How do I find the best products to sell on Amazon via FBA?

Well, it takes quite a lot of research but here are the basic criteria of what you should look for:

• Items that can be sold for between £20 and £100 in the UK. Or $20 and $100 in the USA.
• Items that aren’t too big. ≤ 45 x 34 x 26 cm in UK. ≤ 18″ x 14″ x 8″ in USA.
• Items that aren’t too heavy. ≤ 5kg in the UK. ≤ 10 pounds in the USA.
• Items without too much competition. Where there aren’t a lot of items with hundreds of good reviews competing for the top spot.
• Items that are selling well. Enough that it is worth the time to go to the trouble of competing with them.
• Items that are simple with few moving parts.

If you’re interested in why we have those criteria then read on.

The Key Criteria For Choosing What Products To Sell On Amazon

Price

Let’s start with the money because understanding pricing is hugely important for any Amazon FBA sellers. When working out how much money you’re going to make it isn’t as simple as taking the amount you paid from the amount you sell the item for. There are a bunch of costs involved.

If you don’t pay attention, you might end up selling an item for a huge markup and still make a loss. This is a pretty typical example:

• You expect to be able to sell the item for £10.
• It costs £2.5 per item to buy.
• Shipping is £1.5 per item.
• Tax and import duties are £0.5 per item.
• Delivery to the FBA warehouse is £0.4 per item.
• FBA fulfilment fees are £3 per item.
• Amazon closing fee is 15% of sale price, so £1.5.
• There is VAT which averages at 10% for £1. (note, you don’t need to pay VAT till you reach £83k of turnover in one 12 month period).
• Despite the 4x markup, you are making a loss of £0.4 per item!

I recommend aiming for at least a 25% profit margin after all costs. That should be enough to cover the cost of returns, unforeseen expenses and still make some money.

Size & Weight

Very large items cost a lot more to ship, store and fulfil at Amazon FBA. Ideally, I suggest looking for items that you can easily hold and carry in one hand.

You can go heavier but make sure to get accurate quotes for the inbound shipping to Amazon FBA as it can get very expensive very quickly. But i recomend Deliverr for fast 2 days delivery and cheap price

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Complexity

There is a dark side to Amazon FBA businesses. Badly designed and dangerous products.

Last year hoverboards were very popular and there were hundreds of sellers on Amazon. People who had found a factory on Alibaba selling cheap hoverboards, put their brand on it and then started selling them for a large markup on Amazon FBA.

The problem was that a lot of these hoverboards were made with non-Uk compliant plugs. They had faulty cables, chargers or plugs that could catch fire or explode. At least three house fires were caused by such devices over 10 days in October.

My advice is: if you don’t understand exactly what you’re buying and how it works. Stay well away.

Competition and Best-Seller Ranking

The best products to sell on Amazon will be those that are selling a lot but with little or poor quality competition.

We don’t know exactly how many items our competitors are selling, but we can make a pretty good guess. Amazon tells us every product’s best-seller rating, known as the BSR.

Each category has its own best-seller list, and every product is listed from 1 onwards, with 1 being the best-seller.