Anyone who does business on Amazon and sells their merchandise there had, at one point, questions about what products are better to sell, which ones will generate more profit, what are the brand restrictions, how much it would cost to sell them and also studied the competition to see how they are doing it. Before diving into this pool of tremendous opportunities which is Amazon, you need to arm yourself with good information and data that will help you build a profitable selling strategy. A crucial step you need to take is to evaluate the market and to decide which items will make you a decent profit. You don’t know how to do that? Let us show you how to do Amazon product research!
But what is this famous Amazon Product Research and why should you do it?
To put it in simple words, it’s a detailed research on how the market is performing on a particular segment and deciding which items are the winning ones that will bring you more profit. As simple as that might sound, it is a lengthy process and quite complex. This article will present to you some useful tips and tricks on how to do Amazon Product Research like a pro! Welcome to Amazon product research made easy!
When you prepare an Amazon product launch, you need to assess your risks and find ways to ensure the success of your business. People usually get stuck in this process and end up investing time and money into items that won’t sell or won’t generate enough revenue. Doing proper research as far as products go is absolutely essential. Basic criteria for choosing a winning article are the price (which should be in the range of $20-$75), size and dimensions (shipping purposes), sourcing (finding a profitable source to buy your stock from) and seasonality (ideally you should sell them all year round).
The first thing you want to do is to create a list of best sellers on Amazon, related to what you want to sell. Then, you want to look closer into them and see the demand for them and their sales volumes. This can be checked by looking for the monthly sales estimates of similar products already sold on Amazon. Keep in mind it’s recommended for the product to have around 2.000 sales a month. Also look into their reviews and keyword search volume.
Once you have the list and the basic information about best sellers, it’s time to review the high profit margin per unit to be able to see if it brings you enough money. The criteria is simple: cost of purchasing the item, the selling price, shipping and Amazon fees. Calculating all of these will give you a rough estimate of what your profit is.
Amazon Product Criteria
- The demand should be high
- Acceptable profit margins
- No restrictions regarding branding or trademark
- Price in the range of $20
- Competition should be low
- Product should be able to sell all year round
- The packaging should be small and light
To make your job easier and keep a good record of this data, use documents and keep track of your products’ keywords, pricing, reviews, ranks, estimated sales and categories. You can include columns to check if the item qualifies as top 10 products, if reviews are under or above 50 and if it has 2.000 sales monthly.
Amazon Product Research Checklist
Here is a list of required criteria that will help you filter the right products that will generate revenue:
- Price ranges - $20-$50
- The item should generate at around 10 sales daily
- The article can be set up for 25% less than the sale price
- Cheap purchasing price (Chinese origin)
- Don’t consider fragile products
- The product should have the ability to have related items
- Pay attention to trademarks and special brandings
- The product should sell all year round
- Small and light packaging (2-3 pounds)
- The top three related keywords should have more than 50.000 searches per month on Amazon
- Multiple keyword opportunities
- The ranking of similar products should be around 5,000 in the main category
- The article should be eligible for recurring purchases
Once you go through this checklist and your items checks out, it’s time to check on the methods of how to carry out the Amazon Product Research.
As expected, there are two ways do this: manual and automatic. It goes without saying that the manual one is lengthier and not as thorough; however, if you want to go ahead with it, this is what you need to do:
- Study the best selling items
- Analyze the competition - look at their listings, their websites, see how they conduct their business and you can also become a one-time client so you can go through the whole process of their services.
- Look for inspiration in the featured or related products sections
If you want to have a more accurate data and save time gathering the information, go for the automatic method which involves tools for Amazon product research. These types of software solutions offer a more diverse data and a more accurate insight regarding estimates of sales, revenues, reviews number and other product information.
The best Amazon product research tools are:
- Jungle Scout comes as a web app or a Google Chrome extension and it’s highly popular because of its ability to offer a complex research. The way it works is that it browses through thousands of products, finding the highly profitable ones, it tracks the products, acts as a niche hunter and offers details about competition as well. On their website, they provide webinars, ebooks and case studies to help you educate yourself. The monthly cost for this starts at $29.
- AMZ Tracker is a reliable, accurate and easy to use tool. Amongst its features we can mention the keyword tracker, product databases and competition data. The AMZ website has a free sales estimator and a free FBA fee calculator. The basic package starts at $19.99 per month.
- Feedback Genius focuses on product reviews and feedback. As you business grows, you need a tool that engages your customers and helps build their loyalty. It creates an automatic email response and workflow that sends messages to buyers, builds reports on sales data and improves the overall buyer experience.
- Scope is available as a web app and as a browser extension. It optimizes your listings with recently discovered keywords, it tracks products and their data (price, rank, sales and profit) and it also displays new items.
- MerchantWords helps you research products by using keywords. It shows you information about keyword rankings, listing quality, search volume, reviews and sales numbers.
How to Choose Amazon Product Research Software
Research, research, research. That’s the key to finding the perfect tools for Amazon Product Research. You need to spend time and try out various tools, see which one is easier to work with, which ones provide more relevant information. Check out demo and trial versions of the tools, read about other seller’s experiences with them, create a pros and cons list and once you have the key info in front of you, make a wise and informed decision based on your findings.
References: 22 Amazon Product Research Tool FBA Sellers Should Know 2018 [https://www.amzfinder.com/blog/22-amazon-product-research-tool-fba-sellers-know-2018/]
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