Amazon Product Research Guide: Find Your Next Bestseller

Feeling lost in a sea of products? Picking the right item can decide your success or failure on Amazon. Don’t just launch blindly. Learn how to do Amazon Product Research to find your next bestseller and build a business with confidence in this article.

What is Amazon Product Research & Why it Matters?

Amazon product research is the process of identifying products with strong sales performance, consistent demand, and suitable profit margins for resale on the platform. It involves gathering and analyzing data such as sales rank, competition level, pricing trends, and customer reviews.

This process allows sellers, whether in private label, wholesale, or dropshipping, to make informed decisions based on actual market insights rather than guesswork. By relying on data, you can avoid oversaturated niches where multiple sellers compete for the same product, often leading to price wars and thin profits.

More importantly, choosing the right product from the start improves your chances of gaining early traction. A well-researched product that meets demand is more likely to attract satisfied customers, generate organic reviews, and rank higher in Amazon’s search results.

Good product research can also help you enter the market before it gets too crowded. When you find a niche with strong demand but not many competitors, it’s easier to gain visibility and build a presence. Your listing can get the crucial time it needs to build momentum, visibility, and a loyal customer base before the market becomes crowded.

Ultimately, product research isn’t just about finding “what’s trending”, it’s about understanding how the market works to get a strategic advantage and lay the foundation for sustainable, long-term growth.

Key Features to Look for in a Product on Amazon

Before diving into specific products, it helps to understand the main features that influence success on Amazon. The following key aspects can guide your research and selection process:

Demand

Understanding product demand is the most important step to avoiding costly mistakes. If you sell something people aren’t looking for, or enter a category that’s already crowded, you could end up with low sales and wasted inventory. That’s why you should always measure real demand before sourcing.

One easy way to check for healthy demand is by looking at estimated daily sales. A product that sells at least 10 units per day (around 300 per month) is a good sign.

Another helpful tool is the Best Seller Rank (BSR). Products with a BSR under 5,000 in their main category usually have steady sales. If several products in your chosen niche have a low BSR, it’s a strong indicator that there’s consistent, healthy demand for that type of product.

Eligibility

Beyond just demand, it’s crucial to check if a product is eligible to be sold on Amazon. Some categories are restricted or gated, which means sellers must get approval before listing products in them. Certain items may also require specific certifications or documents to meet Amazon’s rules.

Eligibility also affects how fast you can list a product. For instance, dietary supplements, electronics, and some branded items often need pre-approval, which can delay you from entering the market.

Competition

Evaluating competition is just as important as understanding demand and customer needs. Entering a market without knowing who you’re up against can lead to wasted time and resources. A niche might look promising, but high saturation or strong competitors can make it difficult to gain traction and secure sales.

Products with a low barrier to entry tend to attract more sellers. If an item is easy to source and inexpensive to launch, chances are many others have already noticed it. On the other hand, niches that require custom features or some form of differentiation are harder to enter, which often means they face less immediate competition.

Price

Product price plays a role in influencing customer purchase behavior and determining potential profit margins. Lower-priced products may attract more buyers but can result in lower margins, while higher-priced items might offer better margins but often require more customer consideration before purchase.

On Amazon, many sellers focus on the $20–$50 price range. This range is often profitable and still low enough for customers to buy without thinking too much.

Profitability

A product’s true potential lies in how much profit it can generate after all costs are covered. This includes Amazon fees, shipping, storage, packaging, and advertising. Even if an item sells well, thin margins can make it hard to grow or stay competitive in the long term.

That’s why many sellers look for products with a healthy gross profit margin, typically around 25–35%. A solid margin provides a financial buffer for promotions, branding investments, and business expansion. 

How to do Amazon Product Research?

Now that you know the key features of a good product, it’s time to look at how to research and evaluate products on Amazon.

Find Product Ideas

Start by collecting product ideas. A good place to begin is the Amazon Best Sellers page, which shows top-selling items in various categories. 

You can also explore tabs like New Releases, Movers & Shakers, and Most Wished For to spot emerging trends. 

By drilling down into subcategories, such as Sports & Outdoors > Exercise & Fitness > Exercise Machine Parts & Accessories, you may uncover niche products with strong demand and lower competition.

Research Product Demand

To see if a product is worth selling, you need to check if there is demand for it, and using keyword research can help you understand what customers are searching for. 

We recommend you examine the product listings on the first page of search results on Amazon to note the star ratings, prices, number of sellers, and review counts to see how well they are performing.

Check Product Reviews

Next, analyze customer reviews since the number and type of reviews can indicate a product’s competitiveness. 

Products with fewer reviews on the first search page might have less competition. Negative feedback can also show areas where existing products could be improved.

Research the Competition

After picking a product, check how strong the competition is. You can compare how many sellers offer similar products and if well-known brands dominate the category. 

You can check a product’s sales performance using its BSR in the Product information section of a listing. A lower BSR, for example, indicates higher sales.

Analyze Product Viability

Once the demand and competition are clear, check if the product can be profitable. This involves reviewing the selling price, shipping costs, Amazon fees, and other expenses.

And if competitor listings are popular but not well-optimized, this may be an opportunity to create a better product listing and achieve a higher search rank.

What are the Tips to Find Winning Products?

Finding high-demand, profitable products requires detailed strategies. Here are key tips to uncover winning items for your Amazon store:

Use Amazon Product Opportunity Explorer

Amazon’s Product Opportunity Explorer is a built-in tool available in Seller Central. It helps sellers explore trending niches using real search and sales data. You can search by keyword or browse by category to uncover metrics like search volume, unit sales, and average price.

For example, by typing “desk lamp” into the search bar, you might discover that “adjustable LED desk lamp” is a top search term with growing demand and low competition. You can also explore review insights to see what features customers like or dislike in the current listings.

Check Other Platforms’ Trending Lists

Even if you only sell on Amazon, browsing trending products on Walmart, eBay, or AliExpress can spark new ideas. Many products that perform well on one marketplace also gain traction on others.

Let’s say, if a certain type of resistance band is trending on AliExpress’s fitness category, it might suggest a rising interest in home workouts. You can cross-check its availability and demand on Amazon to validate the idea further.

Visit Retail Stores

Retail stores can offer inspiration for unique or seasonal products. Seeing what’s featured on end caps or promotional displays may give clues about emerging demand.

A visit to a local home goods store might reveal an eco-friendly cleaning sponge that’s not widely available online. If it meets demand and sourcing criteria, it could be a viable Amazon product with a fresh angle.

Use Product Research Tools

Third-party product research tools provide data to help sellers evaluate potential products. These tools often show sales estimates, competition levels, pricing history, and market trends.

Many free and paid options are available for Amazon sellers, so you can choose one that fits your needs. Some commonly used tools include Helium 10, Jungle Scout, AMZScout, SellerAssistant, and Keepa.

What are Mistakes to Avoid?

Avoiding errors is as important as finding the right product. Below are frequent mistakes to be aware of when selling on Amazon:

Selling Complicated or Fragile Products

Fragile items require special packaging, which increases shipping and handling costs. If you use Fulfillment by Amazon (FBA), you can’t control how products are handled, which raises the risk of damage and returns. Similarly, products with complex parts can lead to manufacturing and quality control issues.

Choosing Generic Products with No Unique Selling Point

Generic items are easy to replace. If a product lacks a unique feature or clear advantage, customers can easily find an alternative. Without a competitive price or strong reviews, a standard product would struggle to gain traction in a crowded marketplace.

Entering Overcrowded Niches with Big Competitors

Highly saturated categories with dozens of similar listings are tough to break into. If most listings already have hundreds or thousands of reviews, new products will likely stay hidden in search results.

Ignoring Profit Margins or Pricing Too Low

Overlooking Amazon’s fees or pricing your product too low can harm your profitability. Even with high sales, small profit margins may leave little money for advertising or business growth. Low pricing can also devalue your product to customers, making it harder to maintain a competitive edge.

Frequently Asked Questions (FAQ) about Amazon Product Research