Finding the profitable product is the major concern of the FBA sellers. Most of the sellers outsource product research and rest will take this task by them. Whether you outsource or start finding by yourself, in-depth product analysis is important.
Your hundreds of thousands of bucks will lost in a blink of eye if you choose the wrong product. Product research is tricky as well as tough. If you aim for creating FBA Private Label (PL), you should find product that stay for longer until you have created business asset.
The article covers:
What is Amazon Product Research?
The process that involves analyzing market trends and choosing a product to sell on Amazon is known as Amazon Product Research. The basic purpose of performing research is to find out profitable product – high demand as well as competitive price in the online market. Besides, you need to take care of ensuring significant profit margin on every sale made. The more you research, the better product you will find.
Significance of Amazon Product Research
Amazon’s policies are stringent: you should have strong logo and a customized brand packaging to make your product outshine. There is no way out except performing product research to compete the growing online platforms.
Numerous product research methods are being used. You may follow either or combination of few. Whatever method you are using, just keep in mind the following:
- Is it seasonal product or can sell around the year?
- Does your product encounter any trademark or legal complications?
- What is your product pricing?
- What are the anticipated profit margins?
- How many variation your product have?
- Is your product lightweight, small or heavy weight and large?
Above baseline research will help you devise roadmap of your in-depth product research.
Automated vs. Manual Research
You can perform automated as well as manual research. For manual research, you just need to go to Amazon.com where you find best sellers page. This page will display what are the top selling products.
The Manual Research
On this page, you can search for products based on the categories and sub-categories. You just skim and analyse the products keeping in view the above-mention criteria.
There are some other workable strategies for product research. You can check Amazon storefronts, Amazon Basics, searching of products on pinterest, looking at the eBay’s trending list, and many more.
Once you have finalize the niche, you need to find profitable product and relevant keywords to rank it. The free software’s such as Google Keyword Planner and Google Trends could be your pivotal resource for this stage of product research.
Congratulations! You have found a profitable product. Now, you need to spy your competitors; what are they doing on their listings. You can check competitor’s product, image, listing’s title, bullet points, description, BSR, internal and external traffic analysis, and either competitors is FBM or FBA enable and so on.
The Automated Tool Research
A plenty of product research tools are available in the market with reliable data analysis. It will help you more systematic analysis and save your time too. The most recommended tools are Jungle Scout, Helium 10, Viral Launch and Keepa. One thing is common among all research tools; they analyze the Amazon market tends based on certain factors that include, but not limited to, sales, revenue, reviews, rating and many more.
Remember: all tools offer paid subscriptions. You can visit their website to buy subscriptions. Many FBA sellers heavily rely on these tools for product research.
Key considerations for Amazon product research
There is no exact formula fit in to get profitable product. Amazon experts set certain standards that have probability to find product that sell well.
Surprisingly, such criteria somehow work; it may be tempting for the starters.
You, as a newbie, should not sell well known or popular branded products. Reason: Amazon is giant online business, and, above all, Amazon itself would be your competitor in popular niche.
It does not mean that you have no space in billion dollars industry. You will find online consumers who are disinterested in big brand-named products but quality products with average selling opportunities.
All this happens only, if you have registered trademark and Amazon brand registry. Besides, you only need to work on fast shipping, cheap as well as quality sourcing, and optimized product listing. Let’s have a look on most important factors involved in product research:
Product Price Between £10 and £50
The product having price less than $10 is likely to generate minimum profit. You should sell in high volumes particularly if you’re FBA seller, because Amazon will take care of your storage, shipping, and packaging. The price ranges $10 to 50$ is recommended by the majority of the experts. Still, you need to market your product to divert sales in the super fierce competition.
If you sell your product upto $50, you will fall in the ‘impulse buy’ price range that means buyer won’t think too much to purchase.
Small and Lightweight Product is preferable
The heavier and bulkier the product, the more costlier and complex the shipping. No matter, Amazon is handling your supply chain through FBA, they will charge you as per product dimensions. While research the product, anticipated shipping and sourcing cost should be considered.
Do you know?
Most of the customers expect to get free shipping even if they are prime members. Additionally, you should also avoid easily damaged and glass or delicate parts products. Summing up, the small and lightweight product is easy to manage, non-breakable.
Trademark and brand registry of the Product
Amazon is the world’s largest online business. They have strict policies to discourage unbranded generic products. Private Label Products is the only way to scale your business in this market. the process is simple, if you want to sell as a private label, register your company’s trademark and register with Amazon as a brand. Your researched product should be lunched under your Private Label and stay away hijackers from your listing too.
Choose All-seasons product
An FBA seller shouldn’t be shortsighted. Products sell in the specific seasons such as Christmas Lights, Valentine’s Day gifts. Seasonal products will add extra cost of storage and affect sales. If you have large inventory and want to add additional sales, you may sell seasonal products along with your main products. Remember: your focus should be a finding a product that sell all the year.
Product: Simpler the better
Many sellers prefer selling products of the popular categories. Keep in mind that the popular categories may have higher ratio of returns or claims such as electronics, baby products, clothing, etc. considering the clothing and baby products, you must have a variety of colours and sizes that increase your inventory cost as well as reducing profits for excessive returns.
You may need to be extra cautious for beauty products and medicine. They often require additional certifications.
So, whenever you are performing product research, try to find the product that is less complicated as well as less variations.
Choose a Product that relates to buyer intent
Buyer intent is the most significant factor in online selling business. Buyer buy what he needs or likely to fulfill the needs. Your researched product is likely to meet the needs of the customers, will have greater chances to success.
Your business’s success is mainly depends on what you have chosen to sell on Amazon. So, choose wisely. You must do product research and consider:
- Product must fall between the price range $10 to $50.
- Check how many sales are generated through this products
- Analyze BSR of the similar product that will help you forecast the sales required to place your product on top spots.
- Top 3 keywords should have enough search volume because it will inform you product demand of the customers. The higher the search volume of the top 3 keywords, the more the demand of the product is.
- See the selling trends of the products throughout the year.
- Analyze the number of reviews of your competitors.
- If your competitor is Amazon itself, it is not advisable to jump in the competition. However, if your competitor is brand except Amazon, you need to analyse how much launching budget you required to compete them.
- Calculate the product price comprising of product landing cost, your breakeven and manufacturing cost, and profit. Be cautious to maintain your profit above 25% to get good revenue.
- Some categories are restricted which requires certain certification to sell those. While researching the product, consider the gated/ungated categories. The products in gated categories often require certain modalities t
Many sellers prefer hiring professionals for product research. If you’re interested in finding profitable product for your Amazon business, schedule your appointment with us.