How to Conduct Amazon Product Research
In the competitive world of Amazon selling, conducting effective product research is crucial for success. With millions of products available on the platform, finding a profitable niche and product can be challenging. Conducting thorough research is the foundation for making informed decisions to maximize their chances of success.
What is Amazon Product Research?
Amazon Product Research is like being a detective for online sellers. It's about using data to figure out which products will sell well on Amazon. You might have a cool idea, but is there a real demand for it? And even if there is, can it stand out in a crowded market? Product research helps you find the answers, guiding you to choose products that not only interest you but also make good business sense. It's your tool for success in the world of online selling.
Why Product Research Matters for Amazon Sellers:
- Acts as a roadmap for success in the Amazon marketplace.
- Guides sellers to identify viable and profitable products.
- Helps sellers make informed decisions to reduce risks.
- Optimizes chances of success in the competitive Amazon environment.
Market Trends Analysis:
- Analyzes current market trends to understand customer preferences.
- Ensures alignment with evolving demands for chosen products.
- Gives products the best chance for profitability.
- Increases the likelihood of delivering value to buyers.
- Keeps sellers ahead of competitors by staying tuned to market pulse.
- Facilitates making choices that outshine in a crowded marketplace.
- Positions sellers for increased sales and long-term success.
- Provides a dynamic understanding of the Amazon landscape.
Avoiding Unnecessary Expenses:
- Prevents investment in products that may not resonate with the market.
- Saves time and money by focusing efforts on products with higher potential.
Adapting to Customer Preferences:
- Enables sellers to adapt to changing customer preferences.
- Ensures products remain relevant and in-demand.
How to do product research
Now that you know what product research is and why it is important, let’s go over how to find profitable products to sell online. Before you start researching products, dedicate some time to determine what product criteria to use for your business.
Criteria for Product Research:
- Too low of a selling price and you may not have enough margin for profit after your costs. Too high of a selling price means potentially higher manufacturing costs, which require bigger budgets to support your product. Aim for a price point of $20-$50.
- Balances profitability, manufacturing costs, and fits an "impulse purchase" range.
- Be cautious of high competition in this price range.
Product Size and Weight:
- Start with small and lightweight products.
- Reduces shipping costs and simplifies inventory storage.
- Consider logistics challenges for larger and heavier items.
- Avoid products with many moving parts or components.
- Ensure suppliers can produce high-quality items with minimal issues.
- Simplify for lower maintenance and fewer potential downsides.
Perishable or Consumable Products:
- Profitable for repeat customer base, especially in grocery or health categories.
- Be mindful of expiration dates and order inventory accordingly.
- Understand and comply with local and federal regulations, as well as marketplace rules.
Step-by-step approach to conducting thorough product research
Understand Your Goals and Target Audience:
- Before diving into product research, define your business goals and identify your target audience.
- Knowing who you're selling to and what you want to achieve will help guide your research and narrow down potential product ideas.
Utilize Amazon's Best Sellers List:
- Start by exploring Amazon's Best Sellers list within the categories that interest you.
- This list showcases the top-performing products in various niches, giving you insights into current market trends and customer preferences.
Evaluate Customer Reviews:
- Analyze customer reviews for top-selling products to understand what customers like and dislike.
- Pay attention to common complaints or suggestions for improvement. This information can help you identify potential gaps in the market or areas where you can differentiate your product.
Use Amazon's Search Bar for Keyword Research:
- Leverage Amazon's search bar to discover relevant keywords related to your niche.
- This will not only help you understand what customers are searching for but also provide ideas for potential product variations or improvements.
Analyze Competitor Products:
- Study your competitors' products in your chosen niche.
- Look for aspects such as pricing, features, and customer reviews. Identify opportunities to differentiate your product, whether through improved quality, unique features, or a more competitive price point.
Explore Amazon's Movers and Shakers List:
- The Movers and Shakers list on Amazon highlights products experiencing a sudden surge in popularity.
- Monitoring this list can help you identify emerging trends and capitalize on them before they become oversaturated.
- Use tools like the Amazon FBA calculator to estimate potential fees and calculate your potential profit margins.
- Consider all costs involved, including product costs, shipping, and Amazon fees, to ensure that your chosen product is financially viable.
Check for Seasonal Trends:
- Consider the seasonality of your chosen niche.
- Some products may experience fluctuations in demand based on seasons or holidays. Understanding these trends can help you plan your inventory and marketing strategies accordingly.
Use Product Research Tools:
- Explore third-party product research tools like Jungle Scout, Helium 10, or AMZScout.
- These tools provide valuable data on sales trends, competition, and product demand, helping you make more informed decisions.
Validate Your Product Idea:
- Before making a final decision, validate your product idea by creating a small batch or conducting a pre-launch campaign.
- This allows you to gauge actual customer interest and receive feedback before committing to a larger inventory.
Effective Amazon product research is a continuous process that involves staying informed about market trends, customer preferences, and competitor activities. By following these steps and leveraging the available tools, Amazon sellers can increase their chances of identifying profitable products and building a successful business on the platform. Remember, thorough research is the foundation for making informed decisions that will set your Amazon business up for long-term success.