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When running an Amazon Fulfilled by Amazon (FBA) business, deciding what to sell could differ between success and failure. Discover the best products to sell on Amazon and handy tips and advice to help make your FBA business a success.

The Amazon Marketplace

Before deciding what to sell on Amazon, you need to understand the Amazon Marketplace.

In 2020, Amazon’s annual revenue was over $386.1billion, with a third of Americans holding a Prime account. Amazon accounts for around 45 per cent of the US e-commerce market share (2019) and has shown continuous year-on-year growth. Figures also show that independent sellers are growing their success through Amazon. In 2018, 200 000 sellers had sales of over $100 000, with this figure rising to 225 000 in 2019.

It is estimated that around 2.14 billion people shop for goods online worldwide. From this, we can see that Amazon sellers’ opportunity is huge, but choosing the right products is essential.

Why Do People Use Amazon?

FBA has been a game-changer for Amazon sellers, giving them more time to focus on growing their business while Amazon takes care of order processing and admin. But, to capitalise on this new opportunity, you need to keep the customer in mind.

The first step in selecting the best Amazon FBA products is understanding what consumers are looking for.

Price

Amazon is a price-driven market. One of the key things people look for when using Amazon is a bargain. Because of this, the marketplace lends itself well to own-brand products. Designer and high-priced items are less likely to perform well due to the nature of the platform. Branded items are more commonly sold through their dedicated sites, while Amazon focuses on practical/solution-based items.

Product Range

Over 400 million individual products are being sold on Amazon at any given time. This means that competition is extremely high. Customers have a wide range of choices, so you need to provide added value to encourage them to choose your product over a competitor’s.

Convenience

One of the biggest reasons people use Amazon is for convenience. Ensure that you can provide fast shipping with the FBA products you choose. You may also want to offer free shipping to compete with other sellers.

Reviews and Comparisons

When making a purchase, many people rely on reviews to make their decision. Amazon is great for allowing customers to compare items and read reviews from hundreds of other customers. When choosing your FBA products, ensure that they are as described on the product listing and the quality matches up to competitor products. This will allow you to gain good reviews and make your products more likely to be chosen over competitors.

Now you know why people use Amazon, keep these tips in mind when choosing which products to sell.

The Best Products to Sell on Amazon FBA

Whether you’re just starting as an FBA seller or have dabbled before, the Amazon Marketplace Best Sellers List offers valuable data to help you make the right choice. Updated hourly, the list features all of the bestselling FBA categories, showing the top products within each.

There are, however, certain categories that consistently appear on the bestsellers list. This can be a great starting point when deciding what kind of product to sell. The most profitable and reliable products tend to be everyday-use, practical products.

Examples of commonly featured categories include:

Pet Supplies

The pet supplies industry is worth an estimated $99 billion in the US alone, with products for cats and dogs stealing most of the limelight. During the COVID-19 outbreak, pet ownership increased, helping to grow the market further.

Bestselling products within the Pet Supplies category on Amazon include collars, leashes and pet food. This is a highly competitive area but choosing a niche could help you capitalise on this growing industry. You could decide to target pet supplies for less popular animals such as Fish and Aquatic Pets. You could go even more granular and choose a section of that category such as food, aquariums or cleaning supplies.

Baby

With a new baby at home, anything to make life a little easier will sell well. Selling baby products through Amazon FBA is convenient for new families, but it can also help them save costs. This is often a key factor as baby supplies can be costly.

You could offer baby products in bulk or at discounted prices with quick delivery for added convenience. Bestselling products within the baby category include nappies, wipes and baby care products such as lotions, creams and ointments.

Sports and Outdoor

Products such as weights, water bottles and yoga mats consistently perform well in the Sports and Outdoor categories. This is a growing industry with more focus on health and wellness. Bear in mind that seasonality could play a role within this category. Try to choose products that will be purchased all year round and supplement your stock with seasonable products such as outdoor games in the summer months.

Picking Products to Sell on Amazon

Having a good idea of what category you want to sell in helps narrow down your product choice, but how do you choose specific products?

The best products to sell on Amazon FBA depend on numerous factors:

Don’t Try to Compete with Amazon

Amazon offers their own products in some of the popular categories. They will be listed above all other product listings, and if part of the Basics range, they will also likely be cheaper. Don’t try to compete with Amazon on their one platform.

Look at categories before choosing your products to see what Amazon already offers.

Pick a Niche

Popular categories are much higher in competition. With more products and more sellers to compete with, it can be difficult to make an impact. To give yourself more chance of success, choose a niche. You could select a specific subcategory or a dedicated product type.

Check Google Trends

Google Trends can be a handy tool for FBA product research. It displays search information on which topics are increasing in interest and those decreasing.

If a product already has a high search volume and high interest, competition will likely be very high. If interest is low, competition will also be low; however, purchases are less likely. The trick is identifying products for which search interest is just beginning to rise. The competition will still be relatively low, but demand will increase.

Be Reactive

Things very rarely stay the same. Interest in products peaks and dwindles based on life events, industry changes, trends, world events, regulation changes and more. Make sure you always have one finger on the pulse to ensure you can be reactive to these changes.

Don’t be afraid to add or remove products to your FBA range. If you are not reactive, your business and sales may begin to stagnate, and you could be hit with unwanted FBA fees.

Listen to Data

Data can be one of the most important tools at your disposal when selecting the FBA products. Being data-led helps you to action the findings of your research.

Never sell products just because you like them. Analyse the demand, competition level and product performance on Amazon Marketplace before choosing. You can also use data to track seasonality trends to determine which products should be added or removed from your product range and at which times of the year.

Practicality

Amazon customers generally come to the site with a specific product idea. It is not a platform people use to browse. Due to this, practical products that fulfil a need tend to be more successful. Think practically and ensure your product listings are highly descriptive of their purpose.