With marketplaces spread all over the world, more than 244 million active users on Amazon.com, exponential growth in eCommerce sales over the past few years, and promising future outlook, selling on Amazon seems like the biggest opportunity in eCommerce. However, this is true only as long as sellers are willing to devote time and resources to their business. The primary factors seasoned sellers said to contribute to their success selling on Amazon are having the time to commit to their business and having the necessary tools and information to help them with product research, business analytics, and customer engagement. When weighed in, the early stages of researching a product seems to be one of the most important steps.
As the name suggests, product research is the process of finding a product that has good demand, low competition, and can yield a high-profit margin. This crucial step will help you analyze trends of different products, check their profit margin, consider different costs and come up with products that are guaranteed to bring success.
Importance of Product Research
Along with helping you find the right products, product research can yield valuable information and insights to your business.
- Brand Establishment- A product is the foundation of a new and successful business or product line, which in turn, gives way to a winning brand. Your brand establishment and success starts with a single product.
- Competitor Research- Product research will also help you keep a tab over your competitors and come up with ways to maintain an edge over them.
- Marketplace and Ongoing Trends- A comprehensive product research will further update you with trends and drifts regarding the marketplace.
- Save Money- Once you understand the requirements of the target customers while researching your product, you will be able to strategize and avoid unnecessary investments.
- Innovation- Product research will offer a scope of innovation that can help in developing technologies of high value.
Good Product VS Bad Product
While you are looking for the right product, you may need to consider a few factors:
- Weight and shipment process: It is always advisable to look out for small, lightweight products that can be easily shipped without much fuss.
- Profit margin: It is important that you consider your costs and maintain at least a 60% profit margin.
- Competition: Just because a product has great profit margins does not make it a good product. You need to consider the competition by analyzing the number of reviews, the keyword competition, and the listing.
- Branding Potential and Expansion: You do not want your product to be a one-off item. It is helpful if you can cross-sell your products and also have the scope to potentially expand your brand off of Amazon into other markets too.
Finding the Right Tool
Now that you are aware of good products, it is time to deep dive and find your product niche. The increasing competition on Amazon means sellers are using sophisticated software and tools to research their products. Finding a ‘winning’ product may sound easy, but it is not an easy task. You need to employ active research and analysis and also ensure your products meet the different criteria mentioned above.
With a team of seasoned Amazon sellers and an industry-leading suite of powerful Amazon FBA seller tools, we make it easy for businesses to find the right products and markets where those products can flourish. We will also help you maximize your sales and keep a track of your progress. Contact Alep Digital today!