What Сan I Sell to Make Money on Amazon?

Selling on Amazon is a great way of making money, but not every product is a goldmine. The key to success? Choosing a profitable product with high demand, healthy margins, moderate competition, and low risks. But how to select such deals that will generate money for your business?

In this post, we’ll discuss what makes a product profitable on Amazon and how to research and select a winning product. We'll also show an example of a step-by-step product selection process. By the end, you'll have a clear strategy for finding the right products to make money on Amazon.

What Makes a Profitable Amazon Product?

To make money selling on Amazon, your product must check three key boxes: it must sell well, be profitable, and carry minimal risks. However, it’s not as simple as picking a trending item and listing it.

A truly profitable product meets specific criteria – from demand and competition to profit margins and your chances to win the Buy Box. To ensure you're investing in the right product, you need to evaluate key product metrics that determine whether it’s a solid money-making deal. Below is the list of questions you must answer when you research a product.

Question 1. Can I sell the product?

First, you must verify that you will be able to sell the product. On Amazon, you may not be allowed to sell specific products on your seller account (your account does not qualify). This can happen because you are not eligible as a new seller or your selling performance is insufficient. 

You must be able to identify such products so that you don’t spend time researching them further. You must check it before you buy the products so that you don’t lose money, because Amazon will not allow you to list them.

Question 2. Will a product bring the money I expect?

Second, you must analyze what amount of money you will get selling the product and if it meets your expectations. To calculate product profitability (profit, ROI, and margin), you must deduct your expenses from the selling price. Expenses on Amazon include Cost of Goods (your product cost at the supplier), Amazon fees, and logistics costs.

Amazon sellers use the FBA and FBM calculators to do these calculations quickly and effectively. They help you calculate your expenses and product profitability. 

You must be able to calculate two options: Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM), because Amazon fees are different for FBM sellers who prep and ship products on their own, and FBA sellers who use Amazon services for product fulfillment, storage, and customer services for a fee. Amazon fees include referral fees, FBA or FBM fees, and logistics costs (FedEx, UPS, DHL). You can also compare both options to choose the most profitable one. 

Profitability metrics explained

• Profit

Profit is the amount left after deducting all costs from the selling price. Profit is calculated as the selling price minus COG (Cost of Goods Sold), referral fees, FBA fees and monthly storage fees sales (for FBA), tax or VAT (if applicable), and logistics (3PL) costs (for FBM). 

• ROI

ROI (Return on Investment) is the profitability of investment expressed as a percentage. ROI is calculated as profit divided by COG, sales tax, and 3PL costs and multiplied by 100%. A healthy Amazon ROI is typically between 15-30% or higher. A high ROI means the product generates a strong return on the initial investment.

• Margin 

The Margin shows the profit percentage generated by sales. It is calculated as profit divided by price and multiplied by 100%. A good Amazon margin is 15% and up.

Question 3. How well does the product sell?

You must know how well the product sells to be sure Amazon customers will buy it fast and you will make money on it. You must also know how fast it sells (sales velocity) to avoid additional Amazon storage fees if you sell with FBA. Here’s what to look at.

Product performance metrics explained

• BSR 

BSR (Best Sellers Rank) shows how well the product sells compared to other products in its category. The lower the rank, the better the product sells. Amazon recalculates BSR all the time. 

The lower the BSR number, the better the product is selling. A BSR of 1 means the product is the top-selling item in its category, while products with a BSR between 1 and 200,000 are generally considered to be selling well.

• BSR trend

BSR is not static; it changes constantly based on sales performance. You must look at the average BSR and the trend to understand how it sells. 

• BSR drops

Another way to measure a product’s success is by monitoring BSR drops. BSR drops show how many units of the product were sold over a chosen period (e.g., the last month). This helps sellers estimate demand and decide whether a product is worth investing in.

• Sales velocity 

Besides BSR, sellers should pay attention to sales velocity, which measures how fast a product sells. Slow-moving products can tie up your money and increase storage fees, especially if you're using Amazon FBA.

A product is considered a slow-mover if its sales velocity is greater than 1%. This means it sells too slowly, making it riskier to invest in.

Question 4. How intense is the competition?

Next, you must see if it’s worth competing for the product. Sometimes the competition is too high, and the Buy Box price can drop because the sellers engage in a price war. This means price dumping and low margins, and it’s better to look for another product.

Another thing you must look at is if Amazon sells the product. If it does, it’s very difficult to compete.

You can estimate competition intensity by the FBA and FBM seller count on the listing. The “good” FBA seller count ranges from 3 to 15. 

• Multiple seller count

The 3 seller count shows that a product is not sold by a private label brand (which means it’s trademarked and you can’t resell it). The maximum of 15 seller count shows that the competition for the Buy Box is fierce.

• One seller offer

If the product has one offer, a product is likely offered by a private label seller. If a product is sold by one FBA seller for a long time and the brand name matches the seller’s name, that’s a private label product. 

Question 5. Can I win the Buy Box? 

Another important factor in your product research is Buy Box (Featured Offer) analysis. You must check how sellers share the Buy Box. If one of the sellers dominates the Buy Box with a high Buy Box %, it’s difficult to compete. The same happens if Amazon is in the Buy Box.

If the shares are comparable, this product is good for reselling.

Buy Box share data explained

• Buy Box

Buy Box (Featured Offer) is a section on Amazon listing where customers add a product to a cart in one click with the “Buy Now” button. It’s crucial to win the Buy Box because around 80% of sales happen in it. Amazon often grants the Buy Box to the sellers with the lowest price offer.

• Buy Box %

On Amazon, multiple sellers can offer the same product, but the Buy Box winner is selected based on various factors, including price, shipping speed, customer service, and seller performance. Several sellers can take Buy Box in different proportions.That is typically expressed as a Buy Box %.

Question 6. How many products can I potentially sell?

It’s essential to estimate how many product units you can sell monthly and how much you can earn to understand if your investment will pay off. This is also important because you must understand how many products you need to buy for the first time.

Question 7. Is the product restricted?

How we move to several questions related to product risks. We will start with restrictions. Amazon has specific products, categories, and brands that you can’t sell without Amazon’s approval. If your product is gated, you need to ungate it (ask for approval). 

Restrictions explained

If a product is restricted, you can’t sell it without Amazon’s approval. To sell such products, you must ungate them (request approval to sell from Amazon when you list your offer). You must check products for restrictions before you buy them so that you don’t lose time and money because Amazon will not allow you to list unapproved items. 

Two cases when you get approval:

• Amazon asks you to fill in the form and allows to sell immediately
• Amazon requests you to provide invoices, product images, or other documents. In this case, you may prefer another product because you will need to buy at least 10 units to provide these documents, while the product may not sell and you will get stuck with it.

Try to add your offer to the listing and see what happens. You can also use product sourcing software that instantly shows such products, we will discuss it in our product research example.

Question 9. Does the product have IP complaints?

An intellectual property (IP) complaint is when a brand owner complains to Amazon that other sellers resell their brand’s product without its permission. It's risky to sell brands and products with IP complaints unless you have permission from a brand to sell them.

IP alerts explained

If a product has IP Alert, this can be a deal breaker. Some brands don’t mind if you resell their products without asking for permission, but some do. If you don’t have permission to resell the brand, they may complain to Amazon that you violate their intellectual property rights. 

If you get one of such complaints, Amazon suspends your offer until you provide proof of purchase (invoice or purchase order). If you can’t do that, Amazon will deactivate your offer, which will result in a loss of sales and money. Therefore, it’s better to steer clear of such products.

Question 10. Does the product have any hidden risks?

The deals you find on Amazon may have hidden risks or challenges you may not see at the first glance. For instance, a product may be meltable and you will not be able to sell it through FBA all the year round, or it can be fragile and you will need to pay extra for packaging. You must be aware of that and account for all costs.

Product risks explained

• Amazon is a seller 

If Amazon sells a product as a seller and it is in the Buy Box, it’s better to look for another product. That is because it’s very difficult to compete with Amazon in terms of price and offer conditions.

• Heavy and bulky 

Heavy and bulky products exceed the standard size and weight limits. Selling such items involves extra fulfillment fees because Amazon calculates FBA fees based on the weight and dimensions of the product. Additionally, heavy and bulky items are processed in separate Amazon fulfillment centers, which may mean extended order delivery terms if you use FBA.

• Fragile 

Fragile products can easily break and create a safety hazard. Therefore, they must be handled with care. Amazon requires you to package fragile items using materials such as air pillows, bubble wrap, etc., and apply special labels. That involves extra costs. Additionally, due to these products easily breaking, they have an increased risk of returns.

• Meltable 

Meltable inventory is products with a high risk of melting during shipping and storage due to high temperatures. Some examples of Amazon meltables include chocolate, wax, and certain types of cosmetics. Because the high temperature is not suitable for storing and fulfilling meltable products, Amazon accepts them in its fulfillment centers from October 16 to April 14 only.

• Hazmat 

The Hazardous materials (Dangerous goods) category includes products that may pose a risk to safety, health, or the environment when you use, store, or transport them. On Amazon, that may involve fragrances, like perfume, mobile phone chargers, lithium batteries, etc. The Hazmat category is restricted on Amazon and you must ask for their approval to sell such goods. 

• Adult products 

Adult products are those related to sexual activities or sexual wellness. Amazon does not allow the sale of explicit sexual imagery. However, you can sell some sexually suggestive products. The Sexual Wellness category is restricted on Amazon and you must ask for their approval to sell such goods. Also, adult products must be packaged in plain brown packaging so that no content is visible on the outside of the box. Additionally, Amazon doesn’t allow to advertise such products.

• Generic brand

Generic brands are unbranded products where Amazon doesn’t allow you to add your offers to existing listings. That means you will not be able to add your offer to that product listing.

Question 13. How is the product priced? 

To correctly price your products, you must set a competitive price. That is important to win the Buy Box and attract customers because the first thing they typically look at is product price. To set a competitive price, you must compare it with the Buy Box price, minimum FBA and FBM prices, and set your own price accordingly.

Buy Box price behaviour helps understand how much the price goes up and down over time. It helps see if you can price a product at the average Buy Box price level. If it drops too much during certain periods this may mean problems with the product.

Price indicators explained

Average Buy Box price

The average Buy Box price helps understand what price level to set for your offer. The Buy Box price changes because the best price offer is one of the main reasons why Amazon grants it, and sellers may fight for the Buy Box by lowering the prices.

Buy Box trend

The Buy Box trend shows if the Buy Box price goes up or down and how much it is higher or lower than the 90-day price, expressed as a percentage.

Buy Box price behaviour

Buy Box shows how intense the competition is. If the product’s Buy Box price is more or less stable, you can set your price on that level. If it goes up and down all the time, it is a sign of very intense competition. That typically means deep price drops and very thin profit, and you must consider that when setting the price. You can see how it changes on the Keepa charts.

Question 14. Which variation sells the best?

Amazon variations are different attributes of the same products such as size, color, style, etc. grouped on one listing. If your product has variations, not all of them sell equally well. 

The product BSR doesn’t show which one sells the best because it is calculated for the whole variation family. To identify the best-seller, you must look at the percentage of ratings per variation. The one with the highest share is the best-seller.

Question 15. Is the product a set/package?

If a product is a set or package, you must add this to your profit calculations. There is a difference if you calculate profitability for 1 or 2 units.

Additionally, if a product is a set of 2 or 3 on Amazon, you need to buy the multiple of 2 or 3, so that you are not left with spare items.

How to Select a Winning Product: Real-World Example

Now when you know what product metrics you should look at to find the product which will bring you money, let’s see how real-world product research looks like. It will help you understand how to select the winning products for your Amazon business step by step.

To make your research quick and effective, we will use one of the best product sourcing tools available on the market – Seller Assistant. The tool shows comprehensive product data on the Amazon product pages (Seller Assistant Browser Extension), Amazon search pages (Quick View), and on your supplier website (Side Panel View), when you do product research. You can also research your Amazon competitor storefronts with Storefront Widget. 

Seller Assistant is all-in-one product-sourcing software offering 20+ tools that helps Amazon sellers quickly find profitable and low-risk deals. It provides you with effective solutions for bulk wholesale price list scanning and brand analysis alongside advanced product research extensions, tools, and features providing you with in-depth product research data.

It combines three extensions: Seller Assistant Browser Extension, and IP-Alert Chrome Extension by Seller Assistant, and VPN by Seller Assistant, Amazon seller tools: Price List Analyzer, Brand Analyzer, Seller Spy, Bulk Restrictions Checker, and API integrations, and features: Side Panel View,  Storefront Widget, Quick View, FBM&FBA Profit Calculator, Sales Estimator, Offers, Variation Viewer, Stock Checker, and offers secure and efficient solutions for teamwork.

Amazon product research steps 

Step 1. Set up your Amazon search for accurate results

• In the “Deliver to” field on the Amazon page enter the country and zip code (for the U.S.) where you want to sell. That affects the count of displayed FBA and FBM offers and delivery options. 

• Make sure the product link you use doesn’t contain a referral to avoid getting the wrong information (e.g. there are no variations on the listing, wrong offer count, etc.). Remove the referral part of the link by clicking the ASIN in Seller Assistant. When you do it, you can see that the product has variations not visible with referral.

Step 2. Check if you can sell a product on your Amazon account.

• Verify if you are eligible to sell specific products on your seller account with the help of Seller Assistant's Restriction Checker. It shows a red closed lock if a product is restricted or you can’t sell a product on your account, and a green open lock if you can sell it. 

• If the lock is red, click it to check whether you can ungate the product. You will be redirected to Amazon. Enter ASIN number, select the “new” condition, and fill in the form to request approval. Then, you can sell the product.

Step 3. Choose a product supplier

• Use Lookup Links available in Seller Assistant Extension to search products on Google, Google Shopping, eBay, Walmart, Target, Webstaurant, Katom, The Home Depot, and Alibaba. 

• Select the best price.

Step 4. Check if a product is profitable, side-by-side

• Open a product page on your supplier website and activate Side Panel View to calculate product profit, ROI, and margin directly on that page without leaving it. Click the Extensions icon to the right of your address bar in Chrome browser and select Seller Assistant Extension. Side Panel View will appear as a side panel on the right side of your page.

• Scroll down in Side Panel View to choose your product and click the product details icon or product image to open the product. 

• Enter COG (product price at the supplier), and look at the Profit and ROI (the calculation is done for FBA). In this case, profit is $9.4 per unit, and ROI is 48.08%, which is a good profitability. This means, the supplier is ok.

Step 5. Research product profitability 

Seller Assistant ’s FBM and FBA Calculator helps you quickly calculate product profit, ROI, and margin.

• In the product, click the calculator sign to open the extended calculator.

• Choose between FBA (Fulfillment by Amazon) and FBM (you fulfill the product). We choose FBM.

• Enter package quantity and logistics costs. For FBA it’s prep costs (the product is fragile, we need extra packaging) - $2, and shipping cost - $1. Total logistics cost is $3. 

• Now when you deduct Amazon fees and logistics costs, your profit changes - it becomes $6.4 per unit, ROI is 28.38%, and margin is $16, which is still a good profitability.

Step 6. Check how well the product sells

• Open your product on Amazon to activate Seller Assistant Extension. It will appear automatically on your product page to show you all essential product data.

Check the product’s performance metrics. Our product performance is good, as explained below:

• BSR

This is the product's sales rank in its category, it must be between 1 and 200,000, with 1 being the best; in this product BSR is 23010, which is good.

• BSR trend

Our product has the currently increasing BSR (red arrow next to it points up), which is not good. But BSR changes instantly, therefore you must look at the average BSR over 90 days - it’s 6314. Average BSR is lower than current BSR. This means that the average sales trend is downward (the BSR figure is green), and product sales on average increase.

• BSR Drops

This figure shows how many products were actually sold over a time period you choose, typically a month. You can see that actual sales were 12 units during 30 days, 253 units during 90 days, and 426 units during 180 days.

• Top

It shows how fast the product sells (sales velocity). A good velocity is less than 0,5%/ Our product sells fast because Top is 0.09%.

• Sales

This is estimated sales based on BSR. Currently, your potential sales based on BSR is 324 units/month.

Step 7. Estimate the competition intensity

You can determine how intense the competition is by looking at the FBA and FBM seller count on the listing and Amazon’s presence.

• FBA and FBM offer count

The offer count must be between 2 and 15. This product is offered by 4 FBA sellers, which is moderate competition. The FBA and FBM fields show the count of FBA and FBM sellers selling items in the “New” condition. There are two numbers in the line. The first number on a blue background is the number of all product offers. The number on the white background next to it is the count of the lowest price offers (Buy Box price +5%). 

• Amazon as seller

If Amazon sells the product, it’s difficult to compete. You can see all offers by clicking Offers. Amazon doesn’t sell this product. If Amazon is a seller, Seller Assistant shows a red “A” icon in the top menu.

Step 8. Evaluate your chances to win the Buy Box

You can estimate your chances to get the Buy Box share by looking at the Buy Box% in the Offers. If the Buy Box is more or less evenly distributed between sellers and there’s no dominating seller, your chances are good. This product is sold by 4 sellers who own 18.08%, 18.34%, 19.79%, and 14.04%, which are almost equal shares, meaning your chances are positive.

Step 9. Find out estimated product sales

Seller Assistant Extension helps you estimate how many products you can sell if you become one more seller on the listing, with its Sales Estimator. The figure appears in the Est field. The figure below it is potential sales in the marketplace currency. Your sales are estimated as 162 units/month.

Step 10. Check a product for IP complaints

Seller Assistant’s advanced IP Alert feature shows the red triangle icon if a product has IP complaints and other Amazon policy violations. The product we research doesn’t have IP complaints.

IP Alert is powered by Seller Assistant’s unique Amazon policy violation database updated automatically in real time. By hovering a mouse over a red triangle, you can see the type of Amazon policy violation and the date it was filed.

IP Alert’s Amazon product policy violations

• Suspected Intellectual Property Violations;
• Received Intellectual Property Complaints;
• Product Authenticity Customer Complaints;
• Product Condition Customer Complaints;
• Food and Product Safety Issues;
• Listing Policy Violations;
• Restricted Product Policy Violations;
• Customer Product Reviews Policy Violations;
• Other Policy Violations;
• Regulatory Compliance.

Step 11. Verify product risks

Seller Assistant’s Alerts and Flags feature warns you with a specific icon if a product has one or several flags. Our product has one flag - it’s fragile. WE took that into account in step 5 when we researched product profitability. We calculated additional packaging to secure the product. 

You must also take into account that the product can easily break which increases the risk of returns. 

Seller Assistant flags

• Red “A” icon (on the product pages) or Amazon on the orange background (on the search pages) if Amazon is a seller;
• Red box icon for oversized products;
• Red glass icon for fragile products;
• Red drop icon for meltable products;
• Red hazmat icon for the Hazmat (Dangerous goods) category;
• Red 18+ icon for adult products;
• Red GB icon for generic brand.

Step 12. Evaluate Buy Box price behaviour

You can see how much the price goes up and down over time on the built-in Keepa chart. Changes of Buy Box prices are indicated by pink diamonds on the upper chart. If you hover your mouse over them, you can see that the lowest price during 180 days was $25.99, while the highest was $42.99. This means it will likely not go upper or lower. 

Step 13. Identify the best-selling variation

Seller Assistant ’s Variation Viewer lets you quickly see the offers and essential data for all product variations: ASIN, image, price, and attributes (size, color, etc.), total rating share, and the percentage of ratings per variation, and helps select the most profitable ones. It also shows if a variation is out of stock.

You can select the best-selling variations by their rating share and see which one has the biggest share. Our product has 4 variations, and our variation is a best seller - it has 97% of ratings.

Step 14. Verify if the product is a set/package

This product is not a set or package. You can see that Package quantity is 1 - one product in the package. Also, the title doesn’t say it’s a pack or set.

Our Verdict: A Profitable Product for Reselling

Based on our in-depth research, the product we analyzed is a strong candidate for reselling on Amazon. With the right pricing and inventory strategy, this product has the potential to generate consistent revenue and provide a low-risk, high-reward opportunity for resellers. The product meets the essential profitability criteria. 

Good sales performance

The product has a healthy BSR and a stable sales trend, meaning consistent demand.

High profitability

With a solid profit margin and ROI, this product ensures a strong return on investment.

Moderate competition

The competition level is manageable, with multiple sellers sharing the Buy Box fairly, improving the chances of securing sales.

No major selling risks

The product has no IP complaints, and does not fall under risky categories like hazmat or meltable items. The only risk it has is fragility, but you can compensate for it by applying a proper packaging.

FAQ

What is the easiest product to sell on Amazon?

The easiest products to sell on Amazon are small, lightweight, and in-demand items with low competition and high profit margins. Examples include phone accessories, kitchen gadgets, and beauty products.

How do I know if a product is profitable on Amazon?

To determine profitability, subtract all costs (product cost, Amazon fees, and shipping) from the selling price. Use Seller Assistant's FBM and FBA calculator to quickly assess potential profit, ROI, and margins.

Can I sell any product on Amazon?

No, some products require approval, are restricted, or may have brand protection that prevents reselling. Always check Amazon’s product restrictions and potential IP complaints before investing in inventory.

Should I choose FBA or FBM for selling on Amazon?

FBA is best for scaling your business since Amazon handles storage, shipping, and customer service, but it comes with higher fees. FBM allows more control over inventory and lower fees, but requires managing fulfillment yourself.

How can I avoid selling a risky product on Amazon?

Avoid products with unstable pricing, high return rates, IP complaints, or strict restrictions. Use Seller Assistant’s research tools to analyze competition, sales trends, and risk factors before making a decision.

Final Thoughts

Selling on Amazon is all about choosing the right product – one that sells well, generates profit, and carries minimal risks. By analyzing demand, competition, profitability, and potential risks, you can ensure that your investment pays off. However, manual research can be time-consuming and prone to errors.

The best way to streamline your product research and make data-driven decisions is by using Seller Assistant. This all-in-one tool provides instant access to key product metrics, including profit calculations, competition analysis, and risk alerts, right on Amazon product pages. With Seller Assistant, you can quickly find low-risk, high-profit products to make money.

Seller Assistant is an all-in-one product sourcing software offering all the features vital for product sourcing. It combines three extensions: Seller Assistant Extension, IP Alert, and VPN by Seller Assistant, tools: Price List Analyzer, Seller Spy, Bulk Restrictions Checker, and API integrations, and features: Side Panel View,  FBM&FBA Profit Calculator, Quick View, ASIN Grabber, UPC/EAN to ASIN converter, Stock Checker, and other features that help quickly find high-profit deals. Seller Assistant also offers integration with Zapier allowing to create custom product sourcing workflows.