A great deal of planning and organizing is involved when starting a business venture. Keeping an eye on demand-supply analytics and preparation of the budget is crucial. But the case of selling on Amazon is different because the most important aspect here is hunting for the product that you want to sell and more importantly, ensuring that it will be successful.
A company’s success or failure may depend on how well it researches Amazon products. On Amazon, there are a lot of opportunities to earn money. But to make such earnings as a seller on Amazon, you must be knowledgeable on how to conduct market analysis. This article is packed with Amazon product research advice and strategies, whether you’re brand-new to the Amazon platform or have been attempting to succeed there for some time.
Amazon Product Research- An Overview
Product research or product hunting is a procedure used to evaluate and confirm an item’s likelihood of being lucrative. The aim of conducting research is to portray a picture of whether the product will prove profitable or not before entering the process of selling.
The product research will help you comprehend:
- How consumer interest in the goods has evolved through time
- Costs involved in obtaining the goods
- How much money you can make by selling the item
- Overall product demand and market size
- The degree of product-related competition and the names of its primary rivals
However, it is not like every seller is capable of taking full advantage of this chance, and some even come up short. This may be the result of them not selecting the best or most popular things available. Therefore, experts stress the need for merchants to conduct rigorous product research before selecting which items to list and sell on their web pages.
Ways to research for products include:
- Manual research for products
- Automate research by using Amazon research tools
- Online market places
- Trustworthy suppliers
- Hire a product-sourcing service provider
Significance of Product Research
Lack of time spent developing your research abilities will prevent you from identifying potentially commercial products. More than 40% of the approximately 2 billion products that Amazon sells globally are marketed on its US website. There are many factors to consider while choosing the best things to sell because there are so many products available on the market and in such great quantity. Simply calculating potential margins on the surface is insufficient.
Choosing products at random just considering what you find captivating in the way they appear and “assuming” they will be successfully sold on Amazon will hardly work because what you “assume” may be entirely different from the facts that product research may reveal. Sell what is in demand instead of what you wish to sell.
How to identify a Product Opportunity
Following are some points that should be kept in mind to identify a product opportunity:
- Negligible seasonality
- No regulatory issues
- Anything costing more than $18
- Small and lightweight with decent profit margins
- Products with potential for development
- Product with a differentiating feature that will set you apart from the competition
Most effective steps to do Product Research
Customer feedback and reviews
One of the most effective and free research tools is reviews that reveal a great deal about an item. Additionally, we do not want to imply appreciation or praise for the seller (however, they are very significant). The quantity of client reviews is more important because they may show you how large the market is and how simple it’ll be for anyone to advance to the top rankings. By the way, Amazon customer reviews offer you a terrific chance to spot weaknesses in your rivals’ items and have them corrected on your own. We assure you that it is a mutually beneficial strategy for sellers and customers.
Attention toward Customer purchase patterns
You must be aware of consumer trends and behavior if you are an Amazon dealer. Study the products they are purchasing. This is shown in a useful way on Amazon. So keep in mind to browse through Amazon’s “Customers Also Purchased” and “Frequently Bought Together” sections. These sections can be found underneath the primary listings.
These sections can help you understand the consumer thought process and purchase journey from which you might take advantage. A fantastic product that can become a best-seller can also be created by combining items that are regularly purchased together on Amazon. Therefore, if people are purchasing a ‘complimenting’ item from a different Amazon seller together with the item you are selling, you might want to consider selling a similar or identical item, or you might even consider creating a special product package.
Research Tools for Amazon
Making the entire procedure as simple as a few clicks is possible by utilizing the finest premium or free Amazon tools for product research. You can use the intelligent filters in ‘Helium 10’s Black Box’ to find product ideas that will succeed based on your unique needs, market segments, and inclinations. You may perform searches using Black Box based on a variety of criteria, including product type, expected monthly sales volume, revenue generated, seller volumes, unexplored niches, and so much more.
Improve the product listings
When conducting product research, one aspect you must always consider is what renders your product and related things appealing, commencing with your item listing. How can you persuade a prospective consumer to choose to invest their cash in your product?
To find out what might be missing, examine your competitors’ Amazon Product listing, particularly the ones that are profitable, and make a comparison chart of them with yours for better understanding.
In their listings, vendors frequently make errors that may include undescriptive titles, non-related and unattractive images, missing information that can affect customer decisions, and not keeping an eye on negative feedback.
Most categories are not worth vying for as a new Amazon seller unless you have an unusual, exceptional, and idiosyncratic product or a considerable advantage on keyword or page listing. There may be plenty of opportunities in a less crowded market where you can introduce a unique product or provide a promotion. Massive opportunities in competing products may arise if a product’s price is too high or the competitor isn’t performing.
Keyword research tool for optimization
In addition to having a personalized list of product ideas, a research tool can help you find product ideas based on the number of times a given term is searched every month. You will gain a better understanding of a product’s seasonality thanks to this.
You can use a keyword research tool to discover the anticipated monthly search traffic, the cost of the advertising campaign, and the number of products associated with a given keyword.
The top products that rank for those particular keywords, together with the typical price point, reviews, etc., may be found by using a sophisticated keyword research tool.
Wrapping it Up
Boiling it all up, understanding the product research strategies for Amazon is important if you want to become an excellent seller. Leaving behind conventional strategies, the contemporary world of Amazon requires one to use unconventional methods that may enhance your unique selling point. For this purpose, you can also hire a professional product sourcing agency that can assist you with better results.