How to Do Amazon Product Research: Your Ultimate Guide

Reading Time: 13 minutes

Ever felt the frustration of trying to figure out which products will make your mark in the massive online marketplace?

Perhaps you’ve wondered how to sift through the countless options and discover the hidden gems that can take your business to new heights. I’ve been there, and I get it.

In the journey of an online seller, there’s a trio that sums it all up: Pain, Agitation, Solution, and the never-ending question “How to do Amazon Product Research?”

The key to unlocking success in the ever-changing world of e-commerce lies in mastering Amazon Product Research.

Today, we’re going to dig into the nitty-gritty of Amazon Product Research, tackling those pain points, addressing the agitation, and offering a tailored solution crafted for 2024.

To kick things off, here are a few tools and methods for discovering products to sell on Amazon. But, don’t stop here – continue reading as we explore additional tips and tricks to enhance your product-finding journey.

Ready to navigate this journey with me? Let’s get started.

How to Find the Ideal Product

In product research, the initial phase involves generating product ideas.

A convenient approach for accomplishing this is using comprehensive market trend analysis tools and data to identify products with sustained demand and market longevity.

Leverage Amazon tools like keyword research and sales estimators to gauge potential, ensuring your product aligns with market preferences.

Assess the financial viability by calculating all associated costs and estimating profit margins.

Now that we’ve laid the groundwork for effective product research let’s delve into specific avenues that can significantly streamline your journey.

To truly understand market dynamics and consumer preferences, we’ll explore critical sections on Amazon that serve as invaluable indicators of product trends and popularity.

These include the ever-reliable Best Sellers, the latest innovations showcased in New Releases, the swiftly rising stars in Movers and Shakers, items capturing the attention of many in Most Wished For, and curated Gift Ideas that offer insights into what customers find appealing.

Navigating these sections gives you an understanding of the market landscape, empowering your product research with real-time, data-driven insights.

How I Do Amazon Product Research

In pursuing a thriving Amazon business, I’ve used the power of both the platform’s accessible tools and paid tools to elevate my product research and decision-making process.

Leveraging Amazon’s page features has been instrumental in gauging market trends and understanding customer preferences.

Additionally, the integration of paid tools has been a game-changer. Advanced tools like Jungle Scout, Helium 10, and Rev Seller have provided me with in-depth market analysis, precise sales estimations, and comprehensive competitor insights.

These paid tools go beyond the surface, offering a deeper understanding of the competitive landscape and helping me make informed decisions about product selection, pricing, and overall business strategy.

By using Amazon’s accessible tools and paid third-party solutions, I’ve navigated the complexities of the e-commerce landscape confidently. This hybrid approach streamlines the product research process and positions my Amazon business for sustained success in a dynamic and competitive marketplace.

Trending On Amazon Pages Explained

Trending on Amazon pages refers to the dynamic and ever-changing landscape of popular products gaining momentum in terms of sales, customer interest, and overall popularity.

These pages, such as New Releases, Movers and Shakers, Best Sellers, Most Wished For, and Gift Ideas, serve as real-time indicators of consumer preferences and market trends.

By staying informed about trends, sellers and businesses can make informed decisions regarding product selection, pricing strategies, and marketing approaches.

These insights enable sellers to align their offerings with current consumer demands, ensuring relevance in the competitive e-commerce landscape and potentially unlocking opportunities for increased sales and market presence.

Understanding what is trending on Amazon pages empowers sellers to adapt and thrive in the ever-evolving world of online retail.

• New Releases: This page showcases products that have already proven to be successful and will soon be accessible, providing you with a chance to be an early adopter and capitalize on upcoming trends
• Movers and Shakers: This regularly updated list highlights products that have achieved the highest sales in their specific categories within the last 24 hours, offering an excellent way to stay informed about the latest customer shopping trends.
• Best Sellers: This page offers a comprehensive glimpse into products currently experiencing robust sales on Amazon, serving as a valuable resource for sparking ideas when searching for potential products.
• Most Wished For: This page showcases products frequently added to wish lists and actively searched for on Amazon, providing valuable insights into the most desired items by customers.
• Gift Ideas: This page highlights sought-after products commonly chosen as gifts. Combining insights from Most Wished For and Gift Ideas can assist you in pinpointing products with favorable profit margins and minimal competition, particularly during the holiday season.

How to Source For Amazon Products

Now that we understand what’s trending on Amazon and how to find these trendy products, navigating the product sourcing process is the next crucial step in building a successful e-commerce venture.

Effectively sourcing products involves finding reliable suppliers, ensuring quality and affordability, and maintaining a competitive edge in the market. In e-commerce, the right product is only as good as its source.

As we delve into the intricacies of product sourcing, we’ll explore strategies to identify trustworthy suppliers, optimize costs, and secure high-quality merchandise. By seamlessly transitioning from trend identification to strategic sourcing, sellers can position themselves for sustained success in the competitive landscape of online retail.

How to Find Reliable Suppliers

Identifying trustworthy suppliers is a cornerstone of successful product sourcing in the e-commerce realm.

One effective strategy is to conduct thorough research and due diligence on potential suppliers. Utilize online platforms and directories to find reputable manufacturers and distributors with positive reviews and a solid track record.

Additionally, leveraging tools such as Alibaba and ThomasNet can streamline the supplier process. These platforms provide a vast network of verified suppliers, enabling sellers to explore options, compare offerings, and assess the credibility of potential partners.

Communication is vital when establishing trust with suppliers. Engage in open and transparent discussions, seek references, and ask for product samples to assess quality. Building a relationship with your supplier fosters trust and ensures a smooth collaboration throughout the sourcing process.

Moreover, consider attending trade shows and industry events to meet suppliers in person. This hands-on approach allows for direct interaction, fostering a deeper understanding of the supplier’s operations and commitment to quality.

Combining diligent research, online tools, effective communication, and personal interactions forms a strategy for identifying trustworthy suppliers. By embracing these approaches, sellers can mitigate risks, enhance the reliability of their supply chain, and set the stage for a successful and sustainable e-commerce business.

How to Optimize Costs

Optimizing costs is a critical aspect of successful product sourcing and e-commerce operations. Several strategic approaches can help sellers maximize profitability while maintaining competitive pricing.

Several Amazon tools can assist sellers in optimizing profitability while maintaining competitive pricing. Here are some tools that can aid in achieving this balance:

1. Repricer Tools:
   • RepricerExpress, BQool, Informed.co: These tools automate the repricing process, adjusting product prices based on competitors, demand, and other factors to stay competitive while maximizing profits.
2. Profit Analytics:
   • HelloProfit, Fetcher, and Sellics: These tools provide detailed analytics of sales, costs, and profits. Sellers can analyze data to make informed pricing decisions and identify opportunities for maximizing profitability.
3. Competitor Analysis:
   • Jungle Scout, Helium 10, AMZScout: These tools offer features for analyzing competitors, including pricing strategies, product performance, and market trends, helping sellers optimize their pricing.
4. Inventory Management:
   • Forecastly, RestockPro, Teikametrics: Efficient inventory management helps prevent stockouts and overstock situations, allowing sellers to maintain consistent sales and pricing strategies.
5. Promotion and Deal Management:
   • Viral Launch, Zon.Tools: These tools help sellers create and manage promotions, discounts, and advertising campaigns to drive sales without compromising profitability.
6. Fee Calculators:
   • Amazon Fee Calculators, FBA Revenue Calculator, and RevSeller: Calculating Amazon fees accurately is crucial. These calculators help sellers understand the impact of fees on pricing and profitability.
7. Product Research Tools:
   • MarketScout, AMZScout, Jungle Scout: These tools assist in finding profitable products by analyzing market demand, competition, and pricing trends, guiding sellers to make strategic pricing decisions.
8. Customer Feedback and Reviews:
   • FeedbackExpress, FeedbackFive, Reviewbox: Monitoring customer feedback and reviews helps sellers gauge product satisfaction and make necessary improvements, influencing pricing decisions.
9. Shipping Cost Calculators:
   • Freightos, ShipBob: Calculating accurate shipping costs is essential. These tools assist in understanding shipping expenses and optimizing pricing strategies accordingly.

By combining these tools, sellers can create a dynamic and data-driven pricing approach, ensuring market competitiveness while maximizing profitability. Analyzing data regularly, staying informed about market trends, and adapting pricing strategies are crucial.

How to Purchase High-Quality Merchandise

Ensuring the acquisition of high-quality products involves implementing various strategic approaches, often supported by specialized tools.

Several tools can assist in sourcing high-quality merchandise by providing insights, analytics, and connections with reliable suppliers. Here are some tools that can help in purchasing high-quality merchandise:

1. Alibaba:
   • Alibaba is a vast online marketplace that connects buyers with suppliers. It allows you to find and communicate globally with manufacturers, wholesalers, and distributors.
2. ThomasNet:
   • ThomasNet is a supplier discovery and product sourcing platform. It provides a comprehensive database of manufacturers and suppliers across various industries.
3. Jungle Scout:
   • Jungle Scout offers a product research tool that helps sellers find profitable products on Amazon. It provides insights into product demand, competition, and supplier information.
4. Sourcify:
   • Sourcify is a platform that helps businesses find manufacturers and manage the production process. It ensures transparency and quality control in the sourcing process.
5. AMZScout:
   • AMZScout provides product research tools for Amazon sellers. It can assist in finding products with high demand and helps analyze market trends to make informed sourcing decisions.
6. Supplier Database on Amazon Seller Central:
   • Amazon Seller Central offers a supplier database, allowing sellers to discover and connect with potential product suppliers.

When using these tools, it’s essential to conduct thorough research, verify suppliers, and communicate effectively to ensure the quality and reliability of the merchandise you plan to purchase for your Amazon business.

Factors Affecting Product Research on Amazon

Once you’ve narrowed down your list of potential products, determining their profitability is vital.

Product validation becomes instrumental in this process.

In the following section, we’ll outline the four essential pillars for validating your (next) product idea, which encompass:

1. Demand
2. Customer
3. Competition
4. Profitability

Four Essential Pillars

Demand

Conducting a thorough Amazon product demand analysis is essential when researching potential products to sell. Without demand, no matter how brilliant your product is, nobody will purchase it.

Here are some factors to look at to identify demand for your product.

Minimum Daily Sales of 10 Units:

• Opt for products with a baseline of at least 10 sales per day. This daily sales benchmark indicates a noteworthy initial demand.

However, if a product achieves only 10 sales per day but carries high operational costs, it may not be a viable option. This is where the profitability aspect comes into play. High average sales should translate into improved profitability.

Let’s illustrate this with two products, both priced at $30:

• Product A sells around 5 units per day.
• Product B sells 10 units per day.

Assuming a profit of $10 after factoring in Amazon FBA fees, shipping, promotions, and other expenses:

• Gross monthly sales for Product A: $30 5 units 30 days = $4,500
• Gross monthly sales for Product B: $30 10 units 30 days = $9,000
• Monthly profit for Product A: $10 5 units/day 30 days/month = $1,500
• Monthly profit for Product B: $10 10 units/day 30 days/month = $3,000

Products with higher average daily sales yield superior profits. Understanding the correlation between demand and profitability is essential for making informed decisions in your product selection journey.

Tools to Determine Return On Investment (ROI)

1. Amazon Seller Central:
   • Sales Dashboard: Amazon Seller Central provides a comprehensive sales dashboard that includes order metrics, sales performance, and order details, allowing sellers to assess overall sales performance.
2. Helium 10:
   • Profitability Calculator: Helium 10 offers a Profitability Calculator that helps sellers estimate fees, profits, and ROI for individual products. It considers factors like product cost, shipping, and Amazon fees.
3. Jungle Scout:
   • Sales Analytics: Jungle Scout provides insights into product sales, revenue, and profit margins. Sellers can track the performance of their products and assess ROI.
4. Viral Launch:
   • Market Intelligence: Viral Launch’s Market Intelligence tool allows sellers to analyze competitor data, assess market demand, and estimate potential profitability, aiding in ROI calculations.
5. Sellics:
   • Profit Dashboard: Sellics offers a Profit Dashboard that consolidates data on sales, costs, and profits. Sellers can track the performance of their products and assess ROI over time.
6. AMZScout:
   • FBA Fee Calculator: AMZScout provides an FBA Fee Calculator that helps sellers estimate Amazon fees and calculate potential profits, allowing for more accurate ROI predictions.
7. Fetcher:
   • Financial Analytics: Fetcher is a financial analytics tool designed for Amazon sellers. It provides detailed insights into sales, costs, and profits, helping sellers understand their ROI.
8. Teikametrics:
   • Algorithmic Repricing: Teikametrics offers algorithmic repricing tools that automatically adjust product prices based on market conditions, helping sellers maximize profits and improve ROI.
9. InventoryLab:
   • Profit and Loss Statements: InventoryLab provides tools for managing inventory and generating Profit and Loss statements. It helps sellers track costs, calculate profits, and assess ROI.
10. DataHawk:
    • Sales Analytics: DataHawk offers sales analytics tools that provide detailed insights into product performance, sales trends, and profitability, aiding sellers in optimizing their Amazon strategy.

These tools offer a range of features, from estimating fees and calculating profits to providing in-depth analytics for better decision-making.

Depending on your Amazon business’s specific needs and scale, you can choose the tool that best aligns with your ROI analysis goals.

Similar Products in the Category Typically Have a BSR of 5,000 or Less

Analyzing a product’s sales frequency is complex, but leveraging the Best Seller Rank (BSR) provides insights into its performance within the category.

A lower BSR indicates higher sales, making it a crucial metric for product selection.

For optimal sales upon reaching the top spot, it’s recommended to have 3-5 products in the main category with a BSR around or below 5,000.

Remember to focus on the main category rather than subcategories when evaluating BSR for accurate sales predictions.

The Product Features Keywords That Have a Substantial Search Volume

A practical method to gauge product demand is assessing the search volume of relevant keywords.

As a general guideline, check if the top 2-3 product keywords command a search volume of at least 10,000+ to gauge demand, though this threshold may vary depending on your specific product and niche.

This Product Has Repeat Purchases

Identify items that foster recurring purchases, such as cosmetics or beauty products, as they can significantly build customer loyalty and brand retention.

These recurring items are pivotal in enhancing Customer Lifetime Value (CLV) by showcasing customer satisfaction and trust in your brand.

Customers who regularly purchase are less likely to switch to competitors or alternatives.

Additionally, this strategy minimizes acquisition and marketing costs since the focus is on retaining and satisfying the existing loyal customer base.

The Product Experiences Minimal Seasonal Fluctuations

Seasonality reflects how a product’s demand fluctuates throughout the year.

For instance, raincoats or winterwear experience heightened demand during specific seasons, such as monsoons or winter. Similarly, products like Halloween costumes witness increased demand during holidays.

Google Trends and Jungle Scout can help determine when specific keywords experience higher search volumes.

A consistent trend in search volume data suggests a product that sells consistently throughout the year.

However, periodic spikes in search volume indicate seasonality, revealing times of heightened demand.

While a business centered around seasonal products may yield profitability during peak times, it might lack long-term sustainability.

Customer

Beyond assessing demand, it’s crucial to delve into niche research and gauge customer sentiment to determine the suitability of a product for selling.

When researching potential products, consider utilizing Amazon tools like Jungle Scout or Helium 10 to streamline your research process. Look specifically for products with a modest review count, aiming for approximately 2-3 items on the first page with fewer than 50 reviews each.

Reviews play a pivotal role in the success of a product, offering insights into market dynamics.

Picture a scenario where a shopper encounters two products in the search results—one with minimal reviews and another boasting 50+. Invariably, the shopper will likely click on the product with a higher review count.

Penetrating markets where top products already have hundreds of reviews can be challenging for new sellers. Therefore, as a starting point, focus on products in which the top 2-3 listings on the first page have fewer than 50 reviews.

This strategic approach enhances your chances of establishing a foothold in the market and gaining initial traction.

Determine the Unique Selling Proposition (USP)

Examine both product reviews and the Q&A section to understand customer discussions.

If the leading products boast ratings of 4.5 or higher, they may be well-refined, making it challenging to identify product gaps.

However, for products with ratings below 4.5, analyze negative reviews to pinpoint areas for improvement.

Utilize these insights to enhance your products and tailor your product messaging accordingly.

The Entry Barrier Should Not Be Low

Avoid choosing a product with a readily accessible entry point.

The higher the difficulty of entering a new market, the fewer new sellers will present a challenge to your product.

Seek products that demand substantial capital investment, possess unique features, or exhibit strong differentiators from existing products.

Opting for such products allows you to steer clear of direct competition and carve out a niche market for your offerings.

Profitability

Upon assessing a product’s demand, competition, and customer dynamics, it becomes essential to verify the potential profitability of the product.

Consider the following factors to gauge the profitability of a product:

Search for Products Priced Within the $20-$50 Range

Look for products within the $20-$50 range, which tends to align with impulse buying decisions.

As the price increases, consumers become more contemplative about their spending, conducting additional research to assess the necessity of the product.

Conversely, lower-priced items may not undergo as much comparison.

However, extremes on both ends pose challenges. Higher prices may deter potential shoppers, while lower prices might be associated with subpar quality.

Finding the right pricing strategy is crucial. Striking a balance ensures your product covers costs, generates profits, and aligns with the perceived value held by customers.

Sellers often face challenges in determining the optimal pricing strategy, emphasizing the importance of thoughtful consideration.

Search for Lightweight Products

Search for products that are both small and lightweight. These items help minimize shipping and storage expenses, as the product’s weight and dimensions typically determine fees.

For instance, choosing a product like a necklace is more cost-effective than dealing with logistics for oversized items such as wooden furniture. While the latter may have high demand, logistics costs can significantly impact your profit margin.

Profit Margin Musts

Select a product with a reasonable profit margin, ideally within 25-35% range.

The primary objective of your business is profitability. Therefore, during product research, it’s essential to compute the gross profit margin to gauge the potential earnings of a product.

Consider a spectrum of costs, including subscription fees, selling fees, advertising fees, storage fees, shipping fees, and more.

While there’s no fixed profit margin to target, aiming for a 25-35% gross margin is recommended. This range provides ample flexibility for your advertising budget, enabling you to stand out among competitors.

To quickly determine the profit margin of a product, leverage tools such as Rev Seller, which complement your analysis and offer insights into fees and profitability to enhance your decision-making process.

Checklist for Researching Amazon Products

Here’s a concise checklist to assist you in selecting the ideal product for selling on Amazon:

1. Product prices within the $10 to $50 range
2. Products with a minimum of 10 daily sales
3. Similar products with a best-seller rank of at least 5,000 in the main category
4. Top 3 related keywords with 50,000+ monthly searches on Amazon
5. Non-seasonal products suitable for year-round sales
6. 2-3 products with fewer than 50 reviews on the first page
7. Small and lightweight products (under 2 to 3 pounds)
8. No association with brand names or trademarks
9. Setup cost should be 25% or less than the sale price
10. Room for product optimization and listing improvement
11. Multiple keyword opportunities related to the product
12. Quick and easy product sourcing from China
13. Non-fragile products
14. Potential for brand expansion with related products
15. Ability to create a superior product compared to competitors
16. Encourages recurring purchases
17. No legal issues associated with the product

Closing Remarks

In conclusion, delving into Amazon product research is an intricate but rewarding journey for any aspiring seller.

Throughout this exploration, we’ve emphasized the significance of meticulous analysis, highlighting key factors such as product pricing, demand, competition, and profit margins.

Personally leveraging these tools, I’ve navigated through the intricacies of Amazon product research, utilizing their functionalities to gain insights, refine strategies, and ultimately enhance my understanding of the market dynamics.

The key takeaway is that success in Amazon product research hinges on thorough analysis, strategic tool utilization, and an unwavering commitment to refining and adapting strategies.

As we venture into the competitive e-commerce landscape, the foundation laid through meticulous product research becomes the cornerstone for a thriving and sustainable Amazon business.

Answers To Your Questions