Product research never stops, especially if you want to continue to grow your Amazon business. Even if you have one or two items that are selling really well that’s no excuse not to look for other opportunities
Trends are always changing and new products are popping up every month. If you’re not adapting to these changes in the market you’re going to fall behind your competitors.
So, what’s the best way to perform ongoing product research on Amazon? Keep reading to learn the strategies and tools that will help ensure your business succeeds in 2021.
Analyze the Market
Successful Amazon sellers don’t just look at their own business, they’re also aware of what’s happening around them. By observing changes in the market you’ll be quicker to adapt when trends start to shift in another direction.
Here are the three best ways to analyze the market:
Compare Yourself to Your Competition
How are you performing compared to your competition? Are they out-performing you, and if so why? Observing other sellers in your niche is a great way to pick up on new products and strategies. It also ensures you don’t fall behind. A great tool for this is the AMZScout PRO Extension.
Once it’s installed, search for your niche on Amazon. When the results come up, open the extension for insights on all the competing products. You’ll see average monthly sales, total number of reviews, estimated revenue, sales trends, and more.
Find the products that are ranked the highest and then see who’s selling them. How are their items different from yours? What else do they sell? Is there any part of their business that you can copy?
Niche Product Research: Check Out the New Hot Items
There will always be new competitors entering your niche, so it’s important to keep tabs on these products. If a new item emerges and shoots to the top of the rankings you’ll want to know why.
Use the PRO Extension to look at the products that are performing the best in your niche. Check the “Available From” column to find items that are relatively new.
What are they doing differently from you? Is there anything they’re doing that you can apply to your own products on Amazon? If these items are performing well right out of the gate they may have stumbled on a new trend that you can take advantage of.
Find New Unsaturated Amazon Niches
Just because you’ve found a niche that works for you doesn’t mean you shouldn’t branch out and try something new. If you can find a second niche that’s even more profitable your business will only benefit from this.
Explore a few different niches on Amazon and then bring up the PRO Extension once you find one that interests you. You want to look for niches that are in demand but also unsaturated. This means they have relatively few sellers in them.
Within the PRO Extension, look for niches that have:
- High estimated sales and revenue
- Low average reviews
- Low visibility score (this means low competition)
- High niche score (this means the niche is profitable)
We’ll go into great detail about how to find new niches and products in the next section.
New Products Research: Find New Items to Sell on Amazon
When you first decide to add a new product to your Amazon business it can be a little overwhelming. There are literally millions of different items to sell on the site, so narrowing it down to one is pretty difficult if you don’t know how to go about it.
Luckily, there’s a tried and true method for consistently picking profitable products:
1. Generate Ideas Using the AMZScout Product Database
The Product Database is a search tool designed to help Amazon sellers find new products for their business. It has a number of different filters that make it easy to pinpoint all the products that meet your strict criteria.
Here’s how we recommend using the Product Database’s search filters:
- Set the minimum sales to 300
- Set the sales price to $40 – $70
- Set the maximum reviews to 100
- Set the maximum weight to five pounds
These settings ensure that whatever item you choose has high monthly sales, a sales price that will leave you with plenty of room for profit, a relatively low number of reviews, and a low weight so it’s cheaper to ship.
To further refine your search you can also choose which categories you’d like to search in.
2. Look for Related Keywords as a Part of your Product Research
Searching for related search terms serves a few different purposes:
- It gives you an idea of how many searches a product receives each month.
- It helps you discover other related products that might be equally profitable.
- If you end up selling the product you’ll know what keywords to include in your product listing page.
Use the AMZScout Keyword Search and type the name of your item into the search field. This will generate dozens of related keywords ranked by average monthly searches. You can also use the Reverse ASIN Lookup tool, which lets you enter a product’s ASIN number instead of its name.
Review the results and see what kinds of searches your item gets. A higher number of searches means higher demand. You should also look through all the search terms to see if you get any ideas for related products that you could also sell.
3. Validate Your Product Ideas on Amazon
After completing your searches with the Product Database and keyword tools you should have a shortlist of products you’re interested in. Use the PRO Extension to do a deep dive into each one to find the items that will be most profitable.
Here’s what to look for:
- A visibility score between one and three. This indicates few other sellers have discovered this niche.
- A niche score over seven. This score is based on sales margins, demand, and competition. A combined score of at least seven means the niche scores well in all areas.
- High margins. The best niches have margins of over 50%.
- Trending Sales. Open up the niche history to view sales over the last two years. Look to see if sales are trending up or down.
Make sure to analyze a few different niches and products before choosing a new one.
If you’d like to try all the tools mentioned above, check out AMZScout’s complete toolset. You can get all the tools discussed here, plus other resources, for a discounted price if you buy them together.
Hot Niches for Spring and Summer 2021
If you’re looking for a new niche and need a little help we have you covered. Here are a few niches to consider for spring and summer this year.
Kayak Wind Sails
Kayaking is one of the most popular summer activities, and a wind sail is a great accessory for it. This niche has a number of strong metrics, including average monthly revenue and net margin. Plus, its visibility and niche scores are good as well.
Sales have been strong during the last two summers, and there’s nothing to indicate it won’t be the same this year. This could be a good time to get involved in this niche.
Nylon Bicycle Cover for Outdoor
Not everyone has somewhere dry to store their bike. For anyone who lives in a rainy area, these covers can really help extend the life of their bike. The price is a little lower than we generally like to see, but the niche makes up for it with its high sales volume. Its visibility and niche scores are also solid.
Sales have stayed pretty consistent for the last two years, which is nice to see. That means even after summer is over this should remain a good seller.
Emergency Thermal Blanket
Thermal blankets are great safety items to have on hand for both hikers and campers. There are a number of things to like about this niche, including really high sales and revenue, a low visibility score, and a high niche score.
This is another product that sells pretty consistently all year round. People who love the outdoors seem to buy these items no matter what season it is, which is another plus for this niche.
Folding Stainless Steel Stove for Hiking
This is a great product for avid hikers who also want to do a little cooking once they reach their destination. Both the monthly revenue and the net margins are high, so there’s definitely the potential to make some good profit here.
Sales have been pretty consistent over the last few years. They’ve dipped a little bit lately but that should change once the weather starts to warm up again.
If you want to grow your business on Amazon you need to always be doing product research. Luckily, when you use the right tools the process is pretty easy. If you keep finding profitable products the sky’s the limit for your ecommerce business.
Try AMZscout for free to check the sales stats for the niches we provided, do your own research or keep an eye on your competitor.