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How To Do Product Research On Amazon
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One of the main challenges for Amazon sellers is to do product research and find the right products to sell. With Amazon offering a huge variety of over 600 million products, finding popular items can be a lot to handle. However, by using reliable methods and tools for product research on Amazon, you can efficiently find successful products and set yourself up for success.
This article focuses on tackling the task of Amazon product research by sharing tested techniques and tools to uncover profitable products in 2024.
What is Product Research?
Product research on Amazon means finding, evaluating, and choosing products that can make good profits. The aim is to discover products that people want and that have low competition to increase earnings. Here are two ways to do product research:
1. Manual Product Research:
This involves looking through Amazon's products, collecting useful information, and checking for potential opportunities. Although effective, it can be time-consuming.
2. Product Research with Tools:
Using special software makes the process easier by gathering and analyzing data automatically. These tools offer helpful insights, making research simpler and saving time.
Key Points for Amazon Product Research
When doing product research, consider these four main questions to match your selling goals:
1. Will the product sell well?
2. How much profit can you make?
3. Can you list the product on your Amazon account?
4. Are there any restrictions, intellectual property concerns, or other issues with the product?
To address the four main questions about a potential Amazon product, consider the following criteria:
- Demand
When evaluating a product, ensure there is demand among customers and that it ranks well in sales.
- Competition
Select a product that isn't oversaturated in the market, as high competition can lead to lower profit margins if prices are driven down by other sellers.
- Price
Ensure you can price your products competitively. If your profit margin is less than 10%, consider exploring other product options.
- Eligibility and Restrictions
Confirm that you can list the product on your Amazon account, and review any restrictions. Analyze the product's sales history for potential intellectual property issues or other complications.
- Profitability
Calculate your potential profit by subtracting all costs from the selling price, including Cost of Goods Sold, Amazon fees, shipping expenses, and other related costs. Verify if the projected profit aligns with your financial goals.
How to Research Products for Amazon?
Checking products for these criteria can be done easily with special tools. One of such is a Seller Assistant. It assists in identifying profitable deals directly on Amazon's product and search pages and enables thorough research on supplier websites. Here is a detailed guide on how to conduct product research and discover online arbitrage opportunities using this tool.
13-Step Guide to Researching Amazon Products:
13 Steps for Amazon Product Research
Step 1: Adjust links to remove referral tags
Delete "ref=" tags from product links for accurate data collection.
Step 2: Avoid private label brands to prevent IP complications
Stay clear of trademarked products to sidestep Intellectual Property issues. Seek products with multiple FBA sellers and no IP concerns.
Step 3: Assess FBA seller count for balanced competition
Look for listings with a moderate number of FBA sellers (ideally 3-15) to ensure fair competition.
Step 4: Stay away from products dominated by Amazon
Avoid direct competition with Amazon for the Buy Box to improve sales possibilities.
Step 5: Confirm listing age for sales track record
Ensure the product has a sales history of at least 6 months for better evaluation.
Step 6: Study BSR trends for steady sales performance
Review Best Seller Rank trends to pinpoint products with stable sales patterns and growth potential.
Step 7: Examine Buy Box offers for pricing consistency
Analyze Buy Box prices and competition to understand pricing stability trends.
Step 8: Validate variations for adherence and sales prospects
Ensure compliance with Amazon's variation regulations and identify the top-selling variation.
Step 9: Evaluate product ratings for positive reviews
Look for a 4-5 star average rating to guarantee customer satisfaction.
Step 10: Verify eligibility and restrictions for selling
Check the product's eligibility on your account and ensure it's not restricted for sale.
Step 11: Identify potential product challenges
Take note of any issues such as oversized items or hazardous materials.
Step 12: Estimate sales potential based on competition
Understand your potential sales considering the existing market competition.
Step 13: Ensure profitability with a minimum 10% ROI
Calculate your Return on Investment (ROI) aiming for at least 10% profitability.
FAQ
What does Amazon product research do?
When we talk about Amazon product research, we mean looking at different aspects of products like how much people want them, who else is selling them, how much money they can make, how well they've sold, and other details. This helps sellers figure out if a product can make a profit on Amazon, helping them choose products with high-profit potential and make smart decisions about investing.
How do I research the best product to sell on Amazon?
To find profitable products to sell on Amazon, you should do thorough product research by checking factors like demand, competition, profit margin, sales history, and what customers say about the products. You can use special tools to collect and analyze data efficiently.
What is Amazon product analysis?
Amazon product analysis means studying and understanding how well products perform and could perform on Amazon. This involves looking at things like sales data, customer feedback, what competitors offer, and market trends to find profitable products and decide how to sell them wisely.
How do I become a product researcher?
To become a product researcher, start by learning about market analysis and how to interpret data. Get good at using tools for product research.
How much can you make as an Amazon product reviewer?
The typical salary for Amazon product reviewers ranges from $15,000 to $25,000 per year. However, this can change based on experience, how many products you review, and the quality of your reviews. Some top reviewers can make $50,000 or more per year.
In Conclusion
To succeed in selling on Amazon, it's crucial to do thorough product research. By following the steps in this guide, you can find profitable products that are in high demand and have low competition, setting yourself up for success in earning money on Amazon.
Don't forget, the secret to effective product research lies in using product sourcing software. Tools such as Seller Assistant will greatly help you in reaching this objective. This detailed browser extension is designed to support you in discovering the most profitable products.
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