In this article, I would like to describe amazon product research in detail to find the best product to start your online business
Here are some queries that everyone wants to know, and I think you might have such queries as listed below.
- Why is Product research Important?
- How many products do I need, to start an online business?
- What is amazon product research?
- Does chosen product has a market base online?
If you are thinking about these queries on top, So don’t worry I’m here I will give you clarity on those queries.
So let’s directly dive into the topic.
Why is product research important
The first thing you need to know is why product research is needed.
There are 2000 products categories and 500,000 popular brands across the world according to inc.com
There are dozens of products in different product categories, and they are in the market which is available to the people already.
If you want to do any business it may be offline or online you need to choose the product which already exists in the market from the product categories.
Otherwise, If you are a creative person and have creative ideas to build new products it will be good but risky. Don’t try it unless you are in a better position.
So you cannot sell what you like or what you need, you need to sell “What People Like” and “What People Need”.
People will not buy every product which is on the market, they only buy what is needed or wanted by them.
The research of products is important because you need to understand people’s needs among the different products and that gives you a better idea to pick the product and sell to them.
And the next thing is.
How many products should I Start with
As I said above there are a lot of products already in the market. You just need to pick the product.
Don’t think about the products, just think about the product. You need only one product to enter into the market among 2000 product categories.
A good friend is better than hundreds of friends to help or motivate us in our life. In the same way, a good product is needed to start and enter into the market to make a successful path.
A great product will help you to build or choose some more products by the revenue generated by the single product.
So your aim and target are to find the best product that suits to sell in the market and generate profits.
Focus on Micro-Niche
Before starting with amazon product research you need to pick a “micro-niche”.
At first, a niche is nothing but a specific set of markets where people are interested. Niche is again categorized into two types
Broad Niche & Micro Niche
Broad Niche is the market where there is a huge audience and high search volume. There will be a high search volume for a broad niche, because this type of audience will search for the information, not for specific problems.
Micro Niche is the market where there is a low audience and low search volume. There will be low search volume because this type of audience will search for specific problems to resolve.
Ex: Baby care services at home
If you want to enter into the market you need to focus on the micro-niche rather than the broad niche. Here is a micro niche, the search volume will be low but you target a specific audience.
Now let’s dive into
What is Amazon Product research?
After picking your right micro-niche next step is doing amazon product research in your niche.
Amazon is a place where you can find a lot of products in different categories so you need to do research to find the best product from the marketplace.
Product research is the important step and it is the first step you need to jump into, to start your entrepreneur journey in e-commerce.
Never ever think about too many products and don’t be confused about which product to choose, that confused state will make you step back and you will never try or jump into starting an online business.
Do the product research in a fun and passionate way, I mean do it seriously but don’t put yourself under too much pressure and go into a confused state.
There are so many methods to do product research but I will go through one method which I like and the best strategy to find a good product is amazon product research. ( “Amazon sales data method”)
Amazon sales data method
This is the first method I recommend and is also preferred by a lot of sellers in the market.
Here I show you the step-by-step process to select your first product to start your business.
There is a total of 5 steps to be considered while doing the amazon product research.
Step 1 :
Goto “amazon. in” and look for Amazon “Best Sellers”.
Best Sellers are the data of amazon in where sellers or products will be ranked according to the sales, reviews, etc by considering a product.
In Amazon, there are 30+ main categories or departments on selling. So you need to choose any one category from 30+ categories and click on that.
For example, I have chosen “Bags, Wallets & Luggage” in the main category as shown below.
Step 2 :
After clicking on any one main category you will enter into that category and you will find some more subcategories below the main category as shown below.
As I said before, the main category comes under a broad niche, so there will be already huge competition and established brands in a broad niche.
So it is better to narrow down and choose any one subcategory below the main category.
So above I have chosen “Wallets, Card Cases & Money Organisers”.
Step 3 :
In this step, you need to again deep down narrow into sub-level categories from the subcategory you have chosen.
Here, you will find a sub-level category where you will target some specific audience and the competition will be less when compared to the sub-category as shown below.
From the above image, I have chosen the “women’s” as a sub-level category from the subcategory that means targeting a certain specific audience.
If you again click on the women’s category you will again go down narrow and where you enter into the micro-niche as shown below.
Here you can see I narrow down into the niche, as you can see two micro-niches in the sub-level category. They are “checkbook covers and wallets” for women.
That means here a micro-niche is where you target a particular audience in a specific niche. When you are targeting a specific audience you will have very low competition, so that you can place your product in front of a specific audience who are looking for a solution to their problem.
So, From the above image, I have chosen “wallets” from the women’s sub-level category as a micro-niche.
Step 4 :
In this step, before doing amazon product research here are some points and guidelines you need to look at selecting the right product.
1. Product selling price should range between 500 – 1500.
2. Product rating should be less than 500.
3. Product weight should be less than 1kg.
4. Product best seller rank should range between 200 – 2000.
5. There should be no dominating brand for the product you choose.
Here from the above image, you can see the selling price is Rs.599 which is between 500 – 1500, and the rating for the product is less than 500.
So whenever you choose the product at first you need to look at the selling price and ratings, as shown above.
Note: M.R.P is not a selling price. Selling price is the product that is selling at a particular price at a particular time for the customers. So never think much about the M.R.P you should only care about the selling price of the product.
If you got the product with the specifications of both selling price and ratings, then you need to move to the next step in the amazon product research.
Step 5 :
In this step, you need to look at the weight and the best seller rank of the product which you have chosen in step 4.
As I said before, product weight should be below 1kg and Bestseller rank should range between 200 – 2000.
You can find the weight and best seller rank of the product in the product details when you scroll down on the product page as shown in the image below.
From the above image, you can see that product weight is 140g which is less than 1kg, and the best seller rank is 285 which is between 200-2000 in Bags, Wallets, and Luggage.
Note: Best Seller Rank should be viewed according to the main category, do not look or go according to the micro niche category.
If you have done step 4 and step 5, the next thing is to see if you can label your own brand in that product category. I mean see that any small players performing well, if they perform well you can also perform well by creating your own brand in that product category.
Ex: If I ask you to name some brands in Refrigerators, you can easily say Lg, Whirlpool, etc.
Now, If I ask you to name a good knife for chopping vegetables, you need to think for a while because there is no such dominating brand in knives. So you can easily grab the attention of customers in such types of products.
So it is in your hand to find a product by using the above 5 steps. I have used the Wallet example for only explaining and understanding purposes. You can go through 30+ categories and find a good winning product by following the above steps.
Do it for too many categories in which you are interested and make the list for every product you found according to the guidelines as shown below.
You can use Google sheet or Excel sheets for listing the products as shown below. List at least 15 products so you can pick at least one product that you are much interested in according to the market.
So I hope you got a better view of the amazon product research in simple steps.
Does chosen product as market base on online
And the thing is, if you want to know the market for the product, you can do market research easily in two steps.
Step 1 :
Go to “Google” and search for “trends.google.com” then you will enter into “Google Trends” as shown in below
After entering into Google trends you can search for any topic or term so that you will get the result of how many people are searching for the particular product or service.
Google is the topmost search engine in the world with 90% of the market share. So you can easily do market research for the product and you can know what people are searching for.
Here below I show you the market research or the interests of people on “Wallets”.
I searched for the specific term “Wallets for Women”. I got the results according to the people’s interests for 12months only for India.
Google will give you the data according to the keywords, that are searched by the people on search engines each and every day.
So from the above image, you can see the Wallets for Women are not too bad in the market.
You can see the spikes touching high and a little bit low as in a neutral position and increasing a little again according to the people’s interests.
So you can target this type of product rather than targeting low-trending products.
And never choose seasonal products because they are only high at seasonal time periods.
So it is important to do market research for the product because without the market demand it is a waste of money and time, by choosing that product.
A good winning product will make your work better and receive good profits. The method which I describe is a very better way to find a great product.
If you find a product from the above method of amazon product research you can sell it in marketplaces(amazon) or you can sell it by creating your own store.
I hope you liked the article, and if you have any queries you can mention them in the comment section, I like to read them.