It is easy to find a product to sell on Amazon. The tricky part is finding out what people want to buy from the platform. A product might seem promising because it is trending on social media, has thousands of searches, or appears in a number of best-selling lists. That doesn’t necessarily mean it’s a good opportunity for a new seller.
If the market is flooded with so many established brands selling the product already, the profit margin could be too small. This is where experienced sellers are at an advantage. They look at what shoppers are searching for, what they are buying, what competitors are doing, and whether the numbers leave enough room for a profitable business before ordering inventory.
This is where Amazon product research comes into play. It doesn’t help shoppers find something that is trending and interesting, but helps people find evidence that people are willing to spend their money on it.
What Does Real Product Demand Look Like?
Demand doesn’t mean high search volume. Think of a specific product that gets thousands of searches every month. That sounds encouraging, but it doesn’t mean people are actually buying it. That doesn’t even tell someone whether or not people are willing to spend on it.
This is where Amazon product search helps users in the following aspects-
- Search interest
- Sales performance
- Customer reviews
- Selling price
- Competition
- Market trends
When evaluating a market, the U.S. Small Business Administration suggests looking at demand, market size, market saturation, and pricing. Those same questions come in handy when figuring out if an Amazon product is worth pursuing.
The idea is to get a sense of the market before spending money on inventory.
Start With What Shoppers Are Searching For
One of the easiest places to start is with search behavior.
Amazon sellers can see what shoppers are typing in when they search for products. A general term can reveal a large market, and more specific searches can reveal specific customer needs.
Think about something as simple as a water bottle. A seller may select the broad keyword “water bottle,” but that doesn’t tell them much about what customers want. More targeted searches might return interest in insulated bottles, bottles for the gym, leak-proof bottles, large bottles, or bottles with built-in straws.
These can help people search for specific products in the same categories.
They can also reveal issues customers are trying to solve. Knowing that a broad category is popular is one thing, but if people are searching for a specific feature, size, or use case repeatedly, that can be more useful.
That’s where Amazon keyword research comes in. Sellers can track what shoppers are actively searching for by analyzing search terms, related keywords, and search interest over time.
Search volume is one piece of evidence to look at though. Just because something is hot doesn’t mean it’s a profitable product.
Look at What is Actually Selling
Searches tell you what people are interested in, but sales tell you what they are actually buying. Sellers can look at how many products are in a category to see whether sales are steady or whether a product is just having a moment of popularity.
Check these
- How well the competitors are doing
- What customers are looking for
- Whether the sellers are able to sell new products
If there are few products in a category, it can be hard to break into that category. But if a few products are doing well, there may be room for another seller. The question is, is there demand for another business.
Tools such as Jungle Scout help sellers do product research before they start selling by bringing together product, keyword, and market data. If you are ready to buy a Jungle Scout plan, it is also worth checking CouponzGuru to get it at a lower price when an applicable offer is available.
Do Not Let One Metric Make the Decision
It is easy to get excited about one number looking good. A product with a lot of searches or that’s selling well isn’t necessarily a winner. That isn’t the whole story. A product can have high demand and still be too competitive or leave very little profit.
Look at demand, competition, pricing, and consumer input all together before you make a decision. This gives you an idea of whether the product is actually worth selling. Good analysis of product demand can save you from an expensive mistake.
Product Research Reduces Risk
There is risk in putting money into inventory, especially when you don’t even know if people will buy it. A product might look good at first, but when you look at the competitors, consumer input, the selling price, and the actual costs, things can change. That is why product research is crucial before you start selling anything on Amazon.
It allows sellers to look at the market from different angles and decide if the idea is worth it. As a seller, you can be wrong, but having some good information backing up the decision is a lot better than just going with a product that seems like a good idea.
Therefore, it is important to check the following before choosing a product:
- If the demand is steady
- Determine the competition
- What customers say about different products
- If the profit margin makes sense
- Whether the demand will be constant in the future
The Bottom Line
Finding products with real demand is not just about finding some secret product no one else has noticed. In most cases, the better opportunity is already on the market. The real struggle is understanding the numbers, finding the gaps, and figuring out if customers would buy from another seller.
A good product idea needs to be able to answer a number of questions before you spend any money on it. These questions include: Is there steady demand? Is the competition workable? Will the product make money at a realistic price point? The most important question is why would someone choose the product when lots of similar products are available. Once you have convincing answers for these questions, launching the product becomes a much more informed decision.
