What do you know about the competition? What do your customers want? How can you better stand out from the rest of the pack? These are all questions that come to mind when considering how to grow your amazon business. And the best way to answer them is by doing some Amazon product research. Let’s take a look at ten amazing reasons why you need Amazon Product Research?
going further as a giveaway, we have shared detailed practical strategies that you can adopt after completing your research for a successful business. You can dominate the market with these ten strategies, even if you don’t know abc of selling on Amazon before now.
Let’s dive right in.
1: To get established as a brand
Amazon product research is a match made in heaven for you to get recognition as a brand in this fast-growing e-commerce marketplace.
Finding a profitable product is easy; what’s hard is finding an inexpensive one. That’s where the power of research comes into play. When done right, there are thousands of niche markets waiting for your goods at competitive pricing.
- Set up your account and get started on Amazon.
- Once you are set up as a seller, you can list your products on the site.
- The next step is getting reviews for your product – this will help prospective customers decide if they should buy from you or not.
- It’s essential to make sure that your product is priced competitively with other similar products on Amazon so that people will buy from you.
- Finally, it’s time to advertise. Use Facebook ads, Google Adwords, and other social media platforms like Instagram and Pinterest, snack videos, ticktock, etc.
- When advertising, be sure not just put text but include an image of the product too.
- Constantly update your inventory to attract sales from potential buyers.
- Lastly, be patient. It may take some time for deals and reviews to come in, but eventually, your business will start booming.
2: Learn more about your competitors
The most important part of your product research is to have a competitive understanding of other sellers and products. Amazon product research is one of the foolproof methods to gain competitive Intelligence.
- Sign up for a seller account.
- Start reading the reviews of your competitors and see what customers are saying about their products.
- Check out their pricing strategy.
- See if they have any promotions at the moment.
- Find out where they ship to, how much it costs, and how long it takes for them to get there?
- Look into their customer service policy – do they offer refunds or exchanges? Do they respond quickly to customer messages? How is their response time in general?
3: Get clarity of what people are searching for
Doing Amazon product research makes things easier for you to find a profitable niche and figuring out your potential customers. It pays off greatly when you know where your customers are coming from and where they reside physically and mentally. The longer we’re at this task, the more insight we gain, leading towards a profitable business.
- Explore Amazon’s search function that can give you some insight into what people are searching for.
- You can use the “Frequently Bought Together” section to see what other items people buy when they purchase something.
- The “Customers Who Bought This Item Also Bought” section is another way to get an idea of what to sell on amazon.
- By looking at the reviews, you can find out how popular an item is and whether it’s worth selling or not.
4:To find out which products are trending in the market
Product trends are constantly changing, so it’s not enough to keep up with what people want – you have to be ahead of them as well. And it means doing some essential market research now and then by checking out top-selling items at Amazon.
- Look at the best sellers list to know what’s trending on Amazon.
- You can also use Google Trends, which shows you how popular certain products are in your area.
- Another option is to go through reviews of different products and see if any trends come up.
- Consider joining an Amazon seller’s Facebook group for additional support and advice from other sellers.
- Keep an eye on the latest changes on Amazon, like their new search algorithm, which will affect how well your products rank, so stay informed.
- Read blogs about selling on amazon from successful sellers who can provide valuable insights into maximizing sales by utilizing tools such as Fulfillment By Amazon (FBA) or Merchant Fulfilled Prime listings (MFSP).
5: Find out if you’re overcharging for shipping or not enough on the price
Before launching your product on Amazon, you need to do research. First and foremost, it’s essential that you know if the shipping price is too high or not enough for what people are willing to pay.
- Shipping costs may be based on weight, size, and distance. If your product is bulky or heavy, shipping will be expensive, so charging more for it would make sense.
- The more you ship at once, the lower your shipping cost will be because it’s cheaper to send out one large package than multiple small packages.
- You can estimate what your shipping costs will be by using Amazon’s handy calculator, which calculates the weight of your order and then tells you how much it would cost to ship that amount of weight.
- If you have an account with UPS or FedEx, they may offer discounted rates on certain days.
- One significant factor is where you plan to sell – if your product will only be sold in one or two locations, then it’s best to stick with standard rates not to scare customers away from buying.
6: Figure out how much inventory is needed
Amazon product research is a vital part of getting ready for any event. It ensures that there are enough products and nothing goes to waste.
For example, If Mr. A deals in Jars and a big new year sale is around. Research on Amazon’s inventory management system can help Mr. A estimate how many jars he should stock, based on the demand stats at the previous big event he planned.
- Learn about Amazon’s inventory management system.
- Try to figure out your inventory turnover rate, which you can do by looking at how often you sell items.
- Calculate the average of units sold per order.
- Figure out the average cost of each unit sold.
- Know what is needed for a successful product launch on Amazon.
- Always ensure you have enough funds set aside before launching your product on Amazon.
7: Determine which products will sell well and make money
Product research is essential to both increase sales and generates more revenue. Amazon’s product research team is very well-known for predicting which products will sell and help provide a boost in revenue. In addition, it allows you to make smarter decisions by stocking the stuff.
You can predict profit-generating products through research in the following areas.
- Find out what is already being sold on Amazon.
- Research which products are trending with customers,
- Identify the types of items that people want or need but don’t have time to buy.
- Research more to ensure that you can get the product from multiple sources, so there’s no issue if one place runs out of stock.
- Figure out how much profit margin you will be making per item sold.
8: To get a higher chance of getting reviews
Do you want to get more reviews on Amazon? The best way is through research; by researching products, your chance of getting a high number of positive reviews increases dramatically.
- Send out email blasts to customers who have bought from you before.
- Ensure you’re answering any questions that people might be asking about the product and respond to them promptly.
- Follow up with your buyers after they’ve purchased the product, send them an email thanking them for their purchase.
- Offer free shipping if it’s not already offered as part of the price, or make sure there, no hidden fees associated with purchasing the item.
- Provide excellent customer service by responding fast to customers’ emails within 24 hours,
- Use amazon feedback removal services – this will remove negative reviews so potential buyers can see only positive feedback about your products.
- Ensure your products are high quality and have excellent customer reviews before putting them up for sale on amazon.
- Be respectful to customers when answering questions, don’t be rude or impatient even if they’re asking repetitive questions.
9: To get an understanding of profit margins on a particular item
Product research is a great way to find out how much money your business could make by selling a specific item. Amazon offers the sellers to view product margins. Prepare an accurate budget plan of expected income from customers and retail partners like suppliers and distributors.
- Find the product you want to sell on amazon,
- Look up the price of that item in USD and make sure to take into account shipping costs.
- Calculate your profit margin by subtracting how much you paid for it from how much you’re selling it.
- Profit margins can vary depending on where you are located about where an item is being shipped from.
10: To determine what keywords to use in the title, description, and tags
For some people, the most challenging part about writing a product listing is coming up with keywords that are having high search volume and low difficulty to rank. It can be hard to know which ones are right for what you’re selling.
- Choose words that have at least 500 monthly searches.
- Determine what keywords you want to rank for.
- Use those keywords in the title, tags, and description of your product listings.
- Add an example paragraph with some of the keywords so that readers can get an idea about your listings.
Every entrepreneur has a different process for finding their next billion-dollar business idea. For some, it takes years of diligent research and diligence to pinpoint what the best opportunity is for them; others might take as long as 2 hours before they find something that sticks with them.
One thing all entrepreneurs have in common, though? They do product research. Whether you’re looking at data or speaking directly with customers on social media platforms like Facebook groups or Reddit, Amazon can be an invaluable tool when trying to understand which products are being searched more than other ones.
In this post, we’ve explored the importance of why you need Amazon product research. We hope it will work for you to reach the boom in your business.
If you want to find more profitable tips, tricks, and strategies for your Amazon business, don’t forget to visit our blog regularly. We provide plenty of useful information and free resources that can help improve your sales on Amazon or any other online marketplace.