Amazon's marketplace is full of countless products and brands competing for attention. In this case, Amazon product research is the differentiator to either make or break their business.
Highlights
- Jungle Scout says 37% of businesses reported higher earnings despite rising costs. This is because of strategic Amazon product research.
- Data-driven insights and analysis to select the right product to ensure profitability and success.
- Explore essential strategies like product bundling, competition analysis, and Amazon SEO to help you stand out.
- According to OJ Digital Solutions, handmade goods have the highest revenue with 32% profit margins, even though they aren't the most popular category.
- For your product searches to rank highly on Amazon, you must optimize your Amazon SEO.
Why We Wrote This?
With this guide, we provide our aspiring Amazon sellers with a comprehensive understanding of Amazon product research. Amazon product research is important to boost sales on Amazon. Therefore, via this guide, we provide our readers with the necessary knowledge and tools to select profitable products and develop effective strategies to succeed in the competitive world of e-commerce. Don't forget to share this blog in your circle if you find it helpful.
In this guide, we’ll explain how Amazon product research works, factors affecting Amazon product research, and 8 effective steps for doing product research. So, let’s delve straight into it:
How Amazon Product Research Works?
Amazon Product Research involves meticulously analyzing various products or niches using multiple metrics. It aims to determine which product is best suited for sale on the Amazon platform.
In online product sales, relying solely on instinct or gut feeling is not enough. One must gather relevant information, analyze diverse metrics, and leverage this data to make informed decisions.
While your innovative "water bottle" concept might appear groundbreaking, its potential to yield substantial profit remains uncertain.
Only concrete data can provide a definitive answer to that query! Moreover, even if your product shows promise, it might perform poorly in an oversaturated market. It is essential to select products carefully to avoid launching a failed business.
Do you want to know the most profitable items on Amazon? Read our guide on the 7 most profitable and best items to sell on Amazon.
Four Key Elements Impacting Product Research Amazon
Once you've narrowed your list of potential products, how can you determine their profitability? Product validation assumes a pivotal role in this process.
Below, we’ve outlined four fundamental elements for validating your upcoming product idea. They include:
- Demand
- Customer Analysis
- Competitive Analysis
- Profitability
8 Key Steps for Amazon Product Research
1. Understanding Your Amazon Target Market and Customers
To succeed on Amazon, it's vital to deeply understand the audience you aim to serve with relevant products. This understanding becomes your compass for identifying products that cater to your audience's needs.
Also, consider factors such as purchasing behavior, and pain points when defining your target market. When you have a clear picture of your ideal customer, you'll be well-equipped to select a product category that directly resonates with them. Only then can you truly stand out in Amazon's bustling marketplace.
The Amazon ecosystem is brimming with promising products that fell short of success. Before delving into your product research, it's essential to possess a clear comprehension of your target market and customers. You may have a fantastic product idea, but without a grasp of your potential customers, its success remains uncertain.
2. Leveraging Amazon's Best Sellers List
Amazon's Best Sellers lists offer valuable insights into products currently favored by Amazon's customer base. Perusing these rankings and focusing on high-quality products boasting stellar reviews allows you to tap into real-time demand. Pay special attention to emerging trends and seasonal items that warrant exploration.
While it's essential to consider top-selling products, it's equally crucial to exercise caution when entering highly competitive markets. These lucrative yet highly competitive niches are also home to aggressive, occasionally dishonest sellers. Lastly, assess the competition to ascertain if you can offer a unique selling product that sets you apart.
3. Use Amazon's Tools
It's no secret that artificial intelligence has revolutionized e-commerce. Entrepreneurs are well aware that these advancements have significantly impacted the industry. Amazon product research tools from companies like Helium 10, Swift, Jungle Scout, and SellerApp leverage AI to provide increasingly sophisticated ways to enhance your Amazon understanding.
Amazon management agency also provides Amazon product research tools free of cost. These tools focus on conducting in-depth research on two essential pillars of e-commerce: highly searchable Amazon negative keywords and top-tier Amazon products.
Amazon Keyword Research Tools
Amazon sellers understand that success starts with keyword lists. Keywords, the popular search terms prospective customers use to find products like yours, play a pivotal role in determining your Amazon profitability. Tools like Jungle Scout's Keyword Scout, Swift, and Helium 10's Magnet offer valuable keyword and search volume data.
By using these tools, you can evaluate specific product demands and identify potential opportunities based on trends. Experienced Amazon sellers often emphasize that "the riches are in the niches."
Discover long-tail keywords to uncover niche markets with lower competition. By targeting these niches, you can carve a unique space for your product and potentially secure higher rankings in Amazon search results.
Amazon Product Research Tool
Once your keywords are sorted, it's time to focus on the product. Product research tools streamline the Amazon FBA product research process by providing essential data on sales, revenue, competition, and more. These tools often offer various filters, allowing you to narrow your search according to price, reviews, and sales velocity.
Consider the following factors when using these tools:
- Sales and Revenue: Analyze your estimated monthly sales and profits to evaluate market potential.
- Reviews: Low review counts can indicate lower competition.
- Sales Velocity: Determine how quickly a product sells to identify trends or evergreen products.
- Listing Quality: Poorly optimized listings may allow you to create a high-quality listing and capture market share.
4. Understanding Your Competition
You won't navigate Amazon's marketplace alone; it's becoming increasingly crowded daily. When evaluating a product, you must analyze your competition to determine if your progress and ability to compete.
By using positive reviews and Amazon product rankings, identify top sellers in your chosen niche. Assess their strengths and weaknesses, considering pricing, product quality, brand reputation, and customer reviews.
If you want to discover whether the product reviews are legitimate or fake, read our guide on 6 best Amazon review checker Tools.
Identifying areas where your competitors fall short can enable you to capitalize on these shortcomings and offer a more appealing product. Additionally, this analysis helps you gauge whether the market has ample room for your product to thrive. If the niche appears overly saturated, it might be a signal to conduct further research or explore a slightly less competitive niche.
5. Prioritize Profitability
Profit margins play a pivotal role in determining the success of your Amazon business. When doing Amazon product research, calculate your estimated profit by subtracting the price of goods sold and Amazon fees from the selling price.
Consider manufacturing costs, shipping fees, Amazon referral fees, and FBA fees when calculating profit margins. Remember that some products may have higher return rates or require more extensive customer support, impacting profitability.
Do you want to learn some tactics to scale up your Amazon selling? Read our guide on the top 10 Amazon selling tips to scale up profits.
6. Explore Product Bundling
Once you've invested the effort to bring a shopper to your virtual storefront, why stop at just one sale? Product bundling is a strategic approach to increase your average order value while setting yourself apart in Amazon's competitive marketplace.
By offering complementary products, you can provide your customers with added value and convenience, potentially leading to increased sales. You can also leverage Amazon lighting deals to improve your product sales.
When researching potential bundles, focus on products that naturally complement each other and cater to a similar target audience. Make sure that your bundled products offer benefits to customers, aligning with their needs and preferences.
Are you thinking of upscaling your sales of Amazon products? Read our Ultimate Guide on Amazon PPC.
7. Validate Your Product Ideas
We've all had our version of can't-miss ideas, but the Amazon ecosystem is replete with stories of entrepreneurs convinced they had brilliant product ideas. Even if friends and family agree, it doesn't equate to feedback from real Amazon shoppers who vote with their credit cards.
Validating your ideas before making a substantial investment is crucial. This process helps you avoid costly mistakes and ensures you pursue a viable product with strong market potential. Validation methods include:
- Surveying potential customers to gauge interest and identify potential pain points or concerns.
- Analyzing Google Trends to assess search interest and seasonal trends.
- Running a test launch to gather initial sales data and customer feedback, refining your offering, and performing Amazon product listing optimization.
8. Perform Amazon SEO
Before launching your new Amazon product on the marketplace, it's essential to strategize how you'll use Amazon SEO to optimize your product for top visibility. Selling on Amazon is about something other than being on page three or four; you need to secure a place on the coveted page one.
Amazon search engine optimization (SEO) and successful Amazon listing optimization involve efforts to rank as high as possible in Amazon product searches. Enhance every aspect of your product detail page, including:
- Optimize Amazon Product Images and Videos
- Product Title
- Key Product Features
- Product Description
- Backend Search Terms
- Amazon A+ content creations
Selling on Amazon presents challenges, such as addressing negative reviews or pricing your product correctly. So, you can also hire an Amazon SEO agency that will ensure your Amazon SEO is optimized to tip the scales in your favor.
Summary
This detailed guide dives into the complexities of Amazon product research, emphasizing the significance of decision-making and strategic planning for success. It outlines essential steps, tools, and strategies for selecting profitable products to navigate the competitive landscape of Amazon selling confidently.
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Frequently Asked Questions
How To Do Amazon Product Research?
To do Amazon product research, you should consider product demand, competition analysis, target audience preferences, pricing strategy, and potential profit margins.
