Last updated on September 26th, 2023
Written by Mohamed Aden
Conducting Amazon product research correctly is crucial for success on the eCommerce giant. Assessing various factors such as competition, pricing, customer reviews, and sales history will help you decide which products to sell. But due to the large and fast-paced environment of the marketplace, navigating through Amazon without a comprehensive guide can be daunting.
This is where our blog proves useful. We aim to provide a step-by-step approach to conducting product research correctly. It delves into various strategies and tools that can be employed to identify profitable product opportunities.
From evaluating competition and demand trends to analyzing customer reviews and using keyword research effectively, this guide will equip beginner and experienced Amazon sellers like you with the necessary knowledge to make informed decisions and excel in your product selection process.
Amazon product research involves analyzing market trends, customer preferences, and competitor products to identify profitable opportunities. It helps sellers like you choose the right products to sell and market. Product research aims to maximize sales, customer satisfaction, and overall performance in the highly competitive marketplace.
Navigating the vast marketplace of Amazon can be daunting, but you can simplify the Amazon product research process in six steps. Below is the step-by-step approach to help you identify profitable products, understand market demand, and outperform competitors, setting your store on a path to success.
When conducting product research, prioritize identifying your target market, keeping up with emerging trends, and understanding customer preferences. This approach will help you select profitable products aligned to your audience's needs.
To conduct product research correctly, you must identify your target market. Begin by defining your customer demographics. Know their age, gender, income, and location. The deeper your knowledge about them, the more you can tailor your products for them.
Stay ahead of the competition by analyzing current and emerging trends on Amazon. Use tools like Google Trends or other eCommerce platforms to investigate trending products. By tracking top sales, best-selling products, and sellers' ranks, you can identify opportunities that align with what your target customers like.
Gain a deeper understanding of your target market by researching customer preferences, reviews, and feedback. Customer reviews allow you to determine a product's strengths and weaknesses and refine your selling strategy.
Pay attention to the following:
By incorporating this feedback into your product research process, you'll increase your chances of success on Amazon.
To conduct product research correctly, you must utilize the right tools to help you find profitable products more efficiently. These tools offer various functionalities, such as:
Combine free tools like Google Trends and other popular tools below to efficiently do your research.
Google Trends is a free tool that provides data on the popularity of search queries in Google Search. It allows you to analyze and compare the relative search interest for specific keywords, topics, or terms over time, providing insights into search behavior and trending topics worldwide.
This tool helps understand the popularity and search volume for specific products or niches. By tracking the search volume for keywords related to your product, you can identify trending products and make more informed decisions on what to sell on your online store.
Along with Google Trends, you can also use Jungle Scout, AMZScout, and Helium 10 to complement your gathered data and have a more holistic, Amazon-focused view of your product research.
|Jungle Scout||A software tool designed for Amazon sellers to analyze product trends, estimate sales data, conduct competitor research, and find profitable opportunities within the Amazon marketplace.|
|AMZScout||A popular tool that offers a range of features for Amazon sellers, including product research, sales estimates, and competitor analysis, to help optimize sales potential and make informed business decisions.|
|Helium 10||A suite of powerful tools designed for Amazon sellers. It includes features for product research, keyword optimization, listing optimization, inventory management, and competitor analysis, among others.|
By dedicating time and effort to researching products against competitors and understanding seller rankings, you can confidently choose products with great potential to rise against the competition. Here’s how to do that.
To succeed in selling on Amazon, it's vital to assess the competition landscape thoroughly. This involves researching other sellers offering similar or the exact product and analyzing their pricing strategy, product listings, and overall performance.
For a proper assessment, you can follow these steps:
Amazon Seller rankings matter because it indicates products' popularity and sales performance. Higher-ranking sellers will likely have trustworthy and reliable products, making them favorable consumer choices.
Seller rankings also help you identify potential niches with lower competition by analyzing the ranking trends. It can uncover underrated products or categories to explore and gain a competitive advantage, and it can also aid in evaluating the market's demand and saturation.
When conducting product research, it's crucial to thoroughly evaluate product reviews and ratings. By examining them, you can identify potential issues with the product and gauge customer demand.
Analyze the overall star rating of products similar to the one you're considering. These will give you a quick snapshot of the product's quality and performance. A higher star rating indicates better customer satisfaction, while lower ratings signal potential quality issues or unmet customer expectations.
A product with many reviews and a high rating is likely well-loved and represents a stable market. Look for patterns in customer feedback, including recurring complaints or compliments on specific product features or aspects. Determine your competitors' strengths and weaknesses. This knowledge can help you bring products with equal strengths and no undesired weaknesses to life.
The product you will sell should be profitable. Aside from sales, you can also check the pricing and profitability during your product research. Here's how you can do these.
Calculate the product costs and potential profit margins to ensure your ideas are profitable. Start by estimating the costs of manufacturing, packaging, shipping, and any relevant taxes or fees.
Consider direct costs like materials and labor and indirect costs like marketing or overhead expenses. Once you have a clear picture of your costs, calculate the potential profit margins by subtracting these costs from your anticipated sales price.
Analyze your competitors' pricing strategies to determine the market average, identify price gaps, and seek more opportunities. Ensure to assess their pricing patterns, including discounts or promotions they offer.
By monitoring and comparing competitor prices, you can position your product competitively, adjust your pricing strategy accordingly, and maximize your chances of success.
Monitor the average price and any seasonal or holiday-related changes or other factors influencing price variations. This information will help you make informed decisions about your product's ideal selling price and timing in the online store.
Effective keyword research is crucial when conducting product research. It helps identify high-ranking keywords and understand search volume and trends, ultimately increasing your product visibility on the platform.
Skip the manual search for ranking keywords and utilize the available tools online. Some popular Amazon keyword research tools include SEMrush, AMZScout Keyword Search Tool, and Jungle Scout. These tools can help you analyze relevant keywords, search volume, and potential customers searching for products similar to yours.
Understanding search volume and trends ensures your product stays relevant and visible to potential buyers. Some strategies to achieve this are:
| Track Amazon Best Selling Products: Identifying best-sellers in your niche and understanding their keywords can provide insights into the high-demand products and gauge their popularity.|
Focus on long-tail keywords: Strive to incorporate short and long-tail keywords in your product listings, but focus on long-tail terms as the target is more specific and the competition is less stiff.
Need more tried-and-true seller tips? Here’s a video on how to find the best product to sell on Amazon:
Conducting product research the right way is essential for success on the platform. We hope that this comprehensive guide providing step-by-step strategies, tools, and tips will help you make informed decisions about product selection.
To stay ahead of the competition, it is crucial to have a partner who understands these changes and can adapt accordingly. Here at Seller Interactive, we are one such partner that focuses on a range of Amazon management services, from Amazon listing optimization to brand protection. We identify pain points, boost your stats, and ensure a consistent top performance. Book a call with us now to learn more about our offers.
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