. But, selecting the right product to sell on Amazon is the most overwhelming stage of this whole process. So, over the past few years, I have developed my own strategy to find the products to sell on Amazon (or any other online marketplace).

I hope you found this article useful. Or, did I miss any critical point? Please leave a comment and let me know. If this article is worth sharing, please spread the word by sharing this article. J