How to Conduct Amazon Product Research
What Is Amazon Product Research?
Hi you, what a great, exciting question!
Amazon product research refers to the process of systematically analyzing the Amazon marketplace to identify lucrative product opportunities that have the potential to sell well. With thousands of product listings on the platform, success as an Amazon seller is no longer solely dependent on sourcing a product and uploading it.
Your research should strive to discover products that align with market demand, offer competitive advantages, and can generate profits for you as a seller.
One of the best ways you can do that is through the use of an Amazon product research tool and keyword research tool, such as Helium 10.
You might be thinking “Huh? What does a keyword research tool have to do with product research?” But frankly speaking, keyword research forms a cornerstone of Amazon product research. These keyword optimization tools allow sellers to identify popular and relevant search terms that customers use when looking for products on Amazon. By proactively understanding the search volume for specific keywords, you can gauge the level of demand for certain products and how easy or hard it may be to rank for them in the long run will help you earn profits. You can then use this information as a qualification item to narrow down potential product ideas that are likely to attract customer interest.
As for product research tools, they are notoriously beneficial in enabling sellers to quickly hone in on various metrics related to potential products. (Trust me, I would know since I did manual product research when I launched my first product on Amazon, and comparatively…that took forever).
Compared to months, you can find prospective product ideas within minutes. The metrics you can sort by include factors like the number of images, search volume, estimated sales volume, historical trends, and even data on competitor sales. Sellers can evaluate products based on their sales potential, allowing them to make informed decisions about what products to sell on Amazon.
Identifying good products to sell on Amazon involves striking a balance between market demand and competition. Effective product research aims to find products that have a healthy level of demand while facing relatively low competition though expanding to outside this range can prove valuable if you’re willing to fight for the higher barrier to entry with higher upfront capital occasionally and regulations for items like electronics. Crosschecking the combination of demand and competition can increase the chances of gaining visibility and securing sales as opposed to blindly choosing a product.
Sellers should also consider factors such as competitive prices and profit margins during the product research phase and selling process. They analyze the pricing strategies of similar products to determine if there’s room for them to offer competitive prices while still maintaining profitability. A product may have high demand, but if the competition drives prices too low, it might not be a viable choice for sellers.
Ultimately, Amazon product research is about data-driven decision-making. It involves leveraging tools and data to uncover opportunities, understand customer preferences, and strategically position products for success within the Amazon marketplace. It is by conducting thorough research and utilizing insights from keyword research and product research tools that sellers can make informed choices about which products to sell.
What Does Product Research Do and Why Is It Important?
Outside of the fact that success as an Amazon seller is no longer solely dependent on sourcing a product and uploading it, doing proper Amazon product research can aid as a strategic compass that guides you toward identifying viable and profitable products to sell on Amazon. This research process helps you as a seller make informed decisions, reduce risks, optimize your chances of success within the competitive Amazon marketplace and so much more.
Imagine you’re showering one day and realize “Man, I really can’t wash my back well”
All of a sudden, an idea comes to you. You’re going to build a sticky scrub thingy-ma-jig for the wall that will let you get all the spots.
You go back and forth with different suppliers for months, pay thousands of dollars, get the listing up, and then…
There are barely any sales. And the sales that do happen are eating up the money in your wallet like there’s no tomorrow.
Well, what in the heck happened?
You didn’t do any product research.
Product research is vital for analyzing current market trends as an Amazon seller because it enables you to understand the evolving preferences and demands of customers, ensuring that the products you choose to sell align with these trends. You can give your product the best opportunity for profitability, the best chance of delivering value to its buyer, and yourself the best chance of profiting on your investment.
But for that to happen, you must do comprehensive research to offer products that resonate with the market’s pulse, stay ahead of competitors, and make informed decisions that ultimately lead to increased sales and long-term success in the dynamic landscape of the Amazon marketplace.
Which Product Research Tool Is Best for Amazon FBA?
In this space, one of the powerful Amazon product research tools that sellers often utilize for Amazon product research is Helium 10 (I know I know…it sounds like I’m bragging, but it’s true).
Helium 10 offers a suite of over 30+ tools tailored for Amazon sellers in varying parts of their journey. For instance, tools like Black Box, the Chrome Extension, and Trendster within Helium 10 provide a dynamic way to explore potential product ideas.
With Black Box, by inputting specific criteria such as desired sales revenue, competition level, and other parameters, sellers can generate a list of product options that align with their goals. This approach streamlines the process of narrowing down profitable products to sell.
Whereas Cerebro, our reverse ASIN lookup, allows sellers to delve deep into keyword analysis. This helps sellers understand the demand for specific keywords as they relate to potential products. By gauging the search volume and competition for keywords, sellers can gain insights into market demand and identify opportunities with less competitive search terms.
There’s also Helium 10’s Xray tool infamous for empowering sellers to decipher the competitive lay of specific product listings. Get all your essential data, such as estimated monthly sales, revenue, and reviews, for products within a certain category in one place to evaluate whether a particular product presents a profitable opportunity.
However, I will add that I’ve heard some pretty creative uses for some of our tools which weren’t originally created with the intention of being a product research tool. I occasionally use Market Tracker to discover products.
It depends on you and how you comb the data.
Each of these tools can provide guidance in exploring product ideas, identifying trends, assessing competition, and performing keyword analysis to make informed decisions.
How Do I Find What Sells Well on Amazon?
Use Amazon product research tools. That is the best advice I can give. You can absolutely check Pinterest Trends or find product ideas on sites like Etsy and TikTok, but you should still validate those ideas with demand on Amazon as that is where you will be ranking for words and attempting to convert folks to buy.
Using the tools I mentioned in the section above, you can reference existing data to see how existing Amazon sellers are doing in the space
How Do I Pick a Winning Product for Amazon FBA?
Okay, let me set the record straight. Winning is the wrong word. There’s no such thing as a winning product and anyone who tells you there is is lying to you. Don’t fall for it. There will always be a number of factors that influence your outcome and there’s no real means of being able to predict what will happen. The Amazon landscape may change by the time your product is getting to market, your competitor might get a new market strategy that leads them to have reviews snowball in and hijack sales, and so forth.
The best you can do is use an Amazon product research tool to see backend data, established sales history, metrics impacting profitability, and so forth for listings that already exist on Amazon and aim to make the most informed decision possible using the information that is available to you.
Life itself is uncertain. All we can do is pull from what we know to guide where we are going and it is really no different in business. In conducting proper Amazon product research, you can craft the best setup for your Amazon business.
Pro Tips for Amazon Product Research
Find a Product
I think I’ve made it apparent by now that there are many ways to do product research. You can use Tiktok hashtags to find what is trending (e.g. #TiktokMadeMeBuyIt), scout Etsy, surf Google search engines or visit your local mom-and-pop shop. But to simplify this process and uncover potentially profitable products, you can just use our suite of powerful tools like Black Box, Cerebro, and Market Tracker. I’ve mentioned them several times, so let’s dive a bit deeper into talking about what these tools do.
Black Box is our primary product research tool and the tool processes over two billion data points daily allowing you to easily discover potentially lucrative niches no matter the parameters. You can start by exploring the “Products” tab within Black Box where the tool offers filters like price, monthly revenue, and number of reviews to sift the data and output product listings. I used the number of images in the example below in conjunction with the monthly revenue filter as it is an interesting way to locate unoptimized listings that are still generating major sales. What would be its potential if we just optimize the listing?
Of course, taking a look at a singular listing is a good starting place, but it is only one piece of the picture. Alternatively, you could “Keywords” tab provides a more comprehensive insight into seeing if you will be able to stack up to the competition by plunging into entire niches via search terms customers are using on Amazon. With the use of the filters under this tab, you can identify relevant keywords related to your interests that have demand but manageable or low competition with filters like search volume and competitor reviews like:
Bear in mind, that it is not necessary to copy the filters I used. The point is to play around with them and create a list of 15-20 product ideas you’ll want to further validate and there is no limit to what you can find with as many products that are available on Amazon.
If you so choose, you can also use the “Product Targeting” tab as is particularly powerful to identify even frequently bought together items based on the criteria you input and even use Cerebro during your product research phase to generate product ideas as it can offer a better picture of what your profits may entail in the long run. It is not helpful to only have say one good keyword with substantial Amazon search volume, low advertising costs, and high sales. You want to find synonymous keywords to ensure the product sells once it arrives on the market. Seeing a cross-section of market data, pricing trends, and sales rank for multiple keywords is a better-suited tactic than just considering a singular keyword for product validation.
Many people also think Market Tracker is invaluable for tracking historical sales data within your chosen niche after you have your product listed, but the truth is you can also use it as an Amazon product research tool. Yes, use it to monitor the sales performance of top-selling products in your niche over time, but also leverage it to analyze historical sales data to help you pinpoint trends and seasonality, giving you a strategic advantage in product sourcing and marketing. The tool is extremely advantageous in gaining perspective on sales estimates, keeping track of new sellers or successful sellers, shipping costs to calculate potential profit margins, and more.
Since opportunity is in the eye of the beholder, I encourage you to play around with each one to have the best view of all the data.
Differentiate Your Products
As for how to shortlist that initial list you create, you will want to consider how you will be able to differentiate your products to further validate product ideas. Evaluate product differentiation opportunities such as unique features, bundling options, or improved quality, as these can be pivotal in achieving standout performance. Helium 10’s Chrome Extension can be a game-changer in understanding what customers like and dislike about products in your niche. Here’s how it works:
Assess the positive and negative reviews. Look for common themes or specific features that customers praise and also pay close attention to what customers dislike about competing products. This information can guide you in determining aspects of your product to emphasize in your listings and marketing materials. This can help you avoid similar issues when sourcing or developing your differentiated product.
You will also want to analyze reviews for gaps or unmet needs within the niche. If customers consistently mention missing features or improvements or buy the product with another, you can fill those gaps with customization of your differentiated product. Just prioritize your consumer as you build your product and negotiate with your prospective suppliers and doing that will serve you well.
Validate Ideas With Keyword Research and Analyze the Competition
And since when you initially list your product, you will have 0 reviews, conducting proper market evaluation will give you comprehensive and accurate data on whether or not you will be able to generate high sales. Do not make the mistake of not opening up multiple keywords related to the product and not seeing how your main competitors are doing on each page.
Competitor research is as important during your Amazon product research phase as it is after you’ve sourced your product and are trying to choose which keywords to go after for listing optimization and your advertising campaigns.
In fact, you should begin compiling a list of keywords for your products of interest from the beginning. Perform a search on Amazon and scrutinize the search results page for each of those selected keywords paying close attention to several key aspects. First, the number of competitors listed for your chosen keywords, as a high count may suggest market saturation, whereas a low count may hint at an opportunity with less competition. Next, locate the top-selling products on the page, focusing on those with high sales ranks and numerous reviews; these will be your formidable competitors and sources of insights into successful niche strategies. Examine the product price within the niche, aiming to determine whether competitive pricing can coexist with a profitable margin after accounting for sourcing, shipping, and Amazon fees.
Further, delve into competitor listings by examining product descriptions, images, and key features for clues about what resonates with customers and how successful Amazon sellers present their products to see if there are areas even on the listing itself that can be improved.
Look For Profitable Traits
Of course, determining if the products you aim to sell will be profitable is the number one qualifying factor in moving forward in your process of selling on Amazon.
To assess if a product is profitable, you can simply use the Supplier Finder feature inside of Xray embedded inside of our Helium 10 Chrome Extension to see what it might cost you to source followed by a go at our profitability calculator. By adding in essential data, such as the product’s selling price, Amazon fees, cost to ship and your cost of goods sold (COGS), the calculator can relatively quickly generate a detailed breakdown of your potential profit margins, including estimated net profit and ROI (Return on Investment).
This information is crucial for evaluating the viability of products to sell, as it allows you to compare potential earnings against expenses. A profitable product typically exhibits a healthy net profit margin, which ensures that after all costs and fees are considered, you’re left with a substantial portion of revenue as profit. Strive to make informed decisions about product sourcing and pricing to increase your chances of success when you sell on Amazon.
Look At ‘Customers Also Bought’ and ‘Frequently Bought Together’ Sections
The last thing I’ll mention before I close out is to take a look at the “Customers Also Bought” and “Frequently Bought Together” sections on Amazon to unveil product bundling opportunities and showcase items that customers often purchase together. Recognizing these combinations not only increases the average order value but also gifts the customers a convenient shopping experience. Not to mention, the insights gathered from these sections enable cross-selling of complementary products, fostering additional sales and revenue growth.
Additionally, these sections act as windows into market trends and consumer preferences. Patterns emerge, such as customers frequently buying specific accessories with a product, which signals a demand for those items. By paying attention to these trends, sellers can select products that align with current market dynamics and give them a competitive edge. They are also a great place to go if you are looking to expand your product line.
In conclusion, understanding the essence of Amazon product research is pivotal for any aspiring or experienced seller looking to embark on a successful journey within the world’s largest e-commerce platform. It involves a meticulous and comprehensive data-driven exploration into various aspects of potential products, ranging from their best seller rank and competition posed by other sellers to considerations like brand restrictions and product weight. This intricate product research process is the foundation upon which profitable Amazon businesses are built. It equips sellers with the insights necessary to not only identify products with the potential to yield substantial profits but also to navigate the complexities of Amazon’s marketplace. By delving into this research diligently, you can begin selling with confidence, knowing that your choices are informed by data and strategic planning, ensuring a competitive edge that will help you bring your e-commerce business vision to fruition.