Give me six hours to chop down a tree, and I will spend the first four sharpening the axe.

- Abraham Lincoln

One of the famous quotes of the 16th US President, Abraham Lincoln, resonates reasonably with the current mindset of Amazon sellers. Like people trying to cut down a red maple without sharpening their axe, most of the new Amazon sellers pick a niche without doing enough product research. 

The next mistake of novice sellers - Not paying attention to customer service. 

According to Sellerapp.com, more than 60% of consumers look for quality customer experience over the pricing of a product. 

Before investing time in improving customer experience, do research on the products that sell the best on Amazon. Back up your decisions with solid data rather than going with your instincts. We guarantee that the list of products mentioned here will be an excellent start for your Amazon seller journey. 

What is Amazon FBA?

Fulfillment by Amazon (FBA) is a service offering of the global e-commerce giant Amazon for third-party sellers to automate their shipping services and order fulfillment. In simple words, Amazon ships while the sellers sell. 

Third-party sellers sell more than 50% of the units at Amazon stores - Amazon FBA sellers account for 73% of the total Amazon sellers. Amazon FBA sellers manage their sales and ensure they have enough inventory in the Amazon warehouses. If you wish to start your own Amazon FBA business, read this step-by-step guide.

Profitable Categories to Sell on Amazon in 2023

Suppose you’re considering the best categories to sell on Amazon FBA. In that case, there are five categories to pick for your Amazon FBA selling business.

1. Books 

2. Home and Kitchen

3. Baby Products

4. Jewelry Items

5. Workout Outfits

Books are still a profitable niche if you’re an Amazon FBA seller. The first thing Amazon sold was books. Even today, they make billions of dollars selling books. According to Gitnux.com, Amazon holds 67% of eBook sales, but hardcopy books still outpace eBooks. If you want to sell books on Amazon, read about this profitable niche here.

Home and Kitchen is a perfect niche on Amazon to increase your Average Order Value (AOV), as it is easy to recommend related products with the prior purchase. According to Oberlo, nearly one-third (32 percent) of all medium and small-sized businesses on Amazon list products in the home and kitchen category. The concept of product bundling works well in the home and kitchen categories. 

Baby Products are one of the best-selling categories on Amazon FBA. As long as human beings are here, the demand for baby products will be on the rise. Babies get enough attention from their millennial parents, from socks, cradles, diapers, dresses, bottles, and pillows to plush toys. According to Ibisworld, online baby product sales in the US industry account for a market size of $13 billion US dollars. 

The jewelry niche is another popular category to sell on Amazon. According to the Grand View Research report, the jewelry market might grow at a compound annual growth rate (CAGR) of 8.1%; it will reach $480.5 billion in value by 2025. Out of all the products listed in the jewelry niche, rings sell the most on Amazon. 

Workout Outfits might seem like a seasonal niche due to the active participation of resolution makers. According to Ojdigitalsolutions, a recent study identified that 87% of Amazon’s clothes sellers make a profit. From leggings, workout shoes, and yoga gear to gym t-shirts, activewear got a humongous peak during the 2020 quarantine. Surprisingly, the demand is high even today.

Selling is never about convincing. It is always about helping.

- Mark Cuban, billionaire investor, Shark Tank, American Businessman.

According to Oberlo statistics, 89% of buyers are more likely to buy from Amazon than other e-commerce platforms. It doesn’t mean you can sell anything on the platform. In 2019, the electronics category was the Amazon marketplace's best-selling. In 2020, the home and kitchen category has sold the most, according to Junglescout 

As a seller, you might think selling is like rolling your dice in a Craps game. But choosing products to sell on Amazon is no gamble. It is similar to picking the best penny stocks that might turn into multi-bagger stocks in a year or two. You need to do product research as an Amazon FBA seller to reach thousands of consumers for the chosen niche.

How to Find the Best Products to Sell on Amazon?

As an Amazon seller, you might know how to find hot-selling products on Amazon. For starters, just click on “Best Sellers” on the home page and then click on “New Releases” to know what’s selling like crazy on Amazon currently.

Quick Tip: Just scroll down in the “New Releases” section, and you’ll have a lot of products to select your niche from. There is also a way to find how much a specific product makes monthly. 

Step 1: Select a product from the “New Releases” section and scroll down all the way to the bottom. In “Additional Information,” select and copy the best sellers' rank number. 

Step 2: Go to JungleScout, and in the “Amazon Sales Estimator” page, fill in the best seller rank, Amazon Marketplace, and Amazon Product Category, and click “Estimate sales.” You’ll know the number of products sold for that particular month. 

Step 3: Now, multiply the number you got from the “Amazon Sales Estimator” by the product's actual price. You’ll know how much that particular item has made that month. 

3 Tools and Tricks to Sell on Amazon FBA

Sell three types of products on Amazon to become a full-time Amazon FBA seller 

1. Low competition products 

2. Innovative products 

3. High-demand products  

Regarding innovative products, you’ll find retail arbitrage and wholesale models unprofitable. Also, there could be a lot of competition for the same product. That’s where a tool like Helium10 comes in handy for choosing the best products to sell on Amazon. From product rates and product selling quantity to product reviews, you can customize fields on Helium10 to become one of the best sellers on Amazon.

To sell a low-competitive product, you can use Helium10’s Cerebro tool to rank your product higher. All you have to do is find a product's ASIN number at the bottom of the page. Now, you must find a low-volume keyword to find a less competitive product. Again, copy and paste the best seller rank number in the “Amazon Sales Estimator” to know how many units have been sold for that particular month. You can aim to compete with the same product by reducing pricing, improving product quality, and cutting delivery charges.

To sell high-demand products, go to the “Movers and Shakers'' tab. You’ll know the trending products on Amazon, and you can find a pattern of the high-demand products. Use Helium10’s Magnet tool to find the search volume of a particular product. For example, you could enter “biscuits'' in the search and look for different types of biscuit-related searches. Your next business model is sitting somewhere within the highly searched keywords. 

What Product Types are Good for Amazon FBA Business?

• FBA Selling Tip #1: As a beginner, find a product that never gets out of date, has recurring revenue, and is competitively priced to become a profitable seller on Amazon FBA. As per the Fulfilment by Amazon (FBA) guidelines, you’ll be charged an extra fee if you sell a product weighing more than 20 lbs. The product dimension limit is 18*14*8, which is why you need products that weigh less, are easy to ship, and are small. Use this calculator to know how much fees you’ll be paying for Amazon FBA
  
  Quick Tip: Choose a product that fits nicely inside a shoe box, and don’t choose a fragile product to avoid damage during shipping.

• FBA Selling Tip #2: Don’t compete with more prominent brands unless you have a stronger value proposition. Use these two ways to compete with big brands - incorporate long-tail keywords and optimize your social media marketing. Read this article to learn how to compete as a small business owner with a big player. 

• FBA Selling Tip #3: Never sell a product with a shorter shelf life on Amazon warehouses. For example, you need to move electronic products and mobile covers as soon as possible from the inventory to maximize your profits. Don’t get stuck with an inventory that cannot be sold quickly. 

• FBA Selling Tip #4: Don’t sell seasonal products; you have to look for an evergreen product to sustain in the Amazon FBA business model. Choose a product that has demand throughout the year. Don’t try to rush up and sell all your inventory in a limited time window. Example: Halloween costumes and Christmas-related products.
  
  Stat to Note: FBA allows sellers to achieve a 30-50% increase in sales, according to Sellerapp.com.

• FBA Selling Tip #5: Price your products between $20 and $200 on Amazon Marketplace. If you go below $15, making profits become challenging, and above $200, the time taken to purchase your product will increase. If you want to learn more about pricing strategies for selling on Amazon in 2023, read here. 

• FBA Selling Tip #6: Sell consumable products like soaps, lotions, protein supplements, and shampoos that are ideal for generating recurring revenue on Amazon. Customers always come back on a consistent basis, and Amazon’s “Subscribe and Save” option will turn your buyers into loyal customers. If you’re into supplements as a seller, here is some good news for you. The global sports nutrition market is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.9% from 2020 to 2027, according to Datahawk.co.

• FBA Selling Tip #7: As a last tip, with respect to the global economic conditions in 2023, it is best to sell essential products rather than disposable ones. For example, try to sell household items and health and personal care products that would improve the habitual life of a customer. In 2023, meditation-related products will surprisingly sell more as the global meditation market is heading to a whopping $9 billion by 2027, according to Financesonline.com. 

As an Amazon FBA seller, you’ll have more free time to improve your product and service instead of worrying about packaging, storing, and shipping. Unless you have a physical store or started selling on Amazon way back, it is good to go with Amazon FBA, as they have the reputation your products need to sell well! Your Amazon Prime buyers will be more than happy to buy from you as your FBA tag directly qualifies to Amazon Prime. Plus! You’re less bothered about returning products to your customers. It makes you focus more on improving your sales volume using Fulfillment by Amazon (FBA).

As Amazon FBA helps in leveraging your profits, QuickBooks helps small businesses manage its finances with ease. And, most of the QuickBooks users prefer Saasant Transactions to speed up and automate their data importing process and PayTraQer for keeping track of their online payments in a single place.

FAQ - Amazon FBA 

How to win the Amazon Buy Box?

As an Amazon seller, if you win the Amazon Buy Box, your chances of increasing your sales will become significantly higher. You must focus on six things to win the Amazon Buy Box:

1. Competitive pricing

2. High seller ratings

3. Fast and reliable shipping 

4. Consistent inventory levels

5. Optimized product listings

6. Utilize Amazon's advertising tools.

Buy Box is not solely dependent on a single factor but an amalgamation of many factors like pricing, shipping, seller rating, and customer service. 

What are the most sold products on Amazon in 2022?

Electronic products, computer accessories, hair care products, jeans, swimsuits, weight loss products, shapewear, beauty products, stuffed toys, watches, shoes, reusable bags, 

What should you sell on Amazon in 2023?

You can sell workout outfits, summer apparel, hair oils, outdoor clothes, travel accessories, shapewear, and headscarves.  

How to do product research as an Amazon Seller?

Amazon product research is a series of market analyses to pick on trends and choose products that generate high sales. The whole notion is to research products that are cheap but still worthy enough to sell for competitive prices with a significant profit margin in return. If you want to know more about product research, watch this. 

What is an Amazon Buy Box?

The Buy Box is the white box on the Amazon product details page’s right side. Here, customers can add items for purchase to their cart. But not all sellers can win the Buy Box. The advantage of the buy box is that it allows the customers to quickly purchase a particular product without knowing who they’re buying from!