Use various methods to dive deep into the needs and desires of your target audience, understand their pain points, identify gaps in your competitors’ products, and ultimately, zero in on lucrative opportunities that can propel your business to new heights.<\/p>\n\n\n\n
While it can be tempting, simply finding a product you like, creating a listing, and hoping for the best can be ineffective in the long run.<\/p>\n\n\n\n
Therefore, we\u2019ve put together this comprehensive Amazon product research guide with effective tips to streamline your Amazon product analysis and research journey.<\/p>\n\n\n\n
Let\u2019s jump into it!<\/p>\n\n\n\n
Here is a quick peek into the article:<\/strong><\/p>\n\n\n\n Amazon product research refers to finding a “winning product” that could turn a hefty profit when sold on Amazon. Unfortunately, you cannot rely solely on gut feelings or passion when it comes to selling a product on Amazon.<\/p>\n\n\n\n For example, you could spend several hundred hours of time and resources coming up with a proprietary product that you think is amazing.<\/p>\n\n\n\n However, if there\u2019s no market demand for it, then your product simply won\u2019t sell on Amazon. Additionally, highly competitive products result in saturated niches that can be extremely hard to break into.<\/p>\n\n\n\n To effectively zero in on a profitable product, you’ll need to deploy a range of strategies to gather data, and thoroughly analyze and validate its potential for success. Streamline your analysis by using SellerApp\u2019s FBA Fee Calculator<\/strong><\/a> to forecast fulfillment costs, fees, and make smart sourcing decisions confidently.<\/p>\n\n\n\n Specifically, you need to consider various metrics such as BSR, estimated daily orders, estimated daily revenue, category and subcategory information, and much more. Of course, manual methods of product research may not result in gathering the same level of information as Amazon product analysis with a specialized third-party research tool.<\/p>\n\n\n\n By understanding this data, not only could you find opportunities in a non-competitive niche or the subcategory of a saturated niche. For instance, breaking into the water bottle niche can be challenging. However, there may be potential in the sports water bottle subcategory.<\/p>\n\n\n\n To effectively validate a product and find lucrative opportunities, you need to consider the following factors:<\/p>\n\n\n\n Understanding the demand for the product is extremely important. As mentioned earlier, you could potentially lose a significant amount of money trying to sell a product without any demand or by trying to break into a category with high competition.<\/p>\n\n\n\n Therefore, without understanding the demand, you won\u2019t be able to gauge the success of your product.<\/p>\n\n\n\n Here are some key factors that can help you identify demand for a product:<\/p>\n\n\n\n Find a product that has a higher average unit sales per day. As a baseline, we recommend you keep it to a minimum of 10 estimated orders per day.<\/p>\n\n\n\n This essentially implies that the product that you are trying to sell should have already been sold by at least one other person and should generate a minimum of 10 sales per day. This would also suggest that the product has a good demand with at least 300 orders a month on average.<\/p>\n\n\n\n Of course, there\u2019s the question of profitability as well. Let\u2019s assume that two products are selling at $30. Product A has an average daily order of 5 and product B has an average daily order of 10.<\/p>\n\n\n\n Now, let\u2019s assume that both products have a profit of $10 after the Amazon FBA fees<\/a>, shipping, Amazon seller promotions<\/a>, etc. Essentially, 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<\/p>\n\n\n\n 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.<\/p>\n\n\n\n As obvious as this may sound, products with higher average sales units per day have better profits. Therefore, aim to sell a product that can at least bring in 9000-10000 in gross sales and at least 3,000 in profit.<\/p>\n\n\n\n Understanding the sales frequency of a product can be complicated without the right tool. However, you can find the best seller rank (BSR)<\/a> for free on the ecommerce platform. Most importantly, the BSR can help you understand the sales performance of a product within its category.<\/p>\n\n\n\n Fundamentally, a lower BSR suggests higher sales. For instance, a product with a BSR of 20,000 has significantly fewer daily sales than the same product with a BSR of 2,000 in the same category.<\/p>\n\n\n\n Therefore, avoid selecting a product with low sales potential even if it has found its way to the top pages.<\/p>\n\n\n\n When zeroing in on a product, it\u2019s advisable to have 3-5 products in the main category with a BSR rank of around or below 5,000. The more number of products you have with a low BSR, the better your chances of success.<\/p>\n\n\n\n Note<\/strong>: When examining the BSR, focus on the main category rather than subcategories. Keep in mind a product with BSR #100 in the Electronics category wouldn\u2019t necessarily generate similar sales as a product with BSR #100 in the Pet Supplies category.<\/p>\n\n\n\n We recommend you use SellerApp\u2019s Product Intelligence Tool<\/a> to find products that can sell on Amazon<\/a>. Specifically, use SellerApp\u2019s unique \u201cOpportunity Score\u201d feature, which analyzes the product and gives a score based on the following criteria.<\/p>\n\n\n\n A high Opportunity Score<\/a> indicates that the product can be highly profitable if you choose to sell, and vice versa.<\/p>\n\n\n\n Another effective method to gauge the product demand is to understand the various keywords, search volume, and search frequency<\/a> for those keywords. If the product keywords already attract substantial search traffic, there’s no need to reinvent the wheel.<\/p>\n\n\n\n As a rule of thumb, see if the top 2-3 product keywords have at least a cumulative search volume of 10,000+ to effectively understand the demand for said product. Of course, this may vary based on your product type and niche.<\/p>\n\n\n\n Note<\/strong>: Stay away from a product with a very high search volume, as this niche might be too competitive to capture a portion of the market share and make a decent profit.<\/p>\n\n\n\n We recommend you use the SellerApp Reverse ASIN tool<\/a> to find all top-performing keywords and search volume for the product.<\/p>\n\n\n\n Log in to the SellerApp dashboard<\/a>. Go to the , and add your competitor ASINs. Here you can analyze the keywords based on search volume.<\/p>\n\n\n\n Selling a product that encourages repeat purchases like cosmetics paper products<\/a> or packaging materials is a great way to improve customer lifetime value<\/a> and your profits.<\/p>\n\n\n\n Additionally, selling these types of products can also help you build a brand and even customer loyalty.<\/p>\n\n\n\n Recurring purchases also indicate customer satisfaction and trust. They are also less likely to switch to competitors or substitutes. Most importantly, choosing to sell such a product also results in lower acquisition and marketing costs as you don\u2019t have to spend so much money attracting new customers, as you already have a loyal customer base.<\/p>\n\n\n\n Unfortunately, you need to consider seasonality as a factor when choosing to sell your product. As you can imagine, the product\u2019s demand can fluctuate depending on the type. For example, demand for snow gloves drastically increases during winter and is non-existent in the summer season.<\/p>\n\n\n\n Some product demands also increase during specific holidays. For example, Halloween costumes<\/a> or decorations.<\/p>\n\n\n\n Therefore, we recommend you get a general idea of the seasonality of the product using Google Trends. Specifically, to identify if the keyword search volume<\/a> data of the product is steady across the year.<\/p>\n\n\n\n But if there\u2019s a periodic spike in the search volume, it shows seasonality.<\/p>\n\n\n\n A business built around seasonal products<\/a> may be profitable for a day or a season but wouldn\u2019t be sustainable in the long run.<\/p>\n\n\n\n However, we recommend digging far deeper into the reviews than simply glossing over 3-5 reviews.<\/p>\n\n\n\n One of the best ways to track demand and understand the effectiveness of a product is to head to the customer review section and read the feedback.<\/p>\n\n\n\n Use the SellerApp Chrome Extension<\/a> and gather all the reviews on Amazon<\/a> for a specific product. You can filter by verified purchases to gather insights from the actual buyers and filter the reviews by star rating, text\/video\/image reviews, and even geography.<\/p>\n\n\n\n More importantly, use the Product Scanner Feature to gather the average ratings and reviews for all the products at the category or subcategory level to understand the overall demand.<\/p>\n\n\n\n Another way to understand product demand is to track competitor pricing and inventory levels. But by understanding the price wars between your competitors to win the buy box or even the fluctuations in selling price, you can understand the demand for the product to a certain level.<\/p>\n\n\n\n Although not amazingly insightful, you could still understand a certain level of demand by tracking your competitor\u2019s inventory level and understanding how often they\u2019re low in stock. Of course, this can take a significant amount of time, which is why it should ideally be an ancillary method to gauge demand.<\/p>\n\n\n\n In addition to Demand, you must deep dive into the niche and understand customer sentiment to understand your product has potential.<\/p>\n\n\n\n Look for Products with a low review count (About 2-3 Products With < 50 Reviews on Page 1)<\/strong><\/p>\n\n\n\n Studying reviews is a necessary part of product research.<\/p>\n\n\n\n With this research, you can understand whether the product is effectively solving the customer\u2019s pain point but it will also help you understand gaps in the competitive landscape that you can take advantage of.<\/p>\n\n\n\n For example, if you keep reading that Product X would be more easier to use with Feature Y. You could implement Feature Y into your product and sell it to capture market share from your customer.<\/p>\n\n\n\n Of course, reviews also help in more a straightforward manner. By reading the reviews you can understand if there is demand for the product. The number of sellers and the number of reviews split across them also give you insight into the difficulty of entering the market.<\/p>\n\n\n\n A good rule of thumb is to make a list of the top ten keywords for the product and check the top 10 products for each of those keywords. The product is likely to sell successfully if the top 10 products have less than 100 reviews.<\/p>\n\n\n\n However, if there are more than 1000 reviews, it\u2019s best to move on to another product. When it comes to choosing the keyword go from broad to phrase and then to exact.<\/p>\n\n\n\n Analyzing the product reviews and Q&A section<\/a> can give you insight into not just the weaknesses and gaps with the product but also help you understand the strengths and unique selling points of the product<\/a>.<\/p>\n\n\n\n Usually, if the top products already have 4.5+ ratings, there\u2019s a high chance that these products are already \u201cperfected\u201d, and it will be difficult to identify gaps in the product.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Of course, this isn\u2019t an absolute. You could always try to find opportunities to improve a nearly \u201cperfect product\u201d and launch a new one with additional features or improvements.<\/p>\n\n\n\n Other than Demand and Customer Insights, you must also thoroughly understand the competition. After all, there is no point in spending time and resources on launching a problem, only to be drowned by the competition.<\/p>\n\n\n\n Here are some key factors to consider when it comes to understanding the competition:<\/p>\n\n\n\n Don\u2019t select a product that has a low entry barrier.<\/p>\n\n\n\n As obvious as it may sound, it\u2019s important to understand that everyone can see the potential in this product and you will run into several new competitors, negatively impacting your business.<\/p>\n\n\n\n On the other hand, the more difficult to enter a new market, the fewer new sellers will pose a threat to your product. Therefore, look for products that require a relatively high capital investment, unique features, or strong differentiations from other products.<\/p>\n\n\n\n These types of products can help you avoid direct competition and create a niche market<\/a> for yourself.<\/p>\n\n\n\n Entering a product category<\/a> dominated by big brands will always put you at a clear disadvantage. Here\u2019s why:<\/p>\n\n\n\n If you still want to compete against such dominant brands, ensure that you have a solid marketing strategy<\/a>, a good product, a great brand story\/mission\/values, and exceptional customer service.<\/p>\n\n\n\n Tracking the number of sellers should be a no-brainer \u2013 it can indicate the level of competition and the demand for that product. Generally, if there are too many sellers for a product, it would mean that the product is highly competitive, and you may have difficulty breaking into the market or succeeding once you\u2019re in.<\/p>\n\n\n\n On the other hand, if fewer sellers exist in the category, it would mean less competition and more growth potential.<\/p>\n\n\n\n Once you\u2019ve evaluated a product\u2019s demand, competition, and customers, you need to ensure that the product you sell is profitable.<\/p>\n\n\n\n Here are some factors to gauge the profitability of a product:<\/p>\n\n\n\n Products priced at $20-$50 lie in the impulse buying decision range. Fundamentally, the higher the price tag, the more a consumer thinks about spending the amount.<\/p>\n\n\n\n Meaning, that they\u2019ll conduct more research and try to understand if they need the product, while with less expensive items, they won\u2019t spend as much time comparing them to others.<\/p>\n\n\n\n Additionally, there is an extreme on the other end as well as shoppers may associate the product with cheap quality.<\/p>\n\n\n\n Sellers often tend to get into a black hole when trying to find the right pricing strategy<\/a> for their products. Ultimately, while the impulse purchase range does have its benefits, it\u2019s important to note that the product price should be set after calculating the expenses and profit. Most importantly, it should address the customer\u2019s perceived value.<\/p>\n\n\n\n For example, a great example would be portable chargers like the famous BlendJet. The cost of manufacturing the product may be less than $10. However, with marketing and branding, you could build a perceived valuation of the product and potentially elevate the cost to $50-60.<\/p>\n\n\n\n Yes, the size of the product is important. Especially, since there can be additional fees associated with shipping or storing the product. Therefore, it\u2019s always advisable to look for small and lightweight products<\/a>, 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.<\/p>\n\n\n\n For example, it would be much cheaper to source and sell a small product, such as a necklace, versus wooden furniture.<\/p>\n\n\n\n While wooden furniture may be in higher demand, the logistics cost will be humongous, which can eat up a massive chunk of your profit margin.<\/p>\n\n\n\n Key Tip<\/strong>: Don\u2019t go for too light or heavy fragile products, like glass or electronics. Pick something sturdy and easy to ship.<\/p>\n\n\n\n The ultimate goal of your business should be profit.<\/p>\n\n\n\n Unfortunately, there are a ton of fees associated with selling on Amazon. So, it\u2019s not a simple calculation of product cost and selling price. You will also need to factor in multiple factors such as subscription fees, selling fees, advertising fees, storage fees, shipping fees, etc.<\/p>\n\n\n\n Whenever you conduct product research, calculate the gross profit margin to specifically understand the earning potential of the product.<\/p>\n\n\n\n There is no particular profit margin to aim for, as it\u2019s subjective. However, we recommend at least a 25-35% gross margin as this would help you build a successful business with long-term potential.<\/p>\n\n\n\n This will leave you with enough room for your advertising budget to stand out from the competition.<\/p>\n\n\n\n You can easily find the profit margin<\/a> of a product by using the SellerApp FBA calculator. For comprehensive profitability analysis that includes pricing optimization, use SellerApp’s Amazon Seller Price Calculator<\/a> to determine if your product meets the 25-35% profit margin target after all Amazon fees and costs.<\/p>\n\n\n\n Just go to the product listing on Amazon<\/a>, open the SellerApp FBA Calculator tool<\/a>, and provide the following information:<\/p>\n\n\n\n And the tool will automatically calculate the profit margin for you.<\/p>\n\n\n\n Here is a quick checklist to help you easily pick the right product to sell:<\/p>\n\n\n\n Now that you\u2019ve learned the four factors to consider when selecting a viable product, let\u2019s look at some effective methods to discover the products.<\/p>\n\n\n\n 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, public wishlists all of which can offer countless product ideas<\/a> to you.<\/p>\n\n\n\n First, visit Amazon\u2019s Best Sellers page. Here, you\u2019ll find the best-selling products for each category<\/a>. Don\u2019t stop your research in the top category. Go deep into subcategories to identify unique product ideas.<\/p>\n\n\n\n Additionally, 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.<\/p>\n\n\n\n Let\u2019s say in the \u201cNew Releases\u201d tab, you go for \u201cSports & Outdoors.\u201d 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\u2019ve never thought of.<\/p>\n\n\n\n For example, Sports & Outdoors > Exercise & Fitness > Cardio Training > Exercise Bikes.<\/p>\n\n\n\n Under the \u201cExercise Bikes\u201d subcategory, you can look through many product types.<\/p>\n\n\n\n If you\u2019re already an Amazon seller, the best and easiest way to do product research is by simply asking your suppliers what products are trending and selling like hotcakes now.<\/p>\n\n\n\n Your supplier should already have the information and might happily give it to you if you have a good relationship with them.<\/p>\n\n\n\n You can also make it worthwhile for the suppliers by giving them bulk orders for the new products.<\/p>\n\n\n\n Even if your target marketplace is Amazon, other marketplaces like Walmart<\/a>, eBay, and AliExpress can still be valuable sources for identifying product ideas.<\/p>\n\n\n\n Usually, if one product sells well on other marketplaces, it\u2019s more likely to sell well on Amazon too.<\/p>\n\n\n\n So, head over to other marketplaces like eBay or Walmart and view all the trending products in your favorite categories.<\/p>\n\n\n\n Not all products will fit your criteria, but you\u2019ll get a rough idea of the product in demand and brainstorm from there to find a product that makes the perfect sense to you.<\/p>\n\n\n\n Visiting your local retail stores can also be a great way to discover new product ideas to sell on Amazon.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n Additionally, physical retail stores allow you to do a detailed quality assessment and help you make more informed decisions about the products to sell.<\/p>\n\n\n\n If you\u2019re already an Amazon seller, use the Amazon Product Opportunity Explorer tool<\/a> on Seller Central to find new products.<\/p>\n\n\n\n Log in to your Seller Central account, and navigate to Growth \u2192 Product Opportunity Explorer.<\/p>\n\n\n\n Use the search box to enter a broad keyword related to the product or niche you\u2019re interested in.<\/p>\n\n\n\n Alternatively, you can browse niches by category or use the example niche recommendations based on your current product offerings.<\/p>\n\n\n\n The tool will display relevant niches, associated search terms<\/a>, and key metrics such as customer needs, top search terms, search volume, units sold, average price, and price range.<\/p>\n\n\n\n You can use these metrics to filter and narrow down your search to avoid low-quality products.<\/p>\n\n\n\n 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.<\/p>\n\n\n\n With this Product Opportunity Explorer tool, you can narrow down profitable product ideas backed by data and are less likely to fail.<\/p>\n\n\n\n SellerApp also offers a comprehensive Product Research tool<\/a> that helps you research products on Amazon.<\/p>\n\n\n\n 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<\/a>.<\/p>\n\n\n\n You can filter the keywords based on multiple metrics to narrow your search to the most relevant products.<\/p>\n\n\n\n There you have it, a comprehensive checklist for Amazon Product Research!<\/p>\n\n\n\n As you can see, there are many aspects to consider to conduct thorough FBA product research, Following the steps given in this post will help you get started with your Amazon product analysis.<\/p>\n\n\n\n\n
What is Amazon Product Research?<\/strong><\/h2>\n\n\n\n
Four Factors That Influence Product Research on Amazon<\/strong><\/h2>\n\n\n\n
\n
Demand<\/strong><\/h3>\n\n\n\n
A minimum of 10 estimated daily orders<\/strong><\/h4>\n\n\n\n
A BSR of 5,000 or less in the category<\/strong><\/h4>\n\n\n\n
\n
![\"Product](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/SellerApp-Product-Intelligence-Tool-1100x662.jpg\" "\\"\\"")
<\/figure>\n\n\n\nThe product has keywords with good search volume<\/strong><\/h4>\n\n\n\n
![\"Reverse](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/Reverse-ASIN-tool-1100x439.jpg\" "\\"\\"")
<\/figure>\n\n\n\nA product that promotes repeat purchases.<\/strong><\/h4>\n\n\n\n
An evergreen product<\/strong><\/h4>\n\n\n\n
![\"amazon](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/seasonality-of-the-product.jpg\" "\\"\\"")
<\/figure>\n\n\n\n![\"seasonal](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/evergreen-product.jpg\" "\\"\\"")
<\/figure>\n\n\n\n
Review customer feedback<\/strong><\/h4>\n\n\n\nMonitor pricing and track competitor inventory levels<\/h4>\n\n\n\n
Customer<\/strong><\/h3>\n\n\n\n
Identify the Unique Selling Proposition (USP)<\/strong><\/h4>\n\n\n\n
Competition<\/h3>\n\n\n\n
The barrier to entry should not be low<\/strong><\/h4>\n\n\n\n
No Big Brands in the product category<\/strong><\/h4>\n\n\n\n
\n
The Number of Sellers<\/strong><\/h4>\n\n\n\n
Profitability<\/h3>\n\n\n\n
Look for Products Between the $20-$50 Price Range.<\/strong><\/h3>\n\n\n\n
Look for Lightweight Products<\/strong><\/h4>\n\n\n\n
Choose a Product With a Decent Profit Margin of 25-35%<\/strong><\/h4>\n\n\n\n
\n
Amazon Product Research Checklist<\/strong><\/h4>\n\n\n\n
\n
Techniques to Discover Good Product Ideas<\/strong><\/h2>\n\n\n\n
Amazon Marketplace<\/h3>\n\n\n\n
![\"Amazon](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/Amazon-Marketplace.jpg\" "\\"\\"")
<\/figure>\n\n\n\nSpeak with Your Current Supplier<\/strong><\/h3>\n\n\n\n
Looking at eBay\u2019s Trending List<\/strong><\/h3>\n\n\n\n
Visit Retail Stores<\/strong><\/h3>\n\n\n\n
Use Amazon Product Opportunity Explorer<\/strong><\/h3>\n\n\n\n
![\"Amazon](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/Amazon-Product-Opportunity-Explorer.jpg\" "\\"\\"")
<\/figure>\n\n\n\n![\"Amazon](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/Amazon-Product-Opportunity.jpg\" "\\"\\"")
<\/figure>\n\n\n\n![\"top](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/top-search-terms.jpg\" "\\"\\"")
<\/figure>\n\n\n\n![\"niche](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/metrics.jpg\" "\\"\\"")
<\/figure>\n\n\n\n![\"Customer](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/Customer-Review-Insights.jpg\" "\\"\\"")
<\/figure>\n\n\n\n![\"SellerApp](\"https:\/\/www.sellerapp.com\/blog\/wp-content\/uploads\/2024\/04\/SellerApp-Dashboard.jpg\" "\\"\\"")
<\/figure>\n\n\n\nFinal Thoughts<\/strong><\/h3>\n\n\n\n