Marketing
February 6, 2022

What Sells Best On Amazon FBA With Minimal Competition?

Table of content

The average reviews of 89% of buyers show that people are more likely to purchase products from Amazon than they would from other ecommerce sites. And with Amazon selling products bringing over $125 billion in sales revenue in the 4th  quarter of 2020, it'd make sense why there's an upsurge in the number of sellers on Amazon. So, what sells best on Amazon?

Even the best sellers would agree that the hardest part about selling on Amazon FBA is trying to figure out what to sell. You may have what you think is a great idea of what you want to sell on Amazon, but the best sellers will always rely on data — not solely on instinct. This couldn't be any more accurate than when you notice that consumers buy more during Q4 than at any other time of the year.  

So now you are ready to start your own Amazon business; what are the sales margins of Amazon's best-selling items? What criteria do you use to know the top-selling products? What are the trending products that consumers are buying this season? What are the most profitable categories on Amazon FBA? How much inventory is best to purchase?

Other picking out your product market niche, you'll also need to understand the buying patterns, behavioral tendencies on why most buyers come to Amazon and how that will affect you as the seller. Additionally, we'll give you the best tips on product choices and how best to make the most sales.

What Is Amazon FBA?

Basically, Amazon FBA is a program by Amazon, where the orders are fulfilled by Amazon instead of the Merchant fulfilled program (FBM). For a small fee, Amazon takes the responsibility of packing and shipping the product being sold to the consumer. This model is quite appealing to a lot of buyers and sellers who won't have to go through the hassle of shipping the orders- plus; it also boosts your chances of winning the 'Buy Box.'

What Are the Best Selling Products On Amazon FBA In Q4?

Normally, from recent and historical sales, we'd recommend selling evergreen products that can be sold all year-round. However, the monthly sales volumes of seasonal products show so much potential in profitability. Arguably, most selling categories on Amazon will spike in sales in Q4, but there's a specific category of seasonal products that Amazon sellers can significantly profit from during the holidays.

Note: The ideas shared here are meant to give you insights and inspiration on what you could sell online during the Q4. Always ensure that you've done your due diligence and research products independently before deciding what to sell on Amazon.

How To Select Top Selling Items on Amazon?

A) Are They Budget-friendly Products?

The highest-selling products in every ecommerce business tend to strike that sweet spot, between affordable and pricey. Here's why:

  • From the statistics, fairly-priced items are more impulsively purchased compared to the relatively expensive ones. A higher price tag tends to have a lot of buyers thinking more about what parting with that kind of money actually means. For this reason, they'll do more research into whether they actually need the product or not. On the other hand, most buyers don't spend so much time making comparisons for the less expensive items
  • Expensive products make it more difficult to sell products as you're getting started. Forking out so much money to get started can be relatively hard for a lot of sellers
  • On the other hand, most people generally associate cheap with low quality

B) Are the Items Big or Heavy?

Of course, the more an item weighs, the more the shipping costs. But the package size also matters since larger items also rack up in price, which then cuts into your profit margins. So picking your niche market will need you to take multiple factors into account, which is definitely one of them.

By selling relatively smaller and lighter items, you reduce the shipping costs and FBA fees, making them more manageable. However, you also don't want to go too light or small, or else the package might be crushed when something falls on it.

This is also another risk with fragile items like glass or electronics. So instead, try settling for profitable products that are durable, sturdy, and easy to hold. Also, learn about the Amazon seller fees and shipping costs to help you narrow down your decision.

C) Are You Familiar With the Product?

Remember the saying, "Write what you know"? It also applies. Familiar best-selling products are easier to write product descriptions on. This way, you know how to highlight the most compelling or strongest features and how to pair up products to improve each respectively.

D) Does The Product Have Popular Keywords?

It's far much easier to try and use the wheel than it is to try and reinvent it. So when doing your product research, if you come across a  certain category of products with keywords that are widely used in the search results, list them right away.

A great rule of thumb to keep as a loose guideline for your Amazon business is that the top 2-4 keywords have roughly 100,000 searches every month in the search engines. So temper your expectations a little if you plan to sell items in a more niche market category. You might also want to stay away from products with keywords that are too popular.

E) What Is Its Combination of Rank and LQS?

Generally, top-ranking products mean that they sell well. Listing Quality Score (LQS), on the other hand, describes the keyword richness, selling length, bullet points and description of the product. The goal here is to find a product with a rank score that's closer to the top, and that has an LQS of at least 70.

F) Does It Have Too Many Reviews?

Customer reviews are a necessary part of the successful selling of any product. For this reason, you should be a little more careful about products with too many reviews.

This is a good indicator that there's too much competition, which is ideally not the best way to start selling items on Amazon. Fewer product reviews, on the other hand, make it easier for you to get more 5-star reviews — which in turn positively affects your rating, increasing your chances of ranking high.

Low competition could indicate an untapped market since selling products with established brands can also indicate too much competition. Low competition could also indicate a high demand that a lot of sellers are not fulfilling. You have a better chance for more sales and profit margin by offering a great version of that product.

G) What's Your Profit Margin?

When trying to decide what to sell on Amazon, always consider that the average price of the best-selling items tends to be 25% or less than what it'd sell for on Amazon. Then, simply estimate the profit on each unit and the return on investment.

There are plenty of tools to help you do this for you, but always look out for one with:

  • Product price
  • Cost
  • Size
  • Weight
  • Storage fees (monthly)
  • Pick and pack fees
  • Sales (monthly estimate)
  • FBA fees (total)
  • Product profit (per item)
  • ROI

Sometimes it's the more pricey or relatively lower-selling items that net you the most profit, so always look carefully at the product margins.

H) Why Not Create Your Own Brand?

Compared to current brands, private labels can be more affordable, meaning that you make more profit on them. Creating your own brand also gives you more control over how you market and present the product.

What Should You Consider?

  • The busy Q4 on Amazon is between November and January
  • Have enough stock for January as well. For many Amazon sellers, January can also be as busy and profitable as December, when shoppers use the Amazon gift cards
  • Don't let the Amazon sales rank mislead you in Q4 since the same products that might have ranked at 200,000-300,000 during the summer and probably sell twice per month might sell well during December
  • The approval to sell toys only applies in the Merchant Fulfilled program. So if you're selling via FBA, the approval is more automatic during Q4
  • Slow down on your repricing strategy since products typically could sell for more closer to Christmas
  • Don't always chase the holiday 'hot toy' list since they're most probably heavily stocked by stores already. Instead, consider ones that will be harder to come by during the holidays
  • Save money by buying discounted gift cards through sites such as raise.com and cardpool.com to increase your purchasing power and maximize profits
  • Stock up on your own supplies as you're selling products during Q4 since you don't want to run out of items such as packing tape, warning labels or Dymo labels
  • Increased sales always come increased product returns, so always check that Amazon reimburses you for items they've lost but and items the customers never return
  • Picking popular top-selling products means that you're competing with what Amazon sells, so there's likely market saturation, AmazonBasics products that are likely cheaper than yours and higher advertising costs since Amazon will put its own products ahead in the search results
  • Always try Google Trends such as JungleScout, on the product ideas that are in less competitive categories to see what the market demands, the demographic and what keeps coming up
  • Since consumer behavior is constantly changing, keep an eye on the wider consumer behavior
  • Find the data on your Amazon's business product ideas

Why Amazon?

a) Quick and personalized shopping

For instance, Amazon creates a personalized shopping experience by suggesting top-selling products that consumers might like based on past activities.

b) Latest, greatest, and most affordable

Amazon is somewhat a pioneer in the industry since Amazon anticipates the customer needs then tries to fill the gap. For instance, Alexa was one of the leading voice-controlled devices in the market and still remains as popular.

c) Product reviews, comparisons, and features

Approximately 23% of the online buyers get product inspiration by reading customer reviews, while 82% consider the products to buy based on the price.

d) Amazon's super-fast shipping and fulfillment

Amazon is famous for its reputation in unrivaled shipping times, and the FBA program also takes on much of the customer service from the sellers too, making it a smooth, seamless process.

What Can't You Sell From Amazon's Gated Categories List?

As you consider what to sell on Amazon, also keep in mind what's restricted:

  • Alcohol
  • Animals and animal products
  • Automotive and Powersports
  • Currency, coins, or cash equivalents
  • Drugs and drug paraphernalia
  • Explosives, weapons, and anything related
  • Gambling and lottery
  • Hazardous items
  • Medical devices and accessories
  • Offensive or controversial material
  • Seed products
  • Tobacco and tobacco-related products
  • Service Plans, warranties, contracts, and guarantees

What Is On Amazon's Best Sellers List?

1. Toys and Games

Toys and games are probably the most obvious of categories. Generally, toys and games will always sell incredibly well in Q4, especially during the holidays. This will require you to figure out which toys will probably be high in demand during Q4 to guarantee you are making some money.

A great way to sell toys and games during the Q4 is by either following the wholesale or retail arbitrage business models. One way to do this is by finding popular toys in the local retail stores and then reselling them for profit on Amazon. Of course, these top-selling items also include board games.

It's also worth pursuing any strong private label idea you might have for a toy product; just ensure that you can get inventory in good time and keep up with consistent demand before the holiday season is over. To get ideas on the best-selling toys and games to potentially sell this year, take a look through the popular holiday toy lists and Amazon's 'Toys that we love' list.

2. Exercise and Fitness Equipment

This is also not much of a surprise, especially since all our New Year's and health resolutions usually come right after the holiday season. It is at this time of the year when fitness products are sold most, and 21% of consumers usually purchase exercise/fitness items early. You can also count on the high demand and selling these products in the new year.

Workout/gym wear is one of the top-selling items on Amazon, and the fact that most people buy their clothing brand new means you can increase the profitability even more. However, this sub-category can be quite competitive as well, so try to think outside of the box in terms of selling or even marketing a private label fitness product. Another viable option is to find popular exercise and fitness products that you can resell via either retail or online arbitrage.

Tip: If you choose to go the arbitrage route, make sure that you scan the items before selling using your Amazon seller app to ensure you are ungated in particular sub-categories or by brand.

3. Electronic Items and Accessories

People really love getting their hands on the latest techy gadgets, so you should really stock up on these top-selling items. And in exchange, you get:

  • Lower Amazon commission fee, which is 8% instead of 15%
  • A good number of choices and sub-categories within each category
  • A variety of new electronic items and accessories are being released all the time
  • Different ways you can use to appeal to different audiences based on the different brand names, even though they all essentially do the same things
  • Great retail arbitrage opportunities, sometimes even as often as every week

4. Holiday Decorations

There are plenty of holidays and traditions that come during this time of year that consumers will buy decorations for and that you, as a seller, can provide. For instance, during Halloween, you can always sell costumes, fog machines, lawn decorations, all-themed items, and so much more.

Going to your local grocery store will give you plenty of ideas on what holiday items can be sold right now. As well, always consider what other holidays (and temperatures) are fast approaching and the products that are associated with them. An example of a popular holiday product that you can potentially sell during the Q4 is Christmas lights.

5. Sell Books

Yes, Kindle or some e-book variation on the iPod/iPad/iPhone are pretty popular, but coincidentally, books with paper pages are more popular than right ever. This is exactly how Amazon got started and how you can carve out your niche in the marketplace.

What Books Sell Best on Amazon?

  • Print vs. Digital: There's no denying the huge upsurge in the use of e-books, but even then, Amazon print sales still remain high. You also get a higher chance for profit, particularly if you have some rare or unusual books
  • New vs. old books: Nothing ever beats the smell of a freshly printed manuscript. Well, other than getting yourself a good book. Selling new books can be quite challenging unless you're also prepared to do business with the suppliers and wholesalers. On the other hand, selling used books cuts out the need making it a little simpler
  • Fiction vs. nonfiction: Generally, nonfiction books will sell in great volumes, but it's the popular fiction titles that sell the most

What you should consider when pricing used books on Amazon:

  • The condition of the used book
  • Amazon's price
  • Your selling goal
  • Multiples
  • Amazon fees on the sale
  • The Buy Box

6. Arts, Crafts, and Sewing Supplies

Arts and crafts is another popular category with relatively low competition that a lot of consumers will be purchasing, especially by the early gifters during the Q4 holiday season. Additionally, 24% of the consumers say they like to purchase their arts and craft gifts on Amazon, so this is definitely a great time to jump into that best-selling category.

Generally, this category of products sells well all year-round, but some particular ones tend to spike in sales during the holiday season. These make thoughtful, affordable gifts for creative enthusiasts and are essential for hobbyists who like to line up projects for those winter months.  

A good example of a popular arts and crafts product you can sell during Q4 is blank comic book papers

7. Holiday Candy

Yes, you can sell candy on Amazon if you didn't know. Since there's candy for each occasion, this is a great product to consider especially, if you are ungated in the grocery category. Also, ensure that you follow Amazon's terms and conditions for the meltable inventory.

This is the perfect time to start stocking on your candy inventory and prepare it for the FBA business. You can go scanning different holiday candies at your local grocery store to see whether you can make a good profit. A good example of this best-sell[ing product would be Candy corn.

8. Jewelry Category

Jewelry items are consistently in demand. But you also have to be super diligent in advertising them since the market is also pretty saturated with jewelry dealers.

Fortunately, the profit margin can be at more than 50%, so if you can take advantage of the unique long-tail keywords, you should be fine. On the other hand, if the items you mean to sell can only be described in the single generic keywords, then don't bother since the completion is far too much.

What Are the Best Seller Niche Products?

Another way to research products you can sell is to narrow down your research to products that are so specific to their market that the competition is drastically minimized. This way, you have low competition and only attract serious buyers. In addition, your niche product should be easier for your specific targeted group to find you.

Narrowing down on a niche product starts with the basics:

  • What keywords are the most searched-for on Amazon?
  • Which are the most successful products?
  • Does it have consistent demand, and what's the level of competition?
  • Finally, what are the projected sales margins?

Additionally, a simple organic search will help you find a gap in the market. For instance, when you type in 'women leggings,' there may be over 100,000 results s, which is very competitive. However, when you're more specific, for instance, ' cycling leggings women pink.'

A good example of niche products would be pet supplies. The most popular product categories on Amazon include:

  • Apparel; clothing and accessories
  • Beauty and personal care products
  • Baby supplies
  • Books
  • Electronic gadgets
  • Fitness accessories
  • Garden and outdoors
  • Health-related products
  • Home  and  kitchen
  • Jewelry
  • Toys

Top 10 Amazon Best sellers and The Main Product Categories (at the time of publishing)

  • Pharmapacks - One of the best sellers dealing with seemingly random inventory
  • AnkerDirect - Dealing with electronics
  • EP Family Direct - Dealing with home and kitchen, automotive and office supplies
  • Utopia Deals - Home and kitchen, Clothes, shoes, personal care items
  • VM Express - Home and kitchen, patio, lawn and garden, sports and outdoors
  • Zappos - Shoes
  • MetroDecor - Home and kitchen, office supplies, and beauty products
  • iServe - Health and household, clothes, shoes, jewelry, sports and outdoors
  • Decluttr Store - Refurbished tech products, second-hand media
  • Juvo+ - Home and kitchen, office supplies, and arts and crafts

How Should You Source Top-selling Products for Amazon?

After research, you'll now need to source your products. How you buy your inventory of Amazon products depends on the business model. Here's where to buy these products  for each model:

a) Private labeling

This category consists of you creating your own product or label, which is particularly quite popular among home and kitchen or handmade categories.

b) Retail arbitrage

In this model, you find low-cost items in physical stores that you can resell. The popular categories here include Apps and games.

c) Online arbitrage

This is quite similar to retail arbitrage, but instead of shopping at a physical address, you find discounts on items online. This is also popular for Apps and games and Video Games but still not as viable for home and kitchen or even sports and outdoor products.

d) Wholesaling

This is a model that consists of getting inventory in bulk. It's quite popular when selling musical instruments and food products. But this would not be as viable in books, CDs and vinyl. It's actually not so hard to find products being sold on wholesale to sell on Amazon.

e) Drop-ship

This is a model that works by having no inventory at all. Instead, sellers fulfill their orders via their suppliers. This works mainly for computers, collectibles, fine art, electronics, travel and food products.

f) Handmade sale

As the title suggests, this is where the sellers create their own best-selling products.

How to Determine Whether A Product Will Sell During Q4?

As you research products to sell on Amazon, it might seem more logical first to consider selling items in the popular product sub-categories. Ideally, there's nothing wrong with this approach, but it also shouldn't be the only way you do it and here's why.

In 2019, the best-selling Amazon category was electronics; however, in 2020/1, Home and Kitchen products are the best sellers. Generally, the COVID-19 pandemic has had quite an enormous impact on the ecommerce business in general. On average, the annual revenue of the average marketplace seller Amazon increased from $100,000 in the year prior to $160,000.

First off, don't limit yourself to the list of ideas since there are many other types of products that are sure to sell in Q4. Always think outside the box, research extensively through product research, gather your ideas, and make sure to align them with the information picked before investing in any of the best seller products you can sell on Amazon.

Next, to determine whether your product idea is a viable best seller on the Amazon platform, you can use Jungle Scout's tools for selling, which include:

  • Keyword Scout: Using this tool, you can determine the search volume of a particular product and gather additional keyword ideas that you can target in your listing and PPC campaigns. Keyword Scout also shows you the historical search volume of any particular keyword, so you can see which time of the year it's searched for the most
  • Opportunity Finder: This is a tool that you can use to help you find unique niche products and also to determine the seasonal patterns of different products. With this tool, you can find viable seasonal products to sell on Amazon during Q4
  • Product Database: Enter specific criteria to help you find the best sellers and exact products that you'd be interested in selling
  • Chrome Extension: With the extension button, you can pull up some useful data on the product you're currently searching for to give you a quick competitive analysis and a projection of monthly sales

Frequently Asked Questions on What Sells Best On Amazon

1. How do I find best-selling products to sell on Amazon?

  • Use retail arbitrage to source the best seller items you have identified
  • Custom print on actual demand
  • Handmade goods
  • Identify and find the wholesale products that you can sell on Amazon
  • Directly source the products on Amazon
  • Find top selling items with private label products that you can sell on Amazon

2. What are Amazon FBA orders?

Amazon FBA (Fulfillment by Amazon) lets the sellers in the Amazon marketplace to take advantage of Amazon's extensive logistics to operate and ship their orders. FBA items are also eligible for Amazon Prime shipping, and additionally, Amazon handles those angry customers.

3. Should I pay tax if I sell on Amazon?

Just as you would with any other self-employed income, as an Amazon seller in the UK, you will have to pay the taxes on your income from what you get when you sell on Amazon. Although, first, you'll need to work out your HMRC view. Basically, this is more or less known as your employment status.

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