Dieu Linh
May 18 2024 •8 minutes
Amazon is widely regarded as one of the best marketplaces to start and grow e-commerce businesses. Many merchants are successful thanks to using Fulfillment By Amazon (FBA). This service allows sellers to send their products to an Amazon fulfillment center, where Amazon handles packing, picking, shipping, and customer service for a fee.
However, deciding what to sell on Amazon FBA can be challenging. Today, we want to share practical guidelines to help you find potential products for Amazon FBA. Let's dive into the details and discover your ideal products.
If you're curious about whether selling on Amazon FBA is still worth, let's research carefully. Researching is the first and foremost step you need to do before you start launching a new product on FBA. We hope you understand what Amazon FBA is before diving into our article today.
Understanding demand is crucial for any merchant on any shopping platform. Here are some categories to help you clarify customer demand for specific products:
The second crucial factor in product research for Amazon FBA is customer insights. One of the most effective ways to understand customers is through analyzing product reviews. Reading reviews and feedback allows merchants to quickly identify customer's pain points, which is more effective than any other method.
Moreover, real reviews can help you identify gaps in the competitive market that you can capitalize on.
For instance, by analyzing product reviews, you might discover that many customers love a specific feature. When launching a similar product, you can focus on improving and promoting this feature.
Conversely, via negative reviews, you may realize the customers' disappointment over some product's details. Then, you'll understand that you need to eliminate such unpleasant features when developing the products for FBA.
In addition to understanding demand and gaining customer insights, merchants should carefully analyze the competition for any product on Amazon FBA.
No big brand in the product market
It's better if you can avoid the market dominated by big brands. It's clear that small businesses hardly compete against great competitors with high marketing budgets and strong brand recognition.
To identify if a single store is dominating a specific niche, research Amazon's Best Sellers Rank (BSR). The BSR shows both recent and historical sales data for a product. If you observe that only one product in a category has a high BSR, and there are no other best-sellers in that niche, it indicates that this product is dominating the market.
Therefore, it'll be better if you can find at least three different results in one product category on BSR.
Don't compete against Amazon
Let's avoid items that have the same niches as Amazon because the platform will prioritize its products.
Number of sellers
Another way to define one competitive product is by tracking the number of sellers. If you find too many sellers in one small niche, you should avoid launching the product, especially for your new FBA business.
Understanding the cost of selling on Amazon is not enough, merchants need to know how to calculate profitability. To measure profitability, merchants should carefully consider and measure the following factors:
Start small
Your budget plays an important role in the long run of your business on Amazon. Therefore, let's start with inexpensive products to minimize the risk.
Ensure Product Quality
However, a low-cost product doesn't mean that it has poor quality. Meanwhile, you need to make sure of the high quality of your products. Remember that reputation means everything to Amazon stores. Any customer purchasing from your stores can destroy your brand's reputation if they don't get worthy products.
Moreover, your products' quality plays an important part in the high return rate. The better your items are, the higher the possibility of repeating purchases. And you'll easily build your brand and gain customer loyalty if your return rate is high.
Choose a product with a decent profit margin of 25-35%
One vital factor in deciding a potential product is calculating profit margin. According to Sellerapp, the ideal profit margin for an FBA merchant is from 25% to 35%. This margin ensures your business can sustain itself in the long term and provides enough budget for marketing to make your brand stand out in the market.
Understand FBA fees
You can visit this Amazon fees page to explore more details of FBA costs including fulfillment and FBA storage costs. The fulfillment cost in FBA service includes picking and packing your orders, shipping and handling, customer service, and product returns. The cost is based on the weights and dimensions of your products.
As of April 15, 2024, Amazon has implemented new updates related to FBA fees. Make sure to review every term of their policies carefully and select the appropriate tier for your business.
Lightweight products
Understanding Amazon FBA service fees highlights the significance of product size and weight. These factors are directly linked to additional fees such as shipping and storage. Therefore, let's choose a slight product type that can help you save a lot of money.
Research Other Shopping Platforms
Even when you're finding what to sell on Amazon FBA, you still take time to research other big shopping platforms such as Walmart, and eBay. If one product is in good demand on other marketplaces, it will have the potential to sell on Amazon as well.
Use Amazon Product Opportunity Explorer
If you're an Amazon seller and looking for another ideal product to expand your business, you can use Amazon Product Opportunity Explorer to research new products.
You can use the search box to find keywords related to products or your favorite niche. Then, utilize metrics such as customer needs, top search terms, search volume, units sold, and average prices to narrow down your search and discover suitable product ideas for Amazon FBA.
Use Amazon Product Research Tool
If you're confused about how to find products for Amazon FBA more quickly, you can use some product research tools to find your ideal niches. You can consider picking the following tools: Helium 10, Sellerapp, AMZScout, IO Scout, ZonGuru, Jungle Scout, etc. These services provide valuable information on new keywords, niches, and customer reviews, helping you identify good products for Amazon FBA.
As mentioned above, it's better for sellers to choose evergreen products to launch the FBA business. However, on some special holidays like Black Friday, Halloween, and especially Christmas, merchants want to update new arrivals because of high demand, they need to have good preparation.
Here's the ideal timeline recommended by Amazon:
Therefore, to have the best preparation for the holiday season 2024, merchants, specifically newbies, need to start now.
If you're looking for what to sell on Amazon FBA year-round or even for the holiday season 2024, don't skip the following sections. Here, Printway will provide both evergreen and seasonal products. Here are some types we highly recommend for sellers launching on Amazon FBA.
Firstly, LED lights are highly valued as an evergreen product category, making them a popular choice for sellers launching their Amazon FBA businesses. In recent years, the demand for LED lights has consistently surpassed that of other home decor products.
Printway offers a wide selection of high-quality LED lights at minimal base costs, ensuring excellent value for customers. Explore more details here:
Recently, the demand for keychains has increased considerably as consumers use them not only as gifts but also as fashion accessories. At Printway, sellers can find plenty of keychains perfect for their FBA businesses.
Over the past year, the tumbler market has experienced rapid growth. For merchants looking to launch successful Amazon FBA businesses with evergreen products, stainless steel tumblers present a compelling opportunity. Here are the three top-rated tumblers available on Printway:
At Printway, we not only offer evergreen products but also specialize in providing high-quality items tailored for the holiday season. Among a diverse range of products, ornaments consistently rank as top sellers during peak holiday periods.
Explore our curated list of best-selling ornaments for the 2024 holiday season, featuring an array of creative shapes and best materials that no POD seller should overlook right here:
Printway confidently offers FBA services for all Vietnam-made products. We optimize product processing to deliver high-quality items at competitive prices, ensuring maximum profitability for Print-on-Demand (POD) sellers.
As mentioned above, we understand how important product quality is in the FBA business. We try our best to bring the best products with top-tier materials and cutting-edge techniques.
Printway offers two standard shipping lines: UPS EXPEDITED, delivering within 7-9 days, and UPS SAVER, with a turnaround time of 4-6 days.
Opting for Printway's FBA services means sellers incur zero Customs Declaration fees. Additionally, we handle ancillary expenses like labeling boxes and providing barcodes for your packages.
Our dedicated customer support team is available at every stage of your FBA business launch. If you have any questions related to FBA services, feel free to contact us to receive the soonest support.
To sum up, merchants need to research carefully before choosing a new product for Amazon's FBA business. We trust that the four key factors and other techniques in the article can help you find ideal niches and specific products soon.
However, if you want to find ideas for holiday season products, you should quickly carry out research and prepare from now on. We hope you'll achieve success in this holiday season.
