How to Decide Which Products to Sell on Amazon

What do people want and need? At the root of all retail businesses lies this seemingly simple question. But the answers are not always clear because trends will drive desires and seasons will dictate necessities. Which way should your business lean toward if you’re learning how to start Amazon in Saudi Arabia?

Identifying Potential Products to Sell

The first step is research. You need to know the Saudi Arabia market before entertaining a few product ideas. You can follow a few approaches to learning what local shoppers want, what’s missing in the market, and how existing products are meeting consumer needs.

Fortunately, Amazon Saudi Arabia makes it easy for you to find out what type of products people are buying. Click the Best Seller page to discover the top 20 products that are selling well according to their categories: home, electronics, fashion, devices and accessories, toys, and DIY and tools.

Once you have information about which products are in-demand, choose a category that appeals to you. You might go with something you personally like (e.g., electronics over fashion) because choosing what you’re passionate about will allow you to sustain the business. You’ll be more motivated to put in the time and effort to improve and expand it.

You might also focus on products that have a high profit margin. Higher priced items might generate more revenue, but think about the production and shipping costs. 

Trim Down Your List Using Amazon

Narrow down your options by using Fulfillment by Amazon (FBA) as a guide. FBA is a program that will allow you to boost sales on the e-commerce platform. Sellers who have an FBA badge are generally preferred by shoppers because it ensures quality packing, delivery, and customer service. Your products may be eligible for free shipping, which is attractive for shoppers.

Although FBA is open to a variety of products, some restrictions do apply. This means that if you intend to register for the Amazon FBA Saudi Arabia, choose products that are not restricted by the program. You may be able to sell some products on Amazon, but these products may not qualify for FBA. 

What products are prohibited from FBA selling?

• Alcoholic beverages (including beer)

• Vehicle tires

• Gift cards, gift certificates, and other stored value items

• Any item weighing more than 30 kilograms

• Any products you cannot sell lawfully in Saudi Arabia

Prohibited products certainly narrow down your options, giving you a clearer idea of what items to sell on Amazon.

Refine Your List

When you’ve still got several products on your list, scrutinize each item carefully. Some things to consider:

• Is the product easy to ship? Amazon FBA has packing and shipping requirements. Products that are easier to prepare and ship out to the fulfillment center means you can spend more time on other aspects of your online business. Compact, lightweight products also minimize storage and shipping costs.

• What are the risks related to logistics? Other than considering whether the product is easy to ship, think about how manageable it might be in transit and in storage. Fragile, perishable items will require more care, increasing their logistical complexity.

• What products have the highest return rates? For every 100 products sold, 17 were returned, according to a consumer report in 2024. Clothes and shoes, products that call for a specific fit tend to have the highest return rates.

• How big is the pond? Yes, a lot of people are buying the product you’ve listed, but the competition for consumers may be fierce. You might be up against bigger, more established brands or hundreds of other sellers. As a new seller, you want to give your products a fighting chance.

After you’ve put your list of potential products through these considerations, you may have an even shorter list. If not, a winning product to begin selling on Amazon.

Prepare to Sell

Once you’ve chosen your product, start developing a strategy that’ll maximize selling opportunities. 

Start with the following steps.

Research the competition and learn about their pricing models.

In a saturated market, how do you figure out which competitors to focus on?  Choose competitors who have impressive sales and ones that dominate the search results. These could include well-known brands and emerging sellers that are gaining attention.

After identifying your potential competitors, analyze their pricing models. Is their pricing consistent or does it follow seasonal demand or inventory levels? Your competitors pricing strategies can inform your own pricing strategy. 

Some Amazon sellers use the e-commerce platform’s pricing tool, which automates prices in real time. You set the parameters, and Amazon executes your pricing strategy, adjusting according to sales-based, discount-based, or competitive price-based models.

Work with a reliable supplier.

Unreliable suppliers can jeopardize your retail business, so it’s important to pick the right one. They must maintain quality standards and offer reasonable lead times in delivering your products.

Three of the most critical things to look for in a supplier are reliability, value for money, and quality. Choose suppliers who align with your business needs to create a strong partnership — one that benefits both parties.

Thinking in the Long Term

Every new business seeks to stay in the market for a long while. Longevity means a business has successfully adapted to changing market conditions, outlasting competitors. 

Even if you are just starting with a few simple products on Amazon Saudi Arabia, it’s a good idea to plan for the long-term. How do you do it?

You’ll want to build a strong online presence. Online presence means product and brand visibility. You start with keyword research, which can be done in the following ways:

• Use the Amazon search box to tap into suggestions in the drop-down menu when you type in certain words, e.g., iftar table decor, perfume organizer, shoes for men. Type in “iftar,” “perfume,” or “shoes” and a few suggested terms will appear. This will give you an idea of what shoppers look for on Amazon.

• Try Product Opportunity Explorer to identify the top search terms and trends on Amazon.

• Check out your competitors to see what terms they use.

Finally, get customer feedback to help you identify opportunities for improvement. Learn what customers think about your products and see whether they have positive feedback about your price-to-value ratio. 

Amazon presents lucrative opportunities — you just need to identify the right products that resonate with shoppers. Evaluate your options strategically and focus on products with long-term growth potential. With careful planning and market insight, you can set your business up for sustained success.