How to Conduct Amazon Product Research in 2024
With over 600 million products listed on Amazon, finding the top-selling products can be a daunting task. However, with proven strategies and Amazon product research tools, you can identify winning products and set yourself up for success.
In this comprehensive guide, we'll walk you through the product research process on Amazon in 2024. We will equip you with the knowledge and tools to find profitable and sustainable products to sell on Amazon.
How Is Product Research Changing in 2024?
Amazon product research is crucial for sellers to make informed decisions about which products to sell and how to price them. Product research guides you towards products that are consistently in high demand, allowing you to maximize your profits.
Amazon product research is constantly evolving, and 2024 is no exception. The key trend of product research in the coming year is data-driven decision-making.
Amazon sellers increasingly rely on the tools to uncover new and profitable product ideas. Product sourcing software becomes a must-have tool for every seller and virtual assistant doing product research.
How Does Product Research Work in 2024?
Amazon product research is the process of finding, evaluating, and selecting products with high-profit potential for sale on Amazon. It involves identifying profitable products that have moderate competition to sell them for a substantial profit. Product research can be conducted in two primary ways described below.
- Manual product reserch
That involves manually browsing Amazon's extensive product catalog, searching for relevant product data, and analyzing it to identify potential opportunities. However, this method is highly time- and effort-consuming.
- Tool-assisted product research
Leveraging specialized software tools helps you automate the process of gathering and analyzing product data. These tools provide valuable insights and simplify the product research process, saving time and effort.
What are the criteria for product research on Amazon?
When you do product research, you must make sure it meets your specific selling goals. To do that, you need to answer the four key questions about the product. They determine the criteria you look at.
4 questions product research must answer
- Will the product sell?
- How much money will I get if I sell it?
- Can I sell it on my Amazon account?
- Does the product have restrictions, IP complaints, or other issues?
Product research criteria
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To answer the 4 key questions about the potential product for Amazon, you can look at the criteria below.
When you research an item, you must check if it will be popular with potential customers and is among the top-selling products.
The product you choose must not be sold by too many sellers because it will be complicated to compete. Sellers of such items may dump the product price, hence lower profit margins.
Eligibility and restrictions
You must make sure you can sell a product on your Amazon account. Additionally, you need to check the product’s restrictions. If it’s gated, you must either stay away from it or take time and ungate it. On top of that, you need to check the product sales history to ensure it doesn’t have IP complaints or other issues.
You must calculate the profit you will get after deducting all the costs involved and check if it aligns with your targets. You must factor in the Cost of Goods Sold, Amazon fees, shipping costs, and other expenses.
Product Research Step-by-Step
Now that you know what to look at when researching the product let’s see how to do it step by step.
We will use Seller Assistant App, a popular product research extension, to access and quickly research the product data on the Amazon product page.
Step 1. Estimate product sales
You can use Amazon’s Best Sellers Rank (BSR) to understand how well the product sells. BSR provides an estimate of product sales volume. The average BSR and its trend (upward or downward) are used to see the sales potential. The lower the BSR number, the better your researched product sells.
Example. To check BSR, instead of browsing the whole product listing for the figure, access BSR through the Seller Assistant App. BSR and its changes will appear below the product title.
A green BSR number indicates a top 1% ranking within its category. A red BSR number indicates a lower ranking. A downward green arrow marks a declining BSR. An upward red arrow means an improving BSR.
Step 2. Analyze Buy Box information
Buy Box price shows you the price level you can set. Understanding the Buy Box price is crucial for winning it, which will bring you approximately 80% of sales. If Amazon occupies the Buy Box, it’s better not to deal with such products.
Buy Box seller's offer helps you determine a competitive price. Stable Buy Box price shows moderate to low competition.
Example. Seller Assistant App shows you all Buy Box details: average Buy Box price, minimum FBA and FBM Buy Box price offers, and link to Buy Box seller storefront. If Amazon is in the Buy Box, no link is provided, and the seller's name appears in red.
Step 3. Evaluate competition and potential sales
After making sure the product price level suits you, you must understand how intense the competition is and how many products you can sell.
If over 10 Amazon FBA sellers sell on the listing, competition is intense, making sales less feasible. On the contrary, if there is only one seller on the listing, that may mean a private label product. In that case, they hold the rights to their brand, and you can’t sell it.
Example. Seller Assistant App helps you see how high the competition is and how many product units you can sell.
Seller Assistant App shows the number of FBA and FBM seller offers in the "New" condition. Sellers with offers 2-3% above the Buy Box price are your direct competitors. The blue background number indicates the total number of sellers, while the white background number represents sellers with an offer within 5% of the Buy Box price.
The 'Est' line reflects potential sales if you join the listing as an additional seller.
Step 4. Check selling eligibility and restrictions
There are cases when you can’t sell specific products on your Amazon account. For instance, Amazon typically doesn’t let new sellers sell restricted products. You must check that to be sure you can sell the item you selected.
You must also verify products for restrictions because you can’t sell such products without Amazon’s approval. There are also other types of problems product may have, like IP complaints. The product can be meltable, adult, or have other sales limitations. All of that, you must check to be sure the product listing will be deactivated by Amazon for incompliance.
Example. To see if you can sell the product and all of its alerts, look into Seller Assistant App. It shows if you can’t sell the product with the red closed lock icon. It also displays icons indicating potential product issues. A red triangle icon is an IP alert. Other icons represent oversize, meltable, hazmat, and adult product restrictions.
Related: Amazon FBA Selling Tips for 2024
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Step 5. Evaluate product profitability
One of the key targets of product research is to make sure the product will be profitable to sell on Amazon. You must deduct all costs from the product's selling price to check that. These costs include the Cost of Goods, Amazon fees, fulfillment and shipping costs, third-party logistics fees, and other expenses.
To calculate all of that, sellers use FBA&FBM calculators.
Example. You can use Seller Assistant App's FBA&FBM calculator to assess product profitability on the Amazon product page.
The calculator provides profit, ROI, and profit margin figures for FBA and FBM options. It helps calculate fees and logistics costs, including FBA or FBM costs, Amazon fees, storage, and shipping costs.
Related: Amazon FBA Calculator: Free Vs Paid
Step 6. Save product research results to Google Sheets
After you’ve done product research, you need to save your data for convenient storage, analysis, and processing. You must export researched Amazon product data to Google Sheets to do that.
Example. Seller Assistant App enables seamless export of Amazon product data to Google Sheets. It lets you save product data with a single click. Connect Google Sheets to your Seller Assistant App account and configure export settings. Save product research results by opening the product on Amazon, adding notes if necessary, and clicking the "Save" button.
Related: Amazon Glossary for Sellers
What does Amazon product research do?
Amazon product research involves analyzing various factors of products, such as demand, competition, profit margin, sales history, and other parameters, to determine whether a product is profitable to sell on Amazon. This process helps sellers identify products with high-profit potential and make informed decisions about which products to invest in.
How do I research the best product to sell on Amazon?
To identify profitable products to sell on Amazon, conduct thorough product research by analyzing factors like demand, competition, profit margin, sales history, and product reviews. Utilize tools like Seller Assistant App to gather and analyze data efficiently.
What is Amazon product analysis?
Amazon product analysis is the process of evaluating and understanding the performance and potential of products listed on Amazon. It involves examining various factors, including sales data, customer reviews, competitor offerings, and market trends, to identify profitable products and make informed selling decisions.
How do I become a product researcher?
To become a product researcher, start by understanding market analysis and data interpretation techniques. Develop proficiency in product research tools. One example of such a tool is Seller Assistant App.
How much can you make as an Amazon product reviewer?
The average salary for Amazon product reviewers is around $15,000 to $25,000 per year. However, that can vary depending on experience, the number of products reviewed, and the quality of the reviews. Top reviewers can earn $50,000 or more per year.
What is FBA product research?
FBA product research is identifying and evaluating products with high-profit potential for sale on Amazon's Fulfilled by Amazon (FBA) program. It involves analyzing factors like product demand, competition, profit margins, FBA fees, and potential sales volume to determine which products are suitable for FBA fulfillment.
In conclusion, conducting thorough product research is essential to successful selling on Amazon. By following the steps outlined in this guide, you can identify profitable products with high demand and low competition, setting yourself up for success in making money on the Amazon marketplace.
Remember, the key to successful product research is using product sourcing software. Tools like Seller Assistant App will be your best assistance in achieving this goal. This comprehensive browser extension is tailor-made to assist you in uncovering the most profitable products for your Amazon store. It effortlessly integrates with your Amazon search and product pages, presenting you with all the crucial data you need to make well-informed decisions. It includes an FBM and FBA profit calculator, Quick View, Stock Checker, Restrictions Checker, and a host of other features that aid in pinpointing the winning products for success on Amazon.