Dropshipping on Amazon is a real business opportunity with the potential to change your life. However, if you’re new to the business, finding the right product to sell can seem like a daunting challenge.
Rest assured, this article is your ultimate guide. It will guide you precisely in finding and identifying those winning products that will turn your business into a real success.
How does dropshipping work on Amazon?
As a reminder, dropshipping on Amazon works slightly differently to dropshipping on platforms like Shopify. Instead of hosting an independent online store, you sell your products directly on the Amazon marketplace, a space already frequented by millions of customers. This also means that you have to adhere to Amazon’s specific policies for dropshipping.
Here’s how it works in detail:
- You create a seller account on Amazon and list the products you want to sell.
- When a customer buys a product from your store, you place the order with your supplier.
- The supplier then ships the product directly to the customer.
The beauty of dropshipping on Amazon lies in its simplicity: there’s no need to manage inventory or worry about shipping. All you need to do is concentrate on selecting the right products and on customer service.
However, success in dropshipping on Amazon, as on Shopify, lies primarily in discovering the perfect niche and winning products. In the rest of this article, we’ll show you how to identify these lucrative niches and high-demand products, to help you maximize your profits.
How to identify a profitable niche
Choosing a niche is one of the most important steps in knowing how to find products to dropship on amazon. That’s because by focusing on a specific niche, you can target a particular group of customers and stand out from the competition.
To begin your dropshipping adventure, it’s essential to first define your niche. A niche is a specific market segment on which you focus.
Step 1: Identify your interests and skills
Think about your areas of expertise and interest. A personal passion can often turn into a successful business.
Step 2: Conduct market research
Use tools like Google Trends or platforms like Statista to assess the demand for your niches of interest. These platforms provide global search data and will help you understand market trends.
See below how to proceed with Google Trends:
Define your topic of interest
- Start by determining the area or topic you’d like to explore. For example, let’s say we’re interested in the fitness industry.
- Enter general terms related to your topic in Google Trends, such as “Fitness” or “Training”.
Analyze Trends and Related Topics
- Examine graphs of search trends for selected keywords.
- Explore which topics and related queries are on the rise. They may give you ideas for potential niches.
Refine your niche
- Using the trends and associated topics you’ve discovered, refine your niche. For example, you could focus on “Cross Training”.
- Compare your niche’s trends with other related topics to assess its popularity and growth potential.
Monitor trends and adjust
- Once you’ve identified your niche, keep using Google Trends to monitor its evolution.
- If trends change, don’t hesitate to adjust your approach. For example, if “Outdoor training” becomes a new trend, consider incorporating it into your niche.
Step 3: Examine the competition on Amazon
Check Amazon to see how many other sellers are present in your potential niche. A saturated market can be harder to break into, but that doesn’t mean there isn’t room for newcomers.
Find winning products
Once you’ve defined your niche, the next step is to look for specific products to sell.
Use product search tools
This tool lets you analyze product performance on social networks. It scans dropshipping ads on platforms like Facebook and Instagram and shows you which products are popular. This will help you identify winning products with high sales potential.
For example, if you see that smartwatches are attracting a lot of attention on social networks, it might be a good idea to include them in your store.
To use Dropispy:
- Subscribe to Dropispy.
- Use its search engine and various filters to identify products that are currently popular on social networks.
- Look at the ads with the most engagement and consider these products for your store.
- Use ad information (such as text and images) to understand how the product is promoted.
- Consider how often products are advertised to gauge their popularity.
- Track ad performance over time to see if the product has longevity.
- Consider the number of likes, shares and comments to gauge customer engagement.
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Note that there are also other tools like Jungle Scout or Helium 10 that are excellent resources for finding products. These tools analyze Amazon data to show you best-selling products, sales trends and even profit estimates.
To find out more, read our detailed review of Jungle Scout.
Best-sellers on online sales platforms
On sites such as Amazon, Alibaba and AliExpress, you can consult bestseller lists. These are products that are popular and currently selling well. For example, if you see that pet accessories are selling well on AliExpress, you might consider selling them yourself.
To follow this method:
- Visit online sales platforms like Amazon, AliExpress and Alibaba.
- Browse their bestseller sections.
- Take note of products that fit your niche and sell well.
- Look at the number of sales and customer reviews to assess the product’s success.
- Look at the product’s ranking in its category to assess its popularity.
- Consider the product’s price to assess its profit potential.
- Study the product’s features to see how you can promote or differentiate it.
Social media and viral trends
On TikTok and YouTube Shorts, you can identify products that are creating a buzz. Follow relevant influencers and keep an eye on popular hashtags to see which products are trending. For example, if a certain type of kitchen gadget is creating a buzz on TikTok, it’s a sign that it could be a good product to sell.
To use this method:
- Follow popular influencers on social networks.
- Look for hashtags related to your niche.
- Take note of products that seem to be trending or are frequently featured.
- See how influencers present and use the product.
- Consider the number of views, likes and comments to gauge user engagement.
- Track trends over time to assess product longevity.
- Consider the influencer’s tone and style to see how you might market the product.
Online forums and groups
Joining online communities specific to your niche can help you come up with product ideas. See which products are popular and recommended by others in your niche. For example, if you’re a member of a gardening forum, you might notice that certain brands of seeds or types of gardening tools are particularly popular.
- Join online forums and groups related to your niche.
- Read members’ discussions and recommendations.
- Take note of products that are frequently mentioned and receive positive reviews.
- Ask questions about products to get additional opinions and feedback.
- Consider the size and activity of the group to gauge interest in the product.
- Look for trends and changes in discussions to identify potential new products.
- Consider the tone and style of the group to see how you might market the product.
Check out our guide to the best ways to find a winning product for more information.
Select your winning products
Once you have a list of potential products, it’s time to select your winning products. Each step of the selection process is crucial and needs to be handled with care.
Step 1: Evaluate profit potential
After taking all costs into account (including shipping and Amazon fees), how much profit can you reasonably expect to make?
For example, if you sell a product that costs $10 to buy and ship, but you can sell it for $30 on Amazon, you have a high profit potential after deducting Amazon’s fees. Don’t forget to factor in all associated costs, including taxes and any customs fees.
Step 2: Assess market demand
Use tools like Google Trends and Keyword Planner to assess the demand for a specific product. If you see that searches for a product are increasing, it’s a good sign that demand is high.
If searches for “electric bike” are on the rise, it means that more and more people are interested in this product.
Step 3: Examine the competition
How many other sellers offer this or similar products? Strong competition can make it harder to enter the market, but if your product has a unique or better feature, this could give you an advantage.
For example, if you sell a travel mug, but yours has a keep-warm feature that lasts longer than others on the market, this could be your competitive advantage.
Step 4: Examine product quality
Is the product of good quality? Read customer reviews on Amazon and other platforms to get an idea of customer satisfaction. A poor-quality product can lead to negative returns and reviews, which can damage your business.
If you’re selling clothing, make sure it’s made from good-quality materials and fits well.
Step 5: Evaluate the supplier
Can you find a reliable supplier who always has this product in stock? What are the supplier’s delivery times? A good supplier will provide you not only with the product, but also with good customer service, such as returns management. If you’re selling an electronic product, make sure your supplier offers an adequate warranty.
By following these steps, you’ll be well equipped to find products to sell dropshipping on Amazon.
How do I sell dropshipped products on Amazon?
Once you’ve found your winning products, the next step is to sell them effectively on Amazon. The process may seem daunting to a beginner, but in reality it boils down to a series of methodical steps. If you respect Amazon’s regulations and stay focused on delivering an excellent customer experience, you can turn your product idea into a successful business.
Follow these steps to start dropshipping on Amazon:
- Create an Amazon Professional seller account: This will give you access to more advanced sales and marketing tools.
- List your products: Make sure your product titles, descriptions and images are attractive and informative. Use relevant keywords to optimize your listings.
- Set the right price: Analyze the competition and determine a price that maximizes your profits while remaining competitive.
- Implement an excellent customer service strategy: Even though Amazon handles much of the customer service via its FBA program, it’s still important to stay engaged. Be ready to answer specific questions about your products and brand, and make sure your return and refund policies are clear to customers.
- Promote your products: Use Amazon’s advertising tools, promotions and social networks to increase the visibility of your products.
- Analyze and optimize: Use Amazon reports to analyze your sales, identify trends, and make adjustments as needed to improve your performance.
In conclusion, knowing how to find products to dropship on amazon is an essential skill for e-commerce entrepreneurs. Through the identification of profitable niches, the use of product search tools and the careful selection of winning products, you can build a thriving business selling the right products to the right audience.
Remember, success doesn’t happen overnight. It requires experimentation, patience and constant learning. But with these strategies in hand, you have all the cards to succeed in dropshipping on Amazon.
What tools can I use to find products for dropshipping on Amazon?
Tools like Jungle Scout, Helium 10 and Dropispy can help you identify winning products.
How can I identify a profitable niche?
Study the market, consider your passion and knowledge, look for niches with high demand but low competition.
Can bestsellers on online sales platforms help me find winning products?
Yes, by examining bestsellers on Amazon, Alibaba, and AliExpress, you can discover which products are selling well.
How can social media help me find products to sell?
Products that are creating a buzz on TikTok and YouTube Shorts can be good candidates for dropshipping.
How do I select my winning products?
Assess the profit potential, analyze the competition, look at product quality and reliability, and consider the supplier’s ability to deliver.