We’ve all had that brilliant product idea! It usually springs from a problem we’ve experienced. Some kind of frustration or friction or lack, and we think “I could fix this!”. What’s next?
Well, you think to yourself, I can import this product to sell on Amazon, or create it myself. It sounds logical, but in reality, you’ve only defined the problem for yourself, not for a bigger audience.
The Amazon marketplace presents both great opportunity and fierce competition. Amidst its vast offerings - making well-informed decisions driven by data insights is crucial for seller success.
It’s easy to think that if you want a product, then everyone else must, too. But the lack that keeps you awake might be a non-issue for others. You just don’t know.
And this inward-looking - is a trap that lures in hundreds of thousands of entrepreneurs every year. The importance of comprehensive product research and validation cannot be overstressed.
Harnessing the Power of Data in Product Research - The numbers dont’ lie.
When evaluating products for Amazon, our team now looks for confirmation to “kill” an idea. We use data to:
1️⃣ Discern Demand: Confirm the existence of a genuine market for the product. What is the market demand? What's the search volume for this product or its variants?
2️⃣Evaluate Competition: Determine market saturation or assess opportunities for new entrants. How many sellers offer similar items? What's their feedback and ratings?
3️⃣Establish Brand Dominance: Who are the biggest players? Are buyers choosing which products to acquire by brand, by look or by functionality?
4️⃣Gauge Profitability: Comprehend potential returns and validate the product's financial viability. What are the average buybox prices? After factoring in expenses like shipping and Amazon fees, what's the potential return on investment?
Setting high bars and scrutinising this data helps us to make astute decisions, ensuring genuine market demand, and assessing the potential for profits.
Software's Role in Product Research and Validation
Software solutions have revolutionised how Amazon vendors undertake product research. They provide many insights - from tracking competitor sales figures to identifying potential market niches.
Here are some recommendations from our set of product research tools:
- Helium10: Offers a comprehensive toolkit spanning keyword research to profit estimation.
- Keepa: Offers price history graphs, price drop, seller numbers and availability alerts, browser extensions, deals and a huge and constantly updated product database.
- Amazon Product Opportunity Explorer: A proprietary tool from Amazon, unveiling potential niches and opportunities.
- Google Trends: Uses Google data to show search interest for a particular word or term. Reveals word with high search volume and relatively low competition
In conclusion - kill that product idea before you jump straight in and launch it.
One of the worst mistakes for Amazon sellers is investing in dead products and inventory. This not only ties up capital but can also incur storage expenses and losses from unsold stock. Make sure you validate your ideas using our principles which will help you save money and avoid some serious pain down the road.
Best wishes!
