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Selecting the right Products to Sell on Amazon is one of the most important decisions any Amazon seller has to make. With millions of products to choose from and new competitors popping up every day, finding that winning product with strong profit potential is harder than ever.
Many sellers end up picking products based on limited data or gut feelings, only to find out down the track that the product is unprofitable or impossible to rank for. This wastes huge amounts of time and money that could have been avoided.
The key is having a rigorous set of selection criteria to apply during the product research phase. By analyzing certain data points and factors systematically, you can objectively evaluate if a product is worth pursuing or not before you ever order inventory.
In this guide, we will go through the most important criteria to consider when researching potential new products to sell on Amazon. Having clear benchmarks for factors like existing brand dominance, demand, seasonality, trademarks and more allows you to compare products on an apples to apples basis and identify any warning signs early on.
While no product will check every box perfectly, setting minimum requirements for key metrics gives you the best chance possible of picking a winning product that will sell profitably. Applying these objective criteria removes much of the guesswork from product selection.
Key Criteria to Evaluate
Let’s dive in and look at the exact factors every Amazon seller should evaluate…
The first key factor to look at is how concentrated the top search listings are for a particular brand. You generally want to avoid products where one brand has multiple items ranking in the top 5 or 10 results.
Specifically, you’ll want no more than 2 listings from the same brand in the top 5 results, and no more than 4 listings from a single brand in the top 10 listings. Any more than that indicates a brand likely has the buying power and reviews to dominate that keyword indefinitely.
For example, if you searched “stainless steel water bottles” and saw 3 listings for Hydro Flask in the top 5, that would be a sign of high brand dominance. However, if the top 5 was split between Klean Kanteen, Hydro Flask, Camelbak, and Nalgene, that would indicate a more open playing field.
Aim for niches where no single brand has more than about 40% of the top search rankings. This suggests there is room for new brands to potentially compete.
Relevant Design Demand
Next, look at how many sellers currently offer products with the design you are considering. The ideal range is between 4-8 sellers offering very similar or identical products.
This indicates that there is existing demand for your intended design, but not so much competition that the niche is totally saturated. Much less than 4 similar sellers means demand may be untested. Much more than 8 suggests high competition.
For example, if you find 6-7 established sellers offering marble rolling pins that is a good sign. But finding just 2-3 indicates lower demand, while finding 12+ suggests it may be hard to compete.
Profit Potential You also want to ensure there are at least 3+ brands that already achieve over $10,000 in monthly revenue in the niche, with 300-800 reviews. This verifies there is profit potential.
Be wary of products without proven examples that they can consistently generate strong revenue. For instance, if you can only find 1 or 2 brands earning $5-10k, despite high volume, that’s a red flag the margins or demand may be lacking.
Search Volume Distribution
Analyze how search volume is distributed between the top keywords. Ideally, the top 2 keywords should drive at least 50% of the total relevant search volume. This means demand is spread out fairly evenly, rather than being reliant on just one or two keyword targets.
For example, if the #1 keyword has 30% of search volume, the #2 has 15%, and the rest have 5% or less, that shows healthy distribution. But if the #1 keyword has 70% of search volume, that’s risky.
Find opportunities where design-specific keywords have at least 5000 monthly searches. These micro-niches allow you to better compete with listings matching that specific design aesthetic.
For example, “marble rolling pin” or “round acrylic makeup organizer” are specific enough to target separately from broad keywords like “rolling pin” or “makeup organizer”.
Aim for at least 30+ relevant keywords in the US and 20+ in the UK. More keywords equal more opportunities for rankings.
Putting it All Together:
By now you should have a good understanding of the key objective criteria to apply when evaluating potential new products to sell on Amazon. But how do you put all these factors together into an effective selection methodology?
First, create a product research tracking spreadsheet with columns to capture each data point we’ve covered. This allows you to compare different product options side-by-side. Ensure you get data for each criterion before approving any product.
When researching keywords, record numbers for:
- Brand concentration in top 5 and 10 results
- Number of sellers offering similar designs
- At least 3 brands earning over $10k revenue/month
- % of search driven by top 1-2 keywords
- Search volume for micro-niche keywords
- Total number of relevant keywords
Also note down any potential trademark risks, and whether the niche has existing social media communities.
Finally, leverage tools like Helium10’s Product Opportunity Explorer to quickly generate other key metrics like average sales, reviews, estimated revenue, Google Trends and more.
With all the data compiled in one place, score each product option on how well it meets each criterion. No product will be perfect, but the ones with the highest scores have the best profit potential.
Watch out for patterns like high brand concentration, low micro-niche demand, seasonal peaks, or lack of social engagement as warning signs. Use your best judgment based on the data.
While this process takes more upfront work than picking on instinct, having objective selection criteria gives you the highest probability of identifying winning, profitable products in any niche. The more you research, the better your “product picker” judgment will become.
Just remember – never compromise on the key criteria that indicate strong long-term potential. Stick to products that meet most benchmarks, and you will set your Amazon business up for sustainable success.
Finding profitable Products to Sell on Amazon is the key to succeeding as an Amazon seller. Yet far too many sellers rely on guesswork and end up wasting time and money on products that fail.
By rigorously applying the objective selection criteria outlined in this guide, you can remove emotion and base your product decisions on data. Taking the time to analyze factors like brand concentration, demand, reviews, search volume, trademarks, and seasonality will empower you to make smart choices.
No product will check every box – use your judgment to pick ones that meet most criteria. While the research may take longer upfront, it saves huge headaches down the line.
Stick to setting minimum benchmarks for key metrics like low brand dominance, existing demand, and micro-niche potential. This gives you the highest probability of picking a winner.
Avoid compromising or making excuses for products that fail to meet most criteria. The data doesn’t lie – if key factors look risky, move on.
Product selection is a skill that improves over time as you gather more data. Soon you will begin to quickly recognize patterns of what makes a good vs. bad product on Amazon.
Remember, criteria are designed to set you up for long-term success. Don’t get impatient or lower your standards. With rigorous research and sticking to the benchmarks, you will be able to consistently pick profitable products in any niche.
The effort you put in upfront will pay off enormously once your products are up and running successfully on Amazon. Use these criteria, trust the data, and your next product will be a winner!