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

1. What is Amazon product research?
2. Why is it important to do product research?
3. Key elements of an amazing product opportunity
4. Checklist of Amazon product research
5. How to do product research on Amazon?
6. A quick way to perform product research
7. Product categories to avoid
8. Unconventional ways to do Amazon product research
9. 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.

How To Do A Product Research On Amazon?Top of Form

There are two types to perform Amazon Product Research

• Manually
• Automated tools

1. 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.

2. 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:

1. Amazon’s best-seller list
2. Amazon storefronts
3. Exploring the retail stores
4. Amazon’s Movers & Shakers
5. Amazon Basics
6. Browsing about a few products on Pinterest
7. Exploring the Shopify stores
8. Looking at eBay’s trending list
9. Checking the section – “Customers Also Bought”
10. Amazon’s product sub-tiers
11. 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.

Private label products are products that are manufactured by one company and then sold under the brand of another company. Essentially, the manufacturer allows another business to put its branding on the product.

To find private label products to sell, one can research popular products and look for manufacturers that offer private labeling services. You can also attend trade shows and industry events to find manufacturers and suppliers. Once you have identified potential manufacturers or suppliers, you can negotiate terms and pricing.

Pricing private label products on Amazon can be done by researching the prices of similar products, considering your costs and desired profit margin, and monitoring your competitors’ prices.

Examples of private-label products to sell in 2023 can include household items such as cleaning supplies, personal care items like skincare and hair care products, and health and wellness products like supplements and essential oils.

What Are Private Label Products?

Private label products are goods that are manufactured by one company and then sold under the brand of another company. This means that the manufacturer allows another business to put its branding on the product.

How to Find and Sell Private Label Products

To find private label products to sell, one can research popular products and look for manufacturers that offer private labeling services. You can also attend trade shows and industry events to find manufacturers and suppliers. Once you have identified potential manufacturers or suppliers, you can negotiate terms and pricing.

How to Price Private Label Products on Amazon.

Pricing private label products on Amazon can be done by researching the prices of similar products, considering your own costs and desired profit margin, and monitoring your competitors’ prices.

Examples of Private Label Products to Sell in 2023

Examples of private-label products to sell in 2023 can include household items such as cleaning supplies, personal care items like skincare and hair care products, and health and wellness products like supplements and essential oils.

Consider Specific Product Attributes.

When choosing private-label products to sell, it’s important to consider the following qualities:

Small and lightweight

Your product should be able to fit into a small, flat-rate box and weigh no more than one or two pounds. This can help save on shipping costs from the manufacturer and later when it is fulfilled by you or by Amazon FBA.

Non-seasonal

Your product’s sales should not be dependent on the season. Examples of seasonal products include Christmas lights, Valentine’s Day gifts, winter clothing, etc. Avoid these whenever possible to ensure consistent sales throughout the year.

Unregulated

Certain products like food, toys, and batteries come with regulations that can make selling those products difficult. It’s advisable to stick to products that are easy to manufacture and distribute and don’t require a lot of legal paperwork and/or certifications.

Uncomplicated

Electronics can be fun to sell, but they often come with a lot of headaches and customer service issues. The same is true for fashion and clothing products, which may require you to have multiple colors and sizes for a single SKU. Choosing products that are simple in design and function can help reduce customer service issues and make your business more manageable

Conduct Market Research.

Conducting market research is an important step in determining whether or not a private-label product is worth selling. In the past, market research required a lot of time and effort, but now there are tools like Jungle Scout’s Chrome Extension / Helium10 that can help with product research instantly.

To use Jungle Scout, follow these steps:

Perform a search on Amazon.com using your product idea as a search term. For example, you can search for “Pillows”

After the search results page loads, click the “JS” button to the right of your browser search/address bar to open the Jungle Scout Chrome Extension (you will need to have purchased and downloaded the extension for it to work).

Verify the product’s data.

The Chrome Extension will show you the average monthly sales, average reviews per product, and more for the search results.

When evaluating products, it’s important to consider certain criteria to identify potential opportunities. For example, you may prefer products that sell an average of 250-400 units per month and have less than 100 reviews to avoid heavy competition when you launch your product. However, you should also evaluate other factors such as price point, profit margins, and long-term potential

Research Product Suppliers and Manufacturers.

Now that you have the perfect product idea, and you’ve verified the sales data using the Helium 10 / Jungle Scout Chrome Extension, all that’s left to do is to get it made!

Thankfully, in 2023, we have Alibaba to help us get that done.

If you’re not familiar with Alibaba, Alibaba is more or less the Amazon of China, allowing us to purchase wholesale and bulk products directly from overseas manufacturers.

And not only is Alibaba easy to use, but it’s safe, too, as they thoroughly vet all of their suppliers.

Here are the basic steps to finding potential suppliers on Alibaba for your private-label product:

1. Create a buyer account on Alibaba.com.
2. Perform a search for your product on Alibaba; Alibaba’s product database works similarly to Amazon’s.
3. Find product listings that are similar to the private label product idea you wish to sell.
4. Send a message to the product supplier/manufacturer requesting more information about the product. I like to ask the following:

• What is the price per unit for this product when I order 500 units (or however many units need to be ordered)?
• Can I have a sample shipped to my location? If so, what’s the cost?
• What payment terms and methods do you accept?

How can I customize this product?

Typically, I reach out to 3-5 suppliers for a product.

From each of these suppliers, I order a sample of the product

Finalize Your Logo, Design, and Packaging.

To finalize your logo, design, and packaging for your private label product, you can hire a professional and inexpensive graphic designer to create an eye-catching logo, customize the design of your product to make it stand out from others on the market, and invest in thoughtful packaging that improves the customer experience and helps with your marketing efforts by including your brand’s website URL and other helpful information.

Determine Your Fulfillment Strategy.

Of course, knowing what to sell and how to manufacture private-label products is only half the battle.

We also need a way to get our products to our customers.

There are tons of ways you can fulfill your orders.

Some people fulfill their goods from their garage or even their warehouse. Others use third-party fulfillment centers to ship their goods.

I mostly rely on Amazon’s own internal fulfillment service: FBA.

Since its introduction in 2008, FBA’s been a game-changer for Amazon sellers.

Not only do you get access to Amazon’s 2.5 billion monthly shoppers, but Amazon handles your products for you.

All you have to do is send your inventory to Amazon. From there, they store, pick, pack, and ship your goods for you…not to mention the fact that they also handle your customer service.

Decide on Your Manufacturer.

To decide on a manufacturer for your private label product, it’s important to reach out to 3-5 potential manufacturers and order samples from each.

Evaluate the manufacturers based on factors such as how quickly they ship samples, the condition of the samples when they arrive, and the quality of communication.

Avoid the mistake of choosing the manufacturer with the lowest cost if the quality of the product and communication is not up to par. Instead, use the lower price quotes to negotiate prices with manufacturers that have better communication and fulfillment skills.

Once you’ve selected your supplier, arrange payment via a safe and secure method such as PayPal or Alibaba’s Trade Assurance.

Create Your Amazon Listing.

Creating an Amazon listing for your private label product is an essential step in the process of launching your product on the platform. To ensure the success of your listing, it’s important to have everything ready to publish and launch well in advance. This includes high-quality product photos, which are crucial in attracting customers to your listing. If you don’t have photography skills, it’s recommended to hire a professional photographer to take the photos for you.

One of the most important elements of your listing is the title. It helps Amazon determine where your product should be seen in its database and also helps customers find your product when they search for it. To optimize your title, make sure to include relevant keywords, such as your product’s main features and benefits, at the beginning of the title. Follow that with secondary and tertiary keywords that you want to rank for as well.

In the product description field and bullet points, make sure to incorporate your product’s strongest features and benefits. These help customers make a purchasing decision when they click through to your page. The more your private label product meets their wants and needs, the more likely they are to buy. It’s also important to keep in mind that creating a listing may take time, around 3-4 weeks for the manufacturer to create the product and another 1-2 weeks to ship it to the seller or the nearest Amazon fulfillment center.

Optimize Your Listing to Increase Sales.

To optimize your Amazon FBA private label listing and boost sales, there are several strategies you can implement. Utilizing Amazon’s PPC advertising system is one effective way to attract more attention to your product. By bidding on sponsored ads, your product will be more likely to appear on the first page of search results, as well as on remarketing ads outside of Amazon, and even on your competitors’ product pages.

To determine which keywords to bid on, you can run reports through Amazon Seller Central to see which keywords are converting and generating sales. Additionally, using Jungle Scout’s Keyword Scout tool can provide insight into the keywords your competitors are utilizing to make sales.

Another strategy for optimizing your listing is to use A/B testing tools like Splitly. This allows you to run concurrent tests with small changes to your listing, such as the main image or price point. These tests will help you identify which elements of your listing are most effective, and which may be hindering sales. This information can then be used to make informed decisions about your listing and improve its overall performance.

How to Price Private Label Products on Amazon.

When pricing private label products on Amazon, it’s important to avoid the common mistake of setting a very low price point. Instead, focus on making your product stand out in other ways, such as through better design, packaging, and sales and marketing language in the product listing. Additionally, consider offering exceptional customer service after the sale is made.

As a general guideline, aim to keep your price point within 20% of your competitors’ average sales price. For example, if you find that similar products are selling for around $25, try to price your product between $20 and $30.

It’s also worth noting that pricing your product too low or too high can negatively impact your sales. For example, if your product’s price is too low, it may be difficult to turn a profit after accounting for the cost of goods and advertising expenses. On the other hand, pricing too high may result in slower conversion rates and negative reviews from customers who feel the product is overpriced.

In general, it’s best to launch private-label products on Amazon that sell between $20 and $50. This range is likely to maximize your profit margins while avoiding the pitfalls of pricing too low or too high.