It’s a process that all successful Amazon FBA sellers have to go through. Researching and finding a “winning” product is a time-consuming and difficult process if you don’t first learn how to carry it out properly and discover the tools that can eliminate a lot of the guesswork.
This article is going to outline what you need to be doing in order to get this process right, and finally which tools can help you cut your research time in half. Firstly, let’s start by explaining what Amazon product research is.
What is Amazon Product Search?
As eluded to above, the overall goal of your product research is to find a market niche where you are likely to make a healthy profit by entering with your own creation.
The basic idea is to find something that you can source inexpensively from marketplaces such as Alibaba, and then sell them on Amazon at competitive prices whilst still maintaining a healthy margin.
Why Is Product Search So Important for FBA Sellers?
Getting product research right is crucial, it makes the difference between going from selling zero to hero, or being stuck with inventory you cannot sell without reducing prices to a point where you are making a loss.
Without doing thorough product research you’ll never be able to find the perfect niche, and you will simply be guessing whether your FBA business is going to be a success or not. It is a necessary phase that all FBA sellers have to go through.
What Makes an Amazing Product Opportunity?
Now you know the importance of getting product research right, you need to know the basics of what you need to look for when carrying out your research.
Whilst every potential opportunity is different, there are some basic ground rules that can help you quickly rule out products that may look promising initially.
Here is a quick but comprehensive list of what you need to look out for when finding a product:
- High Demand – This may seem obvious; but some people still make the mistake of choosing products that don’t quite have enough demand to make a viable FBA business.
- Low Competition – Entering a market that has high demand and high competition means you are likely to struggle to gain any sort of traction with your offering. Look for underserved niches that you could make a huge splash in.
- Good Profit Margins – There’s no point finding a great product with great demand and low competition, only to find you can make a maximum profit of a few dollars per sale. Make sure that you can make healthy profits even off relatively low sales whilst your product gets off the ground.
- Retail Price Point of Above $20 – This is closely tied in to the point made above. The more expensive the product, the bigger the profit margin tends to be. By looking at products at over $20 you are massively increasing your chances of finding a viable product.
- Low Seasonality – This almost goes without saying but don’t invest in any product that is tied to a season. For example, Christmas decorations will only sell for 3 months of the year at best. Look for items that will sell year-round without being tied to a specific time of year.
- Legal Issues – Avoid products that could have any possible trademarks or patents, as copying those products could result in your product being delisted (without warning) and an expensive lawsuit may follow.
- Lightweight/Small Products – This is one of the most overlooked aspects when first time sellers carry out their product research. The difference in shipping costs between lightweight and small items compared to large and heavy items can be huge. Not only that, you may be restricted to shipping your products rather than flying them in when you run out of stock.
- Room For Improvement – Some sellers when starting out miss out on top markets because they write them off as being too competitive without paying attention to the finer details. For example, can you shake up a product category by bundling your item with a complimentary gift that no-one else is currently offering?
How Can FBA Sellers Carry Out Product Search?
Of course you could carry out all this research manually, but it would take you months, and the opportunity may already be gone before you have the chance to bring your potential product to market.
Nearly all professional sellers use a FBA product search tool that gives them the information they need to make a decision on any prospective opportunities.
Perhaps the best source or data-driven product research is Unicorn Smasher, which helps individuals find the perfect or “unicorn” product.
Why Choose Unicorn Smasher?
Whilst it’s not the only product research tool on the market, Unicorn Smasher leaves competitors behind by providing more data than any seller could ever need.
It gives users the opportunity to delve into: prices, bestseller ranks, reviews, ratings, and estimated sales. Each product is even given a rating or “opportunity score” based on historical data, so you know whether a product is likely to succeed or not before you invest your hard earned money.
What’s more, there’s no clunky software to download, you can just install the extension into browsers such as Chrome and begin your research straight away, whilst saving all your research in one easy-to-manage dashboard.
Finally, this software is completely free to use. Other similar software tools can charge up to $300 per month. So not only will you save time, but you’ll also save a huge amount of money!
Product research will make or break your FBA business. Without a product that has sufficient demand, profit and scalability, you aren’t going to be able to succeed.
This is why you can’t leave choosing to chance. You need data to help you make objective decisions. Without a product research tool, you aren’t ever going to be sure enough to invest potentially thousands of dollars into a product up front.
Using a FBA software such as Unicorn Smasher will allow you make the right choices and get ahead of the competition when first starting out as an Amazon seller.
So why not get started for free today?