Amazon is known as one of the world’s largest online marketplaces, with millions of sellers competing for customers. To be successful on Amazon, sellers need to stand out from the crowd, and the key to this is carrying out detailed product analysis. Skipping this vital research step can result in a lot of wasted time and money.
It is essential to complete proper product research before procuring inventory and selling on Amazon. Amazon product analysis can help you gather the information needed to determine customers’ needs in the competitive online marketplace. It can also help you determine potential issues and avoid expensive mistakes.
This article will provide you with the foundations for product analysis so you can examine what your rivals are doing and how you can improve upon your own Amazon selling strategy.
What is Amazon Product Analysis
Amazon product analysis involved examining Amazon market trends and products to identify why items have the greatest potential for generating revenue. The overall objective is to find lucrative products sellers can procure, market, and ship, all within their assigned budget. Product research and business planning that has been well executed will bring about higher-profit margins and a steady customer base.
Product research and analysis are not the simplest tasks, so many sellers hire an Amazon agency https://nuoptima.com to look after this side of things. Passing the product analysis over to the experts will save you time and help ensure your Amazon store stocks the products you sell – you will be able to stay ahead of your competitors.
Why Complete an Amazon Product Analysis
In case you are serious about making money on Amazon, product research is essential to having any kind of Amazon success. As an Amazon seller, you need to identify your target customers and why they need your product. Here are a few advantages to performing an Amazon product analysis:
- Identifies a niche market – Product research can lead to identifying a niche market that will help you develop a relationship with a customer base. Once you have a niche, you will be able to focus your marketing on getting in front of your targeted audience. Be sure to check the appetite for the product in question by looking at the Amazon search volume – this will let you know how much of a demand there is. As much as you may like it yourself, opting for a product with no or low demand will unlikely provide positive sale results.
- Consider risk management – Investing time and money into a product comes with risk. Intensive Amazon product research can provide you with the details required to make an informed decision whether to pursue a product or not. The risk of product investment can be reduced as you can project a success rate. Many Amazon sellers fail due to trying to sell cheap products that are not popular, or the competition is too intense. Amazon product research will let you know the stability of your product choice and whether you have a competitive advantage.
- Finds new opportunities in the market – Product analysis can uncover some unknown niches and upcoming trends. One way to become successful on Amazon is to find new innovative products and solutions for customers. People like to see new products and exciting products, especially in categories like self-improvement, entertainment and home gadgets. If you do not take the opportunity to offer Amazon customers the latest product trends, one of your competitors will seize the chance.
- Keeps you ahead of competitors – One of the most insightful parts of product analysis is that you get to know about what your competitors are doing. This includes what products they list on Amazon, their prices, store branding, and many competitive areas. In addition, you will be able to scan thousands of existing Amazon products to find the best one for your business. Ultimately, keep in mind that Amazon is one of the world’s largest marketplace, and there are some very well established sellers active on the platform. The Amazon bestsellers page will give you some understanding of the products they are selling and which ones get the best ratings.
- Helps with pricing strategy – Knowing how much to charge for a product can be tricky. Product analysis lets you know how your competitors are pricing. It is vital that whatever price you go for is at a high enough price point to make a profit but so expensive that buyers are unable to afford to purchase. If you are unsure how to determine a price that is both salable and lucrative, automated Amazon repricing tools are available. Repricing tools will adjust the prices of your products based on competitors’ prices and marketplace behaviour.
Product Analysis Top Tip
One of the most valuable tools for Amazon product research is Google Trends. It is possible to set up alerts via the tool to receive notifications about popular or trending topics. Although Google Trends will not tell you the product you should sell, it will identify subjects or stories that tie in with your brand and target customers – allowing you to explore potential products to sell on Amazon.
It is also worth checking out some other online marketplaces to see what is selling well when completing product research. Two of the best sites for checking best selling products are eBay and AliExpress. If items are selling well on these two platforms, they will likely sell well on Amazon too.
Amazon has the potential to offer a money-making platform for your business. There are over 300 million customers worldwide shopping on the Amazon marketplace, and with some proper product analysis, you could boost sales and acquire more customers.
If you are finding the thought of product analysis a little daunting, reach out to Amazowl the best Amazon agency. They have the expertise to get you to where you want to be as an Amazon seller. Many Amazon sellers find the growth in revenue more than makes up for the initial cost of hiring a professional Amazon agent.