Amazon FBA Australia: How to choose the right products for success

TL;DR

• Choose products with consistent demand using tools like Helium 10, Keepa, and Amazon Best Sellers.

• Avoid overcrowded markets by checking reviews, pricing, and product gaps to find a competitive edge.

• Ensure 30-40% profit margins by factoring in product costs, Amazon fees, shipping, and marketing.

• Pick lightweight, small products to reduce FBA fees and shipping costs for better profit margins.

• Verify suppliers before bulk orders by comparing quotes, requesting samples, and checking reliability.

• Follow Amazon’s rules and avoid restrictions. An Amazon seller consultant can help with approvals.

Choosing the right product is the foundation of a successful Amazon FBA business. With thousands of options available, picking a product that sells well, has manageable competition, and offers good profit margins is key. But how do you find the perfect product? It’s not just about what looks trendy—factors like demand, competition, pricing, and logistics all play a role in making a product viable.

In this guide, we’ll break down how to research, validate, and select the best products for Amazon FBA in Australia. Whether you’re launching your first product or expanding your catalog, these insights will help you avoid common mistakes and set yourself up for success. Let’s dive in!

1. Look for products with strong demand

Selling a product no one wants is a fast track to failure. Strong demand means steady sales and long-term profits. The best way to check demand is by looking at Amazon Best Sellers, trending searches, and keyword tools. Products with consistent sales and stable rankings are a safer bet than those that spike and disappear.

How to spot strong demand:

• Use keyword research tools like Helium 10 or Jungle Scout to check search volume.

• Look at sales history on Amazon Best Sellers and Keepa charts.

• Avoid fads—stick to evergreen products with steady demand.

• Check reviews—more reviews often mean higher sales, but too many may indicate a crowded market.

Pick a product people actually search for and buy consistently, and you’re already ahead of the game.

2. Check out the competition

A great product idea means nothing if you can’t compete. Too much competition makes it hard to stand out, while too little may signal low demand. The sweet spot? A product with moderate competition and room for improvement.

How to analyze competition:

• Check the top sellers—are they big brands or unknown sellers?

• Look at reviews—products with 500+ reviews are harder to compete with.

• Analyze product quality—are current listings lacking in photos, descriptions, or features?

• Find gaps—can you offer better value, bundle items, or improve the design?

If the competition is dominating with thousands of reviews, you might want to look for a different angle or product.

3. Make sure the profits add up

Selling is great, but making money is the real goal. Before choosing a product, break down all costs—including product price, shipping, Amazon fees, and advertising—to see if there’s a healthy profit margin.

Key cost factors to consider:

• Product cost—ideally less than 30% of your selling price.

• Amazon FBA fees—varies based on size, weight, and category.

• Shipping costs—can eat into margins if the product is bulky or heavy.

• Marketing expenses—Amazon PPC ads, influencer promotions, or external ads.

A good target is at least 30%-40% profit per unit. If the numbers don’t work, find a better product.

4. Keep size and weight in mind

Bigger isn’t always better—especially in Amazon FBA. Lighter, smaller products cost less to ship and store, which means higher profits and fewer headaches. Large or heavy items come with higher FBA fees, slower shipping, and potential damage risks.

Why size and weight matter:

• Lower shipping costs—smaller packages = cheaper transport.

• Cheaper FBA fees—Amazon charges more for large/heavy products.

• Easier storage—bulkier items take up more space (and cost more).

• Faster delivery—lightweight products ship quickly and have fewer handling issues.

Stick to items under 2kg and compact enough to fit in a shoebox for lower fees and better logistics.

5. Find reliable suppliers

A great product is only as good as the supplier behind it. Unreliable manufacturers can lead to delays, quality issues, and unhappy customers. Whether you source from China, Australia, or elsewhere, finding a trustworthy, cost-effective supplier is a must.

How to choose a good supplier:

• Compare quotes from multiple suppliers on Alibaba, Global Sources, or local manufacturers.

• Request samples to check product quality before bulk ordering.

• Negotiate pricing—MOQ (minimum order quantity) and costs can often be adjusted.

• Check communication—responsive, professional suppliers make a huge difference.

A strong supplier relationship ensures consistent quality, timely deliveries, and better profit margins.

6. Watch out for seasonal trends

Selling a product that only moves during Christmas or summer can leave you with slow months and excess inventory. While seasonal products can be profitable, they require timing, planning, and cash flow management. If you’re just starting, it’s better to pick something that sells year-round.

How to spot seasonal trends:

• Use Google Trends to check if demand spikes at certain times.

• Analyze sales history on Amazon using Keepa or Jungle Scout.

• Consider storage costs—off-season inventory can rack up fees.

• Plan for demand shifts—if selling a seasonal product, ensure timely stock replenishment.

If you’re unsure, working with an Amazon consultant can help you evaluate whether a product’s demand is consistent or just a seasonal trend.

7. Follow the rules and regulations

Amazon has strict rules on product categories, labeling, and compliance. Ignoring them can delay your launch or even get your account suspended. Before picking a product, check if it requires certifications, safety approvals, or special documentation.

Important things to check:

• Product restrictions—some items (like electronics or supplements) need approval.

• Labeling requirements—barcode placement, packaging rules, and safety labels.

• Australian import laws—customs duties, prohibited materials, and product safety regulations.

• FBA storage policies—Amazon limits certain product types in warehouses.

If you're unsure, Amazon Seller Central consultants can guide you through compliance, approvals, and FBA requirements to avoid costly mistakes.

8. Stay away from restricted or risky items

Some products might seem like a goldmine, but if they fall under restricted, high-risk, or fragile categories, they can cause more trouble than they’re worth. Selling hazardous goods, copyright-protected items, or easily breakable products can lead to suspensions, lawsuits, or expensive returns.

Products to avoid:

• Fragile items—high return rates and potential damage in shipping.

• Trendy fads—short-lived demand can leave you with unsold stock.

• Restricted categories—medical devices, supplements, and toys often require approval.

• Legal risks—trademarked or patented products can lead to legal action.

A smart product choice isn’t just about sales—it’s about avoiding unnecessary risks that could cost you time and money.

9. Use research tools to validate ideas

Guessing doesn’t work in Amazon FBA. The best sellers use data-driven decisions to pick profitable products. Amazon research tools help you analyze demand, competition, and pricing trends before committing to a product.

Best tools for product research:

• Helium 10 & Jungle Scout—track sales, competition, and keyword rankings.

• Keepa—see historical price trends and sales patterns.

• Google Trends—check if demand is rising, falling, or seasonal.

• Amazon Search Bar—auto-suggestions reveal what people are actively searching for.

An Amazon seller account manager can also help you analyze your niche and avoid bad product choices before you invest.

10. Pick your winner and get started

Once you’ve checked demand, analyzed competition, and confirmed profitability, it’s time to launch your product. Start with a small order, optimize your listing, and invest in marketing to drive sales. The key is to take action—overthinking leads to missed opportunities.

Next steps to launch:

• Order samples and finalize your supplier.

• Create your Amazon listing with great photos and keywords.

• Set up PPC ads to get early visibility.

• Monitor and adjust based on sales and customer feedback.

Starting an Amazon FBA business takes planning, but once you launch, you’ll learn what works and scale from there. Ready to go? Contact our Amazon experts to make it happen!