Why is it important to do Amazon products research?
Doing Amazon product research is the easiest way to find the right products to sell.
Whether you’re thinking of selling on Amazon FBA or looking for potential products to expand your catalog, it’s up to you to tell you about product analysis tools.
Why is it important to do Amazon products research?
It is important to understand the pricing of profitable products
You cannot sell a product for more than the buyer is willing to pay for it.
There are many things you must do before launching a product, however figuring out the price and value of an item is critical.
When it comes to sourcing products, always back up your product ideas with pricing data. Predict your potential profit with a sales estimator.
Use keyword search volume to determine market size
Profitable sales require winning listing keywords.
However, keyword research is much deeper than reaching the first results in search results.
When you combine your understanding of search queries with pricing information, you gain insight into market demand.
Find products whose keywords have high search volume but relatively low prices. Find 2-5 phrases describing this product to get a good idea of the size of the market. If profit margins are high and relevant search terms are popular, then you win.
Goals of researching Amazon products
To get the most out of your Amazon product research, define your goals with just a couple of questions:
What’s your product concept?
Buyers want something fresh and original. Make sure your product brings something new to the market.
What is the profit margin?
Most buyers would rather try a new product for $ 15-$ 25 than venture on something for a higher price.
Remember to leave some spare place in your calculations so you can offer discounts and promotions.
How big is the market demand?
If other brands sell the product, make sure the demand justifies the competition. Seasonal products depend on one small time window to generate profits for the year.
How much will it cost to sell products on Amazon?
Amazon charges high seller fees including storage, inventory cleanup, FBA shipping, and more.
Does the product help build a sustainable brand?
More and more, brand building is a must for Amazon success. You need a product that encourages repeat purchases and hype.
How do I analyze products on Amazon?
There are two types of product analysis on Amazon:
– Manually
– Automated tools
Manually
If you want to do product analysis manually, then Amazon is a great resource for performing some of the tasks in this process. To do this, you need to follow two simple steps:
Step 1. Check the list of bestsellers
Amazon offers help with product research on Amazon’s Best Sellers page. In fact, this is the first step you should take as Amazon displays all of the top selling products.
You can search for products by their categories and subcategories. Perform a quick check of the listings to determine which products are selling the most. This, in turn, will also help you identify your niche.
From product sales information, you can predict which products your target audience might like. Plus, you can even check related items to get an idea of how to grow your business.
Try to choose products that are neither overpriced nor underpriced. In addition, the limited competition also provides more opportunities to sell the product.
You can also create a product idea in the following ways:
– Amazon’s Best Sellers page
– Amazon search results
– Exploring retail stores
– View multiple products on Pinterest
– Exploring Shopify
– Looking at eBay trending list
– Checking the “Customers Also Bought” section
– View the weekly AliExpress bestseller list
Once you have an idea of the niche and the related product, see if it is in demand using the following methods:
– Google Keyword Planner
– Sellerapp Product Intelligence Tool
– Google trends
Step 2. See what competitors are doing
The second step is to analyze what your competitors are doing to sell your chosen product. Amazon’s bestseller page allows you to see your main competitors.
You can check their product listing pages and their official website if available. This information gives you an idea of which products are selling the most.
Track your competitors
You can purchase a product from your competitor and check the quality of its services.
Automatic method
This is truly one of the fastest ways to research a product.
Just imagine how long it can take to browse the bestseller lists, check the hottest items, analyze product criteria, images, descriptions, bullet points, listings, and competition.
Moreover, you will need to check if the demand for the product is sufficient and see if it will sell easily, how seasonal the product is.
You will receive answers to your questions about the return or refund rate and how much shipping may cost.
There are many tools out there to help you analyze a product. We talked about it earlier.
Here are five key mistakes sellers often make when researching a product on Amazon:
– Choosing a small niche
It is important to choose an active market in which your products will be noticed and sold. Never make the mistake of narrowing your niche too much.
– Customizing products at a very low cost
As a salesperson, the moment you start the race by offering the lowest price than the competition, understand that you are sabotaging your income a lot.
Your pricing decision should never be based on what your competitors are offering, since you are not aware of their profit margins, purchasing costs, or the logic behind their scheme.
However, if you set the price of a product below your target (considering the competition), you will undermine your business.
– Selling of undifferentiated products
You have to understand that Amazon is no longer like the one it was a few years ago. Those distant times are a thing of the past.
Today it has become more eventful and competitive. You can’t use private label BBQ gloves, silicone wedding rings, or yoga mats and get that big check. If you choose undifferentiated items, it becomes even more difficult to sell them.
– Do not calculating rates of return
This is another big mistake new sellers often make. They underestimate the impact of Amazon commissions on the products they choose to sell. Hence, it is very important to use a good FBA calculator to know the correct estimates for the ASIN of a product.
– Failure to improve a product
If you see your competitors have a bunch of bad reviews and bad ratings for the same product you’re selling, and you still don’t do anything to improve on your part, you’re doing the hardest in terms of sales.
Good sales to you, friends!
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