If you're selling products on Amazon or are looking to get started as an Amazon seller, you're probably wondering which products will bring you the most profits. There are many different strategies to finding the perfect products to sell on Amazon, and many people do product research in many different ways. In this post we are going to focus on the fundamentals of finding profitable products — and give you a few tools to help you along the way.
What are people already buying?
Look for things that people are already buying. This may seem obvious, but it's extremely important. You need to figure out what the volume of sales is for any product you plan to sell, especially before deciding to purchase inventory. Once you know that people are actually buying then you might have a good product.
Follow influencers and trendsetters to see what products they're gushing over, which may be good to sell on Amazon.
We'll explain some great tools and tricks you can use to help find out what people are buying, but you need to always be on the lookout for trends. Get active with social media platforms like Instagram and Twitter, pay attention to what your friends are posting about and read the comments to dig in deeper. Follow influencers and trendsetters to see what products they're gushing over, which may be good to sell on Amazon.
Do a lot of research: your profitability depends on it! I start with social media to find potential options, and then search for them using Google Trends to see the growth in search volume over time.
Look for competition
Some competition is a good sign; in most cases it allows you to measure how many sales are going through for a product you are interested in. Search on Amazon for the product in question, look at the other listings for the same item and pay attention to the reviews. The rating and the number of reviews are very important, because Amazon ranks their products based quite heavily on the reviews.
Anyone searching for that item will see that competitor's listing first and likely purchase from someone with more reviews than you.
If you find a product you think would be great but there's already someone selling it and they have a thousand reviews with a 4.5 star rating, it will be very hard to compete. Anyone searching for that item will see that competitor's listing first and likely purchase from someone with more reviews than you.
Use these tools and tricks
Jungle Scout. This is generally regarded as the best tool for product research on Amazon. Jungle Scout allows you to see the monthly sales volume for any product, find products with low competition and save products to be tracked over time. The only downside is the price: it's fairly expensive to buy, especially if you are just starting.
Unicorn Smasher. This is very similar to Jungle Scout, but completely free! Of course, since it hasn't been around as long as Jungle Scout the data is not as accurate, and it doesn’t have nearly as many features, but it is a great alternative if you are on a tight budget. The Chrome extension lets you see rankings, estimated monthly sales and estimated monthly sales revenue for products as you view them on Amazon.
The 999 Cart Method. This trick doesn't require any downloads or purchases, but it does take a lot more time to get the info you are looking for. Go to a product you are considering on Amazon, add it to your cart and go to the checkout page. Click on the quantity and add 999 to your cart. Amazon will usually give you a warning message that says something like this:
“This seller has only 135 of these available. To see if more are available from another seller, go to the product detail page."
So you now know they have 135 available. Repeat this every day for two weeks and record the number every day. You'll be able to see how many products this seller is moving per day by looking at your data and doing some simple math.