Amazon is an excellent marketplace from which to start your e-commerce business. But, it can also be “terrifying” for newbies because millions of active sellers exist. That’s why choosing a high-demand, low-competition product(s) you’ll sell in your store is essential.
It would be best if you did good product research to find winning products for your Amazon business. Apart from using product research tools like Jungle Scout, AMZScout, and Helium 10, you should also use the rather old-fashioned Excel sheet comparison approach. It will allow you to compare multiple products while focusing on the most critical information, such as margin, profit, competition, and demand. It will also provide you with a clear view of the advantages and drawbacks of each product.
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Updated: 28/09/2024
Why Is Product Research Important?
Good Amazon product research is important because it helps you identify products worth selling on Amazon. It doesn’t matter how awesome your marketing strategy is or how exquisitely you’ve prepared a pre-launch and launch promotion; if you’ve chosen the wrong product(s) to sell in your store, all your efforts are in vain.
You get valuable information about your product and its performance through product research. Tools like Jungle Scout show you details on a product’s past and current performance and estimate its future performance on Amazon. There is also information on the product, including its purchase price, weight, size, FBA fees, etc. So, with product research, you find the best products to sell in your niche following the criteria you’ve applied.
How to Choose the Right Product to Sell on Amazon?
Speaking of criteria, you need to know what you want from your product. How much profit do you want each item sold to bring you? At what price should you sell your product? At what price do your competitors sell it?
This may sound complex, especially for those just starting their Amazon e-commerce business, so I’ve prepared a short list of the criteria your product should fulfill. Let’s take a look at it!
1. Choose a product with a minimal sale price of $15
This will cover all Amazon-associated costs (33% for Amazon fees and another 33% for manufacturing and shipping costs) and bring you 33% profit. So, for each product you sell, you’ll make a $5 profit, which is solid.
2. Go for products that have high demand but low competition
If you want to make money from your Amazon business, you should go for always-demand products. You can check this using a product research tool. While you want to sell high-demand products, you should go for products that don’t have much competition to stand out from the crowd more efficiently and get as many sales as possible.
3. Choose quality products
You want to offer products of good quality to your clients so that you can earn more 5-star reviews and receive positive client feedback. The better the quality of your product is, the more sales it will have.
4. Avoid seasonal products
Seasonal products are high in demand only around their season, which means they’ll sell only when it’s their season, and you don’t want that, do you? That’s why it’s best to avoid seasonal products and focus on always selling ones.
5. Choose products that are easy to manufacture
Since you don’t monitor the product’s manufacturing directly, you don’t know if something goes wrong during the production process, and you can’t act on time. This is especially important if you choose a product manufactured in China.
That’s why it’s best to choose a product that is easy to manufacture and has the least chance of going wrong. This includes one-piece products or products made from one type of material.
Why Should Amazon Sellers Use Sheets for Product Research?
Most Amazon sellers, including me, rely on product research software like Jungle Scout and Helium 10. There’s nothing wrong with using them because they do all the hard work for you and provide you with all the information you need about a product.
However, since many sellers use them for product research and they all use the same filters (e.g., low competition, high demand, most profit), they all get the same products in the search results. Having thousands of sellers selling the same product is no longer low competition.
You should use a product research tool and an Excel sheet to do the best product research. Using sheets will allow you to compare products side by side and identify which ones are worth selling without relying solely on what Jungle Scout (or another product research tool) says.
Another important thing is that using Excel sheets for product research gives you flexibility. You can use your data in a way that suits you the most. After all, we all have different KPIs and criteria we want our product to fulfill. And, with Google continually improving Google Sheets, it’s a pity not to use them to create more personal product research.
Make the Most of Your Amazon Product Research
Combining Amazon product research tools like Jungle Scout, AMZScout, and Helium 10 with Excel Sheets (Google Sheets) will provide a more personalized product research experience. You will still know which are the winning products to sell on Amazon but will be also able to compare them yourself to see which one(s) best fits your KPIs.
After trying this method, I’ve noticed how easier and more valuable it is to have a well-organized and thought-through Amazon product-hunting Excel sheet. That’s why I’m giving away my Amazon product-hunting Excel sheet template for free!
Hello, the link for download doesn’t work…
Wow. This is brilliant. Thanks