Whether you are new to Amazon or just aiming to scale your business in the biggest marketplace, finding profitable products to sell is one of the decisive factors that will determine your success. Let’s just say that even if you have the most amazing product in the market you can not sell it if it is lacking demand!
What are the best products to sell on Amazon? What makes a product profitable on Amazon? How do you perform product research? All these questions are going to be answered in this article, so keep reading!
The Best Products to Sell on Amazon
According to eDesck’s report of Amazon statistics 2022, the most popular category was Home and Kitchen with over 32% of sellers having products listed under it, followed by Beauty & Personal Care with 23%, and Toys & Games with 20%.
1. Home & Kitchen
It is not a secret that people use some type of home or kitchen product on a daily basis, from household accessories and baking supplies to kitchen utensils. There are a lot of things you can sell in this category with the benefit that this specific category has such as:
- Lower barrier to entry: This category does not restrict new sellers from listing in it like most other categories.
- Fewer complicated requirements: Home & Kitchen does not have expiration dates like food does, nor restrictions to sell during Q4 toy sellers have, just as an example.
2. Beauty & Personal Care
At a time when consumers are taking their health and self-care more seriously than ever before, this category has grown in popularity. From cosmetics, and personal hygiene products to skincare routines, this category might be a good start.
3. Toys & Games
Toys and Games have always been among the best-selling categories on Amazon. Just to give you an insight into how big this market is, the Kid Insight Global Toys & Games report discovered that children in the U.S. receive $ 3.76 billion a year to spend as they wish.
How to Choose a Winning Product
While looking at the top 10 most popular product categories in 2022 can give you an idea of what products to sell, there are also other aspects you should consider before choosing what to sell.
1. Profitability
Whereas Home & Kitchen and Beauty & Personal Care are among the top categories among sellers, both have multiple subcategories that are not profitable due to increased competition, direct competition from Amazon, higher cost of advertising, etc.
On the opposite side, there are less popular categories that can be more profitable than popular categories. For example, in 2022 only 4% of sellers had between 51% and 100% net profit in Home & Kitchen, whereas 9% of sellers had between 51%-100% net profit in Handmade.
The point here is that choosing a popular category does not ensure that you hit a high-profit margin. You need to find a balance between a category that has high demand and low competition.
High search volume
A good indicator that your product can get your sales up is the number of people who look for your product. The more people searching for your product, the higher chance you will have to increase your conversion rate!
Product size and weight
If this is your first time selling on Amazon, you might want to go after small and lightweight products to keep shipping costs down and make inventory simpler to manage. However, if you are an experienced seller and most importantly you have the capability to sell bigger and heavier products, this should not be a problem.
Evergreen
Choosing seasonal products is not a smart move if you are new to Amazon as your profits will depend entirely on the seasonality of the year. Instead, opt to sell an evergreen product that ensures you can sell it at any time of the year. It would not guarantee that your sales will run exactly the same throughout the whole year but the demand will always be there and that is what matters most.
How to Perform Product Research
Now that you know the 4 main criteria you should take into consideration when looking for a winning product, it is time to start the research!
Search on Amazon
Before going to another platform to get inspired, start by looking on Amazon. By clicking on Amazon Best-Sellers you can paint yourself a picture of what people are buying the most and find best-selling products by category.
However, as we have mentioned before, trying to compete with products with such a high demand might not be the best approach to selling on Amazon as they already have an established market - at least if you are a new seller. That is why we recommend doing more “niche” product research or going deeper into subcategories.
Another way to get good ideas is by researching Amazon Hot New Releases. Not only do these lists show the products that are rising in popularity, but they are also updated every hour, giving you new ideas on what to sell that you might not have thought of before.
1. Perform Keyword Research
By doing keyword research you can determine which products potential customers are looking for. You need to make sure that there is enough demand for you to enter the market.
You can use the Amazon search bar for product keyword research or you can opt for a more advanced product research tool like Jungle Scout to find high-demand, low-competition products.
2. Check Google Trends
Google Trends is a tool used to analyze the popularity of top search queries in Google Search across different regions and languages which can give you an idea of the popularity of a particular product over time.
Type in the keywords of your product and Google Trends will show you the information. For this example, we searched for “microwave” and it shows us that this product has been relatively consistent for the past 12 months.
3. Look for Product Review
Since just a few customers leave reviews, looking at the product’s review dates is a helpful way to identify how often people are purchasing that specific product.
Scroll down to the customer review section and click on “most recent”.
Find your Winning Product
Figuring out what to sell on Amazon is easier said than done. You need to decide what category is best for you, double-check that there is enough demand for your product, ensure that you are not entering an over-saturated market, and determine if your product is profitable enough. However, if you follow all the information we provided in this article, you will be much further along in choosing a winning product to sell on Amazon in 2023.