This is a follow-up to my Basic Product Research guide. In that guide, I discuss the product criteria I use when conducting product research.
This post will be much more practical. I will show you how I find these types of niches for the USA market!
Product Database
Okay, so now that we know what we are looking for, it is time to actually put in the work and find that golden product! There are loads of ways to look for products, but the beautiful thing is that Jungle Scout has a database with Amazon products on which we can use these requirements!
So, this is the field where you can enter the filters. Below, I will explain the filters I use:
- Categories: Based on whether a product is easy to manufacture, I have selected these categories. You can experiment with this, but I would stay away from the Watches & Electronics categories as they are extremely hard to manufacture!
- Price: Minimum $15
- Net: Minimum $10. This is Amazon’s minimum payout, so based on the 33% ratio, we want to get paid at least $10. We can still spend $5 on production and shipping and have at least $5 left over as profit.
- Revenue: Minimum $3000 per month
- Reviews: Max 50
- Rating: Max 4
- LQS: Max 60. This is great. Jungle Scout has its own formula for judging a listing: Listing Quality Score (LQS). This ranges from 1 ( low ) to 100 ( perfect).
So we enter these filters into their database and POOF! A huge list of potentially great product idea’s! I’ve been scrolling through the database for about 20 minutes and noted the best products I have found below.
1). 3 Tier Metal Stand
2). Hooded Beach Towel
3). Dog Car Seat Cover
Evaluating our product ideas
DON’T LOOK AT THE PRODUCT, BUT LOOK AT THE NICHE!
This is important. You don’t want to base your decision on just 1 product, but you want to look at the whole market in general. For example, it might look like 1 product is doing great and has a huge demand. However, it could be that this product is doing a lot of giveaways and spending a lot of money on advertising, so the sales are inflated.
I use the Jungle Scout Chrome Extension to get a complete overview of the niche. We will be checking the niche to the checklist to find out if they meet our demands
Product Idea 1: 3-Tier Metal Stand
First page on Amazon for: “3 Tier Metal Stand”
1. Average Sales Price: $36
2. Profit margin: $18 – PERFECT!
Sales Price: $36
Amazon fees: $11
Production cost: $5
Estimated shipping: $2
Profit Margin: $18
Quick Alibaba price check:
3. Demand: Medium
Almost all sellers are doing more than $3k in monthly revenue, which is our target. However, the revenue is not extremely high.
4. Low competition: Extremely low!
- Reviews: Shallow
The first 7 sellers have less than 50 reviews, and there are even 4 sellers on the first page who have less than ten reviews. - Product photos: Terrible.
This is the listing ranked #1. Only has 1 picture! - Listing quality: Terrible
The #1 only has the dimensions in the description - Product quality: Terrible
Top seller has 3.5 / 5 stars. You can simply read his bad reviews, see why his rating is so poor and improve this on your product.
5. Easy to manufacture
This product is made out of 1 piece, requires no assembly, and is very easy to make!
6. Not Seasonal
Conclusion
This is a fantastic product with barely any competition. Excellent profit margin. The only downside is that there is no huge demand for this niche. You can easily make $1k – $2k profit a month with this product, but there is not room to grow it.
Product idea 2: Hooded beach towel
First page on Amazon for: “Hooded Beach Towel”
1. Average Sales Price: $21
2. Profit margin: $10 – GOOD
Sales Price: $21
Amazon fees: $6
Production cost: $4
Estimated shipping: $1
Profit Margin: $10
Quick Alibaba price check:
3. Demand: High
Every seller on the first page earns between $3k and $10k, even with a super seller earning $17k in revenue per month.
4. Competition: Very Low
- Reviews: Low
So, the competition barely has any reviews. Seven products on the first page have less than 50 reviews, and the average number of reviews on the first page is 58! - Product photos: Low
This listing is ranked 3rd. It only has two fundamental pictures. - Listing quality: Low
This is an excellent example of a terrible listing. It has the bare minimum. - Product quality: Good
Most sellers have a rating of 4 – 5 stars
5. Easy to manufacture
The product is made of only one piece of fabric and requires no assembly. It seems to be very easy to manufacture!
6. Very Seasonal!
Yes, this product is seasonal. Let’s check this out:
As expected, this product had amazing sales from March to August. However, sales drop drastically in the winter months.
This does not mean this is a bad product! If you consider this with your stock forecast, this can be a great advantage. For example, I have a lot of summer products like this. They will generate loads of sales for me during the summer and require barely any stock in the winter. This is great for generating a lot of capital in the summer, which I can then spend on stock for my Christmas products!
Conclusion
Great product if you take seasonality into account. The product barely has any competition, has huge demand, and checks all the other factors on our checklist!
Product Idea 3: Dog Car Seat Cover
First page on Amazon for: “Dog Car Seat Cover.”
1. Average Sales Price: $26
2. Profit margin: $11 – GREAT!
Sales Price: $26
Amazon fees: $8
Production cost: $6
Estimated shipping: $1
Profit Margin: $11
Alibaba price check:
3. Demand: EXTREMELY HIGH
So this product is for people who want to make some serious dough. This is a vast market, with some top sellers doing between $100k – $300k. We don’t need to be a top seller but want a tiny piece of this pie. For example, a couple of sellers ranked in the middle of page 1 have around 50 reviews and are doing between $10k – $20k in revenue. This will be our first goal, as we can easily reach 50 reviews. Once ranked on page 1, we can change our ambitions and aim for those top spots.
4. Competition: Medium-High
I have touched upon this point above. There are some major sellers in this niche who are well established, with thousands of reviews and great listings. However, there are also some vulnerable sellers we can beat. For example, in my product launch case study, I am also competing with sellers who have a couple hundred reviews.
- Reviews: Medium-High
So, for this niche, we definitely need some deep pockets and be okay with not making a profit for the first couple of months in order to get those reviews. However, it is not as hard as it seems. For example, seller #7 only has 90 reviews and is doing $72k a month. Besides that, there are also sellers on the first page with only 25, 35, 52, and 74 reviews. Something we can do as well! - Product photos: Great
- Listing quality: Great
Okay, since this is a semi-competitive niche, you can expect all sellers to have their listings and products in order. This is a great example of how you want your listing and pictures to look: great lifestyle pictures in combination with a very detailed description. - Product quality: Great
5. Easy to manufacture
Yes, same as the products above.
6. Not Seasonal
Conclusion
Semi-competitive niche with a huge demand! I would not recommend this for your first product, but this is a perfect opportunity if you have some experience. All competitors have great listings & pictures. So it is up to you to offer something different. For example, I would differentiate myself by offering an e-book on training your dog, something no other seller offers.
Your Turn!
I think I have explained every aspect of what to look for when doing product research and even shown you how easy it is to find products with the Jungle Scout. So there is not much more I can show you. Now, it is time for you to take action! I found these products in 20 minutes. It’s not something I would recommend, but imagine what you can see when you spend a full month on product research!
I typically only use their service for one month, during which I do extensive product research. After this month, I have found my product and can cancel their service, so it is not that bad.
