How To Find High Demand & Profitable Products To Sell On Amazon
Stuck for ideas on what to sell on Amazon?
Or maybe you're looking for additional products to drive more sales and boost your profit margins?
Whatever your reason is for wanting to source new products, I have compiled some advice and actionable tips you can leverage to identify the products in high demand on Amazon.
Before anything else, I should start by saying that there are typically two approaches you can take when it comes to expanding your product lines.
To start with, you can identify a product niche or a gap in the market that isn’t already covered.
Alternatively, you can identify the products already in high demand and capitalize on these markets.
The problem is, that while the process of identifying a gap in the market can be a solid business move, it can also be a risky one. For this reason (and for this article), we have focused on the latter approach of finding products that are already selling well on Amazon.
How to find high-demand products to sell on Amazon.
Amazon Best Sellers.
Assuming you start entirely from scratch and don’t have a specific product in mind, the Amazon Best Sellers Page is one of the best places to start.
An Amazon Best Sellers list provides you with the top 100 best-selling products in any given category or sub-category.
Now chances are, as an existing Amazon seller, you are probably already aware of this.
The question is, are you actually taking advantage of the data it provides?
In reality, many sellers view this as nice-to-know, mildly exciting information. Sellers looking to take their business to the next level, however, will recognize that this is Amazon providing you with valuable insight into which products are the most popular on the marketplace.
In other words, they tell you which products could be worth your time and effort selling. I could be because there are still many other considerations, which we will get to in a bit.
Amazon Best Sellers Rank (BSR).
Amazon Best Sellers lists are great, but they only provide you with the top 100 products.
While this might seem a lot, when you consider that specific categories have millions of products, 100 barely scratches the surface.
This is where BSR, otherwise known as the Best Sellers Rank, comes into play.
Specifically, every product on Amazon has a BSR, which can be found on the product details page of any item listed on Amazon.
This rank will tell you where exactly the product sits within the relevant category and sub-category, in terms of product sales.
While it would be nice to know the actual number of sales each product generates, unfortunately, Amazon doesn’t provide us with that.
This means the rank is the best data we have to work with. That said, as lovely as sales volumes would be, the BSR is still a good indication of the product's level of demand on the marketplace.
Identifying product demand on Amazon.
Ultimately, due to the different demand levels, it can help to know which categories are more popular amongst Amazon customers and which are not.
According to FBA Empire, a breakdown of product categories by product demand are as follows:
High-demand product categories on Amazon.
Home & Kitchen
Health & Personal Care
Sports & Outdoors
Medium demand product categories on Amazon.
Toys & Games
Low-demand product categories on Amazon.
Industrial & Scientific
Arts & Crafts
This is not to say that you shouldn’t focus on the less popular categories, it just means you will have to manage your expectations. After all, Amazon do not provide us with actual sales figures so this is the best we have to work with.
Find profitable Amazon products.
So, here’s another important thing to remember; Just because a product has a good Best Sellers Rank, does not mean it is necessarily a good product to private label and sell.
You shouldn’t confuse BSR with organic ranking. The Best Sellers Rank shows how well the item ranks based on its sales, whereas the organic rank has to do with search engine ranking for a keyword.
You can usually gauge sales numbers based on BSR. According to many Amazon sellers, including Web Retailer, products with a BSR between 8,000 and 10,000 may generate 4-6 sales per day. With a BSR below 2000, the sales climb to between 6 and 10 units a day. Using these formulas, sellers can estimate potential sales volume.
Examples of High-Demand Products with Low Competition
You can watch Amazon’s Best Seller Page for high-demand items, but marketing companies regularly publish trend studies describing the latest product demand. Forbes and others publish annual articles on buying trends. By looking at different marketing experts' studies, sellers can find promising trends and then see how much competition there is.
According to influencermarketinghub.com, the following are trending for 2022:
Skincare face masks
Exercise bands (resistance bands)
Games and puzzles
Camera and photo equipment
Check Product Profitability
Besides having high demand, and low competition products on Amazon, profitability is a big part of business success. On Amazon selling lots of something at a low-profit margin often isn't as good as selling fewer items with higher margins. The risk of losing money due to returns, changing and unforeseen market trends is higher with a low per-item profit margin.
New sellers should start with relatively inexpensive items, under $15, with profit margins of 50%. That’s the same as 100% markup. For example, if something costs you $5, sell it for $10. If something costs $20, price it for $40. According to many experts, the sweet spot for Amazon sales tends to be between $10 and $50.
Concentrate on smaller, lighter items to keep fulfilment costs down. Heavier, fragile products that can get damaged in transit are a liability. Keep shelf-life in mind, too, to reduce potential loss during downtimes. If new models come into the market every six months, don't buy a 12-month supply.
Rather than offering seasonal items, concentrate on finding products that sell all year, so you are building volume over time rather than always finding new products. Don’t sell items you don’t fully understand, because the potential for poor or incomplete product description, returns, and dissatisfied customers is higher which lowers profits.
Successful sellers find high demand, low competition products on Amazon that also have great profitability. They can start their search by looking at Amazon’s Best Sellers list. It shows the top 100 sellers in each subcategory.
After reading articles and studies on current trends and choosing some potential additions to their product lines, the next step might be looking at the BSR. The Best Seller Ranking, listed on the product page, will let you know exactly where the item lies on the relevant category list. While a product might not show up in the Best Seller list, which only lists the top 100, in categories with thousands of items, even something with a BSR of 1200 could be a great seller.
By checking out how many sources there are for the product and evaluating profitability, sellers can decide whether they should add an item to their sales inventory. High demand products on Amazon, being sold by few, and bringing in high profits are the ones you want to sell.
Ready to fulfil all the demand that comes your way? Download free templates today to see how you can streamline demand planning and meet your most audacious revenue goals.
You can learn about some beautiful nits-bits of online business from the one & only Mayank Mittal. Buy his e-book "Art of Building Great Products" at 50% OFF only here.