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How to Conduct Amazon Product Research: An In-depth Guide

what is amazon product research
September 5, 2023 17 mins to read

“Without data, you’re just another person with an opinion.” – W. Edwards Deming

In the vast landscape of Amazon, where millions of products and brands compete for attention, why do a select few achieve remarkable success? What sets them apart from the rest? 

Have you ever thought about it?

The answer lies in their ability to effectively conduct Amazon product research.

In the ever-evolving world of e-commerce, where consumer preferences change in the blink of an eye, successful sellers understand the importance of staying ahead of the curve.

They recognize that product research for Amazon is the key differentiating factor that can make or break their business.

It goes way beyond simply finding a product you like, making a product listing on Amazon, and hoping for the best. 

It involves delving deep into the needs and desires of your target audience, understanding the competitive landscape, and identifying lucrative opportunities that can propel your business to new heights.

So, we’ve put together this comprehensive guide to provide you with some definitive tips for your Amazon product analysis and research journey. 

Let’s jump into it:

Here is a quick peek into the article:

  1. What is Amazon Product Research?
  2. Four Elements Influencing Your Product Research on Amazon
  3. Ways to Discover Good Product Ideas
  4. Final Thoughts

What is Amazon Product Research?

Product research is the process of carefully analyzing different products or niches based on multiple metrics to determine which product to sell on Amazon

When it comes to selling products online, you can’t just rely on your instincts or gut feelings. You need to gather information, look at multiple metrics, and use it to make smart choices.

Your unique “water bottle” idea may seem groundbreaking, but can it generate substantial profit for you? 

Only data can tell that!

Even if it does, your product may not perform well in an already saturated market. 

To avoid starting a business that fails, you need to be smart about picking a product. So, given below are the five factors that help you decide which product to sell on Amazon. 

Four Elements That Influence Product Research on Amazon

After you have shortlisted some products, how do you know if they’ll be profitable?

Product validation plays a crucial role in this scenario.

In this section, we’ll tell you the four cornerstones to validate your (next) product idea. They are

  • Demand
  • Customer
  • Competition
  • Profitability


When researching potential products to sell, it’s essential to conduct a thorough Amazon product demand analysis. Without demand, no matter how brilliant your product is, nobody is going to purchase it. 

Here are some factors to look at to identify demand for your product.

Sells at least 10 products per day

Find a product that has a higher average unit sales per day. For a baseline, you can keep it as 10 sales per day. 

That means when the product generates at least 10 sales per day, it has a significant demand to start with. 

This isn’t the entire story, though!

If the product generates only 10 sales/day with high operating costs, it is not a good product either. 


The profitability of the product comes into the picture. A high average sales imply better profitability. 

Let’s say you choose two products, both selling at $30.

Product A sells about 5 units per day, and Product B sells 10 units per day. 

If you get a profit of $10 after the Amazon FBA fees, shipping, promotions, etc., the gross sale you make per month in Product A is $30* 5 units * 30 days = $4,500, and in Product B is  $30* 10 units * 30 days = $9,000

And the profit you make for Product A is = $10 * 5 units/ day * 30 days/ month = $1,500 per month, and Product B is $10 * 10 units/ day * 30 days/ month = $3,000 per month.

Clearly, you can see that the type of products with higher average sales units per day have better profits. 

Similar Products Have a BSR of 5,000 or Less in the Category

Understanding the sales frequency of a product can be complicated, but looking at the best seller rank (BSR) can help you understand the sales performance of a product within its category. 

A lower BSR suggests higher sales.

For instance, a product with a BSR of 20,000 sells significantly less than a product in the same category with a BSR of 2,000. Therefore, avoiding selecting a product with low sales potential is important even if it reaches the top spot.

To ensure high sales when you reach the top spot, it’s advisable to have 3-5 products in the main category with a BSR rank of around or below 5,000. The more products you have with a low BSR, the better your chances of success.

Note: When examining the BSR, focus on the main category rather than subcategories. And keep in mind a product with BSR #100 in the Electronics category wouldn’t generate similar sales as a product with BSR #100 in the Pet Supplies category.

Use the SellerApp Product Intelligence Tool to filter the right products that can actually sell on Amazon. You can use SellerApp’s unique “Opportunity Score” feature, which analyzes the product and gives a score based on the following criteria.

  • Demand: It calculates the demand for the product in the category
  • Revenue Potential: It estimates the monthly revenue of the product in the category
  • Competition: It shows if the competition is higher or lower than the category average
  • Overhead Cost: It estimates the overhead cost and shows if it’s higher or lower than the category average. 
  • Profit Margin: It shows you the estimated profit margin of the product compared to the category average
  • PIS Index: This metric measures the scope of improvement in the product.
amazon product researching

A high Opportunity Score indicates that the product can be highly profitable if you choose to sell, and vice versa. 

The Product Has Keywords With Good Search Volume

One of the easiest ways to identify product demand is by looking at the keyword search volume

If the product keyword already has a decent search volume, you don’t have to reinvent the wheel.

As a rule of thumb, see if the top 2-3 product keywords have at least 10,000+ search volume to understand the demand. However, it may vary based on your product type and niche. 

Note: Stay away from a product with a very high search volume, as this niche might be too competitive to enter and make a profit.  

We suggest you use the SellerApp Reverse ASIN tool to find the keyword search volume of relevant products on Amazon.

Log in to the SellerApp dashboard. Go to the Reverse ASIN tool, and add your competitor ASINs. 

amazon product research criteria

Here you can analyze the keywords based on search volume. 

The Product Encourages Recurring Purchases

Find products that encourage repeat purchases, like cosmetics, beauty products, etc.

These products can help you create customer loyalty and brand retention, thereby improving customer lifetime value (CLV). Recurring items indicate that customers are satisfied with your product and trust your brand. They are also less likely to switch to competitors or substitutes.

On top of that, it reduces your acquisition and marketing costs. You don’t have to spend much money attracting new customers, as you already have a loyal customer base.

The Product Has a Low Seasonality 

Seasonality represents how a product’s demand changes over time. If you take the example of products like raincoats or winterwear, then you can see the demand for these products increase drastically during monsoons and winter. 

Some product demand also increases during holidays, for example, Halloween costumes or decorations.  

You can use Google Trends to identify what times of the year some keywords are searched more. 

If the search volume trend data is steady, it means the products sell around the year. 

amazon product hunting techniques

But if there’s a periodic spike in the search volume, it shows seasonality.

top amazon research tactics for sellers

A business built around seasonal products may be profitable but wouldn’t be sustainable in the long run. 


Not only demand, but you also should research the niches and look at customer sentiment to understand if it’s the right product to sell. 

Look for Products with a Low Review Count (About 2-3 Products With < 50 Reviews on Page 1)

Reviews are a necessary part of selling any product successfully, but it also helps you understand the difficulty of entering the market.

Imagine a shopper sees two products in the search result, one with very few reviews and another product with 50+ reviews. Which one do you think the shopper will click?

Obviously, the product with a higher number of reviews. 

As a new seller, without many reviews, it would be challenging to break into niches where the top products already have hundreds of reviews. 

So, as a baseline, look at products where the top 2-3 listings have less than 50 products on the first page.

Identify the Unique Selling Point (USP)

Analyze the product reviews and Q&A section to see what customers discuss. If the top products already have 4.5+ ratings, there’s a high chance that these products are already perfected, and it will be difficult to identify gaps in the product. 

But for products with less than 4.5 ratings, you can identify some negative reviews and understand the gaps in the products. Use these gaps to improve your products and tailor your product messaging. 


You can’t miss out on competition when you’re researching a new product. 

Here are some factors to consider:

The Barrier of Entry Shouldn’t be Easy

Don’t select a product that has a low entry barrier. 

The more difficult to enter a new market, the fewer new sellers will pose a threat to your product. 

So, look for products requiring high capital investment, unique features, or strong differentiations from other products. 

These types of products can help you avoid direct competition and create a niche market for yourself. 

No Big Brands in the Product Category

When the product category you’re eyeing for selling is dominated by large brands, you will be at a disadvantage.

  • One, you need to compete against their large marketing budgets and brand recognition
  • Two, winning customers who are loyal to these brands can be challenging. And if you try to work around their customer base,  you might be targeting a narrow demographic, which would restrict your market share and growth. 

If you still want to compete against such dominant brands, ensure that a solid marketing strategy, good product, and exceptional customer service are in place.

The Number of Sellers

Look at the number of sellers selling the product before selecting – it can indicate the level of competition and the demand for that product.

Generally, if there are too many sellers for a product, it means that the product is highly competitive, and you may have difficulty breaking into the market. 

On the other hand, if fewer sellers exist in the category, it would mean less competition and niche products.


After evaluating a product’s demand, competition, and customers, you need to ensure that the product you sell will be profitable.

Here are some factors to gauge profitability for a product:

Look for Products Between the $20-$50 Price Range.

Products of $20-$50 lie in the impulse buying decision range. The higher the price tag, the more a consumer thinks about spending the amount. 

They’ll do more research into whether or not they need the product, while with less expensive items, they won’t spend as much time comparing them to others.

However, if you go extreme on both ends, it also becomes a problem. For example, a costly product makes it difficult for a shopper to get started. And If the price is low, shoppers associate it with cheap quality. 

On that note, it’s important to get your pricing right. 

Sellers often get into a black hole when finding the right pricing strategy for their products.

Your product price should cover your costs, add profits, and address the customer’s perceived value. 

Look for Lightweight Products

Look for small and lightweight products, as these types of products can keep your shipping and storage fees down, which usually are based on the weights and dimensions of the product.

For example, it would be much cheaper to source and sell a small product, such as a necklace, versus wooden furniture. Wooden furniture might be in high demand, but the logistics cost will be humongous, which can eat up your profit margin. 

Tip: Don’t go for too light or heavy fragile products, like glass or electronics. Pick something sturdy and easy to ship.

Choose a Product With a Decent Profit Margin of 25-35%

The ultimate goal of your business is profit. So, whenever you conduct product research, calculate the gross profit margin to understand the earning potential of the product. 

Depending on the platform or marketplace, you need to factor in multiple costs such as subscription fees, selling fees, advertising fees, storage fees, shipping fees, etc.

There is no particular profit margin to aim for, as it’s subjective. But we recommend going for at least a 25-35% gross margin. 

This will leave you with enough room for your advertising budget to stand out from the competition. 

You can easily find the profit margin of a product by using the SellerApp FBA calculator. 

Just go to the product listing on Amazon, open the SellerApp FBA Calculator tool, and provide the following information:

  • Cost of Goods Sold
  • FBA Fees 
  • Other Cost

And the tool will automatically calculate the profit margin for you. 

Amazon Product Research Checklist

Here is a quick checklist to help you easily pick the right product to sell:

  • Product prices that fall between the range of $10 and $50
  • Products that make at least 10 sales a day
  • Similar products that feature a best-seller rank of at least 5,000 in the main category
  • The top 3 related keywords have 50,000+ monthly searches on Amazon
  • Not seasonal products. They can be sold year-round
  • 2-3 products with less than 50 reviews on the first page
  • Small and lightweight products (under 2 to 3 pounds)
  • No brand names or trademarks associated with the product
  • A product can be set up for 25% or even lesser than the sale price
  • Proper room for product optimization and improvement of present listings
  • Multiple product-related keyword opportunities
  • Quick and easy product sourcing from China
  • The product should not be fragile
  • Ability to expand your brand with related products
  • Can make a superior product over similar products in the market
  • The product encourages recurring purchases
  • The product should not have any legal issues

Ways to Discover Good Product Ideas

Now that you’ve learned the factors to look at when selecting a product let’s look at some ways to discover good product ideas for your e-commerce business.

Amazon Marketplace 

Amazon is the first place you should research to identify good product ideas. Amazon has different categories like Bestseller lists, Movers and Shakers, Most Wished For, and Gift Ideas section, all of which can offer countless product ideas to you.

First, visit Amazon’s Best Sellers page. Here, you’ll find the best-selling products for each category. Don’t stop your research in the top category. Go deep into subcategories to identify unique product ideas. 

You can also look at New Releases, Movers & Shakers, Most Wished For, and Gift Ideas tabs. These products will have high demand but less competition over the best-selling products. 

Let’s say in the “New Releases” tab, you go for “Sports & Outdoors.” Now, this is way too broad a subcategory to identify product ideas. But you can go deep into subcategories to identify product ideas that you’ve never thought of. 

For example, Sports & Outdoors > Exercise & Fitness > Cardio Training > Exercise Bikes. 

amazon fba product research

Under the “Exercise Bikes” subcategory, you can look through many product types.

Speak with Your Current Supplier

If you’re already an Amazon seller, the best and easy way to do product research is by simply asking your suppliers what products are trending and selling like hot cake now. 

Your supplier should already have the information and might happily give it to you if you have a good relationship with them. 

You can also make it worthwhile for the suppliers by giving them bulk orders for the new products. 

Looking at eBay’s Trending List

Even if your target marketplace is Amazon, other marketplaces like Walmart, eBay, and AliExpress can still be valuable sources for identifying product ideas. 

Usually, if one product sells well on other marketplaces, it’s more likely to sell well on Amazon too.

So, head over to other marketplaces like eBay or Walmart and view all the trending products in your favorite categories. 

Not all products will fit your criteria, but you’ll get a rough idea of the product in demand and brainstorm from there to find a product that makes the perfect sense to you. 

Visit Retail Stores

Visiting your local retail stores can also be a great way to discover new product ideas to sell on Amazon.

These local stores often sell unique products that are not available online. These shops also serve as a real-time platform for identifying current trends and conducting price comparisons, which can provide you an edge over the competition. 

Additionally, physical retail stores allow you to do a detailed quality assessment and help you make more informed decisions about the products to sell.

Use Amazon Product Opportunity Explorer

If you’re already an Amazon seller, use the Amazo Product Opportunity Explorer tool on Seller Central to find new products. 

Log in to your Seller Central account, and navigate to Growth → Product Opportunity Explorer.

amazon product hunting

Use the search box to enter a broad keyword related to the product or niche you’re interested in.

Alternatively, you can browse niches by category or use the example niche recommendations based on your current product offerings.

amazon product analysis

The tool will display relevant niches, associated search terms, and key metrics such as customer needs, top search terms, search volume, units sold, average price, and price range.

fba product research

You can use these metrics to filter and narrow down your search to avoid low-quality products.

amazon seller product research

Not just that, utilize the Customer Review Insights section to identify improvement opportunities within a product and niche. It shows you all the positive and negative reviews for both niche and product levels. 

product research for amazon fba

With this Product Opportunity Explorer tool, you can narrow down profitable product ideas backed by data and are less likely to fail. 

SellerApp also offers a comprehensive Product Research tool that helps you research products on Amazon. 

Just log in to the SellerApp Dashboard, go to the Product Research tool, and search with a seed keyword. The tool then gives you a list of products based on your search query

You can filter the keywords based on multiple metrics to narrow your search to the most relevant products. 

product hunting for amazon

Final Thoughts

There you have it, a comprehensive checklist for Amazon Product Research!

As you can see, there are many aspects to consider to conduct thorough FBA product research, Following the steps given in this post will definitely help you get started with your Amazon product analysis.

However, if you’re looking for an efficient way to accelerate progress, consider signing up on SellerApp Dashboard. It gives you free access to invaluable features such as product analysis and tracking to help you find the best-selling products for your next launch. 

Leave a comment below and let us know what Amazon product research strategies you use in your business!

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10 Comments on “How to Conduct Amazon Product Research: An In-depth Guide”

  1. Victorial
    January 26, 2019

    Thank you for explaining best ways of product research
    Awesome post @Ankitha

  2. Breann
    February 4, 2019

    Thank you for explaining about product research

  3. Greg
    June 13, 2019

    i recommend this

  4. Launa Dawn
    October 28, 2020

    Thanks for giving your ideas.

  5. john
    May 16, 2021

    Very useful information for amazon sellers.

  6. Fedurm
    May 18, 2021

    I like this blog!! It’s a masterpiece for amazon sellers.

  7. Dagonet
    January 10, 2023

    SellerApp blogs are a wealth of knowledge for sellers. You cover everything from product research to marketing, and I’ve been able to improve my sales as a result.

    1. Arishekar N
      January 16, 2023

      Thank you.

  8. Amado
    January 11, 2023

    I’ve been able to improve my product research and sourcing thanks to the information provided in SellerApp blogs. They have really helped me find profitable products to sell.

    1. Arishekar N
      January 16, 2023

      Glad you liked.

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