Starting a business on Amazon is an exciting move—but before anything else, you need to choose what to sell. And this decision can make or break your success. While it’s tempting to go with your gut or pick something you personally love, real growth comes from choosing products based on data, not passion.

Let’s walk through what matters most when selecting your first product and how you can use our platform to avoid costly mistakes.

Start with Demand, Not a Guess

It’s easy to assume that a trendy or personal favorite product will sell well, but the best-performing Amazon products usually share one thing: consistent, year-round demand. They’re not just hot for a season—they sell steadily every month.

To evaluate this, look at Amazon Best Sellers, analyze keyword trends using Google Trends, and explore our internal TOP 25 Products section. Products with at least 300+ monthly sales are a safe bet for beginners.

And to speed things up? Use our Product Database to filter by category and quickly discover what’s trending in real time.

Don’t Dive Into a Saturated Market

Even if a product has great demand, that doesn’t mean it’s a good choice. You also need to understand the level of competition. Categories dominated by major brands or full of listings with thousands of reviews can make it nearly impossible for a new seller to break through.

A good rule of thumb? Avoid markets where most top listings have over 1,000 reviews. Look instead for categories with a healthy balance of demand and manageable competition—something our Niche Analyzer helps identify instantly.

Think Profit First: The Simple Math

Here’s where many new sellers trip up: they don’t fully calculate costs. They price their product based on guesswork and end up making pennies—or losing money.

Use this simple formula:

Selling Price – (Product Cost + Amazon Fees + Shipping) = Net Profit

Let’s say your product sells for $25. After paying $6 to produce it, $8 to Amazon, and $3 for shipping, your net profit is $8 per unit. Not bad—and definitely better than launching blind.

We recommend using Amazon’s free FBA Profit Calculator before committing to any product. And inside our platform, you’ll find margin insights tied to real-time product data.

Real Example: What Works (and What Doesn’t)

To show you what all this looks like in practice, let’s compare two potential first products:

✓ A Smart Pick: Silicone Food Bags

1. Price: Around $22
2. Lightweight (under 1 lb/0.45 kg)
3. High, steady demand
4. Easy to differentiate with color sets or eco branding

✗ A Risky Pick: High-Tech Blender

1. Price: $250
2. Heavy (over 12 lbs/5.44 kg), high shipping/storage costs
3. Higher chance of returns due to complex features
4. Market already filled with well-established competitors and premium listings

When starting out, go with something lightweight, affordable, and easy to source. You’ll avoid the inventory headaches and get to market faster.

Avoid These Common Mistakes

Plenty of beginners make the same avoidable errors. Here are the big ones to steer clear of:

1. Falling in love with the product instead of following the data
2. Underestimating costs, especially shipping and Amazon fees
3. Overlooking restrictions—some items require approval to sell

Always check Amazon’s restricted categories list before sourcing anything.

How Our Platform Helps

Amago platform was built to give you an edge from day one. Here’s how:

1. Use the Product Database to research profitable, low-competition ideas
2. Tap into the Niche Analyzer to discover which categories are growing and where to avoid saturation
3. Track pricing, competition, and seller data with our Product Tracker to make smarter decisions before placing your first order

Everything you need to go from idea to informed product selection—without guesswork.

Test First. Scale Later

Once you’ve found a product that checks all the boxes—good margin, low weight, and steady demand—don’t rush to order thousands of units. Start with a small batch. Use our tracking tools to monitor how it performs, and make adjustments as needed.

If your test run goes well, you can confidently scale up with better pricing from suppliers and improved listings based on real customer feedback.

Choosing your first product can feel overwhelming. But with the right framework, smart tools, and a data-first mindset, you can reduce risk and increase your chances of building a profitable Amazon business from the start.

And if you're ready to get serious, our platform gives you everything you need—from product research to launch support—all in one place.