Amazon FBA Product Research: 2025 Step-by-Step Guide

Success on Amazon starts long before you ever list a product. It begins with product research. If you skip this step or rush through it, you’re setting yourself up for a costly failure. But if you take the time to do product research the right way, you have the potential to build a successful Amazon brand for years to come.

In this guide, you’ll learn exactly how to master Amazon FBA product research, even if you’re a complete beginner. I’ll walk you through the latest changes to product research in 2025, some common mistakes to avoid, and a step-by-step process you can follow to find your first winning product idea. Let’s start by discussing Amazon’s recent changes.

What Is Amazon FBA Product Research?

When I talk about product research, I’m talking about figuring out what sells well on Amazon and whether it’s worth selling yourself. It means looking at what people are already buying, checking the numbers, and making sure there’s room for you to compete and still make a good profit.

Product research is the groundwork for everything else you do. Pick the wrong product, and no amount of great photos or PPC ads will fix it. But when you choose something with real demand and manageable competition, the rest of your business becomes a lot easier.

Important Metrics Every Seller Should Know

Before you start looking for products to sell, it’s important to understand the numbers that tell you whether something is worth it. Here’s a quick breakdown of the most common terms you’ll come across when researching potential products.

• BSR (Best Seller Rank): Shows how well a product sells within its category. The lower the BSR, the higher the sales in that specific category. BSR varies between categories. For example, a BSR of 2,000 in Home & Kitchen could outsell a BSR of 200 in Office Products. You can view any products BSR from the “Product Information” panel on the product details page.

• Sales Volume: The number of units a product sells in a month. This helps you estimate demand and plan inventory so you don’t run out of stock or over-order.
• Profit Margin: The percentage of money left after paying for product costs, shipping, Amazon fees, and advertising. If you sell an item for $30 and your total costs are $20, your profit margin is about 33%.
• ROI (Return on Investment): Shows how much profit you make compared to your initial investment. If you spend $10 to source a product and earn $10 profit, that’s a 100% ROI.
• Competition Level: How many other sellers offer similar products and how strong they are. Competing against big brands or listings with thousands of reviews is much harder.
• Search Volume: The number of times people search for a specific keyword each month. High search volume means more potential buyers are looking for that type of product.
• Niche Saturation: Describes how crowded a market is with similar products. If a niche has too many nearly identical listings, new sellers struggle to stand out or keep healthy margins.

How Amazon Product Research Has Changed in 2025

Amazon FBA product research has changed a lot in 2025. The old strategy of picking a product based on a few filters in your product database just doesn’t work anymore. Competition is tougher, ad costs keep rising, and Amazon’s fees are taking a bigger cut of your profits. Where you could once launch with $3,000-$5,000, most niches now need $15,000-$25,000 to cover inventory and invest in the ads needed to drive sales and build organic ranking.

With over 500 new sellers joining Amazon each day, some categories like toys and supplements now have stricter requirements. Getting approved means dealing with certifications, compliance paperwork, and tighter quality control. These hurdles can be challenging, but they act as a double-edged sword by weeding out sellers who aren’t willing to put in the work, creating better opportunities for those who are.

Success today isn’t about just picking a product that looks good on paper. It starts with asking, “Who am I serving, and what problem am I solving for them?” Product research tools are still useful, but think of them as validation tools, not idea generators. Real product ideas come from reading customer reviews, spotting competitor complaints that aren’t addressed, and watching social media for trends before they reach Amazon. In 2025, products built to solve real problems beat products chosen only because the metrics looked promising.

Choosing the Best Product Research Tool

Product research tools make finding profitable products faster and more data-driven. Instead of spending hours scrolling through Amazon, these tools let you filter millions of listings in seconds based on sales volume, price range, review count, and other criteria. For example, you might search for products selling over 300 units per month, priced between $25-$70, and with under 200 reviews. The tool would then sift through the thousands of items in its product database to provide you with a list of every item that matches your criteria.

Popular options like Jungle Scout, Helium 10, and AMZScout provide these features along with detailed metrics on estimated monthly sales, profitability, and the main keywords customers use to find products. Newer tools, like Smart Scout, take a unique approach by focusing on category and niche-specific analysis to find opportunities others miss. If you want a deeper breakdown of these tools, including their features, pricing, and my personal recommendations, check out my full guide on the best Amazon FBA product research tools.

There are also several free tools available. Amazon’s Product Opportunity Explorer is available to brand-registered sellers and uses real Amazon data to find niches with strong demand and limited competition. You can browse Amazon’s Best Sellers page, use Google Trends to check if an idea is seasonal or evergreen, or explore social media platforms like TikTok and Instagram to spot emerging trends. Even simple tools like Amazon and Google search suggestions can reveal what customers are actively looking for.

How to Do Amazon FBA Product Research: Step-by-Step

Product research isn’t something you want to rush through. By taking the time to do it right, you’ll avoid costly mistakes and discover hidden opportunities that other sellers miss. Below, you’ll find a beginner-friendly six-step guide to help you find your first winning product. Let’s start by discussing the metrics of a profitable product.

Step 1: Define Your Product Criteria

Before you dive into finding products, you need to know exactly what you’re looking for. This is step one in your product research process, and it sets the tone for everything that comes after.

A few years ago, you could set some basic filters in Black Box or Jungle Scout, pick a product with low reviews and decent sales volume, and do well. But with more competition and sellers entering Amazon than ever before, this method just doesn’t work as well in 2025. Today, you need a strategy that combines data with a customer-focused mindset.

Instead of just looking at the numbers, start by asking yourself, “Who do I actually want to serve?” Think about the audience you’re building your brand for. If you have knowledge or passion in a niche, use it. Products that align with your expertise and your ideal customer will help you build a brand people remember for years to come.

Regardless of what tool you use, most product research software lets you filter by price, reviews, sales volume, and other criteria. Here’s how I recommend setting these filters to find potential product ideas:

• Price Range: Choose products priced between $20–$50. Items under $20 often leave almost no profit after Amazon fees, shipping, and advertising costs. Staying above $20 gives you healthier margins while still being affordable for customers.
• Monthly Search Volume: Look for products with 6,000 to 10,000 monthly searches. Products with over 10,000 searches are often extremely competitive, making it harder to break into the niche. On the other hand, products below this range may not have enough buyers, leading to slow or inconsistent sales.

• Review Count: I recommend looking for products with around 250–500 reviews. Fewer reviews usually mean less competition, making it easier to enter the market and rank. While many blogs and YouTubers suggest sticking to under 150–300 reviews, that narrow range often leaves you researching the same products as everyone else. A moderate review count still lets you avoid big brands but opens up more product ideas that other sellers might miss.
• Average Review Rating: Look for products rated between 3.5 and 4 stars. This often means there are issues you can improve on to stand out, like overall quality or features customers weren’t happy with. It’s not a strict requirement though. If other criteria are strong, a higher-rated product can still be a good opportunity.
• Product Variations: If you’re a brand-new seller, I recommend targeting products with no more than 2–3 variations. Managing multiple sizes or colours can get complicated and lead to inventory and cash flow issues.
• Number of Product Images: If your tool offers this filter, look for listings with fewer than 7 images. Listings with fewer images are often unoptimized in other ways, too, like poor copywriting or weak image quality. Combine this with strong search volume to find products with good demand but poor listings you can outperform.

I want to point out, these filters are just my suggestions. While I strongly recommend using the price and search volume filters, other factors like review rating or image count can be adjusted based on your preferences. The key is combining data with a clear understanding of who your customer is and what your brand stands for. That’s how you avoid wasting time on random products and focus your research on products that truly fit your business.

Step 2: Build Your Shortlist of Potential Products

Now that you’ve set your product criteria, it’s time to put them to use. This is step two in your product research process, taking your filters and creating a shortlist of viable product ideas.

Open your research tool and enter your filters for price, reviews, search volume, and whatever else you’ve chosen. Regardless of what tool you choose, the process should work the same way. You’ll get a list of hundreds of potential products.

Next, click on each product that looks promising to view its details. Some tools will let you see key metrics from the search results page, but others may require clicking into each product or viewing it on Amazon. The goal here isn’t to do a deep dive yet, but to quickly scan each option and build a shortlist of 20–30 products that are worth deeper analysis.

Here’s what I recommend looking for at this stage:

• Look for Niches with Multiple Successful Sellers
  Check that there are a few products in the niche doing solid revenue. For example, if you see a couple of sellers with under 100 reviews making $2,000+ per month, alongside some mid-tier listings earning $10,000+ with moderate reviews, that’s ideal. It shows there’s demand, space for newcomers, and not just a few sellers dominating all of the sales.
• Avoid Products Tied to Big Brands or Heavy Restrictions
  Skip anything that relies on another company’s brand name. If you see “Disney princess dress” or “Nike running shoes,” move on. You can’t private-label branded items without authorization. Also, watch out for products requiring certifications or approvals (certain baby items, supplements, medical devices) unless you’re ready to handle those complexities.
• Watch Out for Seasonal or Trendy Products
  Quickly check if the product sells year-round or only in certain months. Many tools, like Keepa, show a sales history graph, or you can plug the main keyword into Google Trends to spot seasonality. Evergreen products are generally safer for new sellers.
• Consider Size, Weight, and Simplicity
  Even if you didn’t filter for size, it’s worth checking now. Oversized, heavy, or fragile products cost more to ship and store, eating into your margins. Products that are small, light, durable, and simple are almost always easier to launch and manage.
• Ask Yourself: Can I Make This Better?
  Take a quick look at the listing’s images, reviews, and overall presentation. Are customers complaining about quality? Do the photos look amateur? If you can see clear ways to improve the product or branding, it might be a strong candidate. If everything already looks perfect with stellar reviews, it may be harder to stand out.

At this stage, don’t overthink it. You’re simply narrowing down the massive list into a shortlist of products that pass your first sniff test. Save them in your tool or export them to a spreadsheet with a quick note beside each, like “Good sales, low reviews, poor images.”

Step 3: Validate Demand, Competition, and Profitability

Now that you’ve built a shortlist of potential products, it’s time to go deeper. This is where you separate real opportunities from ideas that look good on paper but won’t make you money. The goal here is simple: confirm there’s demand, ensure you can compete in the niche, and check that the numbers actually work out.

1. Confirm Product Demand

The first step to analyzing each product on your shortlist is checking if there’s real, long-term demand for it and the niche it belongs to. Even if your product research tool shows a high monthly search volume for the product, that doesn’t guarantee consistent sales across the category. You need to dig deeper to make sure people are buying these types of products month after month and that the demand isn’t just a short-term trend or fad.

• Check Keyword Trends Over Time
  Plug your product’s main keyword into Google Trends. Look for stability or gentle growth over the past 12 months, not sudden spikes that disappear. You can also check Amazon’s autosuggestions or keyword tools to see if related search terms have steady volume.
• Review Monthly Sales Volume
  Using your product research tool, check estimated monthly sales for the top listings. Aim for niches where multiple sellers are moving at least 300 units a month (roughly 10 sales per day). If only one seller is selling well and others lag far behind, it might be a one-product niche. This is a big red flag and a sign to cross this product off your list.
• Analyze Sales Distribution Across Sellers
  Look at how sales are spread on page one. If one or two listings grab 80% of the sales, that’s a red flag. Ideally, you want to see sales spread more evenly across several sellers. This increases your chance of carving out market share for yourself as a newcomer.

2. Analyze the Competition

Strong demand means nothing if the competition is too hard to beat. This step is about figuring out how hard it will be to rank and actually make sales in your niche. A great product idea can quickly turn into a wasted investment if you’re up against sellers with thousands of reviews and massive ad budgets.

• Review Counts and Ratings
  Look at the number of reviews top sellers have. If everyone on page one has thousands of reviews, it’s going to be tough to gain traction. Look for niches where at least a few top products have under 500 reviews, giving you a shot to compete. Also, scan average ratings. Products averaging 3.5–4.2 stars often have quality issues you can improve on. If everything is 4.8 stars, it’s a sign that customers are satisfied with the competition, and it’ll be much harder to stand out.

• Big Brands and Amazon Presence
  Check if major brands or Amazon Basics dominate the niche. Competing against household names with huge budgets is a losing battle for new sellers. Instead, target markets with lesser-known brands where buyers care more about features or price than brand loyalty.
• Evaluate Listing Quality
  Click into competitor listings. Are their photos professional? Are their bullet points optimized? Do they have A+ Content and a Brand Story? Poor listings are golden opportunities for you to stand out with better branding and optimization.

3. Calculate Estimated Profit Margins

Once you’re confident there’s proven demand and manageable competition, check if the product actually makes financial sense. Even the most exciting idea won’t be worth it if the margins are too tight.

Start by estimating your landed cost, which includes:

• Product cost. This is what your supplier charges per unit, including packaging or customization. You can get a rough idea by searching platforms like Alibaba, Global Sources, or ThomasNet. Look at similar items to see listed prices, then reach out to multiple suppliers for quotes. Always ask about bulk pricing, shipping options, and lead times.
• Shipping cost. This covers freight to Amazon’s warehouse plus any import duties or tariffs.

Next, factor in Amazon’s fees, which include:

• Referral fees, about 15% of your selling price.
• FBA fees, which cover picking, packing, and shipping. These depend on your product’s size and weight.

Once you’ve gathered this data, here’s a simple formula to calculate your profit margin:

Profit Margin (%) = [(Selling Price – Landed Cost – FBA Fees) ÷ Selling Price] x 100

For example:

• Selling price: $35
• Landed cost (product + shipping): $12
• FBA fees: $8
• Profit margin: [(35 – 12 – 8) ÷ 35] x 100 = 42.8%

That’s a healthy margin. I recommend aiming for at least a 30% margin or a 100% ROI, meaning every dollar you spend returns two dollars in sales. Don’t forget to factor in your advertising costs, especially for PPC campaigns at launch. If your calculations come in too tight, it’s time to move on to another product. Launching a product with tight margins is one of the fastest ways to burn through your budget with little to show for it.

Another easy way to think about your profit margins is the “rule of thirds.” Ideally, one-third of your selling price covers your product and shipping, one-third covers Amazon fees, and the final third is gross profit. From that, subtract advertising costs to find your net profit per sale.

To quickly find out your estimated margins, ROI, profit, and estimated Amazon fees, check out our Amazon FBA Profit Calculator. It’s completely free to use, just input your product specs and find your estimated metrics based on the latest Amazon fee data.

Step 4: Find and Evaluate Potential Suppliers

Once you’ve confirmed that your product idea has demand, manageable competition, and healthy profit margins, it’s time to figure out who’s going to make your product. Many sellers think finding the right seller is all about getting the lowest price, when in reality, there’s so much more to it. You need a supplier who can deliver consistent quality, communicate clearly, and deliver your inventory on time, without constant issues.

Your first decision is to decide whether to source your product overseas or closer to home. Platforms like Alibaba, Made-in-China, or Thomasnet let you choose from thousands of manufacturers, while trade shows and sourcing agents can connect you with vetted suppliers directly. Alibaba is probably the most popular option, and if you’re interested, I’ve written a detailed guide that walks you through how to buy from Alibaba and sell on Amazon step by step.

No matter which method you choose, there are several factors that go into finding a reliable supplier:

• Product Quality and Samples: Always request samples from multiple potential suppliers before placing a bulk order. Samples cost more per unit, but testing different options helps you compare product quality, durability, materials, and packaging. This way, you can choose the supplier that offers the best combination of quality and pricing for your product.

• Communication: Pay attention to how quickly and clearly a supplier replies. If you’re waiting more than 24 hours between responses or they avoid answering direct questions, it’s a red flag.
• Production Capacity: Make sure your supplier can handle larger orders before it’s too late. You don’t want to find out just before Q4 that they can’t keep up with demand.
• Pricing and MOQs: Make sure you fully understand the exact unit cost, Minimum Order Quantities, and what’s included (e.g. packaging, labels, inserts). Calculate your total landed cost, including shipping, customs, and prep, to see if it fits your margins.
• Amazon Experience: Personally, I only work with suppliers familiar with Amazon’s FBA requirements. Manufacturers who know about labeling requirements, carton sizes, and packaging rules will save you a lot of headaches in the long run. You don’t want to deal with delayed shipments or extra fees because your supplier used the wrong labels or packaging.

I want to stress that you should take your time with this step. Sourcing is one of the biggest make-or-break factors in your Amazon business. A supplier who cuts corners can sink your entire brand, while a reliable partner can be a lifesaver for your business.

Step 5: Choose Your Winning Product

You’ve put in the work to research, analyze, and validate your shortlist. You’ve found reliable suppliers and inspected the samples. Now it’s time to choose which product to move forward with.

At this stage, you should be deciding between a few strong finalists. Step back and compare each option from a real-world perspective. Here are a few questions I always ask myself when making this decision:

• Which product has the strongest profit potential? Compare profit margins and ROI across your finalists. Which one leaves you with the healthiest net profit after all costs, including product, packaging, shipping, and Amazon FBA storage fees?
• Which is the most practical to launch? Consider factors like product simplicity, durability, size, and ease of shipping. Which option carries the least risk of returns or complaints?
• Which product is the easiest to differentiate? Think about branding, packaging, and potential improvements, and visualize the main image on Amazon. Which product is easiest to showcase with strong photos that clearly communicate its value and separate it from the competition?
• Which supplier is the most reliable? Review sample quality, communication, production timelines, and willingness to work with your order size. Which supplier will make your life easier?
• Which product fits your long-term goals? Imagine your brand a year or five years from now. Which option helps build out a product line that makes sense together and attracts repeat customers?
• Which product stands out the most? Visualize the main image on Amazon search results. Which product is easiest to showcase with strong photos that clearly communicate value and differentiation?

I’ll leave you with one last piece of advice from experience: it’s better to wait than to force a product that doesn’t feel right. If none of your finalists check all the boxes, go back to your research and keep looking. Taking extra time now is far better than spending months and thousands of dollars launching a product that was never going to succeed.

Avoiding Common Product Research Mistakes

Even with the right tools and strategy, many new sellers trip up during product research. Avoiding a few common mistakes can make the difference between launching a winning product or wasting time and money chasing a dead-end idea.

Chasing Trendy or Seasonal Products

It’s always tempting to jump on the latest trending product or holiday item, but fast-moving fads are risky territory for Amazon FBA. Products tied to fleeting trends (like viral TikTok gadgets or seasonal crazes) often see a brief surge in sales followed by a rapid crash. By the time you finish sourcing and shipping your inventory, demand could have already dried up.

Instead, try to focus on evergreen products with steady, year-round demand. Look for niches that have been consistently popular over time, not just in the past few weeks. Use tools like Google Trends or check the sales history in your research tool to spot true, lasting opportunities rather than short-term spikes.

Ignoring Reviews and Customer Feedback

Skipping customer research is one of the fastest ways to launch a product that flops. Reviews are full of priceless insights; you just need to know how to find them. Before committing to any product, carefully analyze customer feedback on similar listings to uncover:

• Common product complaints you can fix
• Missing features customers want
• Strengths you should match or improve upon

Tools like VOC AI or the free Helium 10 Chrome Extension can make this process even easier by highlighting common themes across thousands of reviews at once. Use this information to position your product as a better alternative right from the start.

Choosing Products Outside Your Budget

One of the most common mistakes new sellers make during Amazon product research is choosing a product or niche that’s financially out of reach. It’s easy to get excited when you see products with sky-high monthly revenue, but high sales volume comes with equally high costs.

Amazon’s algorithm heavily favors sales velocity (how quickly a product sells) when determining which listings rank higher in search results. If you launch a product in a competitive niche, you’ll be expected to match or exceed the sales velocity of the top sellers in order to climb the rankings.

Here’s the problem: if you don’t have the budget to consistently stay in stock, you won’t be able to compete with the top sellers in your niche, which means it will be impossible to rank well organically for your most important keywords. This is a recipe for failure, and it can be easily avoided if you choose a product that fits your budget. Here are some tips to keep in mind:

• Be Realistic About Start-Up Costs: Calculate how much inventory you would need to support at least 2–3 months of sales based on the niche’s average daily sales.
• Target Niches That Match Your Budget: If your launch budget is smaller, look for niches with moderate sales volume where the top products are doing $5,000–$15,000 per month, not $50,000+.
• Use Budget Filters in Research Tools: Platforms like ZonGuru allow you to filter potential products by estimated launch costs. This helps you focus only on opportunities you can actually afford to compete in.

Frequently Asked Questions (FAQ’s)

Final Thoughts: Set Yourself Up for FBA Success

Mastering Amazon FBA product research is the first step in creating a profitable and sustainable Amazon business. By following a clear process, choosing your criteria, validating your niche, checking profitability, and finding a reliable supplier, you’ll give yourself the best possible chance to launch a successful Amazon FBA product.

Remember, the goal isn’t to rush to market with the first “decent” idea. It’s to find a product you can confidently invest in and build a brand around. Treat product research with the patience and seriousness it deserves, and you’ll be far ahead of most new sellers who tend to rush through this step.

Related Articles:

• 5 Best Amazon Product Research Tools in 2025
• Amazon Long Tail Keywords: An Easy Guide for New Sellers
• How Much Are Amazon Seller Fees? Complete Breakdown for 2025