As the world’s most popular e-commerce platform, Amazon attracts hundreds of millions of customers each year. Those with an entrepreneurial mindset can easily see the opportunity this type of traffic presents. However, the staggering selection of products available on...
As the world’s most popular e-commerce platform, Amazon attracts hundreds of millions of customers each year. Those with an entrepreneurial mindset can easily see the opportunity this type of traffic presents.
However, the staggering selection of products available on Amazon can make it tricky to find your place as a seller. The competition might be intense, but sellers who do their product research will stand out from the pack.
If you conduct effective product research, you will understand customer’s needs and find the right niche for your business. The right research strategies are essential if you want to succeed as an Amazon seller.
Let’s explore five strategies that will make you a master of product research.
Table of Contents
Consider competition and profitability
When you are deciding whether or not to sell a certain product, remember to evaluate how much competition you will have. If the market is oversaturated with products like the one you want to sell, you will have a more difficult time making sales. Aim to sell products that have moderate competition since this will allow you to get a foothold.
Another important factor to consider is the profit margin a given product has. When calculating your profit margin, remember to include the cost of production, shipping, Amazon fees, and any marketing costs. Once you have made your calculations, evaluate whether selling the product is a wise move for your business.
Check out Amazon’s bestseller rankings
For instant insight into the popularity of a product, take a look at Amazon’s bestseller rankings. Evaluate the top-selling categories to see if you can find niches and trends that are relevant to you.
You should aim to sell the type of products that consistently rank highly as this suggests that demand will remain steady.
Take advantage of Amazon’s product research tools
If you haven’t already, take the time to explore Amazon’s selection of research tools. With the help of these tools, you can access comprehensive data to help you make the right choices. Everything from sales estimates, competition analysis, keyword analysis, and product tracking is available when using Amazon’s product research tools.
Do not neglect keyword research
Taking the time to find out which keywords customers are using when they look for products is an essential part of your product research. You can use your knowledge of these keywords to adapt your listings and ensure they achieve as much visibility as possible.
Consider adding high-volume keywords to your product listing’s description, bullet points, and product title to attract more eyes. When your listing appears in search results more often, your odds of making sales increase.
Assess customer feedback and reviews
As you evaluate the potential of certain products, remember to find out what customers say about them in reviews. By reading through the positive and negative feedback customers have left, you can better understand how to succeed.
If customers are making frequent complaints about an unmet need, consider how you could offer a product that does meet this need. Meanwhile, satisfied customers can highlight the qualities that make a product superior.
If you regularly study reviews, you will have a leg up on the competition when it comes to product research.
Choosing your research criteria
As you begin your product research, you should ensure you are considering the most relevant factors. The right criteria will guide you towards products that have the most potential for your business.
Some qualities to consider are:
Price range: Usually, you will do your best by selecting products that fall into a reasonable price range. Highly-priced items might offer alluring profit margins but will have a smaller customer base. Meanwhile, low-priced items often have high demand, but lower profit margins.Weight and dimensions: If possible, select smaller and lighter products. This will keep your shipping costs lower, and allow customers to receive the product with more ease.Upsells and cross-sells potential: Be aware of opportunities to pair your product with complementary products. Your profitability will improve if customers are inspired to make more than one purchase.Seasonality: Some products will be more popular during certain parts of the year, while other products will be in demand more consistently. Seasonal products mean sales spikes, but non-seasonal products will give you a more predictable flow of orders.Durability: Take care to find out how fragile an item is before you decide to sell it. Less durable products can break on their way to customers, resulting in negative reviews and high return rates.
What comes after product research?
Once you diligently research your product, you will be well-positioned to see your sales rise. After putting in the hard work to build your business, you need to protect these profits.
If you are not already aware, even Amazon makes mistakes and when these errors impact your bottom line, they are called discrepancies. Although Amazon is an impressively efficient platform, these discrepancies typically cost sellers 1% to 3% of their annual revenue.
These numbers sound small until they are converted into dollars. For example, a seller with one million in revenue will lose $10,000 to $30,000 each year. You can think of better things to do with this kind of money.
Fortunately, you can file for an FBA refund that will get your money back in your pocket. Whether your products were lost in Amazon’s warehouse, or damaged during shipping, you might be eligible to receive an FBA refund. Even shipping overcharges from Amazon can often be refunded.
What is the catch? You must file your claim within a limited window of time. If you miss this deadline, you will never see your money again. Many sellers simply miss their chance to get their cash back.
You can file your FBA refund claims yourself, but you will need to schedule a significant amount of time to complete the task. Hiring a virtual assistant (VA) is also an option, but you must ensure the chosen candidate is trustworthy and qualified.
Enlisting a company that specializes in FBA refunds such as Getida means that you can relax while maximizing your FBA refund. Thanks to state-of-the-art software and highly experienced case managers, Getida will get back every dollar that Amazon owes you.
Getida will also take care of any correspondence with Seller Support so you can focus your attention on the rest of your business. The best part is that Getida only takes a fee once your refund has been secured.
Going forward
As you conduct your product research, keep an eye on the criteria that matter most to you and your business. Remember to use all the tools at your disposal to ensure you are opting to sell the right products.
As the fruits of your labor pay off, protect your profits by filing for your FBA refunds on time. With help from Getida, you can maximize the amount of cash you get back.
Sign up with Getida today to get a free estimate of your potential refund.
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