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Amazon Product Research 101: The 8-Step Checklist to Maximize Success

Discover Tactics to Make Sure Your Sales are Headed Up and to the Right with These Proven Amazon Product Research Strategies!

  • March 26, 2024
  • /
  • Brian R. Johnson
Stylized image of multiple panels featuring graphic representations of ecommerce product research

Amazon’s massive online marketplace is perfect for entrepreneurs wanting to succeed in ecommerce. To take the first step and compete in what’s become an increasingly challenging ecosystem, you need a great product.

Amazon product research that helps identify items with high demand from potential buyers, and low competition from competing sellers is the obvious answer.

Unfortunately, it’s not that simple. After all, you’re not the only one with the same idea! 

Experienced Amazon sellers talk about a lucrative sweet spot that exists where there’s “enough” volume to be profitable, but not so much that EVERY ecommerce seller is going after the same niche product.

The question is how to find those relatively unexplored product opportunities.

In this comprehensive guide, we’ll explore the best Amazon product research strategies to help you supercharge your ecommerce journey, and tap into these “hidden” product opportunities.

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1. Know Your Amazon Target Market and Customer

To succeed on Amazon, you absolutely NEED to know WHO you’re trying to sell relevant products to.

This knowledge will help you identify the type of products that cater to your audience’s needs and preferences. Consider factors such as demographics, purchasing behavior, and pain points when defining your target market. 

Once you have a clear picture of your ideal customer, you’ll be better equipped to identify a product category that will appeal – directly – to them.

Only then can you stand out in an overcrowded Amazon marketplace.The Amazon ecosystem is littered with failed product launches of perfectly good products. Before you begin your product research, it’s essential to have a clear understanding of your target market and customer. 

You might have a great product idea, but if you don’t know who your potential customers are, it’s still not going to work.

A graphic image of an open laptop computer with an Amazon product page and a large magnifying glass. In front of the image is a professional man and woman working

2. Take Advantage of Amazon’s Best Sellers List

If you’re looking for answers, why not go right to the source? Amazon’s Best Sellers lists provide valuable insights into products that are currently popular among Amazon’s own base of customers.

Browsing through the Amazon product ranking – paying close attention to quality products with great product reviews – helps you focus on real-time demand. Make sure and pay particular attention to emerging trends or seasonal items that might be worth exploring.

While it’s important to consider top-selling products, be cautious about entering highly competitive markets. Lucrative, overly fought-over niches are also home to aggressive, occasionally unscrupulous sellers.

Finally, analyze the competition to determine whether you can offer a unique selling proposition that sets you apart from the rest.

3. Get Your Amazon Tool Belt Out

It’s no secret that artificial intelligence and machine learning are having a moment. As an entrepreneur, you’re probably aware that ecommerce has become ground zero for much of the advancements that have been made.

Product research tool software from companies such as Helium 10, Jungle Scout, and SellerApp are using AI as a springboard to offer increasingly sophisticated ways to find profitable products to sell. Many of those software tools are focused on the ability to conduct in-depth research into the two pillars of ecommerce, highly-searchable keywords and great Amazon products.

The exponential advances to artificial intelligence allow the Software as a Service (SaaS) companies listed above to fine tune the results they can offer online sellers. Whether it’s metrics such as historical sales data, sales history, or estimated sales, product research tools will simplify the process of finding best selling products.

Amazon Keyword Research Tools

Amazon sellers know that online-selling success begins with lists of keywords. Keywords (the popular search terms that prospective customers are using to find products like yours) are what’s going to allow you to make money on Amazon, or not.

Keyword research tools such as Jungle Scout’s Keyword Scout, and Helium 10’s Magnet can provide valuable keyword data and search volume estimates. Utilize these tools to gauge the demand for specific products and identify potential opportunities based on search trends.

Veteran Amazon sellers often say that “the riches are in the niches.” 

Be sure to analyze long-tail keywords to get a closer look at niche markets with lower competition. By targeting these niches, you can carve out a space for your product and potentially achieve higher rankings on Amazon search results.

Amazon Product Research Tools

Once you have your keywords sorted out, it’s time to concentrate on a profitable product. Product research tools can help you streamline your Amazon product research process by providing key data on sales, revenue, competition, and more. 

Product research tools often provide a range of filters that allow you to narrow down your search based on criteria such as price, reviews, and sales velocity.

When using these tools, consider the following factors:

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4. Know Your Competition

You’re not going to be out there all alone on Amazon’s marketplace. Every day it’s getting a little more crowded. When considering a product, it’s crucial to analyze your competition to determine whether you can effectively compete.

Use positive reviews and Amazon product rankings to see the top sellers in your chosen niche. Then, assess their strengths and weaknesses. Consider factors such as pricing, product quality, brand reputation, and customer reviews.

By identifying areas where your competitors are lacking, you may be able to capitalize on these shortcomings and offer a more appealing product. Additionally, this analysis can help you determine whether there is enough room in the market for your product to succeed.

If the niche is overly fought over, that might be a signal to do a little more research, or drill down into a slightly less competitive niche.

5. You Need to be Able to Make Money

As exciting as entrepreneurship and ecommerce can be, for 99% of us, this is about making money. Profit margins are a crucial factor in determining the success of your Amazon business. 

When researching potential products, calculate the estimated profit margin by subtracting the cost of goods sold (COGS) and Amazon fees from the selling price.

When calculating profit margins, consider factors such as manufacturing costs, shipping fees, Amazon referral fees, and FBA fees. Keep in mind that some products may have higher return rates or require more extensive customer support, which can impact your overall profitability.

A graphic image showing two hand exchanging credit cards

6. Why Make Just One Sale?

This seems like an obvious one. Once you’ve done all the work to bring a shopper to your (virtual) front door, why stop at just ONE single sale. Product bundling is an effective strategy for increasing your average order value and at the same time, it’ll help you stand out in Amazon’s crowded marketplace.

Offering complementary products as a bundle allows you to provide customers with added value and convenience, potentially leading to increased sales. With so many Amazon products mirroring each other with their “sameness,” virtual bundles is one more way to stand out.

When researching potential bundles, consider products that naturally pair well together and cater to a similar target audience. Additionally, ensure that your bundled products offer a clear benefit to customers and align with their needs and preferences.

7. Verify Your Product Ideas

One way or another, we’ve all had our own version of can’t-miss ideas. The Amazon ecosystem is full of stories of entrepreneurs that were SURE that they had a great product idea. Even their close friends and family agreed with them. 

Unfortunately, that’s not the same thing as receiving feedback from real, live Amazon shoppers that vote with their credit cards.

It’s essential to validate your ideas before committing to a substantial investment. This process can help you avoid costly mistakes and ensure that you’re pursuing a viable product with a strong market potential. 

Some validation methods include:

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8. You Need to Think About Amazon SEO

Before you pull the trigger, and put that great new product up on the Amazon marketplace, how are you going to use Amazon SEO to optimize your Amazon product so that it makes it to the top of the page?

To successfully sell on Amazon, you can’t be on page three or four. You need to be on page one!

Amazon search engine optimization (SEO) and listing optimization both refer to the process of attempting to rank as highly as possible in Amazon product searches.

To do that you need to enhance every aspect of your product detail page, including:

  1. Images and Video
  2. Product Title
  3. Key Product Features
  4. Product Description
  5. Backend Search Terms

Selling on Amazon isn’t for the faint of heart. Challenges such as addressing a negative review, or getting your product price correct are par for the course. Making sure your Amazon SEO is as good as it can be is one way that you can actually put your finger on the Amazon scale!

How Canopy Management Can Help

We’ve all heard stories of Lamborghini-driving Amazon sellers that rode a brief, but powerful wave of ecommerce sales to life-changing riches.

To maintain your competitive edge, it’s essential to monitor market changes and adapt your product research strategies accordingly. Keep an eye on industry news, competitor activity, and customer feedback to identify any shifts in demand or emerging opportunities.

The problem is that selling on Amazon is taking more and more time to get it right.

To succeed in such a competitive marketplace, you need to be able to combine the latest strategies with deep marketing experience. For many top Amazon sellers, Canopy Management’s full service account specialists have become the X Factor allowing them to move past the competition.

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

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