Business
Strategies for Effective Product Research: Finding the Perfect Product to Sell on Amazon
Discover how to find the most profitable products to sell on Amazon with effective product research strategies. Learn how to identify profitable niches, analyze competition, and make data-driven decisions to boost your sales and profits.
In a highly competitive marketplace like Amazon, finding the right product to sell is key to success. But with millions of products available, how can you identify the most profitable ones?
That’s where effective product research comes in.
By utilizing advanced research techniques and analyzing crucial data, you can uncover lucrative niches and gain a competitive edge over other sellers.
In this topic, we’ll explore the ins and outs of Amazon product research, from identifying high-demand products to analyzing competition and making data-driven decisions. Get ready to take your Amazon business to the next level!
Quick Guide
- What is Amazon Product Research?
- Why is it important to do product research?
- Difference between a good product and a bad product
- How to do Amazon product research?
- Four Amazon research strategies for sellers
What is Amazon Product Research?
The process of Amazon Product Research involves analyzing the market to identify the most profitable products to sell. This includes researching products that can be sourced at a low cost and sold for a higher profit margin. While it may seem straightforward, the process is multifaceted and requires careful consideration of several crucial factors.
Among these factors are niche selection, brand restrictions, competition analysis, and cost and fee evaluation. Each of these variables can greatly impact the viability of the products you research and ultimately determine your success as an Amazon seller.
By taking a strategic approach to product research, you can increase your chances of finding lucrative opportunities and achieving your business goals.
Why is it important to do product research?
In the world of e-commerce, relying on guesswork and personal preferences is a surefire recipe for failure. To succeed as an Amazon seller, it’s essential to have strong research skills and a data-driven approach to product selection.
Focusing on products that catch your eye or that you personally like is not enough – you must prioritize products with a proven track record of sales and profitability. Without sufficient research, you run the risk of selecting products that are unlikely to succeed on Amazon.
One of the biggest challenges of Amazon product hunting is knowing where to start. Not all products are created equal, and it’s important to have a clear understanding of the criteria for a successful product before diving into your research.
By developing your research skills and focusing on products with a high potential for success, you can increase your chances of building a profitable Amazon business.
Difference between a good product and a bad product
While the term “bad products” may seem overly negative, it’s important to consider the characteristics of a successful product when conducting Amazon product research.
Ultimately, your goal as a seller is to identify products that will sell well and attract customers to your business. However, it’s also crucial to consider the practicalities of selling a particular product from your perspective as a seller.
For example, you may discover that large-screen televisions are in high demand on Amazon, but selling such products could pose logistical challenges such as storage and shipping fees. Additionally, brand restrictions may limit your ability to sell certain products, so it’s important to choose items that are practical for your business and offer ample profit margins.
To simplify the research process, it’s helpful to focus on products that meet certain criteria.
Good products for Amazon sellers are typically
- Small
- Lightweight
- Durable
- Easy to store and ship.
Products that are unbranded but have branding potential offer higher profit margins, while products with low competition offer a better chance for success in the marketplace.
By focusing on products that meet these criteria, you can filter out items that may not be practical or profitable for your business. This narrows down your research options and allows you to focus on products that are more likely to succeed on Amazon.
To further streamline the research process, there are various strategies and tools available to help you identify profitable products.
One such tool is SellerApp’s Product Research tool which will help you find high-potential products. You can analyze the top-selling competitor’s items with this tool. Thus it is an Amazon product analysis tool that can make you take quick and smart decisions about your product.
How to do Amazon product research?
As an Amazon seller, it’s crucial to understand that competition is everywhere, and it’s not enough to simply pick a broad market or category to sell in and list a product that meets the above criteria.
Instead, it’s essential to choose a sub-niche within the larger market, which can lower the competition and increase profits.
For instance, the dog collar niche is congested, and there are thousands of Amazon sellers listing dog collars, which means it would be hard to stand out. To tackle this problem, you should focus on a more specific sub-niche within the dog leads market, such as flashing LED dog collars in pink or personalized dog collars.
Although the search volume for these sub-niches may be lower, they target a specific market, which means you can filter out most of the competition. Choosing such a narrow niche means that your product is more likely to convert consistently.
Once you have narrowed down your niche, you can start researching specific products to sell on Amazon. But, how do you research effectively to find the perfect profitable product? Here are four research strategies to help you get started.
Four Amazon research strategies for sellers
In order to succeed in selling products on Amazon, it is crucial to conduct thorough and effective research. Therefore, it is essential to understand how and where to conduct research properly.
Amazon’s Platform
To find winning products to sell on Amazon, the first place to start your product research is on Amazon’s own platform. Specifically, the Amazon Bestseller lists provide valuable insights into the types of products that are in high demand. You can access the Bestsellers page by clicking on the relevant tab at the top of the page.
The Bestsellers tab lists the top 100 bestselling products in any category. However, to find a niche product, you should dig deeper into sub-categories rather than relying on the top-level categories. By doing this, you can find products with less competition and better potential for profitability. Once you have found a product that you are interested in, look for ways to improve on it and make it stand out from the competition.
The New Releases tab allows you to see what products are selling well currently and what products are about to be released. Niche down your search by finding products similar to the new releases and start sourcing them. If you can source a product before its release date, you may be able to capitalize on its popularity and earn profits immediately.
The Movers and Shakers tab helps you discover which products have gained or lost popularity in the previous 24 hours. This is a useful tactic to monitor a product before sourcing and adding it to your inventory. However, don’t monitor a product for too long, as you may miss the ideal opportunity.
The Most Wished For and Most Gifted tabs show the products that are frequently added to gift lists or ordered as gifts. This can help you identify trending products and give you ideas for further niche research. Overall, Amazon’s Bestseller lists are an excellent resource for researching profitable products to sell on the platform.
Check on your competitors
An effective way to conduct Amazon product research is to analyze the products that are already successful through Amazon PPC (pay-per-click) advertising. This is because sellers who are spending money on advertising campaigns are likely to be making a profit from those products, otherwise, they would not invest in the campaigns.
When browsing through Amazon’s search results, you may notice the word “sponsored” on some products. This indicates that the product is a paid advertisement, and analyzing these sponsored products can give you valuable insights into profitable products to consider adding to your inventory.
Use keyword research to manage product research
A powerful keyword research tool can help you identify winning product ideas based on search volume and seasonality.
One such tool is SellerApp’s Keyword Research tool. With this tool, you can search for keywords related to your chosen category and niche and discover their expected monthly search volume, ad campaign costs, and the number of products associated with each keyword. You can also identify the trends and gain insights into the demand peaks and best-selling months for a particular product.
Moreover, you can use this tool to identify keywords with high search volume but low competition, along with the average results of the top 10 products meeting the traditional criteria of price, demand, etc. This information can help you uncover niche product ideas that have the potential to perform well on Amazon.
Once you find a category and niche, you can use the keyword research tool to find the top-selling products for keywords with high search volume and low competition, as well as low CPC rates.
Browse through AliExpress
An often overlooked but fantastic tactic for Amazon product research is to use AliExpress, which is one of the biggest trade marketplaces available to you for free. While most people use it for product sourcing, it can also be a great resource for research.
Although AliExpress doesn’t have a specific page for best-selling products, you can still find out which products are popular in just three simple steps:
- Choose a category or sub-category, such as “pet supplies”.
- Sort the results by “orders” to see the products that have been sold the most.
- Filter the results to show only products with a 4-star rating or above.
This will give you a list of the top-selling products in your chosen category or sub-category that have also received positive reviews from previous buyers.
By using this method, you can have confidence in the products you choose to sell on Amazon, as they have already proven to be popular and have received high ratings from customers on AliExpress.
Conclusion
After conducting thorough research on Amazon products, it can be concluded that effective product research is a critical component of successful selling on the platform.
Conducting research on customer demand, competition, pricing, and product reviews can help sellers identify profitable opportunities and make informed decisions about product selection and marketing strategies.
Tool like SellerApp can be used to gather data on Amazon products while leveraging Amazon’s search bar and browsing top-selling products. Additionally, utilizing customer feedback and reviews can help sellers understand product pain points and opportunities for improvement. By investing time and resources into this process, sellers can increase their chances of success on the platform and improve their overall profitability.
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.
