Selling on Amazon in 2025 isn’t just about listing a product and hoping for the best. The competition is intense, and success depends on making strategic choices from day one.
What products should you sell? How do you price them? What’s the best way to get reviews and keep inventory in check?
This guide breaks down key factors every new seller needs to know, from choosing a fulfillment method to optimizing listings for Amazon’s algorithm.
In this post, we’re going to share advice from experts and discuss proven strategies. That will help you see how you can set yourself up for long-term profitability—without making costly beginner mistakes.
We’ll go over this topic in the form of questions and answers, starting with strategy and research. Then we’ll move into sales optimization, logistics, advertising, and performance tracking.
How can sellers find the most profitable categories on Amazon?
If you want to succeed on Amazon, the #1 thing you can do is sell the right products. Getting this one part of the process right has an outsized impact on everything else you do.
Of course, market research is easier said than done and it helps to know where to begin. A great place to start is the Amazon Best Sellers list. On it, you will see top-performing products in real-time.
Spend enough time browsing the Best Sellers list and you’ll probably see trends emerge. For example, categories like Beauty & Personal Care, Home & Kitchen, and Clothing & Accessories tend to have consistent demand, but naturally, competition varies.
If you want to go deeper with your research (and we recommend you do), consider looking at Amazon’s Product Opportunity Explorer. Through it, you’ll see all kinds of data on search trends, niche saturation, and units sold. Sellers like you can analyze customer interest, competition levels, and historical performance and, in doing so, spot fresh opportunities.
Beyond Amazon’s built-in tools, monitoring Movers & Shakers and Hot New Releases can reveal fast-rising products. External sources like Google Trends and social media trends also help validate demand. A low-review, high-search-volume niche is often a strong entry point.
When you look at multiple different sources of Amazon data, you can often find areas where you can strategically enter high-demand, low-competition categories. These are the ones known for having strong profit potential.
What tools or resources are most effective for product research and competitor analysis?
Successful Amazon sellers rely on real data to make decisions. Certain widely available software tools can help you to identify profitable products and outmaneuver competitors.
Two of the most widely used platforms are Helium 10 and Jungle Scout. Both have a suite of features for product and keyword research.
- Helium 10’s Black Box tool filters products based on revenue, competition, and pricing trends. This helps sellers uncover overlooked niches. Its Cerebro tool reverse-engineers competitor listings to extract the most effective keywords for optimization.
- Jungle Scout provides in-depth sales estimates, keyword tracking, and competitor monitoring. The Opportunity Finder highlights markets with favorable demand-to-competition ratios, ensuring sellers avoid oversaturated spaces.
Beyond these, tools like AMZScout and Keepa help track price trends and historical sales data, giving sellers insights into seasonality and market shifts.
Using these resources allows sellers to make strategic decisions and stay ahead of market trends. But remember, you need to pair this with other research like described in the previous section. Number-heavy data like that provided by these tools can be misleading if you don’t seat it within a larger context.
What are common mistakes beginners make when choosing products to sell?
Many new sellers make emotion-driven decisions. After all, it’s tempting to pick products you like rather than those with proven demand. Without market validation, you risk launching items that don’t attract enough buyers.
Another common mistake is entering oversaturated markets. If a product has thousands of reviews and deep-pocketed competitors, a new seller will struggle to gain visibility. Instead of selling generic water bottles, niching down to “insulated stainless steel bottles for hikers” gives you a better chance to stand out.
Pricing issues also hurt beginners. Amazon FBA fees, referral fees, and shipping costs quickly eat into margins. A product that looks profitable at first glance may barely break even after fees. Using profit calculators and competitor analysis tools ensures better decision-making.
Successful sellers research trends, review costs, and validate demand before committing to inventory. They focus on low-competition, high-margin products with steady demand instead of chasing fads.
Which pricing strategies help new sellers attract buyers while still maintaining profit?
Pricing on Amazon is a balancing act. Go too high, and you lose customers. Go too low, and you lose profit. The most effective strategy is competitive pricing, where you price your product slightly below or in line with top competitors.
However, rather than simply undercutting, sellers can add value by bundling complementary products or offering limited-time discounts.
Dynamic pricing tools like RepricerExpress and Aura help sellers adjust prices based on market demand, competitor activity, and inventory levels. This ensures products remain competitively priced without unnecessary margin cuts.
Psychological pricing also plays a role—pricing at $19.99 instead of $20.00 increases conversions. Additionally, using Amazon’s coupon and deal features can attract budget-conscious shoppers while maintaining perceived value.
Ultimately, successful pricing requires constant monitoring of costs, fees, and competitors. Sellers who experiment and refine their approach find the sweet spot between affordability and profitability.
How do successful sellers optimize their product listings for Amazon SEO?
Amazon’s search algorithm favors relevance, engagement, and conversions. That means your listing must be optimized for both customers and search ranking.
Successful sellers start with thorough keyword research using tools like Helium 10 and Jungle Scout to identify high-traffic, low-competition terms. These keywords should be placed naturally in the product title, bullet points, and description to maximize visibility.
High-quality images and videos improve click-through and conversion rates. Amazon prioritizes listings that keep shoppers engaged, so having infographics, lifestyle images, and explainer videos can increase performance.
Encouraging customer reviews also helps rankings. Products with more positive reviews tend to rank higher, as they signal trust and reliability. Lastly, optimizing backend search terms helps Amazon understand your product even when shoppers use different phrasing.
When in doubt, remember the whole point of Amazon is to sell products. So your North Star should be to make a product listing that compels people to buy. If you can manage that, then you’ve accomplished the most important part of Amazon SEO.
How can sellers gather more (and better) product reviews in a compliant way?
Product reviews are one of the most powerful tools for boosting sales on Amazon.
“Positive online reviews can significantly impact sales, as consumers often place a high level of trust in them,” says Kristin Hutcherson, Partnership Manager at eComEngine. “Quality reviews help boost product search rankings, which allows more buyers to discover your product, increasing your sales potential.”
The best way to get more reviews? Ask your customers.
“Sending automated review requests is a smart way to streamline the process and ensure you’re regularly requesting reviews,” Hutcherson explains.
Amazon allows sellers to request reviews, but they must follow strict guidelines—you can’t pay for or influence a review, and requests must be sent within 30 days of order completion.
If you want to automate this process some, you might look into tools like FeedbackFive by eComEngine. This can help you automate review requests and stay within Amazon’s policies.
What factors should new sellers consider when choosing between FBA and FBM fulfillment?
When you start selling on Amazon, you will need to decide between Fulfillment by Amazon (FBA) and Fulfillment by Merchant (FBM). It’s a big choice and one that will directly affect your operations, costs, and customer satisfaction.
With FBA, you send products to Amazon’s fulfillment centers. Amazon then handles storage, packaging, shipping, customer service, and returns.
There’s a certain appeal to doing this. You can manage your sales and inventory under one roof and in one system. Plus, this method automatically makes your products eligible for Amazon Prime’s free two-day shipping, which increases your visibility among Prime members.
Of course, this is not a perfect option since FBA comes with storage and fulfillment fees. These can add up, especially for slow-moving or bulky items. Additionally, you have less control over inventory management and packaging.
Some people prefer FBM instead, which means you manage storage, packaging, shipping, customer service, and returns yourself or through third-party logistics providers.
Doing this gives you a greater degree of control over fulfillment, and you can do things like personalize packaging and interact more directly with customers. This can be more cost-effective for sellers with existing logistics infrastructure or for products that are heavy, oversized, or have lower sales volumes.
But there are downsides, as you might expect. For one, FBM products are not automatically Prime-eligible. You can get around this by qualifying for Seller Fulfilled Prime (SFP). But that means you will have to meet Amazon’s stringent performance requirements, which includes having a high on-time shipment rate and offering premium shipping options. That’s not easy to do.
When choosing between FBA and FBM, consider your product type and volume, desire for control over fulfillment, cost analysis, scalability, and the level of customer service you wish to provide. FBA is generally better when simplicity is a priority and FBM is generally better when flexibility is a priority.
How can inventory management tools help prevent stockouts or overstocking for beginners?
Many beginner sellers rely on spreadsheets to track inventory, but as sales grow, managing stock manually becomes overwhelming.
“As sales grow and SKUs increase, manual tracking gets more complex,” says Kristin Hutcherson, Partnership Manager at eComEngine. “This is where inventory management tools become important to consider.”
These tools provide real-time insights, helping sellers avoid stockouts and overstocking by streamlining supply chain decisions. “It may be beneficial to start with operational analytics or insights tools rather than a full inventory management tool,” Hutcherson explains.
“Tools like SellerPulse, for example, offer inventory planning reports, FBA fee alerts, and SKU-level profitability analysis.”
Effective inventory management reduces additional order fulfillment fees, aged inventory surcharges, and disposal costs. Smart use of software is an all-around good way to help maintain optimal stock levels.
How can a seller use Amazon ads to boost initial sales and visibility?
Amazon’s advertising platform is one of the most effective ways to drive traffic and increase sales. Sponsored Products, Sponsored Brands, and Sponsored Display Ads help new sellers reach their audience quickly.
To start, sellers should focus on keyword targeting. Using tools like Jungle Scout’s Keyword Scout can help identify high-performing search terms. Optimizing bids and monitoring ACoS (Advertising Cost of Sales) will help you make sure ad spend remains profitable.
Running low-bid automatic campaigns initially can help uncover valuable search terms. After identifying strong keywords, shifting to manual campaigns with refined targeting can improve efficiency. Additionally, testing Sponsored Brands and Display Ads can enhance brand recognition and keep products in front of customers.
What best practices should a newcomer follow to maintain high seller performance metrics?
Amazon tracks seller performance metrics closely. You’re going to need to maintain strong scores if you want to succeed in the long run.
The most important factors include order defect rate (ODR), late shipment rate, and customer feedback.
To keep metrics high, sellers should:
- Ship orders on time – FBA automates this, but FBM sellers need reliable fulfillment partners (Fulfillrite is one good option).
- Provide excellent customer service – Fast responses and accurate product descriptions reduce negative feedback.
- Monitor inventory closely – Stockouts hurt rankings, while excess inventory leads to storage fees.
- Handle returns quickly – A clear return policy minimizes chargebacks and disputes.
If you are able to consistently meet these standards, you will keep the buyers’ trust and your seller performance metrics will reflect this reality. And that is necessary if you want to stay in good standing with Amazon.
Final Thoughts
Winning on Amazon isn’t about guessing—it’s about understanding the platform, using the right tools, and making data-driven decisions.
The best sellers don’t just pick products at random. They research trends, optimize listings, manage inventory wisely, and use Amazon ads for visibility.
Whether you’re weighing FBA vs. FBM, fine-tuning pricing, or improving seller metrics, success comes down to consistency and adaptability.
Keep testing, keep optimizing, and most importantly—keep learning. The grand game of Amazon is always shifting, but sellers who stay informed and strategic will thrive.
