Have you ever felt stuck trying to find the right product to sell on Amazon? You might think picking the hottest trend or relying on your gut feeling is enough.
But here’s the surprising truth: these common shortcuts often lead sellers to miss out on steady profits and growth. In this guide, you’ll learn six product hunting mistakes many Amazon sellers make and how you can avoid them to move forward faster and smarter.
Chasing trends instead of steady demand
Many sellers jump on trendy products hoping for quick sales. The problem? Trends can fade fast, leaving you with unsold inventory.
Why it matters: If your product’s demand drops suddenly, your sales and profits can plummet overnight. Steady demand products give you more consistent income and less stress.
How to fix it:
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Focus on products with a history of consistent sales over several months or years.
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Use tools like SellerSprite or Jungle Scout to check monthly sales data.
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Avoid products tied to a temporary fad or season unless you plan to pivot fast.
For example, selling fidget spinners in 2017 was a gold rush. But many sellers were left with boxes of the product once interest vanished. Steady sellers who picked essentials like kitchen tools stayed profitable longer.
So now that you understand the importance of demand, let’s look at competition and reviews to refine your product choice.
Ignoring competition and review count
A product might look great until you see there are dozens of competitors with thousands of reviews each. This is a big red flag.
Why it matters: High competition with many reviews means breaking in is tough. Shoppers tend to buy well-reviewed products, so new listings often get overlooked.
How to fix it:
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Analyze your competitors’ review counts and star ratings.
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Choose products where the top sellers have moderate reviews (not thousands).
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Look for gaps where you can improve on competitors’ weaknesses.
Imagine trying to sell a phone case against top brands with 5,000+ reviews. Unless your case has a unique feature or better quality, you’ll struggle to win buyers.
Getting competition right sets you up to target the right product and win customer attention. Next, let’s explore how keyword data guides your product visibility.
Misreading keyword data
Many sellers think using lots of keywords will boost sales. But keyword data on Amazon is tricky and easy to misinterpret.
Why it matters: Using the wrong keywords can bury your product listings, reducing visibility and sales drastically.
How to fix it:
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Use specialized Amazon keyword research tools like Helium 10 or SellerApp.
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Focus on relevant keywords with a good balance of search volume and competition.
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Prioritize keywords that indicate buying intent, like “buy” or “best” alongside product terms.
For example, a seller listed a blender under “kitchen gadget” but missed high-converting keywords like “smoothie blender” or “professional blender.” Their sales stayed low compared to competitors who optimized keywords properly.
Once your keywords are right, understanding profit margins becomes crucial. Let’s break that down next.
Sourcing products with poor margins
Selling cheap products might seem safe, but hidden costs can wipe out your profits quickly.
Why it matters: Amazon fees, advertising, and shipping add up. If your margins are too thin, you’ll work hard with little reward.
How to fix it:
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Calculate all costs before choosing a product: production, Amazon fees, PPC ads, shipping.
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Aim for a profit margin around 20-30% to keep your business healthy.
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Avoid ultra-low-cost products that need high sales volume just to break even.
Here’s a quick story: One seller picked a $5 toy without checking fees. After Amazon took 15% commission and they spent on ads, their profit was just 5 cents per unit. It wasn’t worth the effort.
Margins matter a lot and tie directly into your shipping costs, so let’s cover that next.
Overlooking shipping costs and duties
Shipping fees and import duties can surprise you, eating into your profits.
Why it matters: Unexpected shipping costs can turn a profitable product into a loss-maker.
How to fix it:
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Verify shipping fees based on product size and weight.
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Check customs duties for your product category and country.
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Speak to your freight forwarder or customs broker to clarify costs upfront.
For instance, importing plastic goods from China may have about 5-7% duty plus tariffs. If you don’t factor this in, your final costs spike unexpectedly.
Understanding shipping costs helps you price right and protect your profits. Lastly, let’s talk about data versus gut feelings.
Relying only on gut feeling, not data
You might trust your instincts based on past experience. But Amazon’s marketplace is too complex to guess well every time.
Why it matters: Unsupported decisions often lead to products that don’t sell or lose money.
How to fix it:
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Use sales data, keyword analysis, competition research, and profit calculations.
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Test products with a small initial order to validate your choices.
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Adjust based on real performance metrics rather than assumptions.
I know sellers who went all in on a hot idea, ignoring data signals—and lost thousands. Those who dug into the numbers and tested before scaling usually did much better.
Now, let’s wrap it all up with the key takeaways.
FAQ
Q: How do I know if a product has steady demand?
A: Check monthly sales data for at least 6-12 months using Amazon research tools. Consistency is key.
Q: What’s a good review count to compete with?
A: Aim for products where top sellers have fewer than 500-1000 reviews for easier entry.
Q: How important are Amazon fees in pricing?
A: Very important. They can take 15% or more of your selling price, so factor them in carefully.
Q: Should I trust keyword tools 100%?
A: Use them as a guide but combine with real sales data and competitor analysis for best results.
Conclusion
Finding the right product on Amazon isn’t about chasing shiny trends or guessing. It’s about smart research, understanding competition, using data wisely, and watching your costs closely. If this sounds familiar, our team at Storm Digitals can guide you through these challenges with proven strategies and tools. Don’t let these mistakes keep you stuck—take control and start growing your Amazon business the right way.
