Welcome to my article “How to Find Profitable Products to Sell Online”.
You have decided to start an online business—awesome! But now comes the tricky part: what should you sell? Picking the right product is like finding a winning lottery ticket—except instead of luck, you need research, strategy, and maybe a little caffeine-fueled brainstorming session at 2 AM. The truth is, not every product will make you rich overnight (sorry, fidget spinner sellers of 2017), but with the right approach, you can identify high-demand, low-competition products that bring in steady profits.
In this guide, we’ll break down how to spot winning products before everyone else does, using tools like Google Trends, Amazon Best Sellers, and even social media trends (yes, TikTok is basically a goldmine for viral products). We’ll also cover how to analyze demand, assess competition, and calculate profit margins—because, let’s be real, if your shipping costs more than the product itself, you’re in trouble. So, buckle up, grab your notepad (or just open a new tab), and let’s find your next best-selling product.
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Understanding What Makes a Product Profitable
Not all products are created equal—some will make you rich, while others will gather dust in your inventory like an unused gym membership. So, how do you know if a product is actually profitable or just another passing trend? Simple: it needs to check a few key boxes—high demand, healthy profit margins, low competition, and easy logistics. Let’s break it down.
1. High Demand: Are People Actually Buying It?
A profitable product is something people actively search for and buy—not just something that looks cool. You don’t want to invest in something that nobody cares about (looking at you, banana slicers). Use tools like Google Trends, Amazon Best Sellers, and social media buzz to see if a product has consistent demand or is just another short-lived fad.
2. Low Competition: Can You Stand Out?
If you try to sell wireless earbuds, good luck—you’re competing with Apple, Samsung, and about 10,000 random brands on Amazon. Instead, look for niche products with steady demand but fewer competitors. For example, instead of generic fitness gear, a niche like resistance bands for seniors could be more profitable.
3. High-Profit Margins: Will You Actually Make Money?
Selling a product that costs $10 but requires $9.50 in expenses? Not a great plan. You need to factor in product cost, shipping, ads, and platform fees. Ideally, aim for a profit margin of at least 30-50%—otherwise, you’re just working for your supplier.
4. Easy Shipping & Storage: Can You Handle Logistics?
If your product is fragile, oversized, or expensive to ship, say goodbye to your profits. Instead, go for lightweight, compact, and durable items that won’t break the bank on shipping. Bonus points if they don’t require complicated regulations (looking at you, beauty and food products).
Using Market Research Tools to Identify Winning Products
Picking a random product and hoping it sells is like throwing a dart blindfolded—sure, you might hit the target, but chances are you’ll end up way off the mark (and possibly break something in the process). Instead of guessing, smart eCommerce sellers use market research tools to find high-demand, low-competition products before they blow up. Let’s dive into some of the best tools that can help you spot the next big thing before everyone else jumps on the bandwagon.
1. Google Trends: See What’s Hot (and What’s Not)
Google Trends is like a crystal ball for eCommerce. It shows you whether a product is trending up, staying stable, or slowly fading into obscurity (RIP, fidget spinners). Just type in a product idea, and it’ll display search interest over time. Look for products that show consistent or rising interest, and avoid anything that peaked last year and is now on a downward spiral.
2. Amazon Best Sellers & Movers & Shakers: The eCommerce Goldmine
Amazon basically runs the world of online shopping, so why not use their own data?
- Amazon Best Sellers shows products that people are buying right now.
- Amazon Movers & Shakers highlights products that have recently seen a surge in sales.
If a product is constantly in the top 100 of its category, it’s a safe bet that people want it.
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3. AliExpress & Alibaba: Spot Trending Products Early
AliExpress and Alibaba are treasure troves of trending products, especially for dropshippers.
- AliExpress’ “Hot Products” section shows items gaining traction globally.
- Alibaba’s order volume data helps identify fast-growing, bulk-selling items before they hit mainstream markets.
Bonus tip: Check the number of orders and customer reviews—high order volume with good ratings = potential winner.
4. Social Media: The Viral Product Detector
Social media isn’t just for memes and cat videos—it’s also where the next hot product is often discovered.
- TikTok & Instagram: Search for hashtags like #TikTokMadeMeBuyIt or #AmazonFinds to see trending products.
- Pinterest: A secret weapon for spotting evergreen product trends (home decor, DIY, and fashion items often do well here).
- Facebook Ads Library: Want to see what’s selling? Search for ads running for multiple weeks—if sellers are still spending money on ads, the product is making them money.
5. eCommerce Spy Tools: Get Insider Data
If you want to dig even deeper, use tools like:
- Jungle Scout (for Amazon sellers) – Analyzes demand, revenue, and competition.
- Sell The Trend – Tracks trending products across multiple platforms.
- Niche Scraper – Finds hot dropshipping products before they go mainstream.
Evaluating Demand and Competition for Your Product Idea
You have found a product that looks promising—but before you start imagining your eCommerce empire, there’s one crucial step: making sure people actually want it and that you’re not walking into a battlefield of cutthroat competition. The last thing you want is to invest in a product only to realize no one is searching for it, or worse, you’re up against Amazon and Walmart. Here’s how to check demand and size up your competition like a pro.
1. Keyword Research: Are People Actually Searching for It?
If no one is searching for your product, it doesn’t matter how cool it is—you won’t make sales. That’s where keyword research comes in.
- Use tools like Google Keyword Planner, Ubersuggest, Ahrefs, or SEMrush to check search volume for your product idea.
- Look for keywords with consistent monthly searches (1,000+ is a good sign) but not too much competition (because ranking for “wireless headphones” is a lost cause).
- Long-tail keywords like “eco-friendly yoga mats for beginners” are often better than generic terms like “yoga mats”—less competition, more targeted audience.
2. Amazon & eBay: The Real Demand Test
If a product is selling well on Amazon and eBay, it’s a good sign. But you need to check more than just “Best Sellers.”
- Look at the number of reviews: More reviews = steady demand. If a product has thousands of reviews, it’s selling well—but might also mean heavy competition.
- Check recent sales data: Tools like Jungle Scout and Helium 10 let you spy on estimated monthly sales of Amazon products.
- eBay’s Sold Listings: This feature shows how often a product has been purchased—great for verifying demand.
3. Spying on Competitors: Can You Beat Them?
Now, let’s see who you’re up against. If your competition includes massive brands with billion-dollar ad budgets, it’s time to rethink.
- Google your product idea: Are the top results Amazon, Walmart, or other major retailers? If yes, competition might be tough.
- Check Shopify & Niche Stores: If independent Shopify stores are selling the product successfully, it means there’s room for new sellers.
- Use Facebook Ads Library: Search for your product keyword. If you see multiple ads running for weeks or months, that’s a sign it’s selling well.
4. Checking Price & Profitability: Is It Worth Selling?
High demand is great, but if everyone is selling at razor-thin margins, you’re in trouble. Before jumping in, check:
- Price competition: If your product is being sold for $20 but costs you $18 to source and ship, there’s no room for profit.
- Can you differentiate? Maybe you can sell a higher-quality version, bundle it with accessories, or offer better branding to stand out.
5. Social Proof: Are People Talking About It?
Sometimes, the best way to evaluate demand is to see if real people are interested in the product.
- Reddit & Quora: Search for your product on forums—are people asking about it or recommending it?
- TikTok & Instagram: Are influencers featuring it? Look for products with organic engagement (comments, shares, and likes) rather than just paid promotions.
Understanding Pricing & Profit Margins for Maximum ROI
Finding a great product is only half the battle—pricing it correctly is what determines whether you’re making money or just running an expensive hobby. If your product costs $10 to source and you sell it for $11, congratulations! You’ve just made… absolutely nothing after shipping and fees. To make real profits, you need a solid pricing strategy and a healthy profit margin. Let’s break it down.
1. How to Calculate Your Profit Margins (Because Math Matters)
Before slapping a price tag on your product, you need to calculate your total costs and expected profit margin. Here’s a simple formula:
🛒 Selling Price – (Product Cost + Shipping + Fees + Ads) = Profit
For example, if you’re selling a phone case for $20, and your costs break down like this:
- Product cost: $5
- Shipping: $3
- Payment processing fees (Stripe/PayPal, etc.): $1
- Advertising cost per sale: $4
Total cost: $13
Profit: $7 (which is a 35% profit margin)
A good target margin is 30-50% for eCommerce. Anything lower, and you’re just working for your suppliers.
2. The Psychology of Pricing: Why $19.99 Feels Cheaper Than $20
Humans are weird when it comes to numbers. A price of $19.99 feels way more attractive than $20—even though the difference is literally one cent. Use these psychological pricing tactics to boost sales:
- Charm pricing: Prices ending in .99 or .95 (e.g., $29.99 instead of $30) create a “bargain” perception.
- Premium pricing: Higher prices can make a product seem more valuable (luxury brands do this all the time).
- Bundle pricing: Instead of selling one item for $20, offer two for $35—it increases perceived value and average order value (AOV).
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3. Choosing a Pricing Model: Fixed vs. Dynamic Pricing
Not all products should be priced the same way. Here are two common pricing strategies:
- Fixed Markup: A standard markup (e.g., 2x or 3x product cost) to maintain a consistent margin.
- Dynamic Pricing: Adjusting prices based on demand, competitor prices, or seasonal trends (popular on Amazon & eBay).
For example, if you’re selling seasonal products (like Christmas decorations), you might price them higher in November-December and lower afterward.
4. Avoiding the “Race to the Bottom”
Many sellers think lowering prices will help them win customers. Spoiler alert: it won’t. Instead, it just destroys your profit margins and attracts price-sensitive buyers who jump ship for a 50-cent discount. Instead of lowering prices, try:
- Better branding & product positioning (Apple doesn’t compete on price; they sell a lifestyle).
- Adding value (offer a free eBook, extra accessories, or better packaging).
- Using scarcity & urgency (limited-time offers, countdown timers).
5. Hidden Costs That Can Eat Your Profits
A product might look profitable on paper, but sneaky hidden costs can kill your margins. Watch out for:
- High return rates (especially for fashion or tech products).
- Platform fees (Shopify, Etsy, Amazon all take their cut).
- Shipping & fulfillment costs (especially for international orders).
- Advertising expenses (if you spend $10 on ads to sell a $15 product, you’re in trouble).
Testing & Validating Product Demand Before Investing
Picture this: You have found a product that seems like a winner. You’re excited. You place a big order, set up your store, launch ads… and then—crickets. No one buys. Your bank account cries.
To avoid this nightmare, smart sellers test and validate demand before sinking money into inventory. The goal? Make sure people actually want your product and are willing to pay for it. Here’s how to do that without going broke.
1. Use Pre-Orders: Get Paid Before You Buy Inventory
Why risk buying a product that might sell when you can get customers to pay upfront?
- Set up a pre-order page on Shopify or WooCommerce.
- Run ads or promote on social media.
- If people start buying before you even have stock, you know you’ve got a winner!
No sales? No problem. You just saved yourself from a bad investment.
2. Run a Fake Ad Test (Yes, It Works!)
Before committing to a product, test if people are actually interested using a dummy ad campaign.
- Run Facebook or Instagram ads with compelling product images and a “Buy Now” CTA.
- Instead of an actual store, link to a landing page with an email sign-up form (“This product is coming soon! Get early access!”).
- Measure click-through rates (CTR) and sign-ups—if lots of people show interest, that’s a green light.
Good CTR benchmark: 2%+ means solid interest. Below 1%? Might not be worth it.
3. List Your Product on eBay or Etsy (Before Creating a Full Store)
Selling on your own website takes time and effort, but eBay, Etsy, and even Amazon let you test demand quickly—without major upfront costs.
- List your product and see if people buy.
- If sales pick up, consider building a full store and scaling up.
- No sales? No harm done—you just avoided a costly mistake.
4. Use Crowdfunding Platforms for High-Ticket Items
If your product is unique, crowdfunding sites like Kickstarter or Indiegogo can help validate demand.
- Launch a campaign and see if people back your idea.
- If you hit your funding goal, you already have customers ready to buy.
- If no one’s interested, you saved yourself thousands in wasted inventory.
Perfect for custom, innovative, or high-ticket products that require manufacturing.
5. Spy on Competitors (If They’re Selling, There’s Demand)
No need to reinvent the wheel. If similar products are selling on Amazon, Shopify, or eBay, you know there’s demand.
- Use Jungle Scout or Helium 10 to check sales volume.
- Check Facebook Ad Library—if competitors are running ads for weeks or months, it means the product is profitable.
- Read product reviews & complaints—can you offer something better or different?
Conclusion
Let’s be real—picking a product at random and hoping it sells is the fastest way to an empty wallet. Successful eCommerce sellers don’t rely on luck—they use data, strategy, and testing to find profitable products before they invest.
By now, you know the key ingredients for product success:
✅ Understanding what makes a product profitable (hint: not just because you like it)
✅ Using market research tools to uncover high-demand, low-competition gems
✅ Evaluating demand & competition so you don’t walk into a saturated market
✅ Pricing smartly to maximize profit without scaring away customers
✅ Testing & validating product demand before committing serious cash
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The secret sauce? Always test before you invest. Run ads, set up pre-orders, or list on marketplaces before you go all-in. If people buy before you even have stock, you’re onto something. If not? Move on to the next idea—there’s always another winning product waiting.
So, go out there, do the research, and launch your next bestseller with confidence. Your future profitable store is just a smart product decision away.
Thank you for reading my article “How to Find Profitable Products to Sell Online” till the end. Hope it helped you. See you with another article.