Selling on Amazon - Product Research

Selling on amazon (Flikr)

Amazon, being the biggest online market for buying and selling a product, is giving business to more than 12 million products. Whatever you want, Amazon will be there to provide you with everything. Most of the customers go in the first place to find their desired product.

Due to its gigantic size, product evaluation and market study become a disconcertment of even experts working on Amazon. Market evaluation is not just important to have good sales but also it can save you from too much taxing.

You must be wondering, “How”? Then here is an answer.

A mistake that usually newbies in the market makes is, trying to find alternative methods of growing business on amazon. Most of the time, they start doing retail arbitrage (buying discounted items from one market and selling it in another) but due to poor market evaluation, they end up paying a lot of taxes in that whole process.

If this is making you worried, then don’t be, because every Amazon seller passed through these stages. The most rewarding product is hard to find and sometimes hectic. That is why we have summarized a detailed blog to guide you through this journey.

Why Amazon

Amazon has grown into a marketplace that offers everything you think of and secondly it offers reliable customer service, which attracts more people. Shopping from this platform and the consumer traffic is continuously gowning. As a general rule, the more the number of customers bigger will be the market and bigger the market the greater the chances for a successful business.

Almost 197 million people open amazon every month to find their desired product so definitely the people are also searching for your product that needs to be on board from today. Due to this always-growing number, more people are now coming to Amazon. Amazon also furnishes its sellers with promising earning results and trusted behavior.

The real question is how to find a profitable product that generates revenue and earns a handsome sum of money for you? What are the factors that we should keep in mind before taking a deep dive into Amazon Ocean for finding a product to sell? Which product is best to sell, and which one should be a lesser priority?

All these questions will be answered in detail and stepwise clarification on the concept will be provided.

Where can you go for finding a Product?

There are several platforms and countless methods from which you can find a product. Despite having so much ease provided by the digital platforms, finding a product is not a piece of cake.

There are several things to scrutinize and oversee when it comes to product hunting. brand restrictions, selling fees, niche selection, competition, and much more.

With the diversification in the market, the product evaluation strategies also evolved. You cannot expect things that work for a person will also work out for you. To guarantee your success here are a few tips that you must follow.

Social Listening:

The best way to start your product research is to do it from the consumer market. This thing is done by the dint of social listening.

Social listening is the key skill in your online business. You have to listen and absorb what people are talking about, what people like, what they dislike, which product is trending, and how people are reacting to that product. Is there something that people want but cannot find online or is there something that is in the market, but the people need some modification, etc.?

Keep your focus on product hunting while listening to people talking about these above-mentioned topics for example power bank was something that was needed but it was a hidden need. Until someone came up with the idea of creating this device and helping people charge their phones anywhere.

Top Sellers on Amazon:

We aim to give you an insight into finding a profitable product that has HIGH demand and LOW competition (an ideal product) with minimal reviews and ratings. The top seller's tab on amazon is a good place to hunt for the products that are selling well and have earned a tag of top-selling products.

These products although have high competition but surely have a decent profit margin and generate quite a good revenue.

Scrolling through these products might prove beneficial for you and you may encounter your dream product, but please bear in mind every niche and product has a different level of competition and hence requires a specific amount of budget to flow for launching that particular product in a specific niche.

Then the question arises, how to filter your desired product out of the ocean of products?

Well, while researching your desired product, keep this thing in mind

A Product must have	Attributes having significant importance	Avoid this product
$10 < Price < $50	Small and lightweight items	Camera
High demand	Easy to install	Electric appliances
Less competition	Can be upgraded	Art and Paintings
Not season dependent		Much competitive
Good profit margin		Cosmetics
Not conceding with Amazon rules		Liable products

 

Key features to look into a product

You have already seen the attributes and features your product should have but let's dive deeper to make the product selection more vivid.

Niche evaluation: Hot items

As it is an always growing and changing market, so new competition enters it every day. If you are in a certain niche then it is important to keep a check on the new competitor entering the market. It is because the new competitor must have analyzed the market, found the gaps, and pitched at that specific point.

You need to know how and why this new item shoots to a top ranking. By analyzing them, you can check if there is anything, you can add to your product. If there is a point, you are missing. You may find a new trend while evaluating them to get an advantage.

Niche evaluation: Unsaturated Items

Do not let a niche confine you to a single product. Brand out whenever you get a chance and find a new niche that has better potential. The priority in a business must be limitless profitability.

Always look for a niche that is less saturated and high in demand. With less competition, there is a greater chance for you to excel quickly.

You can use many online tools to evaluate if a product is less saturated or not.

BSR (Best Seller Rank)

BSR tells you: how high a product is demanded. You can usually find this ultimate tool at the top of the Amazon page. It displays the best-selling items from different categories.

In case, you are new to amazon and hunting for a product to sell than a BSR rank can save a lot of your time. Simply, target the products that have a BSR of less than or equal to 5000. You can find this BSR rank in the product details or use the helium 10 extension to filter it out.

Reviews

Reviews are an underestimated tool to filter out a product. They seem unimportant but they say a lot about an item. Reviews not only mean, you start reading every review to see how much this product is liked but also the Number of Reviews is important.  

The number of reviews helps you to see the projection of the product. They help you to understand how saturated and in-demand this niche is and how paved a path is, in this category for you, to climb on top.

Search Volume and keyword analysis

They both serve almost the same purpose in product evaluation. The search volume analysis helps you to understand the customer’s interest. The more high frequently a keyword is, the more it is searched and demanded by the consumer market.

Do not forget to check whether the product has a year on-demand or not. Finding a product having a search volume of 1500+ per month is safe to put your wages on it.

Helium 10 Black box Tool:

Helium 10 is a tool that allows you to play with figures and simplifies amazon results for you. It gives you results just a couple of clicks away. Among its vast variety of tools, helium 10 offers you a product searching tool that is BLACKBOX which offers you to search for the products, keywords, competitors, niches, and product targeting.

Getting all the updates from the amazon database, helium 10 has the most recent data and allows you to find a product as well as keywords. Keywords of the products can lead you to a profitable product but don’t forget to analyze the product before finalizing it for sourcing.  

While finalizing a product you need to check a few things that decide the future of your product. They are discussed below.

Jungle Scout Opportunity Score:

Jungle scout is another trusted and effective tool for analyzing the product ideas you obtain using the top seller, hot selling, or helium 10 results.

Jungle Scout, depending upon the data it receives from amazon, rates your product idea with an opportunity score that shows you what the standing of your product on Amazon is. It is either a newly introduced, a mature product, a growing product, or a declining product.

It is highly recommended to select a product that has a high demand and low competition as it generates most of the sales leaving you handsome revenue.

Understanding a Valid Product:

Although the product that you have researched might be generating really good revenue, it does not necessarily mean that it will keep on generating these sales for a long time.

For example, a fidget spinner did a business of millions but after the peak of the trend, the sales started to decline, and ultimately the inventories were abandoned. Therefore, you need to have a sound understanding of the product’s seasonality before launching it.

The Bottom Line

The diversity Amazon attained now is unbeatable. This makes it nearly impossible for a seller to come up with a unicorn product. Despite having high saturation and tough competition, the chances of being successful are still the same, even much more.

If you follow set criteria and filter down your niche then you can have a chance to rule the market. Always do a detailed competitor analysis and track down a product suiting you. Do not make the mistake of investing your time in finding a very new product, utilize what is available.

Contact us if these all details sound like a daunting task to you. We have years of experience in product hunting, product ranking, and product handling. You can partner up with us to confirm your success.