How to Choose the Right Product to Sell on Amazon (Even If You're Just Getting Started)
Apr 23, 2025
Tips
Amazon
by Troy Velie
How to choose The Right Product
Choosing your first product to sell on Amazon is exciting but let’s be honest, it can also be paralyzing.
With so many niches, strategies, and self-proclaimed gurus out there, it’s easy to feel stuck before you even begin. The good news? You don’t need to chase trends or rely on luck. Finding a product that actually sells (and makes you profit) comes down to a simple, repeatable process and that’s what we’re going to break down today.
Whether you're building a side hustle or planning your first private label brand, this guide will help you choose your first winning product with confidence.
1. What Makes a Good Amazon Product?
Let’s start with the basics. Great Amazon products often share these traits:
High demand, low competition - There’s consistent search volume, but not enough big sellers that you couldn’t appear on page 1 from a launch.
Lightweight and small - This keeps your shipping and storage costs low (especially with FBA).
Priced between $15–$50 - High enough for profit, low enough for impulse buys.
Non-seasonal - Focus on products that sell year-round for your first launch.
Solves a clear problem or fulfills a need - People buy products that make life easier, better, or more enjoyable.
2. Use Tools to Simplify Your Product Research
You don’t have to guess what’s selling. These tools help you find data-backed product ideas:
Helium 10 - Industry-leading software with deep functionality. The Black Box tool helps you find products using advanced filters like sales volume, price, review count, and competition. The Xray Chrome Extension gives you instant data on product performance as you browse Amazon listings including: sales estimates, revenue, keyword data, and more.
Jungle Scout - Beginner-friendly and super visual, Jungle Scout lets you filter by things like sales, price, and review count to get a quick feel for how competitive and in-demand a product niche is. Its Niche Hunter tool also combines product ideas, competition score, and opportunity metrics in one easy-to-read interface.
Amazon Best Sellers & New Releases - These simple but powerful tools are available right on Amazon. Best Sellers shows the top-selling products in every category. If an item’s been on top for months, it likely has consistent demand. New Releases: Highlights what’s gaining traction right now. It’s a great place to spot emerging trends.
Keepa – This Chrome Extension is great for validating product consistency as it’s a pricing and sales history tracker. It shows you how the price has changed over time, how frequently the product goes out of stock and whether sales spikes are seasonal or temporary fads.
You don’t need all of them. Just pick one tool and learn it well.
3. Avoid These Common Beginner Mistakes
Plenty of first-time sellers burn out on their first product by picking something that looks good on paper, but is a nightmare in practice.
Here’s what to avoid:
Oversaturated categories – Think phone cases, yoga mats, or resistance bands. These categories will have products with thousands of reviews, little room for differentiation and high bids on their relevant keywords in Amazon Campaign Manager.
Restricted or gated items - Some categories require Amazon approval or extra documentation. You can use Tools Like Helium 10 or Jungle Scout to flag restricted categories in product research mode.
Trademarked products - Never try to piggyback off a brand name. You could get shut down fast. In fact, we highly recommend you trademark your own product if you’re planning to be a private label seller as it offers several competitive advantages like access to A+ Content and listing protections.
Trendy fads – If it’s new & flashy that’s actually a red flag, fads attract a flood of new sellers, most of whom are copying the same exact product. If you can’t launch with speed or strong differentiation, you’ll be stuck competing in a crowded space with shrinking margins.
Reality check: Just because a product has high revenue doesn’t mean it’s right for you. Focus on profitability, not hype.
4. Check Your Margins Before You Source Anything
Here’s a simple formula to help you avoid launching a product that bleeds cash:
(Selling Price – Cost of Goods – Amazon Fees – Shipping – Advertising) = Profit
Aim for at least 40% profit margins to cover all your costs and still make a worthwhile return.
You can use Amazon’s free FBA Revenue Calculator to get a rough idea of your fees and margins before you even order samples. Helium10 also offers a profit calculator to help simplify this process.
Example:
Selling Price: $25Product Cost: $5
FBA Fees: $7
Shipping / Ad Spend: $3
Profit Per Unit: $10 (~40% of $25)
5. Validate Demand Before You Commit
Before you spend a dollar on inventory, validate that people actually want the product:
Check sales data – Look for at least 300 sales/month for similar products.
Look for low-review listings – If top sellers have under 100 reviews, you can compete.
Search volume matters – Use Helium 10 or Google Keyword Planner to check demand.
Can you improve it? – Read competitor reviews to see what’s missing (and what you can do better).
If you can check 3 or more of those boxes, you’ve got a solid candidate.
Quick Action Plan:
Pick a research tool (like Helium 10)
Find 3–5 products that fit the criteria
Check demand and profitability
Want Help Choosing the Right Product?
If you'd rather skip the overwhelm and work with someone who's done this hundreds of times, Step by Step FBA offers 1-on-1 product research, strategy consulting, and full-service Amazon launches.
Click here to learn more about working with us
About Troy Velie
I started my own Private Label Amazon Business 6 years ago and immediately witnessed the impact that having an effective ranking strategy can have in driving traffic. To that end I’ve devoted my time to understanding, improving, and optimizing strategies that deliver exceptional results in improving visibility and reach for any online business.
