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As the world’s largest online marketplace, Amazon offers an unmatched opportunity for entrepreneurs looking to make their mark in the eCommerce industry.

Of course, to get started, you’re going to need a product to sell. Amazon product research is a crucial (and ongoing) element of online-selling success. Identifying items with high demand and low competition will allow you to maximize your profits, that much is crystal clear. The question is how to find a product to sell in that lucrative sweet spot.

In this comprehensive guide, we’ll explore the best Amazon product research strategies to help you supercharge your eCommerce journey.

1. Know Your Target Market and Customer

This knowledge will help you identify 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 products that appeal to them and stand out in the crowded Amazon marketplace.

The Amazon ecosystem is littered with failed product launches that have nothing to do with the quality of the product itself. Before you begin your product research, it’s essential to have a clear understanding of your target market and customer. You might have a perfectly good product idea but if you don’t know who your potential customers are, it’s still not going to work.

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 main categories and subcategories – paying close attention to products with high rankings – helps you identify potential product ideas based on current 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 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.

Software tools from companies such as Helium 10, Jungle Scout, and SellerApp are using AI as a springboard to offer increasingly sophisticated ways to grow your Amazon IQ. 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.

Keyword Research Tools

Amazon sellers know that online-selling success begins with 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.

Product Research Tools

Once you have your keywords sorted out, it’s time to concentrate on a 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:

• Sales and Revenue: Analyze the estimated monthly sales and revenue for a given product to gauge its market potential.
• Reviews: These give you a peek behind the curtain. Look for products with relatively low review counts, as this can indicate lower competition.
• Sales Velocity: Want to know what’s trending? Examine the sales velocity to determine how quickly a product is selling. This can help you identify trending items or potential evergreen products.
• Listing Quality: Analyze the quality of existing product listings, including images, titles, and descriptions. Because they’re often an indicator of a less-than-professional seller, poorly optimized listings may present an opportunity for you to create a better listing and capture market share.

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 in the market. Examine the top sellers in your chosen niche and assess their strengths and weaknesses. Consider factors such as pricing, product quality, brand reputation, and customer reviews.

If you can identify 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. Additionally, keep in mind that some products may have higher return rates or require more extensive customer support, which can impact your overall profitability.

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. By offering complementary products as a bundle, you can provide customers with added value and convenience, potentially leading to increased sales.

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:

• Surveying potential customers: Collect feedback from your target audience to gauge their interest in your product and identify any potential pain points or concerns.
• Analyzing Google Trends: Use Google Trends to assess the search interest for your product over time, identifying any seasonal trends or fluctuations in demand.
• Running a test launch: Consider launching a small batch of your product to gather initial sales data and customer feedback. This information can help you refine your product offering and optimize your listing before fully committing to the product.

8. Selling on Amazon is a Moving Target

We’ve all heard stories of Lamborghini-driving Amazon sellers that rode a brief, but powerful wave of eCommerce sales to life-changing riches. That happens on a much smaller scale throughout the Amazon ecosystem every single day. The Amazon marketplace is constantly evolving, with new trends and competitors emerging regularly.

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.

By staying agile and responsive to market changes, you can ensure that your Amazon business remains profitable and successful over the long term.

How Canopy Management Can Help

Amazon product research is a critical component of any successful eCommerce business. By leveraging the strategies outlined in this guide, you can effectively identify high-demand, low-competition products that cater to your target audience’s needs.

With thorough research, competitive analysis, and ongoing market monitoring, you can maximize your chances of success and build a thriving Amazon business. If you want to get a significant head start, reach out to the Amazon experts at Canopy Management.

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”:

• Strategic Growth Planning
• Listing Copywriting Optimization
• Listing Photography
• Product Videography
• Advertising Management
• Customer Service
• Demand Side Platform (Amazon DSP)
• Amazon Posts
• Full Service Management
• Amazon Review Aggregation