How to Find a Product To Sell On Amazon FBA in 2021

Since you found this article, you probably have already realized that selling products through Amazon is a great way to start a business. Amazon has a massive marketplace and can reach buyers just about anywhere. If you want to create a store, it is the perfect option. 

But, how do you find the best product to sell through Amazon FBA (fulfillment by Amazon)?

The site will sell practically anything – it might be overwhelming to know what items will be profitable and what you need to avoid. 

Luckily, we have you covered!

Be sure to read the rest of this article if you want to know how to find a product to sell on Amazon FBA.

We’ve tried to provide you with all the information you need to make a decision. 

Let’s get started! 


How to Find a Product to Sell on Amazon using IO Scout

In this article we are going to be talking about IO Scout, this is a tool we haven’t spoken about before.

1. Getting Started – What You Need to Know 

This first step is the part that stresses out new sellers. They feel nervous since they are not sure if the consumers will buy it or they’ll make a profit. Suppose this sounds like you. Keep the following in mind. 

You can find valuable information through Amazon FBA research tools.

They allow you to check the history and other important information on an item.

IO Scout Amazon seller tool is a tool we can recommend to help you with this process.

It works with various sellers and can assist you with finding a product to sell on Amazon FBA


  • Listen to the Data 

You always want to listen to the data you find. Picking a product to sell because you like it can be a considerable risk. Instead, do the product research and analyze what you see. 

If you already have an idea of what you want to sell, make sure to check the numbers through an Amazon research tool.

Doing so will let you know how similar items are selling on the platform. 

If what you are seeing does not seem promising – choose something else.

You are never locked in until you agree with the manufacturer of the product.

Just because you expressed an interest in selling does not mean you have to stick with the item you thought of first. 

Do not rush your research, either.

Taking the time to read over the data and find out what works and what does not is critical to your success.

When you realize that research takes time, you will feel much more prepared to sell your items. 


  • Use a Sourcing and Research Tool 

There are plenty of Amazon research tools out there. They can help you research keywords, check on your competition, and track your inventory for you. IO Scout Amazon Product Research Tool is a solid bet.

The features in IO Scout sort through massive amounts of data and find products that meet the high demand and low competition rates – making them extremely profitable. 

There are free options out there on the internet, like Amazon Sales Estimator and FBA Calculator or you could try 5 days money-back guarantee to see if the software is to your liking. 


2. Learn How to Find Profitable Products 

Every business on Amazon’s platform wants to find the most profitable products. As a start-up business, you should be doing the same.

You will want to know how to check the potential profits on an item. 

If you are having trouble doing this yourself, an Amazon product research tool can help you. 


  • Finding out the Profitability 

When you are looking at a product, think, “Can I ship this to Amazon easily and without paying more than I’m selling it for?” If you can, it might be a decent choice. 

To determine if it is, think about the rule of 3’s in business.

This rule has you look at the total cost of the product. Break it down into ⅓ for landed costs, ⅓ for fees, and ⅓ for you and your business. 

  • Landed costs – what it costs you to move your items to a warehouse 
  • Inspection fees 
  • Inventory cost 
  • Shipping expenses 
  • Amazon fees – the commission the platform expects for each item you sell 
  • Profits – Whatever is leftover 

For instance, if the product sells for $15, you should expect a profit of $5 after fees and other costs. 

Related: How To Work Out What Amazon Charges You


  • What’s a Healthy Profit Margin? 

We normally recommend looking at products priced between $20 to $50. If you go any lower than that, your profit margins might not be worth the effort you have been putting in. If you go higher, you instantly start to raise the barriers to entry, this usually means less competition.  

You always want to make sure that you are making more money than you are spending, this sounds obvious but you need to keep it in mind.

Your Amazon research tool can be helpful with this. Many options will show you your potential profits and other factors into how much you will need to pay. 

A healthy profit margin makes you feel comfortable. It should never feel like you are taking any risks with your business. Often, an Amazon product research tool will have a profit estimator feature you can use. 


  • Finding Demand 

Demand is what lets you know how many people are interested in buying a product. If it is something that is flying off of the shelves- it is in high demand. To make a profit, you will have much better odds with high demand goods.

You can check Amazon data to determine if a product you are interested in is selling well. The sign of high demand? That would have to be sales. 

If you notice that a product is selling well on the platform, you should try to get in on it, if of course, the competition levels look accessible.

Plenty of research tools will let you know how an item is selling. Be sure that you check out that data before making any final decisions. 


  •  What’s Your Competition Doing? 

You should always be thinking about the competition and what they are selling on Amazon FBA.

You will want to see how many other stores are selling products similar to yours. If it looks like there will be a ton of competition, it might not be worth going with that product. 

However, even if there are many sellers, you might still be able to enter the market. Check the reviews and ratings on the products. If they are lacking, you might be able to offer consumers something more than they are currently getting.

Ensure that your suppliers can make something better than what is currently listed- and you are good to go! I know a lot of sellers that are having success with copy cat products, their products aren’t superior but they’ve done a better job with their listing, images, marketing etc

You can improve on your competition in more ways than one!

You can use your research tool to explore reviews and rating data. That way, you can be confident in your decision to enter that particular market. 


Where Can You Do Your Amazon Product Research? 

Amazon product research can be conducted with a number of research tools.

Today we are looking at IO Scout as i mentioned earlier.

Say you were using IO Scouts Product Research Tool you can quickly create a search and receive a lot of data on a product.

How to Find a Product To Sell On Amazon FBA

The best part of the IO Scout Amazon seller tool is that you can use for any niche, it will give you data on any potential product.

Tracking products to see how they are doing is simple. Plus, IO Scout will even show you an estimate of your profit margins to help you make an informed decision.

In short, you will want to find a product research tool that works for you.

There are many options out there, but I’d recommend giving IO Scout a go. What have you got to lose?


3. Learn to Do Product Research Right 

When you are researching a product, you should first try to find the product’s price or profitability. You will want to aim for a profit margin of 30% minimum. When it comes to demand, you want to aim to sell about ten products a day. Well, that’s what we do anyway!

When it comes to examining the competition, you will want to look at the top 10 or so listings.

From there, see if at least 3 of them have few or bad reviews. If that seems to be the case, you will have an easier time entering the field (if you can offer a better experience).

When products have low ratings, you can swoop in and offer better products! 

This list summarizes the above, be sure to use it during your research. 

  • What is the profit margin on the product? 
  • Can I sell at least ten products a day? 
  • How is the competition doing?
  • Do three or more stores have bad reviews? 

 Other Amazon sellers are probably going to be looking for the same criteria.

What makes your product or brand stand out? Thinking about this can be a massive help in your success. 


  • Use a Chrome Extension 

Many research and sourcing tools offer extensions. When you use one, you can easily browse through Amazon, and the plugin will show you the data on the products listed.

The extensions are typically easy to install as well- you need to hit a few buttons, and it is ready to go! 

Extensions will show you the average monthly sales of a product. Plus, they can help you work out how likely you are to succeed with that item.

The extensions can help you track products you are interested in and show you how they are trending over time.

You will want to track many products, especially if you are new to selling on Amazon.

Track the items over a few weeks to see how they do.

Some research tools offer history trackers, which will show you how the prices and sales have fluctuated over time. 

IO Scout Amazon seller tools are perfect for accomplishing these tasks.

You can try a trial of a product research tool for free and determine if it is right for you.

They usually make new sellers feel more comfortable selling on Amazon FBA.

Tip: Everything tends to sell better around Christmas. By tracking your product over a few weeks, you can determine how it will generally do. Seasonal products only experience an increase in sales for a short amount of time, so they may not be worth it right now. 


  • Check Sourcing 

When researching a product, you will also want to think about how easy it is to source.

That means that it is an item that is made and shipped easily. Suppose your product is too complicated, especially for your first one. In that case, you will run into many issues you might not know how to handle yet. 

When sourcing, you want the challenges to be simple.

You do not want to spend a lot of time or money, sending the items to an Amazon warehouse. Lighter products cost less to ship and are easier to transport. 

Your Amazon tool will usually have sourcing data available on it. They are designed to find that information and present it in an easy way for you to understand. 

Once you have completed your research, you will want to know how to source it.


4. Sourcing Your First Product 

Congratulations, you have found a product to sell!

All of your research indicates that that item is going to do exceptionally well on the Amazon marketplace. But, now what do you do? 

Well, you will want to find a supplier and source the product from them before you can sell on Amazon. 

You can start by researching suppliers and comparing them, in the video below Ed discussing out you can find suppliers using Alibaba.

From there, check out samples of their products and decide if it is a quality that you want to sell.

Tip: Order your competitors products and compare them to the samples you receive from your supplier. Remember to ask yourself, are you offering them anything more?

Then you make your order and have the goods shipped to an Amazon warehouse. 

It might seem intimidating at first. But, soon, you will be sourcing your products with ease. This is what you need to do. 

Related: When Ordering A Product, What Does MOQ Mean?


  • Research and Compare Suppliers 

There are tons of suppliers that can provide you with any product you can think of. Now that you have an idea of that perfect product, you need to find someone who can manufacture it for you- at a reasonable price.  

To start your research, you will need to use your Amazon seller tool again. Many options have databases that provide you with information on suppliers.

You will want to check out the product by its name and ASIN number to find everything. 

You will want to make sure that the supplier makes high-quality items.

If they lack quality, they are more likely to create unsatisfied customers. When they leave bad reviews on your page, you can expect your sales to drop.

A little bit of research into the manufacturer can prevent this. 

You will need to record the prices as well so that you can compare them easily.

You want a price that is fair but represents the quality of the items.

If a manufacturer prices their goods a lot higher or a lot lower than similar groups- that can be a bad sign. 

Either they are trying to overcharge sellers, or their products are lacking in quality. 

Amazon product sourcing tools are beneficial when you want to find information.

Many offer data on the supplier and have a list of their contact information.

When you have picked out the supplier you like, it is time to get in touch with them. 


  • How to Contact a Supplier 

Contacting a supplier for the first time can make some people nervous.

However, if you follow these steps, you can be confident that you are doing everything exactly, right! 

Now it’s time to make a list of your suppliers, who do you want to contact for a quote?

Make a list. We save this sort of information in a spreadsheet so we can compare later one.

It is usually pretty easy to find contact information for factories online.

If you do not see it through a quick Google search, your research tool might have it on hand. 

In your email, ask them for a quote on what they charge for their products.

As you get emails back, write down their quotes to easily compare them to one another.

Doing so is very helpful when sourcing products to sell on Amazon

Be honest with your suppliers, let them know your ambitions and what they can expect from your company.


  • What to Know About Samples 

You should also be sure to ask them if they offer product samples. Samples do cost you, but they are necessary to figure out if you want to sell the item in your store.

Always ask for at least two or three. That way, you can ensure that the quality is consistent across the items. 

Make sure the samples have everything that you need them to and that they function correctly, take time to test out your products!

If you do not like one or two things about it, the manufacturer can likely make some adjustments and send you another sample set. 

If the product is not what you expected, do not be afraid to switch to a different manufacturer.

That is what the samples are for- to let you know what products you are selling to consumers, if they aren’t good enough, move on!

Take some time to think about packaging at this stage. Do you want to have your brand on the package?

If yes, prepare your design and send it to the supplier. It is essential to keep in mind that not all factories can offer this, but most do. 

 We usually ask for suppliers to send us a final version of our product in packaging, this allows us to see the finished product.

If you are satisfied, it is time to send the item over to an Amazon warehouse. 


Final Thoughts 

It takes a lot of research and time to determine what products you want to sell on Amazon FBA.

Especially if this is your first time picking an item to sell, it might be overwhelming, but understand that the research is crucial to your success. 

We have covered most of the things you need to look at now it’s up to you to get to work.

If you need an Amazon research tool, we ask you to consider IO Scout.

They can provide you with a ton of data on suppliers, your competition, keywords, and much more.

IO Scout might become your primary tool, it works well and offers you a ton of data. We also appreciated the Chrome extension they provide for ease of use. 

If you have any questions, you can reach out to us! We also have more articles available that are super useful for selling on Amazon FBA.

As a new seller, there is a lot for you to learn – and we are here to help you!

Alex Tkachenko

Alex Tkachenko io scout

Alex is focusing on fulfilling customers’ needs for more than 10 years now. 

Sharp focus on what is important, analytical savviness and high level of empathy help him create complex, yet easy to grasp analytical tools.

More than 50,000 customers around the globe are using analytical tools created by Alex. You can learn more about Alex’s work here –


Tags: amazon FBA, amazon product research, amazon seller, guest post

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