The key to finding a million dollar product is the settings you use.
Find a product that has:
- High Price
- High Demand
- High Ease of Entry
Today, I will show you 18 easy steps to finding an Amazon FBA product niche that can make you $1,000,000 in revenue at 40% margin.
Step 1. Go to Amazeowl.com and log in.
If you haven’t paid money towards AmazeOwl just yet, wait until the end of this tutorial, and I will show you how you can apply this knowledge to an even better Amazon FBA product research software tool.
Step 2. Click Settings on the top right corner of your screen.
Step 3. Select the Amazon.com marketplace.
Amazon.com is the single largest marketplace on Earth. There is a ton more data to extract here than in smaller markets.
I recommend that you start selling in the US first—even if you live somewhere else. There is more demand in the US. Also, you can more easily expand from the US into other markets like the EU than the other way around.
But even if you insist you want to start in another marketplace first, you can use US data to find product niches that haven’t yet emerged in your market. Sales generally won’t be as high in other markets, and culture plays a role as to what shoppers will buy, so take that into account.
Step 4. Set your optimal price as 25 to 1,000 USD.
Products that cost less than $25 will generally have lower profit margins. This is because there are fixed costs not associated with the price of your product to customers. When you sell a product, these costs have nothing to do with how expensive your product is:
- Shipping from your supplier
- Amazon fulfillment (FBA) fees
- Pay per click (PPC) ads
For example, let’s say you want to sell a spy nanny camera of a certain size. Your shipping is $2, FBA fees $6, and PPC costs $1 per click for a total of $9 in fixed costs. If you sell a $20 nanny camera, those costs add up to $9—which eats up 45% of your sell price, and you have $11 left over. But if you sell a $50 spy camera, those costs adding up to $9 eat up only 18% of your sell price, and you have $41 left over on the sale.
Don’t just move money. Make and keep money! Profit margins matter.
Step 5. Set your optimal reviews from zero to 300.
When products within a particular niche have great sales volume but few reviews, that means shoppers in that niche accept low review counts. This is important because when you create your new product listing, you will have zero reviews. Nada. Zilch. But that’s okay because every single listing that made it big started with zero reviews. In such a niche, shoppers will be more open to your low-review-count product.
Optimally, at least three of your top ten competitors should have fewer than 100 reviews, but any niche where competitors have less than 300 reviews is worth looking into. AmazeOwl won’t show you this at a glance, but you can figure this out once you start investigating a niche.
Step 6. Set your item weight as up to 150 pounds (or more).
Isn’t that big? Yeah, and it scares off a ton of other Amazon sellers—meaning you will have less competition if you choose to sell a large product.
Your FBA and shipping fees will be high when you sell a product that large. In 2021, the FBA fee for a 150 pound product is $138.11. But as long as you have a 40% profit margin, it does not matter. You can go over 150 pounds if you want to. Your product will enter the “special oversize” category for Amazon FBA fees when it weighs more than 150 pounds, but that’s okay.
As long as it has a 40% profit margin or higher, it’s ripe for the picking. AmazeOwl doesn’t allow you to set the weight as no limit.
Step 7. Set your maximum package size (in inches) to 108 x 108 x 108 or more.
If you opt for a product larger than 108 inches on any given side, your product will enter the “special oversize” category for Amazon FBA fees, and your charges will go up.
Again, as long as you make sure you have a healthy profit margin, the sky's the limit! AmazeOwl doesn’t allow you to set the package size as no limit.
Step 8. Set your maximum BSR ratings "From" one and "To" 10x the default.
The BSR (best sellers rank) of a product should not play a key role in validating a product niche. I used to use BSR to help analyze a product's sales volume. However, BSR only compares product sales in comparison to other products in its category. BSR does not tell you how many sales per month or the number of dollars a product makes in revenue per month.
Step 9. Click Save.
Step 10. Click Hunt for Products in the top menu.
Step 11. Click on the Amazon.com marketplace icon.
Step 12. Click Hunt By Keyword / ASIN.
Download the AmazeOwl app if you haven’t done that already.
Step 13. Type in a keyword for a product niche that interests you.
Step 14. Click Hunt.
AmazeOwl will then search that keyword on Amazon and show you how many products meet your criteria for "High Potential".
Step 15. Save high potential results within the top ten organically ranking listings.
AmazeOwl may flag sponsored pay per click ads as "high potential". You don't want to save those because that ranking is paid for—not earned. Those products can disappear from the front page the instant their budgets run out.
In order to understand a market, study the top ten organically ranking listings. Why not the whole market? Because rankings on page twelve—or even page two—don't matter. Few shoppers, if any, look for products on the second page whatsoever. If product listings do not sell well enough to be on the front page or don't use the right keywords to appear on the front page, you have nothing to learn from them. Study success in order to be successful.
When you finish saving all high potential products within the top ten organically ranking listings...
Step 16. Go back to AmazeOwl and click on Potential Products.
Step 17. Review your potential product sales.
Under Potential Products, scroll down to see all of your saved listings.
If you found a product that earns a daily revenue above $2,740, you have found a product that can make you one million dollars of revenue a year. In order to determine your potential profit margins (remember to aim above 40% before PPC), you need to investigate supplier costs off of AmazeOwl.
Step 18. Further investigate your high potential Amazon product results.
Dig deeper into research. Can you differentiate? Has the purchase price for this product been consistent?
Your goal should be to list your product with better photos, a better description, and overall better perceived value.
Get customers to look at your listing and know your product is the best choice.
But there is another product research tool that gives you all of the most important data at your fingertips: Niche Hunter.
We at Just One Dime made Niche Hunter for ourselves because no other Amazon FBA product research software tool delivers the most important data upfront and weeds out the irrelevant data you shouldn't use to judge a product niche.
Niche Hunter will show you demand (in sales volume), ease of entry, differentiation potential, and allows for full customization.
Learn more about scouting and building product ideas—with and without different product research softwares—at JOD.com/freedom. Our team of coaches will work with you to bring your Amazon store to life. We'll even send you unique-to-you, pre-researched product ideas so you can move to action now. So what are you waiting for?