Are you planning to sell a product on Amazon?
Then the foremost thing that should be kept in your strategy is to find the right product.
For that Product Research is all you need!
Choose the right product, which will have the potential to take off your e-commerce business. If not your sales and profits can be harder to be achieved.
For most sellers, product research is a daunting task. And there are many factors you need to consider when it comes to product research – competition, selling fees, and so on.
This article will assist you in Amazon product research and other important things to consider before choosing the right product.
What is Amazon Product Research?
Amazon Product Research involves delving into the ever-changing landscape of market trends, aiming to uncover that perfect item capable of generating exceptional sales. The key objective is to identify products that are not only cost-effective but also offer substantial profit margins in return.
Let’s consider an example,
Imagine you’re offering a water bottle priced at $35. However, if the bottle’s quality fails to meet expectations, dissatisfied customers may leave negative reviews, resulting in diminished sales over time. Therefore, it becomes crucial to identify a winning product that not only experiences high demand but also garners an abundance of positive reviews.
In essence, the pursuit of Amazon Product Research revolves around identifying those coveted products that captivate consumers, ensuring both lucrative sales figures and a reputation built on customer satisfaction.
So, understand how to discover these extraordinary items that will not only skyrocket your profits but also earn you a legion of delighted customers.
Why is it important to do product research?
Product research is essential for several reasons. They are,
Understanding the market:
Conducting product research helps you understand the market landscape in which your product will exist. You can identify competitors, target audience preferences, market trends, and potential gaps or opportunities. This information is crucial for developing a product that addresses market needs effectively and stands out from the competition.
Validating product ideas:
Researching a product idea allows you to validate its feasibility and potential success. By analyzing market demand, customer preferences, and industry trends, you can assess whether your product concept has a viable market and if it aligns with customer needs. This validation helps you make informed decisions about investing time, resources, and effort into developing and launching the product.
Refining product features:
Through research, you can gather insights into customer pain points, desires, and expectations. By understanding your target audience’s needs, you can refine your product’s features and design to better meet those requirements. This process increases the chances of developing a product that resonates with customers and delivers a superior user experience.
Minimizing risks:
Thorough product research helps you identify potential risks and challenges associated with developing and launching a new product. By identifying these risks early on, you can devise strategies to mitigate them, make informed decisions, and reduce the likelihood of failure or costly mistakes.
Optimizing marketing and positioning:
Product research provides valuable insights into your target audience’s demographics, psychographics, behaviours, and preferences. This information helps you create effective marketing strategies, tailor your messaging, and position your product in a way that appeals to your target market. Understanding customer motivations and pain points allows you to highlight the unique value propositions of your product and communicate them effectively, increasing the chances of attracting and retaining customers.
Enhancing product development efficiency:
Researching the customer needs before starting product development enables you to streamline the development process. By having a clear understanding of what your target audience wants, you can prioritize features, allocate resources efficiently, and avoid costly iterations or rework. This efficiency can lead to faster time-to-market and increased competitiveness.
By investing time and effort into product research, you increase the likelihood of developing a successful product that meets customer needs and achieves business objectives.
How to research products to sell on Amazon?
There are two ways in which you can do your product research
- Manually
- Automated tool
1. Manual method
Amazon itself will be a significant resource if you are planning to do product research manually.
You can do it in two simple steps.
Step 1: Find the trending products
Monitoring the “Best Sellers” and “Movers & Shakers” categories on Amazon provides valuable insights into products that are currently experiencing high demand. “Best Sellers” showcases products that consistently sell well, while “Movers & Shakers” highlights recently popular items. Identifying trending products gives you a clear indication of what customers are actively purchasing.
Step 2: Check on your competitors
Conducting a competitive analysis is crucial for understanding the landscape in which you’ll be selling. Select a few successful competitors in your desired niche and closely examine their product offerings, pricing strategies, customer reviews, and marketing tactics. This information can help you identify gaps in the market, find product differentiators, and develop effective strategies to stand out from the competition.
2. Automatic method
This is also known as the quick method to perform product research. They can help you by saving you time and being handy.
Just imagine, that you keep searching through the BSR, the most wished items, etc, this can be time-consuming and can irritate you. Moreover, you will have to check if the product is in demand or if is it a seasonal product.
You won’t be able to do all these things together, even if you do it, it can be tiring and take away a lot of your time and energy. So there is an ultimate way in which you can do all these works in one go.
All you need is the SellerApp tool. and you can get everything in a single place. This tool will help you out with the estimated monthly sales, monthly revenues, number of reviews, and a lot of other useful tools that will make your product research more enhanced and organized. The automatic method would be the best way to validate your product research quickly and easily.
Bad product vs Good product
When it comes to researching products to sell on Amazon, it’s important to consider the characteristics that make them appealing to both customers and sellers. There are certain traits you should focus on to increase your chances of success and survival in the competitive marketplace.
Of course, the primary goal is to find products that sell. After all, you need customers to keep your business afloat. However, it’s equally crucial to consider your perspective as a seller.
For instance, you might discover that 68-inch sofas are selling like hotcakes. Still, from a practical standpoint, as a home-based Amazon seller, you’ll likely face challenges with storage, shipping fees, and potential brand restrictions.
In such cases, it’s better to leave those products to the bigger players and focus on items that simplify your e-commerce business operations and streamline your research process.
So, what makes a product a good fit?
Here are some key criteria to consider when choosing a product,
- Small and lightweight
- Easy to store and ship
- Allowing for higher profit margins
- Low competition, provides an opportunity for market entry.
By keeping these factors in mind, you can filter out products that don’t meet these requirements, making your research less overwhelming and more focused.
Now you can set aside concerns about heavy or bulky products, branded items, perishable goods, or products that don’t fall into the impulse buy category.
With a clear idea of what you’re looking for, let’s delve into effective Amazon research tactics that will help you find a perfect, profitable product.
Top Amazon research tactics for sellers
When conducting Amazon product research as a seller, there are several effective tactics you can employ to discover profitable opportunities.
Let’s explore these tactics,
1. Check out the new arrivals
Keeping an eye on the “New Arrivals” section on Amazon can unveil emerging products that have recently entered the market. This allows you to spot the market trends early on and identify products with potential before they become saturated. By staying ahead of the curve, you can position yourself as a seller of innovative and in-demand items.
2. Most wished products
The “Most Wished For” category on Amazon showcases products that customers have added to their wishlists. This indicates high demand and interest in these items. Paying attention to the most wished products can give you valuable insights into what customers desire, providing ideas for products that may resonate well in the market.
3. BSR movers
BSR (Best Seller Rank) is a metric that indicates how well a product is performing in terms of sales compared to other products in its category. By monitoring products with rapidly improving BSRs, commonly known as “BSR movers,” you can identify items that are experiencing a sudden surge in popularity. This can be an indicator of untapped market potential and may present an opportunity for you to jump in and capture a share of the sales.
Remember to adapt your strategies as the market evolves and to continually analyse and refine your product selection based on new data and insights.
Conclusion
Amazon Product Research equips you with essential strategies and tactics to navigate the vast marketplace successfully. By delving into market trends, considering customer preferences, and analyzing competition, you can identify winning products that have the potential to generate high sales and positive reviews.
Throughout the research process, it’s crucial to keep in mind the characteristics of good products. Additionally, targeting a price point that attracts impulse buys and seeking out products with low competition can maximize your chances of success. With dedication and a thorough understanding of the market, you can uncover the winning product and achieve remarkable success on Amazon.
Author’s Bio:
Arishekar N is the Senior Director of Marketing and Growth at SellerApp, an e-commerce data analytics solution. He is responsible for overseeing the development and implementation of marketing strategies, as well as increasing process efficiency by executing cutting-edge Search Engine Optimization strategies at SellerApp.
Arishekar has over 10 years of experience in marketing analytics and SEO. He has worked as a Digital Specialist for the tech giant IBM and most recently as the Senior Marketing Specialist for ZioTive Technologies where he enhanced their site structure by increasing website and mobile usability. Previously, he worked as a Senior SEO Analyst for Star Group where he was responsible for managing SEO Audits and analytics.
