Amazon Product Research
Amazon product research is the process of evaluating the endless trends and all the information available from the marketplace to choose the niche with high-demand products to increase sales. The motive is to develop your goods for the lowest price accessible and then sell those with the highest profit ratio possible.
Product research is a crucial part of private labeling which is the technique of selling goods that you produce and publish under your brand.
Private label selling has become the most widely used way of selling on Amazon over the years because it proved to be successful. And product research has become a very complex procedure that involves many steps.
Importance of Amazon Product Research
Product research is critical as it offers the following advantages:
- Product research assists to explain the features of the product.
- It helps to facilitate the product line.
- It allows a manufacturer to create new products with good market demand in the existing product line.
- Product research generates the best sales returns.
- It expands the market for the product and also establishes goodwill for the product and its manufacturer.
- It promotes appropriate price fixation of the product.
- Product research brings to the spotlight the different uses of the product for beneficial publicity for sales promotion.
- It promotes modification and renovation of existing goods to make them highly competitive and acceptable to customers.
- It allows a manufacturer to introduce an outstanding package and brand name to the product for sales promotion.
Seven things you should avoid while doing Amazon product research
Below are the seven things you’ll want to avoid during product research:
- Glass Products
This is intuitive, but you can easily break glass. If you are sourcing from overseas, your products are being shipped on a boat that has been floating through the ocean for the greater part of a month. You should avoid such a risk.
- Categories with Large Brand Names
When you are just starting your online business, it’s crucial to keep in mind that you’re not Adidas. You are not a big corporation, nor do you want to be in any competition with them. The amount of time it would take to go against well-known brands (Nike, Garmin, Sony, Apple, etc.) is much better spent bringing numerous products to smaller niches at the same time it’d take to rank against a big brand.
- Over-Saturated with Sellers
This includes both normally third-party Amazon FBA sellers who found the opportunity faster and Chinese wholesalers who directly sell on Amazon. If it seems too obvious, you probably aren’t the only one who has spotted opportunity (and unfortunately speed is not on your side).
- Highly Evaluated Categories
Without the capability, you are putting yourself to high scrutiny. This is because a tech product can fall into the “doesn’t work properly” in many different ways. This could lead to negative reviews and high returns. A product that has negative reviews sells less than a product that has no reviews at all.
- Boxed Virtual Products
Take an already selling product and customize it to an audience you are targeting. When doing this, remember not to rip off another’s product. Doing so could lead to legal problems and it’s never a good business practice. That said, scarcely altering any product provides you the right to establish a remarkable offer for it. Take note of what your favorite product is missing or what else you have learned on the topic and TAKE ACTION.
- Consumables
Anything that is put in the human body is accountable to additional regulation by Amazon (and potentially the FDA) before being authorized to sell. Unless you know consumables, this process is difficult, you are better off avoiding it early on in your FBA seller career.
If you’ve made up your mind on selling consumables (i.e. you found the perfect pre-workout formula), it is ideal to have your product sourced from the US.
- Being subject to US restriction means an overseas manufacturer will not be aware of the rules.
- Competition with Many Variations
Generally, products with many variations only exist in prominent markets. If sellers are willing to invest in second, third, and fourth variations for a product, the smart money would say they’ve been successful for some time in the market. Avoid sophisticated markets and niches and look for ones where there’s room to grow. Your creativity can help you find a suitable marketplace.
Product Research Tool
Here is a tool that will assist with product research:
Nugetfind
This helps Amazon sellers and affiliate marketers to research, spot the hot products on Amazon, tracking, and understand trends. Detailed reports on products are provided.
Conclusion
Product Research gets its adequate credit, I cannot stress the significance of taking the time to find a product that doesn’t have any problems growing from it. These problems can come in the aspect of an oversaturated market, or an expensive PPC average bid price category. Take note of your current portfolio so that you don’t make the same mistake twice.