Product Ideas: How To Find Amazon Profitable Products

8 Mins read
Find Amazon Profitable Product

Lenny Smith from Jungle Scout, the leading all-in-one platform for helping Amazon sellers sell on Amazon will uncover how to find profitable products to sell on Amazon as finding a product is the foundation of your business. By the end of this session, you’ll know how to find Amazon profitable product ideas and build out a list of product ideas.

How to find a good product or niche?

So, the first thing that we’ll talk about is the characteristics of what a good product look like in your search for a good product or niche. I’ve got this divided into two areas here, we have “must haves” and “nice to haves”. As the name suggests, the “Must Haves” are more important. These are really the foundational things that you need for a profitable product or a winning product.

Existing high demand

First up is existing high demand. You want to be selling a product that you know and people are already searching for. You don’t just want to sell what you think people are searching for or just a product that you like or maybe a friend or family member likes but you want to verify that there are indeed people searching for this product.

Low competition

The other thing that you want is you want to make sure that there’s low competition. If you imagine even if you’ve got a product that’s selling thousands of units per month. If there are lots and lots, hundreds of listings out there that already have thousands of reviews, it’s going to be very difficult for you to sell in that space. So, you also want to look for low competition.

Good profit margins

Besides, the thing you need is good profit margins. This is a mistake that I’ve seen a lot of sellers make where they go to all this work to launch a new product yet, it only has very small profit margins and it becomes very hard for their business to scale. So a very rough rule of thumb, I’d suggest aiming for at least a 25% or 30% profit margin.

No legal issues

Next up is no legal issues. So you want to make sure that whatever you’re looking to sell, you’re not infringing upon a patent or someone else’s trademark. For example, if you went on to Amazon and saw that maybe some Disney toys are selling very well, then, you wouldn’t be able to sell those unless you had authorization from Disney.

Ability to improve

Lastly here, you’ve got the ability to improve. It’s not enough just to take a generic product and put your own brand or logo on there. You need to find a way to differentiate your product from your competitors so that you can stand.

The next group that I have here is the “Nice to Have” group. These are a little less important but they do or they will help improve the quality of your product and help you stand out.

Small and lightweight

The first one is having something that is small and lightweight. You’ll generally see that the two main sort of categories on Amazon are standard size and oversized products particularly when you’re just starting out. It’s going to be a lot easier to sell standard sized products that are small and lightweight as oversized products are heavier and they cost more in shipping. There are restrictions in terms of how many you can send in at a time to Amazon. So, they’re just a little more complicated. Which is why small and lightweight products are great to start out with that are standard size on Amazon.

Low seasonality

Next is low seasonality. So you want to avoid selling products that are very seasonal. For example, a Christmas tree would sell very well at the end of the year but not really any other times of the year. So, it’s best to look for products that you will sell all year round. One thing to note here is that a lot of products will have some degree of seasonality which is okay. You just don’t want it to be extremely seasonal.

Simple and durable

Next up is simple and durable. You want to make sure that the product is very simple. It doesn’t have too many moving parts.


The last thing here is that the product is weird and what I mean by that is that the most popular products, the ones that you would like to see in the top 100 best seller categories. Those are typically already very competitive and more saturated markets that are harder to sell in. What I’ve found is that typically the typical products that are a little bit stranger or a little bit more obscure are the ones that you don’t necessarily think of are the ones that end up doing really well on Amazon.

The Product Blueprint

Let’s talk about the product blueprint. How do we go about finding these products? 

Average Monthly sales

So, what I like to look for is when you’re searching for a product idea on Amazon and you’re looking at all the listings, you generally want to see that the top ten sellers have a combined monthly sales of at least 3000 units per month. This verifies that there is indeed demand for this product and that lot of people are already buying them.

Number of Reviews

If you’re after low competition, the way we gauge that is through the number of reviews and so within that top ten sellers, you also would ideally like to see three or more sellers that have less than 50 reviews or 50 to 100 reviews which indicates that there’s an opportunity for you to come into that market.

selling price greater than $18

Lastly, we’ve got a selling price of greater than $18 to $20 below that. The lower your price point, the smaller the profit margins. Below around that $18 mark, the profit margins become very slim. So, the higher your price point, the better your profit margins will be.

Step 2: Build Your List of Products

this is where you now want to start building out your list of products and this is where the Jungle Scout tool can come in really handy. You can find product ideas with our web app and what you then do is you can search in our web app and you can select the categories that you’re interested in looking in. You can set filters such as the things that I’ve talked about where you can set the number of sales per month that you want to see, the maximum of reviews and perhaps the minimum price. Then, Jungle Scout will generate a whole list of product ideas for you then, what you can do is explore those product ideas.

Moreover on Amazon. For example, let’s say a yoga mat came up as a good idea. You could click over on Amazon and then look at all of the yoga mat listings and that’s where you can run the Jungle Scout Chrome Extension right there on Amazon and then that will give you a snapshot of all those top listings. It’ll give you an estimate of all the monthly sales. It’ll tell you all of their reviews, the price point, all of that data just in a single snapshot and that’s a very easy way for you to assess that market.

As you rinse and repeat this process. I’d recommend creating a list of at least 10 to 20 potential ideas. You don’t want to just go for the very first idea that comes to mind. You want to have a wide list of ideas that you can then narrow down once you’ve got a list of ideas which you can actually store them all within Jungle Scout in a tool called the product tracker. The product tracker will track daily sales of all of these products. So that you can see over time whether the sales numbers stay at the same amount or whether they dip down because if you only check the sales on one particular day, that might have been a day where they were really high sales or really low sales. Whereas if you track it over time, you can see more accurately what the average sales are before that product to help or give you more confidence before you go ahead and order that product yourself.

Step 3: Narrow Down Product Ideas

Now that you’ve got a list of say ten to twenty product ideas, you want to narrow this down into about the top five product ideas. You will want to really narrow down this list to determine what you’d like to sell and so these are some questions that you can ask yourself about this list of product ideas that you have to narrow it down.

Remove items that fall under these categories:

  1. High competition
  2. High seasonality
  3. Easily breakable such as glass or ceramic 
  4. Food, drinks, supplements, or topical, tend to be a little more high liability. There’s a little more risk of something going wrong or someone getting sick from using that product
  5. Complex products such as electronics or anything that has a lot of moving parts
  6. High potential liability items such as helmet, life vest, baby car seat, etc.  You’ll notice a trend here that personally, I recommend keeping things as simple as possible, reducing the risk of anything going wrong with your product as that just makes the selling experience a lot easier for you.
  7. Trendy or fad items. An example of this is COVID related products throughout the pandemic, there are a lot of products that trended up and we’re selling quite a bit and so you need to determine, is this a trend that’s going to continue or is the trend going to go back down once the pandemic is over and Jungle Scout is able to give you this historical trend data so you can actually see how sales have gone and whether they’re going to trend up or down.
  8. Patented or products that require licensing. So, those are ones that you would not be able private label. Thus, you would definitely want to stay away from those unless you’re able to get the licensing for those.

Read Customer Reviews on Amazon

Now that you’ve narrowed down your product ideas, let’s talk about how you can go about improving them. As I mentioned, that’s one of the really important things that you need to do is differentiate your product from your competitors and so there are two ways that I really like.

The first way is to bundle your product with something else. So, using the yoga mat example, again, maybe you could sell your yoga mat with perhaps a couple of yoga blocks or a yoga strap and make it a set and maybe that could be a way to differentiate your product from your competitors. Not only that, it allows you to increase your price so that you’ve got a higher price point and therefore, higher profit margins compared to your competitors. The way I would recommend going about that is if you click on to an Amazon listing, it actually tells you products frequently bought with this product. So, I’ll look at a number of those listings and see what is frequently bought with that product and that can give you great indication of a good bundling opportunity.

The other way you can go about differentiating your product is by reading customer reviews on Amazon and this is an incredibly powerful way to do market research on these products before you sell your own. So, what I would recommend is going to these competitor listings and start reading the one star, the two star review, see what customers, real customers are unhappy with or don’t like about these products. Write all these things down, look through lots of reviews or negative reviews on Amazon and then once you’ve collected all of the customer complaints, keep in mind, you can actually note all of this data within Jungle Scout.

Step 4: Innovate Your Amazon Product

The final step is to innovate and apply these learnings that you’ve had. Take these things that you’ve learned and take them to your supplier and improve it according to your research. So, that’s how I’d recommend differentiating or improving your product.