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How to Choose What to Sell on Amazon in 2020

The Amazon platform allows you to open your online store in the U.S., get access to customers worldwide, and delegate all organizational issues to the service. Although it is a perfect way to build a successful business online, a lot of startups do not make a profit there. The first issue faced by businesses when opening their accounts on Amazon is: “What is the best product to sell to get the maximum income and minimize risks?”. The thing is that top-rated Amazon sellers use a number of helpful digital tools to make their business successful. In addition to Amazon product analysis tools, there are a lot of other useful techniques that can help newcomers choose the top product to sell. In this article, we’ll review all of them in detail.

Top tools to choose the best product to sell on Amazon

The right choice of the product is the decisive factor for a newbie who’s starting a business on Amazon. The kind of product you sell determines how profitable your business is going to be. Choosing a high-demand product and reliable suppliers is where you should start your business on Amazon from. Yet, it could be challenging to make the right choice in a highly competitive environment. If you plan to build a thriving business on Amazon, let’s have a look at how to do it in the shortest terms.

Research software

The problem of choosing a product to sell on Amazon has become notorious in recent years. A few companies have already developed Amazon research software designed to simplify the issue of searching for top-rated goods. Thus, startup businesses can use one of the tools to carry out an Amazon product analysis, find goods with high margins and low competition, predict possible risks, and develop an efficient marketing strategy. Besides, such utilities can help you calculate your potential profit per unit, RBA fee, ROI, and monthly profit. Along with the accurate database updated on an hourly basis, you will get a catalog of trending products and product tracker Amazon to create your own lists.

Listing method

Making a list of potential items to sell on Amazon is one of the well-known techniques of selecting a product. The point is to choose the product according to specific criteria: the price ranges from $12-40, the number of reviews is over 300, the BSR rating is lower than 7000, etc. Whatever settings you choose, it will eventually come down to a large table in Excel. This approach facilitates the systematization of data. Once you analyze several product groups in a tabular way, you will see the general market tendency. In addition to the main product, you can also choose a couple of potential items to sell on Amazon.

Ask a supplier

Talking to a supplier is another way to find the best product to sell on Amazon. It is beneficial for those who have already launched 1-2 products and are looking for other ways to increase their turnover. For example, you have found a reliable supplier. They deliver high-quality products on time and never want to increase prices. You can request a catalog or a list of products that are currently on demand. Such information could be a source of new product ideas.

What are the indicators of a good product?

An efficient method of choosing the product is half of your business’s success. Whatever your product research for Amazon is, there are also several indicators that your product has to meet. The most important ones are the following:

Small size

Ordering a small item is much more convenient than a large one. Being a seller, you can not only save money on the delivery of goods but also on their storage. Besides, a lot of customers on Amazon prefer ordering small and cheap products that are easy to deliver.

Average price

There is no need to set up a high price to boost your revenue on Amazon. The average price for goods of the most renowned businesses on Amazon starts at $15. The point here is to find products that are currently on demand.

Strength

The best products for sale on Amazon are those that will not break upon delivery. If you choose goods according to this criterion, you will get rid of the need to pay compensation for the damaged products.

Seasonality

It is better to have your product purchased all year round. This will simplify your logistics, and you will be able to keep your sales rating stable. Seasonal products are good to sell when you have enough selling experience.

Low competition

This is one of the main factors of choosing a product that you want to sell on Amazon. Even if you follow all the criteria listed above, your goods may still be uncompetitive. Thus, you will not make your business stand out from the crowd. Is it worth selling a product similar to the one that has already flooded the site? Yes and no. You need to find a balance between the popularity of the product and the number of retailers that sell it to come to the right conclusion.

Wrapping up

Choosing the product that you will sell on Amazon is an essential step. Your attention, creativity, ability to analyze your potential audience and evaluate the demand are the fundamental principles that determine the choice of a successful product. And it all affects the volume of sales and the size of your income.  You should also check this H10 review as one of the effective tools for amazon selling’. Yet, the main things to keep in mind are the idea and efficient strategy of your startup. Look for the original items, review the top sellers, watch and read famous bloggers and customer reviews. Discover the things that people like or lack to make your business powerful.

Related reading

2026 Update: What Has Changed About Selling on Amazon Right Now

I wrote this post back in 2020 and, honestly, some of it still holds up. The core thinking around demand, competition and margins? Solid. But the landscape has shifted enough that I would be doing you a disservice if I left you reading this without flagging what is different now. So here is my honest take before you carry on scrolling.

The single biggest change I have noticed working with clients over the past couple of years is how much harder it has become to compete on generic, unbranded products. Amazon’s own-brand lines have expanded considerably, and the platform actively promotes them. If your product research turns up something that looks easy and obvious, there is a very good chance Amazon itself, or a well-funded seller from overseas, is already squeezing the margin out of it. The bar for differentiation is genuinely higher now, and “slap a logo on it” is no longer a workable strategy.

AI-assisted product research tools have also changed the workflow completely. Tools like Jungle Scout and Helium 10 have added AI layers that surface trend signals much faster than manual keyword research used to allow. I use them myself and they save real time. But here is the thing, everyone else is using them too. The same opportunities are visible to thousands of sellers at once, which means the window between spotting a gap and that gap being crowded has shrunk dramatically. Speed and supplier relationships matter more now than they did when I first wrote this.

One area I would push you towards in 2026 that I was not emphasising back in 2020 is the consumables and replenishment angle. Products people buy repeatedly give you a compounding advantage on Amazon because your repeat-purchase rate feeds your organic ranking. It is not the flashiest strategy but it is one of the more durable ones I have seen working right now for smaller sellers who cannot compete on big advertising budgets.

Finally, do not underestimate the research you can do simply by reading Amazon customer reviews in your target category, particularly the three-star ones. That middle ground tells you exactly what buyers are tolerating rather than loving, and that gap is where your product brief should start. No tool replaces that kind of close reading. Right, with that said, the original post below is still worth your time.

Bottom line: Pick products by validating demand first, checking competition second, and confirming your margins can survive Amazon’s fees. The best niches sit at the intersection of steady search volume, manageable competition, and a price point that still leaves room for profit after costs.

Frequently asked questions

What is the best way to find a profitable product to sell on Amazon?

Start with keyword research tools to gauge search volume, then check the top listings in that category to see how many reviews you’d need to compete. A good sign is decent demand paired with sellers who have weak listings, few reviews, or outdated images you can easily outdo.

How much competition is too much for a new Amazon seller?

If the first page is dominated by listings with thousands of reviews and established brand recognition, it’s usually too costly to break in as a beginner. Look instead for niches where top sellers have a few hundred reviews or less, since that gap is realistic to close.

What price range works best for new Amazon sellers?

Products priced between roughly $15 and $50 tend to work well because they’re high enough to cover fees and shipping but low enough to encourage impulse buys. Anything much cheaper eats into margins too fast, while pricier items require more trust before customers convert.

Should I avoid seasonal products when starting out?

Seasonal products can be profitable, but they’re risky as your only source of income since sales drop off outside their peak months. It’s smarter to build a core catalog of year-round sellers first, then add seasonal items as a bonus revenue stream.

Published and maintained by the Lilach Bullock team, covering marketing, AI and business growth.
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