Amazon Product Sourcing: What Your Competitors Are Already Doing

Amazon Product Sourcing: What Your Competitors Are Already Doing

What products sell best on Amazon? This is a question we get asked all the time. Amazon product sourcing requires a lot of knowledge about eCommerce, current trends, and so much more. Sometimes you wonder if your competitors are doing things that you’re not. It’s all about understanding the basics and making smart decisions based on up-to-date and accurate data about market demand and factors influencing profitability.

But so many sellers still struggle.

Well, we’re going to try and fix that. If you find yourself asking, “How do I do product research on Amazon,” this post is designed for you.

The Basics of Amazon Product Research

There are hundreds of millions of products being sold across the different Amazon marketplaces. That’s a lot of competition. When it comes to your research, you need to know how to determine if a product is worth your time and your money.

Based on our experience, in addition to the fact that the product must be relevant for the standards and culture in the selling market (e.g. correct form of electricity and outlet connector), here’s what we believe to be the most important factors:

    • Profit Margins. You have to be able to make a profit. Low-profit-margin products are risky as they don’t leave you much room for error.
    • Demand Levels. There needs to be demand for whatever products you want to sell. A product with a high profit margin but low demand may be difficult to sell. We often recommend you try to sell products with a medium to high demand.
    • Product Quality. Frequent customer returns and quality control issues can quickly translate to substantial losses.
    • Competition Levels. High competition is never good. The more you have to compete, the harder it will be for you to stand out. When doing your Amazon seller research, look for products with a low to medium number of competitors.
  • FBA or FBM? Do you plan to sell via “Fulfilled by Amazon” or “Fulfilled by Merchant?” FBA may have higher costs, but Amazon will handle all of the logistics for you. With FBM, you are responsible for shipping products to your customers. FBA listings are far more likely to appear in the Amazon Buy Box because of their eligibility for Amazon Prime.


So, to wrap it up, the best products are those with medium to high customer demand and low to medium competition. Ideally, you want your products to have reasonable profit margins too. Higher profit margins protect you from things that are out of your control. Those are the basics, but that doesn’t mean you’re in the clear.

Understanding Your Customers

The next step is to understand what your customers are looking for. Most shoppers won’t buy unproven products. They trust brands. But that doesn’t mean it has to be an exclusive high-end brand. A familiar name or logo can do the trick, or even a brand that can be found when searched. If you’re trying to sell a new, unproven product, you’re going to need to build up your brand. By selling a branded product, you can build up sales faster than competitors trying to build their own brands.

Reviews Matter on Amazon

You may offer your product to influencers for a review, or generate buzz on social media. Regardless, you need to get as many positive Amazon reviews as possible. The average Amazon shopper bases their decision to purchase a product on its reviews. So if your product already has a foundation of good reviews, you are another step ahead.

Don’t Forget Shipping

Shipping is another thing to keep in mind. Charging for shipping in North America isn’t a great idea. Most North American shoppers expect free shipping. A recent Radial survey states more than 60% of consumers expect it, and less than 1 in 4 (23.5%) say they are willing to pay up to $10 for shipping. Thus, if you’re selling in the United States or Canada, you may want to sell through FBA. If that’s not an option for you, try and include your shipping costs in the product’s price.

Leverage Amazon Product Research Tools

The best sellers rely on sophisticated tools to help them find profitable products. All of those things we mentioned above? Algopix can help you calculate all of that stuff. Our platform can calculate fees, estimate profit, competition and demand levels, provide Amazon product sales data, seller ratings and reviews, and more.

Here’s the truth.

You don’t have time to look for all of this information manually. You need an Amazon seller research tool like Algopix that can do all of that for you. Product sourcing isn’t glorious. You often have to scour lists with hundreds of products. So, it’s essential to have the right tools to speed up that process.

Therefore a product research platform that gives you the ability to analyze up to 200 items with a single click will give you an advantage over competitors who are looking up products one by one.

Try Algopix Today – It’s Free

Stop guessing when it comes to your Amazon product research. You can’t afford to stock products that have little sales and profit potential. Algopix is designed to help you identify profitable products that will actually sell. You can even use it to find opportunities to sell your products on eBay and Walmart.

Interested in learning more about how Algopix can help you become a better seller? Contact a member of our customer service team to schedule your demo.