How To Find The Most Profitable Items To Sell On Amazon
The process of researching profitable products to sell is a sometimes tedious, but essential task for every successful E-Commerce merchant.
When it comes to actually carrying out their product research, Amazon sellers have to take into account millions of recently updated listings, price adaptations and new product launches that are constantly reshaping the Amazon marketplace.
So it seems that it’s merely impossible nowadays to find the best products to sell on Amazon if you simply rely on your personal intuition – Amazon Sellers have to ensure their product research is both thorough and accurate and ideally, vendors should take advantage of data-driven insights to assess the profitability of products.
Moreover, researching what to sell on Amazon will have not only a single, but several valuable outcomes for Amazon Sellers: First of all, it may certainly give you an advantage in finding the most profitable items to sell on Amazon for your own online business. But in addition, researching for profitable products will also help you to track actions from your competing sellers in the marketplace as well as ensure that you stay on top of the current market trends and relevant industry developments.
As product sourcing has always been a common method for Sellers to ensure positive financial results at bottom line, there already exist multiple approaches for researching profitable products to sell on Amazon marketplaces and many of them are widely known. Surely, there is so say that every Seller will carry out their research according to her/his own preferences.
In the following article, we aim to present you with an overview of valuable strategic advice and tips on how to conduct Amazon product research to source for the most profitable things to sell – and in doing so, we want to help you to increase your profit margins at bottom line.
1 – Make sure to review the Best Selling Products lists on popular E-Commerce marketplaces (not just Amazon)
Many popular E-Commerce marketplaces are already offering comprehensive and free insights into the best selling items within their online stores themselves, just like a common Amazon product research tool. Those insights are data-driven and based on marketplace-internal calculations which makes them very reliable in terms of their accuracy. Although these are rather simple functionalities and, for that reason, often overlooked, they can prove immensely useful to any E-Commerce seller, especially when selling across multiple marketplaces. Moreover, this information is free to access.
If you’re seeking accurate and data-driven insights to have a better understanding of the most profitable items to sell on Amazon, we recommend taking a look at the following pages:
The Amazon Best Sellers list is a simple and effective tool that will give you an extensive overview of the current most popular products in their store. The ranking is based on sales volume and the list is updated hourly. As a consequence, it will give insights into accurate and real-time calculated data. In addition, you will have the option to filter for multiple product categories which can prove to be a great solution to help you either find the exact information on products you’re currently looking to supply or may give you ideas for diving into new product opportunities.
Next to the Amazon Best Sellers list, you can also find a ranked overview of products on Amazon that are most wished for by Amazon customers, i.e., these are the products which are added to Wishlists and Registries by the customers. This information can be of great use, especially for online sellers that are seeking to supply trending products and intend to have a clearer picture of their target group’s current needs and wants. Moreover, the list can provide very useful information for Amazon sellers that are seeking to supply only a few, but highly demanded items in order to keep their inventory volume low as possible. This list is regularly updated (daily) and also enables visitors the function to filter for Amazon product categories.
The Amazon Movers & Shakers list will provide additional valuable insights to vendors with dynamically generated data gathered from Amazon marketplaces. This list shows a ranking of products that experienced the biggest gains based on sales volume over the past 24 hours. Together with the Amazon Most Wished for list, aggregate the information from both rankings to have a detailed understanding of products that are currently both highly demanded and equally sold. This list is updated hourly by Amazon and we recommend every Seller on Amazon to regularly review the list and take advantage of accurate, real-time information.
An ideal approach that we would recommend to online merchants in order to find the most profitable items to sell on amazon is making it a habit to regularly take a look at all of those lists and filter for product categories that you’re interested in supplying or simply want to have a better understanding of. Then, aggregate the information given and analyze your data to find profitable items to sell. We also recommend checking for coinciding data points such as a product that was recently present on Amazon Most Wished for and consequently added to Amazon Movers & Shakers list.
Furthermore, if you’re seeking to take your product research a step further and you want to make sure that you’re not simply relying on the minimum information presented to Amazon Sellers, you should also take advantage of the opportunity to gather information from data which is shown on other marketplaces.
For example, make sure to review Etsy best selling products, eBay trending products, and popular items on Kickstarter list, just to name a few. These lists will extend your product research outcomes and give you broader information on current trends across popular E-Commerce stores and therefore a lot greater insight. We suggest to gather the information in order to complete your product research, outline your data and analyze it to find the most profitable things to sell. Then, offer your products on Amazon based on actionable insights – not just insights arising from Amazon marketplace data but from the general E-Commerce industry.
2 – Finding product niches
Yes, you may be right – this piece of advice might seem a little bit obvious and presumably, either as an experienced Amazon Seller or newbie, you have most certainly already taken a few, if not several steps in analyzing product niches in order to find out what to sell on Amazon.
However, as this is a rather broad method that has many possible approaches, we outlined a few often overlooked recommendations for you to help you improve your product niche analysis.
When asking yourself how to find products to sell on amazon, attempt to get a better picture of current product niche opportunities and the first thing to do we recommend, is taking a closer look at product reviews on Amazon.
Here are two methods that we suggest to take advantage of when reviewing Amazon product reviews to find current product niches:
- Firstly, make sure to browse Amazon product reviews of items you’re either selling yourself or products you’re simply interested in finding more information about and check for both negative and positive feedback on products since this will help you to locate market gaps. Although carrying out such research, gathering information and analyzing it may demand quite substantial time and effort, it will most certainly prove highly useful and actionable in the end. You should assess reviews of competitor products to gather feedback that is left both from satisfied or unsatisfied customers and use this information to offer your target market products that are better serving their needs. Also, we recommend checking several product categories, even though neither you or your competitors might be supplying these products since in many cases customers are stating their exact needs, wishes and disappointments of products in the reviews, which could also be relevant for you as a Seller. Find the right market gap and take advantage!
- Secondly, we recommend taking a closer look at products with only a few customer reviews. Although a high number of product reviews on Amazon could be an indicator that the product is selling well, in order to find niche products we recommend checking for products that have only gathered a few reviews yet. This could mean that either its a fairly new product launch which doesn’t have a lot of suppliers yet – so it may be a great opportunity for you as a Seller – or, a small number of reviews could indicate that the product may be sourced from a different marketplace (or even from a different country) and therefore it’s still lacking substantial promotion on Amazon to attract relevant customers.
In general, when finding product niches from assessing product reviews on Amazon, the best case scenario for you to take advantage would be a few, but predominantly positive buyer reviews of a product.
Moreover, when your goal is to find a low served market niche, we generally suggest avoiding diving into product categories or industries with heavy competitors already playing a decisive role. On the one hand, it may be hard to beat them in their niche market analysis since they often use costly, and very accurate market research data in order to gather this information and on the other hand, they are very capable of quickly reacting and following market trends, even if they were not part of or aware of them at the beginning.
3 – Use of 3rd party research tools
Although these services often come with a monetary cost for the Seller, in most cases the use of product research tools will make it a lot easier to find profitable items to sell on Amazon rather than relying on manual research. These tools offer market data that is simply not possible to gather by oneself, let alone the time demand to perform such analysis manually. Ultimately, the use of software will most certainly prove profitable at bottom line.
There are many great tools out there which that you to conduct amazon product research, sometimes differentiating themselves from another when it comes to data insights available or marketplace coverage.
Algopix is a product research platform which makes it a lot easier for online merchants to find the most profitable amazon items, rather than conducting and relying on manual research – even though it may be done thoroughly and accurately.
Algopix gives both real-time calculated and actionable data for international Amazon, eBay and Walmart marketplaces, such as information of total estimated sales volume of a product with the Algopix amazon sales estimator, an indication of the marketplace with the highest demand for a given product as well as a breakdown of accruing shipping costs when supplying a certain marketplace, taking into account a Seller’s origin.
Moreover, Algopix offers daily updated insights into the 50 best selling products on international Amazon, eBay and Walmart marketplaces and what’s especially convenient for larger sellers, Algopix allows to simply analyze products in bulk and returns relevant data insights.
Algopix is a comprehensive Amazon product research tool and you can try it for free, to see if the platform is a good fit for you and your online business.
Now, it is time for you to review our advice and decide for yourself which strategies you will follow. Of youse, we recommend taking advantage of all we’ve mentioned.
As a final suggestion, ask yourself these 3 questions when scouting for the most profitable Amazon items:
Are your potential customers likely to purchase the product out of impulse and if not, to what extent will consumers conduct research in advance? Products that are purchased to a great extent merely from impulse decisions will most likely be profitable for the Seller.
Does the product you are sourcing link to a passionate community with recurring purchases?
What’s the degree of competition within the product category you are sourcing? And, even if the competition is low, will you be able to at least match (and better exceed) the product’s quality and product listing of competing Sellers to provide the target group with a better match to their needs?