How to find a sales-worthy product on Amazon?
Product Research for Amazon sellers is a CRITICAL aspect of any monetization strategy. Sure, you could stumble upon something that’s an “instant winner”, but the likelihood of that happening is fairly low, considering there are millions of Amazon and eCommerce sellers out there which means the chances of others selling the exact same product is pretty high. In other words, the competition is FIERCE – regardless of which category or niche you are in.
So to eliminate oversaturated markets and try to ascertain a good ROI on a product, it is crucial that you understand what makes for a project worth investing in. And no, it’s not just because YOU like it. For example, just because I happen to love socks with individual toe separators does NOT mean that the rest of the world feels that way. And since we are selling to the rest of the world (not ourselves), we have to hone in on what the rest of the world needs or desires. Because those are the two reasons people purchase something: out of necessity or want. Your product has to fall into one (or both) of those columns.
When doing product research for Amazon, you have to first pick the correct tools. Here are ones that we suggest downloading before you even begin going down the rabbit hole of product research.
TOOLS FOR PRODUCT RESEARCH:
1. Jungle Scout – Web App Extension and Sales Estimator
2. Helium 10 Black Box
3. Google Trends
4. Amazon.com – FBA Fees Calculator
OTHER SOURCES TO LOOK INTO IF CREATING YOUR OWN PRODUCT
5. Alibaba.com – To Find suppliers
6. Google Patents
7. Patents and Trademark Searches;
PICKING A WINNING PRODUCT:
At the end of the day, there is no way to tell if your product is going to succeed or not, but there are definitely some calculated decisions you can make that will increase your chance at success. Some things to consider when doing your product research:
- When you search for it on Amazon, make sure there aren’t more than 10,000 search results. For example, women’s shoes may not be a great market to go into based on the numbers alone.
- Really consider your profit margins. This doesn’t just mean manufacturing and freight fees. This does not just include landing costs. You should be factoring in ALL expenses related to Amazon that could potentially lower your profit margins including how much you are willing to invest in PPC and other advertising methods.
- Consider the weight and size of your product. If you go through a drought or a rough patch and find that you aren’t pushing units, can you handle the FBA fees for storing your product?
- As a general rule of thumb, it’s best to choose a product that is valued at more that $10 and less than $100. That way you stay within the impulse buy territory, but you can still make enough profit. Of course, plenty of people have had success selling products below and above this price range. Again,these are general recommendations.
- Reconsider the bureaucratic red tape and/or gated categories Amazon has set up around certain categories before landing on a product. This isn’t to insinuate that it should dissuade you from picking a “complex” product. Just be prepared to show countless certifications or proof of authenticity. This is particularly true in Baby, Medical supplies, and Supplements.
How to Find Main Keywords Using Helium10
Find a product that you are interested in that is on page one for its main keyword. Open Cerebro and insert ASIN, then click on “get keywords.” Download the excel template.
Locate related keywords to your product with the highest Sponsored SIN’s and organic ranking keywords from page one. Compile a list of these keywords.
Select the Keywords and individually use them to search on Amazon.com
On the top left, you will notice total results for those keywords
Add the 1 – 5 products that have under 100 reviews on page one, making sure that it doesn’t exceed 10,000 total results. Of these products, make sure they:
- Sell at least 300 units per month
- About 50% of the listings on page 1 for the keyword have under 100 reviews
- The first five listings for that keyword have under 100 reviews with combined sales distributed equally among the first five.
Go to amazon.com and locate the BSR ranking for the MAIN CATEGORY ONLY for those five products. Then go to Junglscout and go under Sales Estimator. Calculate the 5 listings under 100 reviews from page one that you have collected.
- Big brands don’t sell the same product – be very careful when searching for a product to avoid trademark infringement at all costs. Most manufacturers will claim that the product is not patented because they want to sell you on it. Do your own due diligence prior to making an order.
- The best places for manufacturing products are in China, India, Vietnam, Japan, Pakistan or Mexico
HOW DOES GOOGLE TRENDS HELP?
Google Trend shows consistent or growing demand with low seasonality projections over the past 5 years, making it a very valuable resource for people looking to start a business. Follow the instructions below:
- Go to Google Trends and choose Market – (United States). Then choose a 5 year index to locate the sales trend.
- Avoid seasonal products because seasonal product launches work differently than regular, high- demand products sold daily.
*If done correctly, you can make great money with seasonal products. Just be cognizant that you will not have a steady stream of residual income and may want a backup plan. Amazon rewards consistent sales, so having a product that sales throughout the year helps ensure your BSR stays low, you ACOS stays low, and your sales continue. You can lose that momentum when you only sell during certain times of the year.
Product Research using Amazon FBA Calculator:
- Use Alibaba.com and locate the product – find the price
- Next, calculate Ocean Freight or Air Freight price
- Try to ensure your Return on Investment (ROI is at least 50%). We personally suggest 50% from the product cost to determine the landing cost. This includes the following charges for shipping:
- Product Inspection
- Duty Charges
- US Port Release Charges
- Agent Release and Inspection
- Logistics Forwarding to FBA warehouses
4. Air Freight depends on product size and weight. If your merchandise is large or heavy, you can generally estimate the cost to be 80% and above from the cost of the total goods purchased
Reducing Work with Product Research
It is, and while it can be fun coming up with a product, it can also be a huge headache.
Instead of doing all the heavy lifting, count on Liazon.Marketing to help you through the process. Learn from the experts in the industry and DIY @ $250 for the Entire Pre-recorded Course on how to perform Product Research the Professional Way.
Don’t want to do ANY of the heavy-lifting?
Join our Product Research Sales, where we research all products based on months of back information, delivered to you within 2 weeks. This does not cover patent or trademark infringement, however.
Advantages of having us do the product research?
- Besides Alibaba, we will provide you information on where else to purchase products from
- Simple hacks and techniques to differentiate yourself from the competition and make money
- Target websites to ensure new products with low competition
- Teaches you how to target product research using PPC Techniques
- Teaches how to test product using PPC strategies before engaging in further product investments
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For a free consultation, contact Liazon Marketing now.