How Do I Decide What Products to Sell on Amazon?

Not sure what to sell on Amazon? This beginner-friendly guide breaks down how to choose the right products and how tools like Nformed help you decide with confidence.
Published: 
June 16, 2025

Deciding what to sell on Amazon is often the biggest hurdle for new sellers. With millions of products already listed and fierce competition in popular categories, it’s easy to get overwhelmed. But with the right approach, choosing the right products becomes less about luck and more about strategy.

In this guide, we’ll walk through the core principles behind smart product selection—and how platforms like Nformed can give you a clear edge.

Start With a Mindset Shift: Demand Over Passion

A common mistake is choosing a product based solely on personal interest. While passion helps with branding and motivation, your Amazon business should prioritize products with consistent demand, healthy margins, and manageable competition.

You’re not looking for the most exciting item—you’re looking for one that sells well and fits your business goals.

Key Factors to Consider When Choosing a Product

1. Product Demand

Look for items with steady or growing sales volume. Use tools like Nformed to analyze recent sales data, BSR (Best Seller Rank), and seasonality in real time.

2. Competition Level

Avoid markets dominated by well-established sellers or big brands—especially when starting out. Niche products with demand but fewer aggressive sellers offer better opportunity.

3. Profit Margins

Always run the numbers. Factor in:

  • Product cost
  • Shipping and storage fees
  • Amazon referral and fulfillment fees
  • PPC advertising costs

Aim for at least a 30% margin after all expenses.

4. Size and Weight

Smaller, lighter items are easier and cheaper to store and ship—especially when using FBA.

5. Simplicity

Avoid products with high return rates, quality issues, or lots of moving parts. Simple, reliable products are easier to manage and scale.

6. Room for Optimization

Look for listings with poor images, vague descriptions, or weak reviews. These are opportunities to enter the market and stand out.

How to Do Product Research Like a Pro

Manual research can be slow, guess-heavy, and inaccurate. To make smart decisions, sellers need tools that:

  • Show live sales trends
  • Analyze pricing and competitor activity
  • Surface new or underexploited opportunities

Tip: Nformed is built specifically for 3P sellers and resellers. It helps identify profitable ASINs, track competitor metrics, and evaluate demand in real time.

Example: From Idea to Validation

Say you're considering selling a reusable kitchen sponge. You might:

  1. Search the category and check BSR for top listings
  2. Use Nformed to track:
    • Price trends
    • Number of sellers per ASIN
    • Sales velocity
    • Competing seller inventory
  3. Notice that several top listings are out of stock often and priced high
  4. Decide to source a version with better margins and upgraded features

This is the kind of data-driven validation process that separates guesswork from informed opportunity.

Choosing What to Sell Doesn’t Have to Be a Gamble

With the right criteria and tools, picking Amazon products becomes a repeatable, confident process. Focus on demand, profitability, and competition. Then back it up with real-time insights.

Nformed helps Amazon sellers go from guessing to growing—by tracking product opportunities, analyzing trends, and identifying high-potential ASINs. Try Nformed today and make your next product your smartest one yet.

Discover Profitable Products & Start Maximizing Your Amazon Sales Today.

Spend less time on research and more on growing your Amazon business with Nformed.