For business owners wishing to establish themselves in the eCommerce sector, Amazon, the largest online marketplace in the world, presents an unmatched opportunity.

Naturally, you’ll need a product to sell to get started. The success of online sales depends on constant and critical Amazon product research.

You can increase your revenues by choosing products with great demand and little competition. Finding a product to offer in that lucrative sweet spot is the challenge.

To assist you in accelerating your eCommerce journey, we’ll examine the top Amazon product research strategies in this comprehensive guide.

1. Understand your target audience and customers

You’ll be able to find products with these insights by understanding the requirements and preferences of your target market. When determining your target market, take into account aspects like demographics, shopping habits, and pain areas. Once you have a clear picture of your ideal client, it will be easier for you to find things that would appeal to them and make a splash in the congested Amazon marketplace.

Countless unsuccessful product launches in the Amazon ecosystem have nothing to do with the actual quality of the product. You must have a firm grasp of your target market and a customer before you start your product study. Even if you have a great product idea, it won’t succeed if you don’t understand who your target market is.

2. Use Amazon’s Best Sellers List to your advantage

Why not contact the source directly if you’re looking for answers? The Best Sellers lists on Amazon offer useful information about the goods that are currently top sellers among those customers. It is possible to find prospective product ideas based on current demand by browsing through the primary categories and subcategories and paying close attention to items with high rankings. Be careful to pay close attention to any new trends or seasonal items that might be worth investigating.

Though top-selling products should be taken into account, entering markets with intense competition should be avoided. Sellers who are pushy and occasionally dishonest live in lucrative, fiercely contested sectors. Last but not least, research your rivals to see if you can distinguish yourself from them with a unique selling proposition.

3. Pull out your tool belt

The popularity of machine learning and artificial intelligence is widely known. You know that eCommerce has become the starting point for many of the developments that have been made since you started your business.

AI is being used as a springboard by software products from businesses like Helium 10, Jungle Scout, and SellerApp to provide ever-more complex ways to increase your Amazon IQ. The capacity to do in-depth research into the two cornerstones of eCommerce—highly-searchable keywords and fantastic Amazon products—is a main focus of many of those software tools.

  • Keyword Research Tools

    Amazon merchants are aware that keywords are the foundation of online selling success. You’ll be able to make money on Amazon or not depending on your use of keywords, which are the common search terms that potential buyers use to find products similar to yours.

    Tools for keyword research like Helium 10’s Magnet and Jungle Scout’s Keyword Scout can offer useful keyword statistics and search volume projections. Utilize these tools to determine opportunities based on search trends and measure the demand for particular products.

    It’s a common saying among experienced Amazon sellers that “the riches are in the niches.” To take a closer look at specialized markets with less competition, make sure to research long-tail keywords. You may create a market for your goods by focusing on these niches, and you might even rank higher on Amazon’s search results.

  • Product Research Tools

    Once your keyword strategy is in order, you should focus on a product. By giving important data on sales, revenue, competition, and more, product research tools can assist you in streamlining your Amazon product research procedure. Tools for conducting product research frequently include a variety of filters that let you focus your search on factors like pricing, reviews, and sales velocity.

    When using these tools, consider the following factors:

  • Sales and Revenue: To determine a product’s market potential, examine the projected monthly sales and revenue.

  • Reviews: These reveal what’s going on behind the scenes. In order to find products with less competition, look for products with few reviews.

  • Sales Velocity: Curious about the latest trends? Check the sales velocity to see how rapidly a product is moving off the shelves. This might assist you in locating evergreen products or trendy items. Reviews: These reveal what’s going on behind the scenes. To find products with less competition, look for products with few reviews.

  • Examine the quality of the current product listings, paying particular attention to the photos, titles, and descriptions. Poorly optimized listings can be an opportunity for you to make a better listing and gain market share because they frequently signify a less-than-professional seller.

4. Recognize your competitors

On the Amazon marketplace, you won’t be by yourself. There is a slight increase in congestion daily. When thinking about a product, it’s important to assess your competitors to see if you can successfully compete in the market. Look at the best-selling products in your selected niche and evaluate their advantages and disadvantages. Take into account elements like cost, product quality, brand reputation, and client testimonials.

If you can spot the weaknesses of your competitors, you might be able to take advantage of them and present a more alluring product. This study can also assist you in determining whether the market is big enough for your product to flourish.

It can be a sign to conduct a little more study or delve further into a niche that isn’t as fiercely competitive if the market is extremely competitive.

5. You Must Have the Ability to Earn Money

99% of us are in it to make money, as thrilling as entrepreneurship and eCommerce can be. Profit margins play a key role in determining how successful your Amazon business will be. When investigating potential products, estimate the profit margin by deducting Amazon fees and the cost of goods sold (COGS) from the selling price.

Factors including manufacturing expenses, shipping costs, Amazon referral payments, and FBA fees should be taken into account when determining profit margins. Additionally, bear in mind that certain products can have greater return rates or necessitate more intensive customer service, which might affect your overall profitability.

6. Why Make One Sale Only?

This one seems rather apparent. When you’ve put in the effort to attract a customer to your (virtual) front door, why settle for just one sale? Product bundling is a successful tactic for raising average order value and will also make you stand out in Amazon’s congested marketplace. You may give clients more value and convenience by bundling related products, which could result in increased sales.

Consider products that naturally go well together and have a similar target market when looking into prospective bundles. Make sure your bundled items also meet the demands and tastes of your clients and deliver a clear value to them.

7. Validate Your Product Ideas

We have all experienced can’t-miss ideas in one way or another. The Amazon ecosystem is filled with tales of entrepreneurs who were SURE they had a winning product concept. Even their closest family members and friends supported them. Sadly, it’s not the same as hearing comments from actual, live Amazon customers who cast their credit card votes.

It’s critical to test your theories before making a sizable commitment. This procedure can assist you in avoiding costly errors and ensuring that the product you’re pursuing has a high market potential. Some techniques for validation include:

  • Performing a client survey to determine interest in your product and pinpoint any potential problems or pain points, gather input from your target market.
  • Using Google Trends to analyze search interest in your product over time will help you spot any seasonal trends or shifts in demand.
  • Before making a full purchase of the product, this information can assist you focus your product offering and improve your listing.

8. Amazon selling is a moving target

We’ve all heard tales of sellers on Amazon who rode a brief but powerful wave of online sales to fortunes that changed their lives. On a much smaller scale, that occurs daily across the Amazon ecosystem. The Amazon market is continuously changing, with new competitors and trends appearing frequently.

It’s crucial to keep an eye on market developments and adjust your product research techniques as necessary to keep your competitive advantage. Keep an eye out for any changes in demand or new business prospects by monitoring industry news, competition activity, and client feedback.

By staying agile and responsive to market changes, you can ensure that your Amazon business remains profitable and successful over the long term.