11 Principles To Follow In Order To Find Profitable FBA Products To Successfully Launch Your Amazon Business

Amazon has over 300 million customers that are ready to buy your product. Amazon's growth bears some huge opportunities for Private Label sellers and Amazon's FBA services are a great way to sell items worldwide without the hassle of dealing with storage, worldwide distribution and returns. If you are selling through Amazon FBA, Amazon manages the storage and distribution of your products and handles all returns as well. The advantage is that you are able to reach customers easily worldwide. No need of hiring employees, get a physical store or invest thousands of dollars right up front for initial investments.

You have the opportunity to work from anywhere in the world no matter what time or place. You have the opportunity to sell to different Amazon marketplaces from anywhere in the world, including the United States of America, which is the biggest Amazon marketplace.

There are about 20,000 Amazon FBA sellers, each generating about $ 2,000,000 of annual sales. I am among these Amazon sellers, and I have attained a lot of valuable experience which I am sharing in these blogs. In order to avoid common mistakes, Amazon sellers follow a certain rules and principles when starting an FBA business on Amazon, which I will talk about in this blog.

In the beginning of every job, the learning process includes trial and errors. These 11 principles will help you minimize risk and mistakes and help you in starting off your Amazon career. As time passes and you gain more knowledge and experience as an Amazon seller, you will be confident enough to adjust these principals to your own methods and your business.

It may be tough to start a Private Label at the beginning. Finding the right product requires a lot of time and effort. That's why you need the right software to help you with your Amazon Product Research. FetchSome offers a WebApp and Chrome Extension that are great tools to conduct extensive Amazon Product Research. Using these tools while following the 11 principles will guarantee you to find profitable products.

Here Are 11 Principles To Follow That Will Help You Find a Profitable Amazon FBA Product

These 11 principles are general rules that will help you start off your Amazon business. The principles are based on my experience, being an Amazon FBA seller, and having been in this business for around 10 years.

They are meant to help you minimize risks and common mistakes as well as help you fin profitable products faster and easier.

Principle 1: Choose the Correct Category

The following categories include many niches with high sales volume and bear many opportunities for you to enter into. The majority of products are products that customers find to be very practical and use on a daily basis. These kinds of products are definitely promising and can be found in the following categories:

• Clothing, Shoes & Jewelry

• Home & Kitchen

• Office Products

• Patio, Lawn & Garden

• Pet Supplies

• Sports & Outdoors

• Tools & Home Improvement

*Below you can see how it would look like in our WebApp if you would search for products in these categories: *


You can find the complete list of categories directly on Amazon or, if you are using our WebApp, the categories are listed in our tool Product Search.

Principle 2: Choose a Small and Lightweight Product

Especially for the first product, you should not choose to go for a product tat would fall into Amazon's "Oversize" category. Reason being that with oversized products the Amazon FBA fees are much higher, reducing your profit. Additionally, Amazon allows you to store only a limited amount of items, if they are oversized.

The product should therefore be less than 3 lb (1.36 kg). Products that are more than 20 lb (9.07 kg) and longer than 18 inch (45.72 cm) enter into the large-scale products category.

Principle 3: Choose a Durable and Easy-To-Make Product

If you are just starting to have your own Private Label product manufactured and you do not have experience with a manufacturer in China, you should not go for a product that is comlex, such as electronics, or that breaks easily, like glass. Damage costs you money, which you want to avoid.

During the manufacturing process it would be a good idea to check on tha quality of your products. If you can not personally go to the factory, there are Third Party Services that will do quality inspections for you at very reasonable prices.

Principle 4: Find a Product That Sells at "Medium" Price Point

The price point should be between $15 and $50. Below $15 because anything lower than that will not result in profitable earnings. Products that cost more than $50 trigger the customer to think about their purchase twice and usually a customer would choose a brand they already know to buy a product that costs more than $50. Since you are just starting to sell, and your brand does not have enough recognition yet you should stay away from products above that price point.

Principle 5: Avoid Patented Products

You have to be very careful not to copy a patented product, since that would raise some legal issues. In order to see if a potential product has a patent, you can simply go on the government's official trademarks and patents website and look for that product (http://www.uspto.gov/). Another way is to check if that product has some competition, if not it is probably patented.

Principle 6: Create a List for Your Ideas

When conducting your research you will come across numerous potential successful products. However, it takes some time until you can be absolutely sure that this niche is a great opportunity for you. For that reason we have developped a Product Tracker, which let's you track every product that you are interested in keeping an eye on. It collects important data such as price, rank, customer reviews and ratings over time. These factors are very crucial in order to determine if it is a successful niche for you to enter into.

That's what our Product Tracker looks like:


Principle 7: Tackle Products With High Sales Volumes

There are numerous products on Amazon that sell very well, which would be at least 300 sales per month. However, many of these high selling items still have room for improvement. That's where you come in. Looking at these products gives you the chance of seeing if there is enough demand for that type of product in the first place. If there is, then you can step in a manufacture a product of better quality, with better features, a different color or whatever it is and tackle the competition.

However, analyzing every competitor selling that type of product can be very chaotic. That's why we have developped a Chrome Extension that collects every product within a niche and lists all the data you need to know about these products in a table.

That's what it looks like:


There is a rule of thumb that you should follow, which is

• The sales combined of the first 10 products should be at least 3000

• but the combined sales of the first 2 items should not exceed 3000 since that would indicate that there are very popular brands within that niche, which would be hard to compete with.

In the bottom right corner of the Chrome Extension you can easily see the comined sales of the top 10 items as well as the average number of sales and the maximum of the top seller.

Principle 8: Evaluate the Competition

Indicators for how intense the competition of a certain niche is the number of reviews and how distributed they are. Looking at the top 10 products and how many reviews they have is key. Ideally, we want at least 8 of 10 items to have less than 100 reviews. If there are items that have an extreme high amount of reviews in comparison to the other products, that means that these products' brand is very popular and they would be a very tough competitor.

Here you can see how easy it is to analyze the competition within a niche, using our Chrome Extension:


In this example the number of reviews is very high, which indicates that the competition is very intense, making this niche highly unattractive to enter.

Principle 9: Look At The Quality of Product Listings

According to statistics, 

• colorful product images increase customer's interest

• on average, people visiting a website only read 20% of the content text, however, look at almost every picture

• 67% of customers say that pictures influenced their purchase decision

• 63% of consumers say quality pictures are much more valuable than the product description content.

These figures show us what has to be considered when creating a product listing. A high quality product listing will boost your product rank and put your product at the top of the search results when a customer is looking for a product like yours.

What is a high-quality product listing? Besides the quality of the pictures (check out our Professional Photography Service), there should be an accurate amount of pictures and ideally a video showing more details on how the products works. Include at least five bullet points at the top of the page to describe some product specifications, and a well-written and detailed product description below.

If you find a niche where there are product listings with a low Listing Quality Score, below 60, then this is a great indicator for a great opportunity for you to offer a similar product but with a much better product listing, helping you outpace your competitors!

Here, we are looking at the LQS (Listing Quality Score) with the Fetchsome Chrome Extension:


In this example the majority of the top 10 listings is in the higher LQS range, which is not so good for us.

Principle 10: Hit the Bullseye

The quality of your product is the most important aspect that you have to invest a lot of time for. If the product you are selling is not satisfying your customers, you will receive bad reviews on Amazon, for everyone to see, which will guarantee your failure.

This is why you have to make sure your product actually works and has a better quality than your competitor. Now, I am not talking about more expensive materials or making the product fancier by making it more complex. You should simply figure out what customers need, identify what they were not happy about with the products of your competitors and solve their problem.

To find out how you can improve your competitor's product, you should read the 1-3 star reviews and figure out what the problem with the product was. Looking at dozens of products and reviews can be exhausting, I know!

That's why we have developped a tool that scans all the reviews for you! It shows you the most common reasons for bad reviews for any product on Amazon.

Here is how it works: Copy the URL or ASIN of a product, paste it in the search bar of the Product Development Tool and get a list of reasons for bad reviews.


Principle 11: Avoid Selling Seasonal Products

You can continuously increase your sales and your profits by continually selling and controlling your expense. Because it is easy to measure and manage your business in a steady business. 

That's why I suggest from products that are selling seasonally, such as "back-to-school", christmas or only summer products. If you were to sell a school backpack, let's analyze sales over time. For that you can use our Chrome Extension and click on the upwards arrow.


Here we can see that in the last 5 years the backpack usually more during one particular season.


Paying attention to this aspect is essextial in order to avoid being left with too many products in Amazon's warehouses and having to pay more money for storage.

Become An Amazon Private Label FBA Seller Today!

I hope these principles will help you in starting a successful Amazon business. For more tips check out our blogs and YouTube videos!

Good Luck!

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