As a seller on Amazon, one of the most important things that experts stress is the importance of proper market evaluation. This means conducting thorough Amazon product research before starting a business on the platform. This can seem overwhelming, especially for new sellers, and some may even consider alternative business methods like retail arbitrage as a result. However, it’s important to keep in mind that every successful Amazon seller has gone through this process. The key to success lies in identifying the best product to sell.
We have seen numerous new sellers who have started successful businesses by conducting proper product research. There are many factors to consider when researching products on Amazon, such as niche selection, brand restrictions, competition, and selling fees. The process of researching products on Amazon has evolved over the years, and what may have worked in the past may not be as effective now.
To help you with your Amazon product research, we’ve put together a detailed guide with 10 definitive tips. These tips will help you consider all the important factors and make an informed decision when choosing a product to sell.
This post will cover the following topics
- What is Amazon product research?
- Why is it important to do product research?
- Key elements of an amazing product opportunity
- Checklist of Amazon product research
- How to do product research on Amazon?
- A quick way to perform product research
- Product categories to avoid
- Unconventional ways to do Amazon product research
- What not to do while doing product research?
What is Amazon product research?
In simpler terms, Amazon product research is the process of evaluating and selecting the right product to sell on Amazon that has the potential to generate high sales and good profits. It involves analyzing market trends, identifying products with high demand and good reviews, and determining the ideal price point that will allow you to sell the product at a competitive price while still making a profit. The goal is to find products that meet a specific demand, are well-received by customers, and can be purchased at a low cost to ensure a good profit margin. It’s crucial to conduct thorough research to avoid selling products that may result in low sales and negative customer feedback.
Why Is It Important To Do A Product Research?
The foremost and the most critical step to kick start as an Amazon seller is to find an impressive product.
It is not a big surprise that most people who look into FBA will never start unless they come up with low-competition, high-demand, and private-label products.
Amazon has evolved to a point where just slapping up a nice logo and designing custom packaging doesn’t work anymore.
You need to list down the best-selling products on Amazon, that you desire to sell. Then, do a deep analysis if similar items are making enough sales. This step is imperative because you will never want to trade items that people are not even searching for.
If you want to be a successful Amazon seller, it’s important to keep the following key aspects in mind:
Checklist Of Amazon Product Research Requirements
This checklist provides a comprehensive overview of the key factors to consider when choosing the right product to sell on Amazon. By following these guidelines, you can increase your chances of finding a profitable product that meets your requirements.
|1||Product prices within the range of $10 and $50||This price range is ideal for Amazon sales as it allows for a good profit margin while still being accessible to a large customer base.|
|2||Daily sales of at least 10||A product that sells at least 10 units a day is a good indicator of its popularity and demand.|
|3||Best Seller Rank of at least 5,000 in the main category||A product with a high Best Seller Rank means it is selling well, which is a positive sign for potential success.|
|4||Monthly searches of 50,000+ for the top 3 related keywords||A high volume of searches for related keywords indicates a high demand for the product, which can translate into higher sales.|
|5||Non-seasonal products||Products that can be sold year-round are less vulnerable to changes in demand and offer more stability in sales.|
|6||Fewer than 50 reviews on the first page||Products with less competition and a lower number of reviews provide an opportunity to optimize and improve the product listing, increasing the chances of making more sales.|
|7||Small and lightweight||These types of products tend to have lower shipping costs and storage requirements, making them more cost-effective.|
|8||No brand names or trademarks associated with the product||Avoid products that have legal issues or are associated with known brand names, as this could result in trademark infringement issues.|
|9||Ability to sell for 25% or less than the cost price:||This leaves room for a good profit margin and helps ensure the viability of the business.|
|10||Room for product optimization and improvement||The ability to improve the product and its listing can lead to increased sales and a better customer experience.|
|11||Multiple product-related keyword opportunities||Having multiple keyword opportunities can improve the product’s visibility and attract more customers.|
|12||Quick and easy product sourcing from China:||Sourcing products from China can be cost-effective, but it is important to ensure a quick and easy process to minimize disruption to the business.|
|13||Non-fragile product||Products that are not easily damaged reduce the risk of customer complaints and returns, improving the customer experience.|
|14||Ability to expand the brand with related products||The ability to expand the brand with related products can lead to increased sales and a larger customer base.|
|15||Superior product over similar products in the market||Having a superior product compared to similar products in the market can lead to increased sales and customer loyalty.|
|16||Encourages recurring purchases||Products that encourage recurring purchases can generate a steady income and improve the overall viability of the business.|
|17||No legal issues||Avoid products that have any legal issues or restrictions, as this could result in problems down the line.|
How To Do A Product Research On Amazon?Top of Form
There are two types to perform Amazon Product Research
- Automated tools
- Manual Method
If you want to do it manually, then Amazon itself is a great resource to carry out a few things for the process. This involves doing two simple steps:
Step 1: Keyword Research: Utilize Amazon’s search bar to type in keywords related to your niche and see what results come up. Analyze the products that show up and jot down the relevant ones that fit your criteria.
Step 2: Competitor Analysis: Check the sales of your potential products by examining the best seller rank, reviews, and price points of similar items. Observe your competitors’ strengths and weaknesses, and see if you can make a better product.
- Automated Tools Method
This method is quicker and more efficient than the manual method. There are several Amazon product research tools available on the market, such as JungleScout, Helium 10, and ASINspector, among others. These tools will assist you in finding profitable products quickly and easily. The tools provide data such as estimated sales, best seller rank, reviews, and much more, which helps you to make a sound decision about your product choice.
Generating a product idea can also be done in the following ways:
- Amazon’s best-seller list
- Amazon storefronts
- Exploring the retail stores
- Amazon’s Movers & Shakers
- Amazon Basics
- Browsing about a few products on Pinterest
- Exploring the Shopify stores
- Looking at eBay’s trending list
- Checking the section – “Customers Also Bought”
- Amazon’s product sub-tiers
- Seeing through AliExpress’s Weekly best-sellers list
Product Categories to Avoid
As a “private label seller,” it’s important to be mindful of the products you choose to sell. To avoid complications, it’s best to steer clear of complex items like cameras, home appliances, and anything that goes “on” or “in” the body such as food and personal care products.
These types of items can involve liabilities, quality control issues, returns, and customer reviews which can prove to be challenging. Additionally, it may be difficult to succeed with your brand in categories like shoes and clothing where customers tend to have strong brand preferences. A useful resource is the Guide For Amazon Restricted Categories.
Verifying demand for a product is a crucial step in the product research process. A high-profit margin and low competition are important, but without adequate demand, your product will not succeed. The following methods can help you measure demand accurately:
How to Verify Demand for a product during Product Research
Keyword Analysis: Utilize tools like Google Keyword Planner or Amazon’s keyword tool to determine the search volume for keywords relevant to your product. High search volume is an indication of high demand.
Competitor Evaluation: Examine the sales and reviews of similar products in your market to assess demand for your product.
Customer Insights: Gather feedback from your target audience through surveys, polls, or social media to better understand their needs and preferences.
Sales Trend Prediction: Analyze historical sales data to forecast demand for your product in the future.
Online Trend Monitoring: Track trending topics related to your product and gauge its popularity.
Market Reports: Read industry reports and market studies to stay informed about current demand and future outlook for your product category.
Remember, a combination of these methods will give you a more comprehensive view of the demand for your product
What Not To Do While Doing A Product Research?
- Not considering competition
Before launching a product, it’s important to assess the competition in the market. If there are too many sellers offering similar products, it can be difficult to stand out and drive sales.
- Relying on just one research tool
Using only one tool to research a product can lead to inaccurate results. It’s important to use a combination of different tools and methods to get a well-rounded understanding of demand, competition, and market trends.
- Ignoring customer feedback
Listening to your target audience is essential in determining if there is a need for your product. Pay attention to customer reviews and feedback to understand their needs and wants, and improve your product accordingly.
- Failing to validate the demand
Don’t assume that because a product has a high-profit margin, it will sell well. Validate demand by using methods such as keyword research, competitor analysis, and customer feedback to ensure that there is a market for your product.
By avoiding these common mistakes, you can increase your chances of success in researching and launching a profitable product on Amazon.
- Choosing a very small niche
This could limit the potential audience and make it difficult for you to generate sufficient sales and revenue. It’s better to find a niche that has enough demand and is still specific enough to differentiate your offerings from competitors.
- Setting up products for an extremely low price
Setting low prices may attract some customers initially, but it could hurt your brand’s image and profitability in the long run. By offering low prices, you risk devaluing your products and creating the perception that they are of lower quality. This can lead to a decrease in demand, lower profit margins, and make it difficult for you to sustain your business.
It’s better to focus on offering high-quality products and good customer service and then price your products accordingly, taking into account all your costs and desired profit margins. This will help you establish a reputation for providing quality products, build brand loyalty, and increase customer lifetime value.
- Selling undifferentiated products
Selling undifferentiated products, or products that are similar to those already available on the market can be challenging. In such a crowded market, it can be difficult to stand out and attract customers. To increase your chances of success, you should focus on selling products that are unique and offer some kind of differentiation. This could be in the form of a unique design, superior quality, or innovative features.
By offering something that sets your products apart from the competition, you increase the likelihood of attracting customers and building a successful business. This can help you establish a strong brand, differentiate yourself in a crowded market, and increase your chances of success.
- Not calculating the profit margins
Indeed, Amazon’s fees can have a significant impact on a seller’s profitability. It’s important to be aware of and understand all the fees associated with selling on Amazon, including the referral fee, storage fee, and fulfillment fee. Failing to factor in these fees can result in low profit margins and negatively impact the financial viability of your business.
Using an FBA calculator can help you estimate the fees associated with selling a specific product, allowing you to make informed decisions about which products to sell and at what price. This can help you avoid selling products with low-profit margins and ensure that your business is profitable. Additionally, it can help you plan your product strategy and make decisions about which products to sell, how to price them, and how to manage your inventory.
- Failing to improve the product
Failing to improve your product can be a costly mistake for any seller. In a competitive marketplace, customers are increasingly looking for products that not only meet their needs but also exceed their expectations. If your competitors have a lot of negative reviews and low ratings, it could be a sign that their products are not meeting customer expectations.
By taking the time to review customer feedback, you can identify areas for improvement and make changes to your product to better meet customer needs. This could include changes to the design, materials, or features of your product. Improving your product can help you stand out from your competitors, increase customer satisfaction, and boost your sales.
It’s also important to continually monitor customer feedback and make changes as necessary. This can help you stay ahead of the competition and maintain a competitive advantage in the market