What are the products in Amazon's FBA

Amazon FBA Products: 8 Product Research Tips

What are Amazon FBA Products?

Amazon FBA stands for "Fulfillment by Amazon". This means that Amazon offers retailers a platform for their products and - depending on the retailer's request - also takes care of the complete shipping service. Accordingly, Amazon FBA products are all products that are offered on the platform and sold through Amazon's fulfillment program. Anyone who has already spent some time on the Amazon marketplace and searched for different products knows that almost every physical product is offered there. This in turn offers retailers the advantage of not having to offer their product in their own online shop, but rather using the reach and high visibility of Amazon.

What are good Amazon FBA products?

As already mentioned, you can find almost every product in countless versions on Amazon. Nevertheless, there are products that are better suited to the digital marketplace than others. These products have certain criteria that can promote success.

Product criteria

Over time, it became clear which products are particularly popular on Amazon and sell well. Therefore, the following criteria are an indication of good Amazon FBA products:

  • great demand and high search volume
  • no direct competition with big brands
  • unique and special character
  • is not subject to seasonal demand
  • Balance between cheap and expensive (ideally between 15 euros and 50 euros)
  • relatively cheap to buy, so that a high margin remains
  • simple and no explanation product
  • small and light to keep shipping and storage costs low
  • Safe, insensitive and, if possible, not electronic

Find a niche for yourself: What's your USP?

One criterion that is particularly important is uniqueness. This means that your products must have a unique selling point, also known as a Unique Selling Point (USP). Something that sets you apart from the competition and attracts customers. In addition, it is wise to think in advance which niche you want to serve with your products. Because by positioning yourself in a certain area, it is easier to act as an expert and to gain an advantageous position in the market. It also strengthens customer confidence and is therefore an important marketing tool. But be careful: Do not put everything in one single niche, otherwise you can easily be exposed to market fluctuations and declining demand. So make sure that you are still broadly positioned in order to always have products that secure sales in an emergency.

8 tips for product research

Now that you know what properties a good Amazon FBA product has, the next step is product research. But how do you start? And how do you limit your search to be? These are two essential questions, because the market is big and the competition is strong. Therefore, you should develop a plan for how to proceed with your product research. Often certain product segments can be excluded or certain areas circled anyway, since you will certainly decide here according to your interests.

1st tip: brainstorm

First of all, a general brainstorming session is not wrong in order to even start research. What are the product segments that interest you and where do you see potential? Are there products that you can hardly find yourself and therefore want to offer? In which area do you already have previous knowledge or expertise? You should ask yourself all of these questions, as this will allow you to circle more and more areas that make sense. Talk about it with family, friends, acquaintances or colleagues. What are the products that you need, use, and may not find? You should write down all of your findings from these conversations in order to develop concrete ideas and strategies from them.

2nd tip: Amazon bestseller list

If you want to sell your products on Amazon, it is only logical that you continue your research there as well. It is also interesting which products are currently being sold the most on the platform. So what are the bestsellers here? Which products are particularly in demand? In order to be able to answer these questions, you should study the bestseller rank of the various categories in detail, which you can find under the additional product information on the product pages. This data gives you clues as to which products have the highest sales potential and use them to estimate demand.

3. Tip: Take a closer look at "Similar products"

If you are on individual product pages, you will see the "Similar products" category below. There, Amazon displays the products that match your search term and the product viewed. You will either find similar competing products there or products that would complement your purchase. Amazon tries to encourage customers to make further purchases and at the same time offers the service of being able to compare products better. Take advantage of these ads and analyze which product groups are being bought together. There may be products that are offered in a set that would increase customer benefits. So derive from this what can possibly be sold together and therefore function as complementary goods.

4. Tip: analyze search results

In principle, it is also advisable to take a closer look at the general search results. To do this, you can enter various products or product categories in the search function on Amazon and see which search results Amazon shows you in the automatic search completion. Because this is based on the search queries that have been entered the most. So let yourself be inspired by the suggested Amazon search results and use this information to expand your research.

Tip 5: watch your competition

A particularly important tip when researching Amazon FBA products is the competition. If you have already circled a certain product or segment, it is important to observe and analyze the competition. What do their products look like? How can you differentiate yourself from it even more? What are the possible weaknesses but also the strengths of the competitors? See how customers rate the products and what defects may be there. Is that something you can pick up on? Do not only do research on Amazon, but also go to the websites of the competing companies.

6. Tip: Compare other and foreign marketplaces

Since there is not only Amazon as a well-known platform, but also eBay, Zalando, Otto and Co., you should also look around there. Which products are sold the most here? Are these different from the ones searched on Amazon? It can also be exciting to see what is happening abroad. Are there products there that are not available here in Germany? Sometimes this results in a niche that is not even apparent on the German market.

Create a business plan in 10 steps

Step 1: Idea, offer and the target group

In the first chapter you give a first impression of what the concept of your company should look like. What is your basic idea? How can you help others with your idea and what exactly is your goal? You should be able to determine and describe this very precisely. In addition, you should think carefully about who your target group is and also define this specifically. This will make it easier for you to prepare a market analysis in the following chapter.

Step 2: Market and Competition

The point here is to deal intensively with the market and the competition. How big is the market? Is it worth starting a business here? Make yourself aware of which competitors you have. So that you don't have to struggle a lot with these at the beginning of the market entry, you should think about what you can do better. Make the analysis as detailed as possible in order to be perfectly prepared for your start in the business.

Step 3; Determine visions and goals

It is particularly important for you as an entrepreneur and for the rest of your team to define precisely goals and visions that you can work towards together. Only once you have set this goal with your team or your founders is it possible for you to define the measures that are coordinated with it. They give you a direction in which to build a strategy.

Step 4: your strategy

The strategy also needs to be very well thought out. After all, you need to use her to get to your goals. Above all, you have to consider what benefits your company will bring your customers. And how can you best implement this benefit? In any case, come up with a better strategy than your competitors and see what you can do better than them. Alternative strategies can also be useful, as it is never said that the first strategy works right away.

The strategy also needs to be very well thought out. After all, you need to use her to get to your goals. Above all, you have to consider what benefits your company will bring your customers. And how can you best implement this benefit? In any case, come up with a better strategy than your competitors and see what you can do better than them. Alternative strategies can also be useful, as it is never said that the first strategy works right away.

Step 6: legal form and taxes

A very unpopular, but still very important topic: the choice of the legal form and everything to do with taxes. Here you write down which legal form you have chosen, which permits you need for your company, what your company should be called and everything else that has to do with accounting.

Step 7: founding team and organization

In this chapter you indicate how you are organized as a company. Do you have a partner? Who is everything in your founding team? Here it must be clear who is responsible for what, which structures you still want to set up, who is already working in the company and who will join the company. The milestones that you want to achieve with your company are also entered here.

The finances form the main part of your business plan and must be calculated and checked very carefully. Here you should not allow yourself any mistakes if possible. Where are you currently with your company, how much capital do you still need and when is the break-even point planned? - All of these are important questions to be considered in the finance section. Here at the latest it makes sense to have a suitable tool at hand with which everything can be calculated more easily.

The whole numbers are followed by the SWOT analysis. SWOT stands for Strengths, Weaknesses, Opportunities and Threats. So here you list the strengths, weaknesses, strengths and risks of your company and explain them. In the next step, measures must then be taken to deal with the results so that the opportunities can be maximized and the risks minimized.

The last chapter is the executive summary, a meaningful summary of your business plan. Here the most important points of your business plan are summarized again in order to give investors and banks a good overview of your company. So here again mention the most important key statements of the business idea, your team, the market analysis, the opportunities and risks and the financing.

7. Tip: Scour social media channels

In order to perceive current trends and to be able to derive possible Amazon FBA products from them, it is worth taking a look at social media. The social networks can complement your research wonderfully, as the desire for a product often arises here before the product is even there. Here, too, it is an advantage not only to take a look at German profiles, but also to pay attention to trends from abroad. At the same time, you should note that trends sometimes only last for a while and then disappear again. So be careful and only use social media as a supplementary tool during your research.

8. Tip: offline research

Even outside the online world, you come across ideas and inspiration for suitable Amazon FBA products here and there. So feel free to take a look around in retail and talk to customers about their opinions on certain products. Also test out products yourself that you might want to sell. Because the self-test usually reveals exactly where the weaknesses are and which new features would make the products even better. So you get closer and closer to a suitable Amazon FBA product step by step.

Conclusion: Dive deep into the Amazon product world

By now, you should have realized that choosing the right Amazon FBA products is not a quick and easy endeavor. Rather, it is a process in which you should take your time and do enough research. So dive deep into the many product worlds at Amazon and become a little Amazon expert. You can only approximately estimate whether there is a market, a target group and demand for your desired product if you have a sound knowledge of this. Therefore, this comprehensive analysis is one of the most important steps to successful online business.