When choosing Amazon products to sell in your storefront, not all products are created equally! Whether you’re an established seller seeking new products to add to your product line, or you're looking for that winning product to launch for the first time, we can help you wrap your head around Amazon product research.
Keep reading to learn what makes some products better choices and more profitable than others!
What is Amazon Product Research – and Why is it Important?
Amazon product research is when sellers research product markets, consumer demand, and competition, as well as weigh pros and cons to find out their potential success when selling a product. This process is an important step for both seasoned sellers and newcomers alike.
Even if you think your product will do well in theory, it may not do well in reality. The five product research secrets we’ll lay out in this post can help you avoid taking a massive loss from an unwise product selection. These Amazon seller tips may even guide you toward a diamond-in-the-rough product that you wouldn’t have thought of otherwise.
How to Find a Profitable Amazon Product
So how do you know if your product would be a strong contender within the e-commerce space? The main thing experts stress to Amazon sellers is to complete a market evaluation – and product research falls under that process. It’s essential to do this before going all in with any product.
The good news:
It’s not as difficult as it sounds. We’ve made it even easier for you by compiling the most prominent Amazon product research secrets you should use to determine whether or not your product has a chance of selling successfully.
1) High Demand, Low Competition
You always want to shoot for products that are in high demand, but ideally lower in terms of competition. How can you do this? Here are a few ways.
Use Google trends
Spy on your competitors
Speak with current suppliers to discover winning Amazon products
Specifically, you can determine the level of competition and demand by looking at the product’s search volume, sales velocity, and the number of reviews on any Amazon product detail page. Analyze whether you can compete with price point and value and if it’s easy to get knocked off by cheap imitations.
We know: it’s not always easy to find a product that has little competition. We will say that if it’s a competitive niche, make sure your product is at least significantly better or unique in some way so you can market it as such and set your brand apart.
Make sure the product you choose is one you can improve upon compared to competitors. In other words, look for products or sellers that have potential but aren’t reaching that potential. Then, do it better. For instance, you can add a bonus accessory or carrying case to your offer, or find a supplier that uses more durable materials or better packaging.
2) Focus on Consumable Products
Our next Amazon product research tip is to focus on consumable products only. Make your product is one that customers will want or need to reorder time and time again, such as food, makeup, toiletry items, etc. This increases your customer lifetime value, meaning that you’ll likely receive more revenue for a lower investment – music to the ears of successful Amazon sellers.
It has to always be worth acquiring those customers through paid ads and costly marketing efforts, so strive to convert your customers more than just once instead of losing them with each purchase!
3) Forget Strictly Seasonal Products
That’s right – seasonal products won’t do you any favors. Instead, find a product that customers want or need throughout the year regardless of the weather, holidays, school in session versus summer break, etc. Consistent selling is one key to ranking on Amazon.
Seasonal markets equal a lot of ebb and flow, and ultimately too much to rank at the top as an Amazon seller. Such products limit your sales for the majority of the year, so it’s best to stay away from them.
4) Avoid Ad-Restricted Product Categories
When doing your Amazon product research, you should choose an ad-friendly product. Otherwise, you may not be able to advertise and convince customers to buy. The last thing you want is for someone else to dictate how and when you can promote your product.
Maintaining control is important for Amazon selling. It’s best to avoid ad-restricted categories, which you can learn about by looking at the restricted product policies for Google, Facebook, and TikTok.
5) Sell Low-Cost, Effortlessly Packaged & Fragile-Free Items
It’s important to choose a product that can be easily packaged, that isn’t easily breakable, and that can be shipped for a low cost. This will enable you to minimize losses in the long run. Over time, a fragile product will lose money when you keep needing to throw away damaged inventory.
Additionally, you’ll be actively limiting the number of frustrated customers from items arriving broken. Of course, you will subsequently be avoiding negative reviews and a lower ranking. By sticking to lightweight, smaller items you’ll also save on shipping costs and storage fees.
Bonus Tip! Avoid Products With a Short Shelf Life
As a bonus, we’ve included this tip to consider strongly during the product research stage. Make sure you avoid losing out by investing in or stocking products that you’re forced to throw away, liquidate or give away due to short shelf life!
You want to focus on nonperishable items or those with a longer shelf life. Avoid that stress altogether – you have enough of it managing an online business! Instead, give it the best chance for success by investing in a product that will last.
Success Starts With Amazon Product Research
Successfully selling products on Amazon depends upon finding a profitable niche. To do so, you’ll need to conduct market research and find relevant competitive and trendy products that also align with your interests and passion.
Choosing the right product to sell is key to any Amazon seller’s success. When it comes down to it, conducting proper Amazon product research can mean the difference between failure and success.
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