If you’re into ecommerce, you know that Amazon is an extremely powerful platform for generating high sales due to its popularity and high conversion rates.
But you also probably know that finding the right product can make or break your success on Amazon.
In this Amazon seller guide, I will go through some proven ways to carry out in-depth Amazon product research to maximize your chances of success.
I will cover everything from finding profitable products to sell to analyzing your competition to creating a listing that converts.
This post is for you, whether you are just starting out or have been selling on Amazon for a while.
Keep reading to learn more.
What Is Amazon Product Research?
Let’s start with the basics.
Amazon product research is the process of hunting for profitable products that are in demand and have the potential to sell on Amazon extremely well.
This market research is important because it allows you to find potentially profitable products and avoid ones that will be difficult to sell.
Finding the ideal goods to sell on Amazon is among the most challenging aspects of the process.
Given the enormous extent of Amazon’s inventory, the number of viable products is almost limitless. It might sometimes be challenging to determine where to start.
Before you start selling a product on the platform, Amazon FBA product research aims to give you a definite sense of how profitable it might be.
These factors will help you understand:
- The size of the market and the entire demand for a product
- What a product’s level of competition is like, and who its primary competitors are
- How the product’s interest is evolving over time
- Costs involved in obtaining the goods
- How much money you can make by selling the item
Why Is Product Research Important?
You won’t be able to identify potentially lucrative products if you don’t devote enough time to developing your research abilities.
Randomly picking items to sell on Amazon simply because you “think” they will isn’t going to work, especially if you want to build a lucrative business on the platform. The key is to sell what is in demand instead of what you expect people will want to buy.
Specifically, if you want your own business to succeed and expand, there is no space for guesswork or hasty decisions when operating your online store.
There are several benefits to proper product research. These include:
1. Making Informed Business Decisions
Product research allows you to make better business decisions because you have access to accurate data that can guide your decision-making process.
For example, you’ll be able to check the selling price, which gives you an indication of the potential profit margin, along with how much potential profit you can generate from that exact product you were looking at.
2. Avoiding Unnecessary Risks
By conducting Amazon FBA product research, you can avoid taking unnecessary risks when launching new products.
This is because you would have already gathered data about customer demand, seller ranks, recent sales, competition deficiencies, and other important factors before deciding to sell a particular product.
3. Increasing Your Chances of Success
Proper deep analysis in product research increases your chances of success because it allows you to focus on products with a higher chance of selling well. This, in turn, leads to more sales and profits for your business.
4. Maximizing Your Profits
Product research can help you maximize your profits by allowing you to focus on products with high profit potential. This way, you can make more money for your business while reducing risks.
5. Generate Long-Term Results
If you are thinking long-term, choosing a product that customers love is crucial. Proper product research allows you to generate a product idea in a category that has not only enough demand or good sales but also positive reviews. And if people love your product, it will last longer on the Amazon marketplace, which means you’ll have a sustainable business.
How to do Product Research For Amazon?
There are various ways to perform Amazon product research to get that golden product idea. These include:
- Doing it manually on Amazon’s search engine
- Hiring a product research services company
- Using a third-party research tool or software
I will take a closer look at all these methods.
1. Do the Research Manually
The manual search method is probably the most time-consuming, but might be more effective since most people don’t have the patience to search manually. You will need to conduct product searches on Amazon as well as other eCommerce platforms and marketplaces.
Look at the Amazon Bestsellers List
Amazon’s Best Sellers page provides you with a ton of information while doing product research. Since Amazon lists all the best-selling items, this is the first thing you should check when thinking of starting an Amazon business.
Use the categories and sub-categories of products when searching for them. Look quickly through the listings to see the most popular ones.
Additionally, this will help you choose a niche if you are unsure which category to choose.
You can determine what products will appeal to your target market by looking at a product’s selling information.
Look at the related products to get a better understanding of the areas in which your business could grow. Further, keep in mind that less competition increases the chances of selling the product.
Once you have a general understanding of the market and the relevant product, use different tools to look at historical sales data and determine whether or not there is a demand for it to sell on amazon.
Some effective tools you can use for market research include Google Trends and Google Keyword Planner.
Check Out What Your Competition Is Up To
The next stage is to research what your competitors are doing to market the product you have chosen. You can view your primary competitors through Amazon’s Best Sellers page.
Source: Amazon.com
You can look at their product listing pages and, if accessible, their official website. These insights will provide information on the most popular items and those receiving positive ratings and reviews from customers.
In addition, you can use Google or other search engines to determine if your competitors’ results appear after entering the relevant phrase.
You can also buy the item from your competition and see what type of service they provide. When you start selling your products, you could pick up some of their best practices and discover methods to improve your business.
Check the Sponsored Products, Customers Also Bought, and Frequently Bought Together Sections
Viewing the sections underneath the primary listings, which might provide you with useful product ideas, is a terrific Amazon research technique.
Having a general understanding of the niche and product you are researching is necessary.
This strategy will enable you to understand your potential clients’ mindset and purchasing process. It will also allow you to research and develop an original product bundle.
Combining products that are regularly purchased together on Amazon can help you create one fantastic product that has the potential to become a big seller.
You can view these items under the “Frequently bought together” section.
Products under the “Customers also bought” section are likely to be quite popular with that specific target audience. These sections ultimately offer better information you may need to increase or promote your inventory.
2. Hire a Product Research Services Company or Freelancer
If you want to find the best products to sell on Amazon without all the hassle, you can always hire a product research services company.
These companies or freelancers will do all the heavy lifting for you. They will do the entire amazon market research, including finding high-demand products and analyzing your competition.
Not only will this save you a lot of time, but it will also give you peace of mind knowing that you’re selling a product that is sure to be a hit with customers.
There are a few things to keep in mind when hiring a product research services company. Make sure that the company has experience with Amazon product research. Also, check out their customer reviews to get an idea of their quality of work.
You can try using Fiverr to find a highly reputable freelancer or agency to help you out.
3. Use Product Research Software
There are various software programs that can make Amazon product research much easier.
These programs will provide data on product trends, selling price details, and demand. This information is essential in helping you choose a profitable product to sell.
Some of the top software programs include:
Helium10 Blackbox
Among the most effective Amazon product research tools available is Helium 10. Their comprehensive set of tools can aid Amazon sellers in gaining a competitive edge in any market.
This software includes a variety of tools for Amazon sellers to detect competitive keywords, spot trends, monitor rivals, and improve product listings.
The Amazon optimization tool package was created specifically for Amazon sellers that want to rapidly expand their Amazon FBA businesses.
You can have access to Helium 10’s top-notch research resources by subscribing. These include:
- Black Box – This is the research tool and product finder
- Trendster – You can use this for product analysis
- Scribbles – This is the product listing optimizer
- Cerebro – You can carry out keyword research using this tool
- Xray – This is the Google Chrome browser extension by Helium 10
- Refund Genie – You can keep track of reimbursements easily using this feature
Jungle Scout
This Amazon product research tool provides options for competitor tracking, big data analytics, estimates, and other things.
Search through millions of Amazon products using the software application until you discover the best option for you.
As you develop and expand your business, this software helps you keep an eye on your items (and those of your competitors).
Additionally, you can explore Amazon and sort by the information that is most important to you while using their Chrome extension to verify product ideas.
Helium 10 may be more powerful, but Jungle Scout is far simpler. In addition, Jungle Scout connects you with properly vetted and trusted suppliers after selecting a product, so you don’t risk of being ripped off.
AMZScout
AMZScout and Jungle Scout both provide comparable capabilities when it comes to the web app and Chrome Extension. AMZScout is adept at assisting online retailers in spotting important trends.
Utilize the platform’s capabilities to determine the viability of a niche if you’ve noticed one gaining a lot of momentum. It also helps you by revealing which other sellers are looking into a particular market.
Additionally, with AMZScout, you can access analytics from Google trend data, estimates of product sales, details on FBA fees, and more.
SellerApp
SellerApp‘s user-friendly features, quick insights, and innovative shortcuts transform any new user into a product research guru.
The software gives you accurate data that has been gathered from the most trustworthy sources.
Numerous elements are combined on the platform to simplify your life. The marketing capabilities of SellerApp are extensive.
Utilizing the software’s market research tools enables you to uncover high-potential top-selling products with little competition.
To provide you with in-depth insights like ratings, sales and revenue predictions, reviews, and much more, they gather over 300 million data points every day.
The dashboard also provides a useful overview of your company’s stats and practical insights for improvement.
There are three levels of membership, but even the entry-level Pro-Lite package includes a ton of standard services like:
- Index checker
- PPC analyzer
- Product trends
- Keyword research and tracking
- Listing SEO
ZonGuru
This Amazon seller software provides big data solutions to aid in market opportunity discovery, supplier research, and the identification of profitable items.
To generate product ideas and discover your next product niche, you can use the ZonGuru Niche Finder feature. You can use their robust Easy Source tool to identify the ideal source for your goods.
For entrepreneurs who enjoy learning about, fiddling with, and automating everything, ZonGuru is engaging, precise, and built for you.
AmazeOwl
This tool can help you find the right product based on a number of factors. You can confidently launch a successful product on Amazon by utilizing their precise statistics.
Each month, AmazeOwl assists over 4,000 Amazon sellers in selecting their first product and making a profit from selling it.
The tool assists new entrepreneurs in building an Amazon business that fits their schedule, saving them a ton of time on product concept creation and Amazon market research.
Amaze Owl is a great option to easily search for product ideas, validate and launch your successful product, and maintain an edge over your competitors.
Amazon Product Research Checklist
Now that you know the best Amazon product research tools, it’s time to start using them. Keep the following product checklist in mind as you get started to research products. They are crucial to finding a winning product:
- Products within the $10 to $50 price range
- Products with at least ten daily sales
- Comparable items have a primary category best seller rank of 5,000 at minimum
- Over 50,000 searches each month or the keywords
- Products that can be offered all year round (avoid trending products).
- Compact and light items (under 2 to 3 pounds)
- The item shouldn’t be delicate.
- The capacity to grow your brand through connected products
- May provide a better product than competing items on the market
- There shouldn’t be any legal issues with the item
- There are no brand names or trademarks connected to the products
- A product that can go for 25% less than its retail price or even lower
- Ample room for improving current listings and optimizing products
- Numerous options for product-related keywords
- Product sourcing that is quick and simple
- Not in a restricted category that might cause you a brand restriction (check this article to find out how to sell in a restricted category)
What Not to Do While Doing Product Research?
Now that I’ve gone over some of the best tools for Amazon product research, it’s time to discuss a few things you should avoid doing when carrying out your product research:
Avoid Selecting a Very Small Niche
When starting out, it can be tempting to go after a very small niche.
Even if you think there’s a good profit margin, it’s a mistake for several reasons:
- You’ll have trouble ranking for keywords since there’s no high search volume.
- The competition will be fierce since already established players are in the space, and your listing will struggle to rank on the search results page.
- You’ll likely run into issues with manufacturing your product since there’s little demand.
It’s better to go after a niche that is big enough to be profitable but not so big that you’ll get lost in the shuffle.
Avoid Going After a Niche That Is Too Popular
If a niche is too popular, it means that there are already a lot of players in the space. This can make it difficult to get your foot in the door and make it hard to stand out from the crowd.
It’s important to find a balance between a niche that is popular enough to be profitable but not so popular that you’ll get lost in the shuffle.
Avoid Setting Very Low Prices
New sellers may be tempted to set a very low product price tag to attract potential customers.
However, this is a mistake for several reasons:
- You’ll likely end up losing money on each sale. Many people underestimate amazon fees.
- It will be difficult to make a profit if your margins are too low.
- You may attract bargain shoppers who are just looking for a cheap product and aren’t interested in your brand. This might cause poor reviews or negative feedback.
It’s important to find a balance between setting a low sales price to attract customers and setting a high enough price to make a profit.
Failure to Calculate Profit Margins
Many new sellers make the mistake of failing to calculate their profit margins. This is a mistake because:
- You won’t know how much money you’re actually making on each sale.
- You may end up selling at a loss if your margins are too low.
- You won’t be able to make informed decisions about pricing and product selection if you don’t know your margins.
As mentioned earlier, many sellers underestimate how much the amazon fees can stack up. So it’s important to calculate your profit margins so that you can make informed decisions about pricing and product selection.
FAQs
How do you know if a product is selling well on Amazon?
There are a few different ways to tell if a product is selling well on Amazon. One way is to look at the product’s Best Seller Rank (BSR). The lower the BSR, the better the product is selling.
Another way to tell if a product is selling well is to look at its number of reviews.
The more positive reviews a product has, the better it is selling.
Finally, you can also look at the sales velocity for a product. This is the number of units sold per day. The higher the sales volume, the better the product is selling.
Is selling through Amazon profitable?
Yes, selling through Amazon can be profitable. A few factors that will affect your profitability, such as your product ideas, product selection, sales price, and shipping costs.
You should select a product with high demand and low competition to maximize your profits.
You should also make sure to price your product competitively and calculate your shipping costs so that they are not eating into your profits.
If you do all this, selling through Amazon can be a very profitable way to make money.
How do I start Amazon FBA as a side income?
There are a few steps you need to take to start Amazon FBA as a side income. The first step is to find a product that you can sell. You’ll want to find a product with good demand and low competition.
The next step is sourcing the product and shipping it to an Amazon fulfillment center.
Once the product arrives at the fulfillment center, Amazon will handle shipping and customer service for you.
The final step is to market your product so that customers can find it when they search for it on Amazon. If you follow these steps, you’ll be able to start generating income from Amazon FBA.
Why is it important to do product research?
There are a few different reasons why it’s important to do product research. One reason is that it can help you find a profitable niche.
If you choose a niche that’s too popular, you’ll have a lot of competition. But if you choose a niche that’s too small, there may not be enough demand for your product.
Product research can also help you find a product with high demand and low competition. This is the ideal situation because you’ll be able to make more sales and generate more income.
Finally, product research can also help you determine your pricing strategy. If you charge too much, you may not make any sales. But if you charge too little, you will not be able to grow your business.
The Bottom Line
As you can see, Amazon product research is a vital part of selling on Amazon. Without doing your research, it will be very difficult to find a profitable niche and make a profit.
However, if you take the time to do your research, you’ll be able to find a profitable niche and start making money on Amazon.
When starting product research, there are several factors every Amazon seller should take into account.
Focusing your search to identify a bestselling product utilizing the readily available Amazon research methods helps you avoid wasting time trying to sell items that are non-starters.
Follow the tips in this article to kick off your research process.
