The Ten Dimensions of Amazon Product Selection (Part 1)
October 31, 2025
Reading time about 5 minutes
Hello everyone, today I'm going to talk to you about Amazon's product selection. Product selection is a particularly important part of Amazon. I've seen many newbies select products with great enthusiasm, and then after posting, they find that there are no orders, no advertisements, no reviews, not to mention profits, and then “sneakily” to clear the goods. Sometimes they may not be able to clear the goods, so they have lost quite a bit. In fact, the root cause is lack of experience, and then looking at the data dimensions of the product is too little to look at. Today I'm going to take you to break down my product selection ideas. My product selection ideas are probably viewed from 10 dimensions.
I. Profit accounting
The first is profit accounting. For us, the first dimension is profit accounting. To estimate the profit of Amazon's product in the early stages, we must calculate it separately. We must calculate it carefully, not an approximate calculation; we must calculate it carefully. First, we need to know how Amazon's profit is calculated. First of all, we need to know our procurement costs, as well as first-line logistics, Amazon's commissions, delivery fees, advertising costs, return fees, and storage fees. We all need to calculate these, and we must calculate them carefully. In these calculations, we must control our net profit to at least 20%. You'll only consider doing this product, and Amazon will call it Amazon's peak season from October to December, and then delivery and storage fees will rise during this period, further reducing our profits. In summary, in terms of profit, we need to at least calculate that our net profit is greater than 20% before considering it.
II. Market Size
Let's talk about the second dimension, which is market size. Simply put, we need to find a relatively mediocre product. How do you understand this mediocre product?In other words, for novice Xiaobai, we pay more attention to the 0 to 1 process. You need to run and understand. We have got the 0-1 point ready, let's consider the 1-100 thing, and then try to choose a product with a lower risk. Don't just go up, just be tough on the Red Sea. Red Sea products can be made, but they definitely require a certain amount of capital investment. It's not very friendly for early players, especially for newbies. We can use various product selection tools or Amazon's ABA data analysis to take a look. Here, we'll mainly look at how many searches in these categories are. If this market is too big, it's probably just a red sea. Red Sea products are too competitive, so I'm not going to do them, so can I make less popular products?Yes, but unpopular products depend on how you control them. If you put out about 10 orders a month, that's not really interesting, right?If appropriate, we can choose a less competitive category to break in, but don't choose the one that is particularly small and unpopular; it probably won't sell a few orders in a month. There's no point in making this kind of product, because in the end, you want to make money, don't look for a category that's too big, don't look for a category that's too small, and find a moderate point. It depends on how everyone thinks about moderation. For example, if a newbie comes in, we recommend looking at the kind that sells about 100 to 500 orders per month. Later, when you're proficient, you can jump on it.
III. Intensity of market competition
The third dimension is the intensity of competition in the market. Maybe the top 5 have a 70% monopoly. This kind of product is actually not very easy to do. It's generally not recommended for newbies to enter. Another very simple method is to take a look at the top 10 and top 5 ratings and the number of reviews, just the number of reviews. If the number of reviews is large, they are tens of thousands, then there is no need to do this kind of product. There are probably a few thousand of them before, a few hundred of them. You can take a look at the list using various product selection tools. 100 before BSR How many new products can be squeezed in? If nothing new has been squeezed in for a year or two, then this type of product is actually very difficult to make.
IV. Peer Seller Level
The fourth dimension is to study the level of peers. Why should we study the level of peer sellers?Because we need to find a seller who is similar to ours, or is weaker than us, we can go to his store by reading his store reviews. If all of his products are made quite well, then we can actually make all of these products. We can actually take a look at his store reviews and go to his store. If his store's products are all very good, it means that these stores are probably CUHK sellers. Our small seller isn't very easy to “break with” him. Among them, you can take a look at his feedback (feedback). If there is little feeback (feedback), it means this is a new store, but it's also not ruled out that it may be a small model run by someone with extensive experience. We need to go to the store in detail and then take a look at the level of our fellow sellers. For example, we can definitely take a look at the level of our fellow sellers. For example, we can definitely take a look at the level of fellow sellers. Know how he sells it, then analyze its listing, its images, whether these are written well, are there any problems with the images, poor grammar, are they attractive, do we have room for optimization, and evaluate whether this section is well maintained?We need to see if we have the ability to maintain, whether we have the ability to optimize, and whether we have the ability to catch up with him. If we have the ability, we can enter this area as an entry point.
5. How to play with fellow sellers
The fifth dimension is the peer seller's style of play. When this product appears in front of you, you definitely think this product is good, it's good. We need to analyze it with various product selection tools. We can use various product selection tools to analyze how this product was promoted, how it was made, what steps did it take from 0 to 1, when was the coupon issued, when was the price discount, when was the advertisement launched, and how the advertisement was placed. Let's take a look at his style of play and can we copy it. If we have the ability to replicate it, we are also likely to succeed. We can also check if they are doing off-site drainage. We can search their brand on the website to see if they are doing off-site drainage, or if we use various product selection tools to see changes in its sales volume. If suddenly sales on one day became particularly high and then it went back to normal in two or three days, then this kind of thing is probably off-site.
The above content only represents the creators' personal opinions. The data is for reference only, and does not represent the official views of Amazon Global Store.