As a budding Amazon entrepreneur, you are likely on the lookout for the best products to sell on Amazon FBA. In the world of e-commerce, Amazon FBA represents a significant opportunity for entrepreneurs looking to make their mark. Whether you are a seasoned seller or just starting out, this platform can provide the means to reach a massive audience and simplify the sales process.
In February 2022 alone, Amazon recorded a total of 2 Billion visitors. This is a phenomenal number of visitors who have buying intent.
To add to this, a poll conducted by Feedvisor found that 89% of consumers were more likely to shop on Amazon than any other online retailer.
So, what are the best products to sell on Amazon FBA?
In this article, we will delve into the intricacies of Amazon FBA and examine its many benefits. Additionally, we will provide you with a comprehensive guide to choosing the best products to sell on this platform, including top product categories, key factors to consider, and product sourcing strategies.
What is Amazon FBA?
Fulfillment by Amazon, or Amazon FBA, is a service offered by the eCommerce giant that streamlines the sales process for business owners. This program allows you to store your products in Amazon’s fulfillment centers, where they will be picked, packed, and shipped to customers, with Amazon handling customer service as well.
With Amazon FBA, you will be able to focus your efforts on sourcing and promoting your products, while Amazon takes care of the rest. Furthermore, the Amazon Prime badge provides a valuable selling point to customers, as it offers fast and reliable shipping, which is an essential factor for success in the eCommerce world.
By the end of this article, you will have a thorough understanding of how Amazon FBA can help you achieve success and reach your goals as a business owner.
The 5 Best Products To Sell on Amazon FBA in 2023
Choosing the right product category to sell is the most important thing you can do to take advantage of the many opportunities with Amazon FBA. With so many different kinds of products to choose from, it can be hard to know where to start.
Still, there are a few categories that have done well on the platform over and over again, giving sellers great opportunities.
Let’s look at some of these product categories and the best products to sell on Amazon FBA.
1. Health and Personal Care
The health and personal care category constitutes one of the most sought after and profitable segments within Amazon FBA. This category includes a wide range of products, from vitamins and nutritional supplements to first-aid kits and over-the-counter drugs.
The health and personal care category does very well, mostly because people are becoming more health-conscious and, as a result, are willing to spend a lot of money on products that keep them healthy and help them feel better.
However, the competition within the health and personal care category is intense, thereby offering ample opportunities for sellers to establish themselves as industry leaders, expand their customer base, and attain growth.
2. Beauty and Grooming
The beauty and grooming category is another one that has some of the best products to sell on Amazon FBA. This category includes a wide range of things, like skin care, hair care, cosmetics, and tools for grooming.
The popularity of the beauty and grooming category stems primarily from the ever-increasing demand for premium quality beauty and grooming products that help enhance one’s appearance and boost their self-confidence.
Additionally, the beauty and grooming sector is highly dynamic and is constantly evolving, thereby providing a continuous stream of novel and exciting products to sell, as well as opportunities for growth and success.
3. Home and Kitchen
The home and kitchen category is another one of the most extensive and diverse categories within Amazon FBA, and encompasses products ranging from kitchen appliances, bedding, bath products, and home decor.
Everyone needs products for their home, and the market is continually updated with improved products, thereby generating an unyielding demand for new and innovative products.
4. Electronics
This category encompasses a vast array of technological offerings, ranging from the ubiquitous smartphones, laptops, gaming consoles, to an array of accessories designed to enhance the overall user experience.
The electronics sector is a testament to the ever-evolving technological landscape, and the constant demand for the latest and greatest technological advancements.
But it’s important to remember that the electronics industry is heavily regulated. There are strict rules and protocols in place to make sure that the products sold are safe and of good quality. As a seller, it is crucial to be thoroughly informed about the regulations and standards of the products you plan to sell, in order to avoid any potential legal issues and ensure compliance.
5. Pet Supplies
In the Amazon FBA ecosystem, the pet supplies category is another popular one with a lot of potential for sellers to tap into. This category includes a wide range of products, such as pet food, toys, grooming supplies, and accessories. These products are all made to meet the different needs of pet owners.
This category is popular because more and more people are getting pets and spending more and more money on them. Pets are often considered as a part of the family, and pet owners go to great lengths to ensure that their animals are well taken care of, with high-quality food, toys, and accessories being a top priority.
The pet category holds some of the best products to sell on Amazon FBA. But to be successful in this highly competitive and lucrative category, you need to know a lot about the market and how people act.
Choosing the Best Products to Sell on Amazon FBA
When it comes to identifying and selecting the most promising products for selling on Amazon FBA, a number of key factors must be taken into consideration. These factors include: demand and competition, profit margins, seasonality, and shipping costs.
Demand and Competition
Understanding the dynamics of demand and competition is vital when it comes to predicting the success potential of a product on Amazon FBA. Proper market research, including an in-depth look at sales figures for relevant categories on Amazon, can help you evaluate these factors effectively.
One powerful instrument in this process is Amazon’s Best Seller Rank (BSR). The BSR is a useful metric as it provides a comparative measure of how well a product is selling against others in its category. A product with a high BSR often signals strong demand, making it an appealing product idea for prospective Amazon sellers.
However, the journey doesn’t end at identifying high-demand items. It’s equally crucial to analyze the level of competition within the market. For instance, selling items with high demand but low competition increases the chances of achieving success on the platform. Thorough product research can aid sellers in finding that sweet spot between high demand and low competition, paving the way for profitable sales of products on Amazon.
Profit Margin
When assessing what you want to sell on Amazon FBA, the profit margin becomes a vital determinant. Essentially, the profit margin is the residual amount after deducting all associated costs from the selling price. This includes the cost of the product itself, shipping, and any other expenses incurred in delivering the product to the customer.
To compute this, one must understand the cost of goods sold (COGS) of each product. The COGS encompasses the product price, the expenditure on shipping to the customer, and all other associated costs. The selling price minus the COGS equals the profit margin.
While a profitable product with a high margin is desirable, it’s not the sole factor to consider. The balance of demand and competition is equally crucial when picking popular products or trending products. These aspects significantly influence the overall success rate on the platform and must be taken into account when choosing products to maximize profits and achieve success on Amazon FBA.
Seasonality
Recognizing seasonality is a crucial aspect when selecting top selling items to sell on Amazon FBA. There are certain products whose demand fluctuates across different periods of the year, significantly impacting sales dynamics.
Take for instance holiday-related items like Halloween costumes or Christmas decorations, the demand for these products spikes dramatically during their specific festive seasons. In a similar vein, summertime essentials like sunscreen or pool toys experience heightened demand during the warm, summer months.
So, the seasonality factor can exert a significant influence on your sales and profit trajectory when selling items on Amazon FBA. In the same vein, considering the popularity and demand of certain items on Amazon in specific seasons can help you strategize better and choose the most profitable products for the right seasons, ultimately boosting your Amazon Best Sellers ranking.
Shipping Costs
Shipping expenses are a pivotal element that must be factored into the decision-making process when identifying the best products to sell on your Amazon store in 2023. The cost of shipping can significantly influence the profitability of a product, thus necessitating a thorough evaluation of these costs during the product selection stage.
To accurately estimate shipping costs, various aspects must be reviewed. These include the dimensions and weight of the product, its packaging, the selected method of shipping, the destination of the shipment, and the cost of shipping materials such as boxes, adhesive tape, and packing peanuts.
Therefore, to holistically assess the profitability of a product category or a particular item on Amazon’s best seller list, a comprehensive consideration of all the relevant shipping costs is essential. This way, you can identify top-selling products that not only resonate with consumers but also ensure a profitable margin after factoring in all expenses, helping you succeed as you start selling online.
Product Sourcing Strategies for Amazon Best Sellers
When it comes to doing well on Amazon FBA, where your products come from is one of the most important factors.
To find products to sell on Amazon FBA, you must choose from an array of sourcing strategies:
Importing From China
Importing from China has become a highly popular strategy among Amazon FBA sellers seeking top selling items on Amazon. This approach leverages China’s cost-effective manufacturing resources, allowing sellers to present competitively priced products in the Amazon marketplace, which can give them a significant advantage over rivals. The process involves locating a dependable supplier and navigating shipping and customs procedures.
A standout benefit of importing from China lies in the control it grants over product design and quality. Sellers can collaborate directly with manufacturers to produce items tailored to their requirements, potentially leading to top selling products that outperform similar products. Additionally, purchasing in large quantities can often unlock bulk discounts, and there’s scope to negotiate lower prices for substantial orders.
However, it’s important to note the challenges associated with this strategy. The logistics can lead to extended shipping times, with the potential for delays and issues arising during customs procedures. Furthermore, the Chinese market is not without fraudulent companies, so thorough research is imperative before deciding what to sell and choosing a supplier. It is crucial to ensure you’re working with a reputable manufacturer to offer popular items on Amazon.
Wholesale and Dropshipping
Wholesale and dropshipping are two ways to get products that work together to let you sell things without having to keep any inventory. In the case of wholesale, you purchase products in bulk from a supplier and sell them individually to your customers. In contrast, dropshipping involves the supplier shipping the products directly to your customers on your behalf.
One of the main advantages of wholesale and dropshipping is the reduced financial risk and faster time to market as you don’t need to invest a significant amount in inventory upfront.
However, wholesale and dropshipping come with their own set of difficulties. Profit margins tend to be lower, as you need to factor in the expenses of the supplier and shipping.
Additionally, you have limited control over product quality and customer service, as these are the responsibility of the supplier.
Private Label
Opting for a private label strategy can be an enticing prospect when you want to sell on Amazon. This approach involves the creation and sale of your unique brand of products, necessitating the selection of a suitable manufacturer who will manage the production and shipping logistics for your Amazon business.
One of the significant benefits of private labeling is the degree of control it allows. From product aesthetics and performance to branding, you have the authority to shape a distinctive product that stands out among competitors and resonates with your targeted audience. Furthermore, owning the brand and having a say in its production gives you the leverage to negotiate for larger profit margins, which, over time, can facilitate the establishment of a solid brand reputation.
However, it’s worth acknowledging the associated risks such as potential product defects and quality control challenges. Given that you oversee the production process, the onus is on you to ensure high standards, emphasizing the need to be extra vigilant when selling products on Amazon under your private label. By doing so, your offerings could very well make their way to the Amazon best sellers list, marking your venture a success.
Retail Arbitrage
As an eCommerce entrepreneur exploring items to sell on Amazon, adopting the retail arbitrage strategy could prove to be a highly lucrative move. This method essentially revolves around pinpointing products that are undervalued at physical retail outlets, purchasing them, and subsequently selling them at a higher price on Amazon, thereby capitalizing on the price discrepancy. Profits in retail arbitrage come from the gap between the buying price and the selling price, requiring a sound understanding of the market and adept sourcing abilities.
Various tactics exist for sourcing products suitable for retail arbitrage. One of the widely employed techniques involves the use of barcode scanning applications. These apps compare the prices of products across multiple retail locations and online marketplaces, including Amazon. This technology empowers entrepreneurs to promptly spot underpriced items, from beauty products to a multitude of other categories, creating potential for them to become best-selling products on Amazon.
By leveraging such techniques and using Amazon effectively, sellers on Amazon can identify and capitalize on opportunities for selling profitable products, contributing to a successful eCommerce venture.
Key Points – The Best Products to Sell on Amazon FBA
Achieving success in selling items on Amazon FBA significantly hinges on your selection of products that possess the requisite qualities for commercial viability. Amazon FBA, as a fulfillment service provided by Amazon, manages storage, shipping, and customer service for sellers on its platform. Hence, it’s vital to choose items that are highly demanded and face minimal competition.
To accurately discern the best things to sell on Amazon FBA, taking into account the profit margin of a product, its seasonality, and shipping costs is crucial. Among the most lucrative and popular product categories on Amazon FBA are Health and Personal Care, Beauty and Grooming, Home and Kitchen, Electronics, and Pet Supplies.
Successful sourcing strategies for the top-selling items on Amazon include methods such as importing from China, utilizing wholesale and dropshipping avenues, opting for private labels, and engaging in retail arbitrage. Good Amazon FBA products are typically characterized by their unique selling point, compact and lightweight nature, durability, and high quality. It’s also beneficial if the products are easy to store and fulfill.
By integrating all these considerations into your Amazon product research, you increase the likelihood of sourcing the most profitable products to sell. As a result, you can start selling on Amazon FBA with greater confidence in your chances of success and profitability.