With millions of products on Amazon, finding the best-selling ones may feel overwhelming. But using strategies and tools for Amazon product research can help you discover successful products. This guide will lead you through the process and provide the knowledge and tools to find profitable products on Amazon.
Trends in Product Research
For sellers to choose which products to sell and set prices wisely, Amazon product research is vital. It guides you toward products in high demand, boosting your profits.
A key trend in 2024 for product research is making data-driven decisions. Amazon sellers are increasingly using tools to find new, profitable product ideas. Product sourcing software is becoming essential for sellers and virtual assistants conducting product research.
How Product Research Works
Amazon product research involves finding, evaluating, and selecting products with high-profit potential to sell on Amazon. Choosing profitable products with moderate competition can lead to significant profits. There are two primary ways to conduct product research:
1. Manual product research involves manually browsing Amazon’s product catalog, looking for relevant data, and analyzing it. However, this method is time-consuming.
2. Tool-assisted product research uses specialized software tools to automate data gathering and analysis, providing valuable insights and simplifying the process.
Criteria for Amazon Product Research
When researching products, ensure they align with your selling goals by answering four key questions about the product. These questions determine the criteria to consider.
4 Questions Product Research Should Address:
– Will the product sell well?
– How much money will I make by selling it?
– Can I sell it on my Amazon account?
– Are there any restrictions, IP complaints, or other issues related to the product?
Product Research Criteria
To address these questions about a potential product for Amazon, consider the following criteria:
Demand: Check if the product will be popular and is among the top-selling items.
Competition: Avoid products sold by too many sellers as it can lead to price wars and lower profit margins.
Price: Ensure competitive pricing; for margins below 10%, consider a different product.
Eligibility and Restrictions: Ensure you can sell the product on your Amazon account, check restrictions, ungating requirements, and review sales history for IP complaints.
Profitability: Calculate profits after deducting all costs including Cost of Goods Sold, Amazon fees, shipping costs, and other expenses to ensure they align with your targets.
Step-by-Step Guide to Amazon Product Research
Now that you understand what to focus on when researching products, let’s break down the process step by step. We will use Seller Assistant App, a popular product research tool, to quickly access and analyze product data on Amazon product pages.
Step 1: Estimate Product Sales
Utilize Amazon’s Best Sellers Rank (BSR) to understand how well a product sells. A lower BSR number suggests higher sales. Monitor the BSR trend for sales potential.
Step 2: Analyze Buy Box Information
The Buy Box price indicates the pricing level to aim for. Understanding the Buy Box price is crucial for winning it, which will bring you approximately 80% of sales. If Amazon holds the Buy Box, dealing with the product might not be advantageous.
Step 3: Evaluate Competition and Sales Potential
Once you’ve checked if the product price works for you, it’s important to know how tough the competition is and how many items you can sell. If there are more than 10 Amazon FBA sellers on the listing, competition is tough, which can make sales harder. On the other hand, if there’s only one seller, it could be a private label product. In this situation, they own the rights to their brand, so you can’t sell it.
Step 4: Check Selling Eligibility and Restrictions
Ensure you can sell the selected item on Amazon by confirming selling eligibility. Look out for restrictions, as certain products require Amazon’s approval. Be aware of IP complaints, meltable, or restricted items to prevent listing deactivation.
Step 5: Evaluate Product Profitability
Calculate product profitability by deducting all costs from the selling price, such as the Cost of Goods, Amazon fees, fulfillment and shipping costs, third-party logistics fees, and other expenses. Use FBA & FBM calculators to determine profit, ROI, and profit margins for informed decision-making.
Step 6: Save Research Results to Google Sheets
Export researched Amazon product data to Google Sheets for easy storage, analysis, and further processing. This step ensures you have all your research findings saved and organized for reference.
Final Thoughts
In conclusion, thorough Amazon product research is crucial for successful selling on the platform. By following the steps laid out in this guide, you can find products that are in-demand, profitable, and have low competition, paving the way for success in earning money on Amazon.
Remember, the key to effective product research is utilizing product sourcing tools. Tools like Seller Assistant App are invaluable for helping you reach your goals. This all-inclusive browser extension is designed to help you discover the most profitable products for your Amazon store effortlessly. It seamlessly integrates with Amazon search and product pages, providing you with essential data to make informed decisions. Featuring an FBM and FBA profit calculator, Quick View, Stock Checker, Restrictions Checker, and other useful functions, the app helps you identify the best products for success on Amazon.
