How to Do Amazon FBA Product Research in 2023?
As the world's largest online retailer, Amazon offers an endless array of products to its customers. But with so many choices available, how can sellers identify the best products to sell on the platform? That's where product research comes in. By conducting thorough research on Amazon, sellers can gain insights into market trends, customer needs, and potential product opportunities. In this blog, I'll show you how to do Amazon product research with Tool4seller's Product Research extension.
How to Find a Best Product?
When it comes to product research, generating product ideas is the first step. Luckily, there's an easy way to do that - by checking what's trending on Amazon. They are Best Sellers, New releases, Movers & Shakers, Most Wished For, Gift Ideas. These parts provide you with a ton of information while doing product research.
- Best Sellers. This page provides a broad overview of products that are currently selling well on Amazon, making it an excellent resource for generating product ideas.
- New releases. This page highlights products that are already selling well and will soon be available, giving you an opportunity to get in on the ground floor with upcoming trends.
- Movers & shakers. This hourly-updated list features products that have made the most sales in their respective categories in the past 24 hours. It's a great way to stay on top of current customer shopping trends.
- Most Wished For. This page displays products that are frequently added to wish lists and being searched for on Amazon, offering insight into what customers want most.
- Gift Ideas. This page showcases popular products that are often purchased as gifts. Using Most Wished For and Gift Ideas together can help you identify products with good profit margins and low competition during the holiday season.
How to Verify Product Demand?
Once you have an idea of the niche and potential product, it's important to determine whether there is a demand for it. One way to do this is by using Google Trends. Here are the steps to follow:
• Select the region you want to explore.
• Choose the time range you want to research. Both the past 12 months and past 5 years can provide valuable insights.
• Select the related category you're working in, as well as the category and search type. This will help you get a better understanding of search trends and demand for your potential product.
For example, let's say you're interested in selling dog beds on Amazon in the United States. After selecting the past 12 months and viewing the data, you can see that the product's interest has been consistently steady.
However, it's also a good idea to check the trends for the past 5 years, which show a slightly upward trend and indicate that the product is still in demand.
Keep in mind that some products are seasonal and may have fluctuations in quantity and price depending on the time of year. For instance, Christmas lights are only available during certain periods of the year and tend to have regular fluctuations in demand and price. If you're new to selling on Amazon, it may be best to avoid seasonal products and focus on products that have consistent demand throughout the year.
How to Analyze a Product?
After you have identified your niche, the next step is to analyze the product you want to sell. In this section, we will take a water bottle as an example and go through the steps to show you how to analyze a product properly.
The price of a product is a crucial factor that can make or break your business. To determine the ideal price range, switch the product prices from descending to ascending order. It is suggested to choose products that sell for $20-$50. These products tend to sell better, cover direct costs such as the cost of goods sold, PPC costs, and Amazon seller fees.
(2) Best Seller Rank (BSR):
The BSR is a good indicator of how well a product is currently selling on Amazon. A lower BSR indicates better sales. Generally, a good BSR is between 1-10,000. If a product has a good BSR, it means that it has a certain market demand.
With the estimated sales and price provided, it's easy for you to know how much profit you can make by selling this product. Choose products that can sell at least 10 units a day.
(4) Reviews & Ratings:
Analyzing your competitors' reviews is one of the best tactics when doing product research. You should first look at the number of reviews & ratings. Avoid products that have too many reviews, as it would be much more difficult for your products to surpass them. Check the top positive and top critical review. Analyze what customers like and dislike to know if there's room for improvement. Think about if you can do better than your competitors.
Analyzing shopper questions can also provide valuable insights into what potential customers are looking for in a product. Look for questions that are frequently asked and see if there are any common themes. Use this information to improve your product listing and address any potential concerns that customers may have.
To maintain your market advantage and win more sales, you should prepare enough stock, at least enough for 60 days of supply. There's no rule that works for all products, but typically, you need to buy enough products that will last for at least 60 days.
Choosing small and lightweight items can lower shipping fees and reduce storage costs. A tip to keep your FBA fees minimal is to scout products that are less than 45 x 34 x 26 cm in dimension and 1.9 kg in outbound shipping weight.
Verifying if the product is profitable is critical. Use Profit Calculator to estimate your profit margin before deciding what to sell. You can easily switch between FBA and FBM to compare the profits of different fulfillments. Enter rough estimates of the shipping fee, item cost, and tax rate if you are just looking for estimates. Depending on the category, a profit margin of 20% or higher is excellent.
By following these steps, you can analyze any product you want to sell on Amazon effectively. Keep in mind that choosing the right product is crucial for your business's success.
How to Source Products?
Once you have decided what to sell, the next step is to figure out how to source your product at a cheaper price. There are a variety of options available for sourcing products, including wholesalers, manufacturers, and distributors. One great place to start is by clicking on the Alibaba, eBay, or Walmart icons to see if there are similar products selling for a cheaper price on those platforms.
Another option is to attend trade shows or join online communities to connect with suppliers and wholesalers directly. This can be a great way to build relationships with suppliers and negotiate better prices.
It's important to keep in mind that while finding the cheapest possible supplier may seem like the best option, quality and reliability are also important factors to consider. Make sure to research potential suppliers thoroughly, and consider factors like product quality, shipping times, and customer service before making a final decision.
Finally, don't be afraid to negotiate prices with your suppliers. Many suppliers are open to negotiation and may be willing to offer discounts or better pricing if you can commit to larger orders or a long-term business relationship.
Remember, sourcing products is a crucial part of running a successful e-commerce business, and taking the time to find reliable suppliers and negotiate favorable prices can make a big difference in your bottom line.
Tool4seller's Product Research extension offers advanced features that can help you find profitable products quickly and easily, giving you a competitive edge selling on Amazon. With Tool4seller, you can save time and effort while discovering the best products to sell on Amazon.