How to Choose the Right Products for Your Amazon FBA Business

Below are the key points you need to understand carefully to make the right product selection & make your store a profitable one.

1.   Do Your Own Market Research: Identify The Demand Analysis

Before you start looking for products, you need to perform thorough market research. This research needs an assessment of the current market demands & ongoing trends. Some of the best market research tips & tools are:

• Look up the ‘’ Amazon Best Sellers’’ list to pinpoint the in-demand products.
• Go on ‘’Google Trends’’ to know how much interest spike there is in a specific product
• Two of the most competent product-hunting tools are ‘’Helium 10’’ & ‘’Jungle Scout’’.

For example, if you see an increasing trend for eco-friendly kitchen products, look it up on Helium 10. You will see that bamboo utensils are seeing increased sales but have low competition. This makes it a viable product.

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2.   Know Your Competition

There is much competition in the Amazon marketplace, thus making it difficult for you to make an entry. However, if the competition is low then demand will also be low, which is also a negative. You need to do your own competitor analysis. The metrics for this include;

Checking the reviews: Any product with thousands of reviews would already be in the hands of established sellers.

Ratings: A product with a high rating is an indicator of product quality but also means high competition.

Pricing: Look for different pricing strategies to come up with the right profit margin for a similar product.

So, if you find a product within the Amazon FBA wholesale niche; start looking for its top sellers. If they have 1000+ reviews with a high rating, you would have a hard time with the same product unless you offer something unique.  

3.   Calculate Profit Margins Carefully

Everyone is here to make profits and to ensure this; you need to carefully calculate those margins. You need to consider every expense such as manufacturing cost, shipping cost, Amazon fees, and marketing expenses. There could also be additional expenses like operational costs & packaging.

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4.   Product Sourcing & Your Amazon Business Model

When choosing the right products for your Amazon FBA business, you need to identify the right business model. Right now there are 2 major models; Amazon FBA Wholesale & Amazon FBA Private Label. Both have their own pros & cons.

Amazon FBA Wholesale

Pros:

• Much easier to start
• Gets fast sales
• Presence of established brands
• Low starting Capital

Cons:

• Minimum control for Branding
• Low profit margins

Amazon FBA Private Label

Pros:

• High profit margins
• Have control over Branding
• Prospect or Brand Loyalty

Cons

• Requires high starting capital
• Takes much longer to create a market presence

5.   Factor In Product Size & Weight

Your Amazon FBA fees are directly related to the product size & weight. Smaller & lightweight products have low fees, thus increasing your profit gains.

For example, there is one store with compact kitchen gadgets for sale while another has heavy-duty kitchen appliances. The one with compact size & low weight will have lower fees for storage & shipping, increasing the store owner’s profits.

6.   Search For Products On Social Media Platforms

Social media offers a variety of platforms to look for the right products. This free source lets you find products with emerging trends. You can effectively do product hunting with these tips.

• For any popular product category, follow its top influencers.
• Keep an eye on trending Hashtags, especially on TikTok & Instagram.
• There are social listening tools that keep track of specific product mentions.

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7.   Look For Product Reviews & Offer A Feedback Solution

Customer reviews give valuable insight into any product’s quality & rating. You can easily boost your sales by addressing frequently told issues and offering appropriate feedback to improve customer satisfaction.

You can look for your competitor’s product reviews and identify any frequently mentioned issues. Offer a solution in the same product and market it with this solution to gain a steady space in the market.