If you want to sell on Amazon and make real money, one of the most important things you need to learn is product research. Product research means finding the right product to sell. It sounds easy, but it’s not. You have to be smart and careful. This guide will walk you through product research step by step, in a clear and understandable way.
Why Product Research Is So Important
Before you start selling, you must pick the right product. If you choose a poor product, regardless of how effective your ads or listings are, you will struggle to generate sales. Good product research helps you find products that customers want, that you can make money from, and that are not too hard to sell.
Many new sellers rush through this step, only to end up losing money. Don’t do that! Spend time doing product research. One month or more is a good idea. The better your research, the better your chances of success.
Two Things You Need to Start Product Research
There are two big things you need before you start looking for products:
- Product Criteria – This is your checklist. It tells you what kind of product you want.
- Product Research Tool – A special tool to help you find good products fast and get a competitive edge.
What Should Your Product Criteria Be?
Here are the main things to look for when picking a product:
- Sales Price: Pick products that sell for at least $15. Why? Because of how money is divided when you sell on Amazon. Approximately one-third of the cost goes to manufacturing and shipping the product. One-third goes to Amazon fees. The last one-third is your profit. If you pick a product under $15, your profit might be too small.
- Profit Margin: Aim for a good profit margin. For example, if you sell a $15 product, you want to make around a $5 profit per sale. Check the cost to make the product and ship it. Usually, production costs should be less than 25% of the sales price to leave room for shipping and fees.
- High Demand: Look for products that sell at least $3000 per month. That means many people want them. Use tools like Helium 10 or Jungle Scout to check demand.
- Low Competition: Find products with fewer competitors. Check how many reviews the top sellers have. Products with fewer than 50 reviews on the first page are easier to beat.
- Good Listing Quality: Examine the quality of the current sellers’ listings. Are their photos clear? Are their descriptions detailed? If you can make better listings, you have a good chance of winning.
- Product Quality: Check if existing products have bad reviews. If many customers complain about the quality, you can make a better product to stand out.
- Easy to Manufacture: Opt for simple products that are straightforward to produce. Avoid complex items, such as electronics or those with multiple parts.
- Seasonal Products: Be aware of products that sell mostly during specific seasons. For example, pool toys sell more in summer but less in winter. You can still sell seasonal products, but you need to plan well.
How to Find Product Ideas
Once you know what to look for, it’s time to find product ideas. This is where product research tools become very useful. Helium 10, for example, has a huge database of Amazon products you can search through.
You start by entering filters like category, minimum price, monthly revenue, and maximum number of reviews. After a short while, the tool will give you a list of products that match your criteria.
However, this list is only the beginning. If you spend more time exploring, you will discover even better products. Remember, millions of products sell on Amazon, so the possibilities are endless.
To summarize everything:
- Select categories that match your criteria (avoid items that are difficult to make).
- Set minimum price to $15.
- Set the minimum monthly revenue to $ 3,000.
- Set maximum reviews to 100.
However, remember that this is just the beginning! If you spend more time, you’ll find even better products because millions of products sell on Amazon. You just need to look carefully.
Checking Competition and Product Details
Finding good product ideas is not enough. You need to dig deeper. Look at your competitors closely:
- Read All Negative Reviews: This is a goldmine! Find out what customers don’t like about the current products. Maybe the product breaks easily, or the instructions are confusing. This guides how to create a better product.
- Check for Patents: You don’t want to sell something that another company patents because that can cause legal problems.
- Look Outside Amazon: Can You Sell This Product on Other Websites? What is the competition like there? This helps you gain a better understanding of the market.
- Consider Related Products: Can you suggest additional products that complement this one? This is good if you want to build a brand.
- Product Customization: Can you change the color, size, or design to make it better or unique?
- Brick & Mortar Stores: Is this product sold in physical stores? If yes, where and for how much? This can impact your pricing and marketing strategies.
- Supplier Relationships: How easy is it to work with the manufacturer? Good communication means fewer problems later.
Don’t rush this step! Taking your time here will save you headaches later.
Manual Product Research Methods
Sometimes, you don’t want to rely only on tools. You can do manual product research on Amazon itself. This means using the Amazon website and looking carefully for clues.
One way is to use popular brands you know in the category you want to sell in. For example, if you want to sell skincare, look at big brands like Vaseline. But don’t sell those brands! Instead, check the products these brands sell and who else is selling similar products.
You look at the sellers on a popular brand’s listing and then check their inventory. This helps you see what products are selling well under less-known brands. Then, you remove the popular brand name from the product’s keywords and search for just the product type, maybe adding words like “smooth” or “silky” to refine the search.
The goal here is to identify smaller brands that are selling well. It’s easier to compete with these than with big brands. This manual method helps you learn what works on Amazon and what customers want.
Example Products From Research
Here are two examples found using product research tools:
- Dog Planter: A cute planter shaped like a dog. It sells for $23, costs $3.30 to make, and ships for $2. The estimated profit is about $8.56 per sale, and it has good demand but low competition. Some reviews complain it’s hard to assemble, so you could offer better instructions.
- Soft Dog Cone: A pet recovery collar. It sells for $28 with a high profit margin of 47%. It has many sales but more competition. Still, with a well-crafted listing and effective ads, you can outperform your competitors.
Final Tips for Successful Product Research
In conclusion, thorough product research is the foundation of a successful Amazon business. Don’t rush it. Spend at least a month or more exploring ideas, checking competitors, and learning about the market.
Use both tools and manual research methods. Dig deep into the competition by reading reviews and checking patents. Consider ways to enhance or personalize your product and develop a strong brand identity.
Effective product research leads to informed product choices, resulting in improved sales and profits. Take your time, be patient, and get ready to find the perfect product to start your Amazon journey.
Want Experts to do the Product Research For You?
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