How to Identify Profitable Amazon Products & Improve Sales

How to Identify Profitable Amazon Products

One of the most common strategies for increasing your sales revenue is focusing on selling your most profitable Amazon products. 

Some best-selling products won’t be profitable as they may have expensive shipping costs or require you advertising costs to make sales. Learning what your most and least profitable products will help you minimize profit loss and grow your business stronger. The key is to identify profitable products and adapt your sales strategy accordingly. You would probably adjust some of your marketing approaches, change your pricing strategies, or add to or remove specific products from your inventory. 


Why do you need to know your most profitable Amazon products?

For any successful seller, it’s necessary to identify and understand the profitability of each of your individual products. Operating without this knowledge puts you at risk of making the wrong business decisions. If you are equipped with this knowledge, you can do the following:

  • Make sound business decisions for your products that will improve your business’ overall profitability.
  • Target marketing strategies to maximize your customers’ exposure to the products with the highest profit margins.
  • Allocate ad spending to increase the visibility of the most profitable Amazon products.
  • Determine which products to be considered for expansion.
  • Decide when and how to adjust product pricing to further increase profitability. You may be able to raise the prices of profitable Amazon products and still maintain customer demand.
  • Identify unprofitable items and develop solutions to improve the sales of these products.
  • Know which products will help you focus on your profit growth and which products you should consider getting rid of.
  • Determine which of your products for bundling, cross-selling, and up-selling along with profitable products to increase sales revenue.


Generally, you can identify your most profitable and least profitable Amazon products by analyzing your sales record to find out what they are. You can then segment your products into the following categories and improve your sales with these tips. 

1. High sales and high profit margin: Products in this category should be the main focus of your business growth. 

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2. High sales and low profit margin: You can measure and track relevant metrics to identify issues in causing low-profit margin and take immediate actions to generate more revenue from these sales.  

  • Your price might be too low

The products are high-demand and your price is lower than your competitor’s, so you can consider raising the price.

  • Rising expenses erode profit margins

Your product profit = revenue – total expenses. If you have a product that generates revenue, but its profit doesn’t relatively increase. You can evaluate the expenses such as advertising cost of sales. Maybe the problem is the keyword that you are targeting is expensive or irrelevant to your product, so you need to adjust your keyword strategy for better conversions.

most advertised

3. Poor sales and high-profit margin: Products that have a high-profit margin but poor sales could still be profitable. It usually happens in luxury goods or low competition niches. 

  • Stimulate the sales of high-profit products 

You can consider increasing your advertising and promotion budget to grow your sales. For example, we use BigCentral Profit Dashboard to find these two items with high-profit margin and the number of units sold has the potential to rise. In the past 30 days, the promotion cost is zero, so we can distribute promotion coupons both on Amazon and other channels to further boost sales.

low sales high profit

4. Low sales and low profit margin: This is probably the worst situation and most merchants usually will stop selling the products associated with bad sales overall. However, not all hope is lost, there are ways you can measure and identify low sales issues to turn things around.

  • Check negative reviews and unsolved tickets

The first solution you can do is to check if the product has many negative reviews and unsolved tickets that may displease your customers. If you do not want negative reviews driving away your customers, and you are too busy to track your review and tickets, you can use Review Tracker to keep tabs on reviews below 3-star ratings. And the Ticket Manager shows how much time is left to respond to customer questions within Amazon’s 24-hour response time.

review tracker

  • Refunds and returns eat into your profits

Customers request refunds and return mostly because the quality of products does not meet their expectations. To quickly identify the most refunded or returned items, you can also utilize BigCentral Profit Dashboard to get the data and the ASIN with return or refund issues, then go to Review Manager to search the ASIN that are under 3 stars and choose the time period you would like to examine. The search result will display a list of reviews and you can learn the reason why customers return those products.

nagative review tracker



Knowing your Amazon profit can help you invest in the right products and identify the issue for improvement. With BigCentral, no longer should you manually calculate your Amazon profit margins, BigCentral Profit Dashboard breaks down all your product performance into valuable details, and all the insightful information is recorded automatically in one central location. 


Seeking to maintain a low-cost business with high profit? Try BQool BigCentral free trial for 14 days and see how it works for you!



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Christina Chen

October 30, 2020
Pauline's passions lie in eCommerce and supporting individuals in their online selling endeavors. Currently, as a frequent contributor to the BQool Blog, she channels her passions into creating informative contents that break down the complex challenges Amazon sellers face on a daily basis.

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