Amazon presents a compelling business opportunity to all aspiring entrepreneurs.
For proof, consider the sales statistics from 2019. A staggering 225,000 sellers generated over $100,000 in sales on the platform that year, and 15,000 US businesses broke the $1 million mark. Given the company’s continued growth, it’s reasonable to assume those figures have only increased in the years since.
The incentives don’t end there though. Thanks to the Fulfilled by Amazon (FBA) service, sellers can also outsource the vital yet time-consuming tasks of storing, packing, and shipping their wares. With Amazon handling everything, it’s never been simpler or more convenient to sell products for a profit.
However, the very first step to success is finding something to sell.
And, given Amazon’s never-ending catalog of gizmos and gadgets, that crucial task is often easier said than done. In this article, we’re going to reveal the secrets behind effective Amazon FBA product research to help you find profitable items to sell.
What Is Amazon Product Research?
As the name suggests, Amazon product research is the process of finding products to sell on Amazon. The aim is to gauge a product’s capacity for driving sales and turning a profit before committing resources to it (i.e. buying stock).
You analyze market trends and assess the potential profitability of each option rather than throwing capital at items and hoping for the best.
Done well, the would-be seller walks away with an understanding of various key metrics. These include the size of the market, the amount of demand, the cost of sourcing each item, and the profit margin upon making a sale. Thorough Amazon product research also reveals how consumer interest/demand changes over time.
Top Amazon Product Research Tactics
Having been through the definition, let’s turn to how to research products to sell on Amazon. In reality, there are numerous approaches to consider – a selection of which we’ll discuss now:
1. Use a Product Research Solution
The simplest (and arguably most effective) method is to use an Amazon research tool. By showing past sales data from actual Amazon listings, these clever pieces of software help expedite the search and remove the guesswork from proceedings.
Expect to gain a quick and clear understanding of the 2 key elements of viable products: how popular they are (i.e. how much demand there is on Amazon) and how much competition there is from other sellers. Overall, identifying quality products becomes less time-consuming, less risky, and more fruitful.
Algopix is one example of a product research solution you could employ. An all-in-one market intelligence engine, it’s been empowering sellers to make data-driven decisions since 2016. Boasting real-time marketplace data and a commitment to innovation, it’s no surprise that 71,000+ users now trust it to analyze possible products and help them find the next big opportunity on Amazon.
2. Conduct Manual Searches
While research tools make the process more convenient, they’re certainly not essential. Searching for product opportunities manually is also an option – despite being more time-consuming and less data-rich.
For example, why not consult the Amazon Best Seller lists? Here you’ll see the bestselling products across a given time period, as well as “movers and shakers”, and “most wished for” items. Each of these categories can provide invaluable information on high-performing products.
Be wary though. While the best-seller lists reveal the top 100 best-selling products in a given category, they’re usually incredibly competitive too. With so many other business owners selling them, it’s harder to forge your slice of the market.
The secret to success is taking a narrower (i.e. more “niche”) approach and delving into the subcategories instead. By checking the top 100 products in the “Fragrance” section of “Beauty & Personal Care”, for instance, you’ll find products that aren’t as competitive but remain popular.
Don’t forget to look at the “Customers Also Bought” and the “Frequently Bought Together” sections on Amazon either. Both features are oriented toward Amazon customers, but say a lot about their buying patterns in the process.
3. Check the Competition
Competitor research is another worthwhile strategy to employ when conducting Amazon FBA product research. It’s also straightforward! All you have to do is check which products in a given niche have “sponsored” written next to them.
That word means the seller is using Amazon PPC to market the product, which in and of itself suggests it’s profitable. After all, if it wasn’t, then how else could they justify spending money to promote it in an ad campaign?
Once you’ve checked which products have been sponsored, you could then validate their potential by referencing free tools, like Google Trends. This useful resource shows in a graphical form how popular a search term has been over a particular time frame. You’ll be able to a) see how many people have looked for the product (albeit on Google) and b) verify any seasonal effects on demand.
Product Research Tools To Find Best-Selling Items on Amazon
While manual searches and competitor research both have their place, we recommend using a purpose-built software tool. As discussed, they deliver quick, detailed, and more accurate results, thereby improving your chance of selecting winning items to sell.
Algopix is the industry standard for product research. Offering intelligent analysis of demand, alongside cost breakdowns and price recommendations, you’ll end up with all the data necessary to make an informed decision.
A robust tool, it turns an otherwise laborious and complex task into one that’s quick and easy. Sellers benefit from actionable information, automatic updates of buy-and-sell data, and key insights on everything from fees to the amount of competition.
Click here to learn more about Algopix and the price plans at your disposal.
Start Conducting Amazon FBA Product Research
There’s no denying how attractive Amazon selling can be from a business perspective. A vast marketplace with a global audience and copious amounts of demand, almost anyone can create an online store and start turning a profit.
Like any business, though, success is never guaranteed. And one of the main obstacles to overcome is finding the right product(s) to sell.
If you know the struggle, then we hope these insights on Amazon FBA product research have proved useful. Keep them in mind, put them into practice, and it shouldn’t be long before you’ve found a first-rate product to begin your FBA journey.
Would you like to see exactly how Algopix can help in that endeavor? Click here to set up an account and start your free trial.