Storefront Notes

Start your online business · Amazon · 2 min read

What Should I Sell on Amazon to Make Money From Home?

Short answer

Good Amazon products for home-based sellers are small, light, durable, priced high enough to cover Amazon's fees with margin, in steady demand and possible to improve on. Common models include private label, wholesale, retail arbitrage, handmade and books. Avoid restricted, fragile, oversized or highly seasonal items when starting.

Amazon gives home-based sellers access to an enormous customer base without building a website. The hard part is choosing what to sell, because Amazon's fees and competition punish poor product choices.

Business models on Amazon

Model How it works Pros Cons
Private label Your own brand on products made by a manufacturer Brand control, higher margins Upfront inventory, product development
Wholesale Buy branded products in bulk, resell Proven demand Competition on the same listings
Retail arbitrage Buy discounted items in stores, resell Low entry cost Hard to scale, brand restrictions
Online arbitrage Same, sourcing online Done from home Margins can be thin
Handmade Sell your own crafts via Amazon Handmade Unique products Production time
Books New or used books Easy entry Lower prices

What makes a good Amazon product

Small and light

Smaller, lighter items have lower fulfillment and storage fees.

Durable

Fragile items lead to damage, returns and bad reviews.

Priced with room for fees

Amazon's referral fees are commonly around 8% to 15% depending on category, plus fulfillment fees if you use FBA. Low-priced items can leave little profit.

Steady demand

Products people buy year-round are easier to manage than highly seasonal ones.

Room to improve

Read competitors' negative reviews. If customers keep complaining about the same issue, an improved version has an advantage.

Not dominated by giant brands

Categories where big brands own the top results are hard for newcomers.

No restrictions

Check whether the category or brand requires approval.

Category ideas for home-based sellers

  • Kitchen gadgets and organization
  • Home office accessories
  • Pet accessories
  • Fitness accessories like resistance bands
  • Hobby and craft supplies
  • Outdoor and camping accessories
  • Phone and tech accessories (careful with quality)
  • Baby and toddler items (note safety requirements)
  • Books and educational materials

These are starting points; the specific product and angle matter more than the category.

How to research products

  1. Browse bestseller lists and "movers and shakers" for categories.
  2. Use product research tools that estimate sales, revenue and competition.
  3. Read reviews to find improvement opportunities.
  4. Check search demand for keywords.
  5. Calculate fees with Amazon's revenue calculator.
  6. Order samples before committing to inventory.

Know the fees

  • Selling plan: Individual at $0.99 per item sold or Professional at $39.99 per month (US)
  • Referral fees: a percentage of the sale price, varying by category
  • FBA fees: fulfillment and storage, based on size and weight
  • Advertising: Sponsored Products and other ads are often needed to get visibility
  • Returns and related costs

See Amazon pricing strategy for how to price with fees in mind.

Getting started

  1. Set up your account: see how to set up an Amazon seller account.
  2. Choose your model and first product.
  3. Create an optimized listing with great photos and clear bullet points.
  4. Decide on FBA or self-fulfillment.
  5. Launch with a small inventory order and modest advertising.
  6. Track profit per unit, not just sales.

Common mistakes

  • Ignoring fees until after ordering inventory
  • Choosing products dominated by major brands
  • Underestimating advertising costs
  • Ordering too much inventory upfront
  • Using images or brand names you do not have rights to

For advertising on Amazon, read why Amazon ads have a higher conversion rate. For dropshipping questions, see Amazon dropshipping 101.

Frequently asked questions

How much does it cost to sell on Amazon?

Amazon's Individual plan charges $0.99 per item sold, and the Professional plan costs $39.99 per month in the US. Referral fees by category and fulfillment fees also apply.

Is FBA better than fulfilling orders myself?

Fulfillment by Amazon handles storage, shipping and customer service and helps with Prime eligibility, but adds fees. Fulfilling yourself can be cheaper for some products but takes time.

What products are restricted on Amazon?

Some categories and brands require approval, and some products are prohibited. Check Seller Central's category and product restriction pages before sourcing.

Sources and further reading

Platform features, prices and policies change. Check the official help pages linked above before you act on a detail that matters to your store.

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