6 Days Amazon FBA Product Research Crash Course

DAY 2 of 6: Finding a Product Idea - Narrowing down your Research...

Finding a Niche Idea : Using ChatGPT

Find a product that has a higher average unit sales per day. As a baseline, we recommend you keep it to a minimum of 10 estimated orders per day.

This essentially implies that the product that you are trying to sell should have already been sold by at least one other person and should generate a minimum of 10 sales per day. This would also suggest that the product has a good demand with at least 300 orders a month on average.

Of course, there’s the question of profitability as well. Let’s assume that two products are selling at $30. Product A has an average daily order of 5 and product B has an average daily order of 10.

Now, let’s assume that both products have a profit of $10 after the Amazon FBA fees, shipping, promotions, etc. Essentially, the gross sale you make per month in Product A is $30* 5 units * 30 days = $4,500, and in Product B is $30* 10 units * 30 days = $9,000

The profit you make for Product A is = $10 * 5 units/ day * 30 days/ month = $1,500 per month, and Product B is $10 * 10 units/ day * 30 days/ month = $3,000 per month.

As obvious as this may sound, products with higher average sales units per day have better profits. Therefore, aim to sell a product that can at least bring in 9000-10000 in gross sales and at least 3,000 in profit.


A BSR of 5,000 or less in the category

Understanding the sales frequency of a product can be complicated without the right tool. However, you can find the best seller rank (BSR) for free on the ecommerce platform. Most importantly, the BSR can help you understand the sales performance of a product within its category.

Fundamentally, a lower BSR suggests higher sales. For instance, a product with a BSR of 20,000 has significantly fewer daily sales than the same product with a BSR of 2,000 in the same category.

Therefore, avoid selecting a product with low sales potential even if it has found its way to the top pages.

When zeroing in on a product, it’s advisable to have 3-5 products in the main category with a BSR rank of around or below 5,000. The more number of products you have with a low BSR, the better your chances of success.

Note: When examining the BSR, focus on the main category rather than subcategories. Keep in mind a product with BSR #100 in the Electronics category wouldn’t necessarily generate similar sales as a product with BSR #100 in the Pet Supplies category.Demand: It calculates the demand for the product in the category


Revenue Potential: It estimates the monthly revenue of the product in the category

Competition: It shows if the competition is higher or lower than the category average

Overhead Cost: It estimates the overhead cost and shows if it’s higher or lower than the category average.

Profit Margin: It shows you the estimated profit margin of the product compared to the category average

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