The Importance of Amazon Product Research
Today on Amazon, there are over 353 million products available for to purchase on their marketplace. With that amount of products available, how do sellers know which ones they sell are going to be profitable? The use of Amazon product research has been extremely important for third-party sellers to make the right choices when it comes to selling on the marketplace. Analyzing current market trends to choose a product that can generate high sales is what Amazon product research looks to achieve. Implementing the correct research will more often than not result in third-party sellers losing out on the profits they expected. Within this article we will define Amazon product research, and 6 reasons why Amazon Sellers should do it when deciding on what products they should sell.
What is Amazon Product Research?
Amazon product search is the analysis of current market trends helps to find the right product with high sales opportunity and greater profits. It can also help you search for products that are available for cheaper prices that can be then for sold competitive prices to generate a good return on investment.
Doing your homework on the products you sell will give you a better chance at gaining higher profits from sales just as doing your homework and studying will help you achieve a better grade on an exam. All sellers on Amazon look to be profitable, but how can they use product research to generate the opportunity of high sales? What is it then that third-party marketplace sellers learn from Amazon product research to help sellers gain a greater opportunity of sales?
1. Choosing the right product to sell in the best-selling category
This may seem obvious but doing the right research into the Amazon’s market will give you a much better idea of the right products to sell. Understanding the market and where opportunities lie will put sellers ahead of the completion knowing what products will sell and which won’t
2. Picking the perfect price for your items.
Analyzing the competition and finding out what they are selling their products for will give sellers an idea of what prices are selling the most at a specific price point. Software such as Helium 10 provides a browser extension that allows you to see in real time sales stats of the competition. It shows sales for the last 30 days, price, revenue, BSR, and many other performance metrics to help sellers find the best price point.
3. Helps sellers understand customer expectations and consequently improve services
Product research will not only help you gain a better opportunity of profits but also potential customer’s expectations. Understanding what customers expect from a product will give sellers better knowledge of what customers are looking for when shopping on the marketplace.
4. Identify competitors
Having an understanding of who the competition is helps sellers know the price and how they are selling already on the marketplace. Sellers gain opportunities from knowing their competition so that they know what is being done already and what hasn’t. Within a crowded market it is important to offer something different than the rest. For example if a seller is offering punching bags they may see an opportunity to sell a bundle with boxing gloves if other sellers are not.
5. Helps find the best market and niche in the marketplace.
6. Risk Management
As explained in the definition of product research, spending time analyzing the market will help sellers avoid making poor decisions in terms of what products to sell. Jumping right in without proper research can yield a seller missing out on opportunities of higher sales. A seller not identifying which markets are already saturated will negatively impact them.
Doing research into what to sell on Amazon will greatly help sellers gain the profits they are desiring. Researching the market allows sellers to be confident in knowing they have chosen a product that should perform well on Amazon. Completing research will not only help identify the competition, but show where opportunities lie for sellers to do things different from the rest. With the right research and analysis of the Amazon market place, sellers will be able to avoid the risk of making bad decisions and gain the possibility of greater sales for the products they sell on Amazon.