Selling on Amazon is not a walk in the park. There are so many business processes involved, and the majority of them are exhausting, especially for new sellers. Amazon product research is one of the most essential aspects of every Amazon business. But not every seller knows exactly how to go about product research. If your goal is to scale your business, then you must dedicate time to researching profitable products for your store. In this post, we’ll show you how to ace Amazon product research. We’ll also show you some of the most profitable product categories on Amazon. Let’s get right into it!
What is Amazon Product Research?
Amazon product research is the process of analyzing the market and current trends to find the perfect product. Normally the best products are ones that you can buy at a low price and sell in large quantities at competitive prices. But there are several other factors that come to play when you’re trying to choose the right product for your store. As a result, product research is often the toughest task for sellers, especially those who are just starting.
There are two ways to do product research: Manually or by using Automated product research tools. Most people choose the latter option as it saves a lot of time and often gives more accurate results.
If you would like to automate your product research process, here are some of the best Amazon product research tools.
Jungle Scout: Jungle Scout is one of the most popular product research tools for sellers. It is available either as a web app or chrome extension and allows sellers to quickly search through thousands of products. It even has free webinars, ebooks, and case studies for sellers who may be interested in additional resources.
AMZ Scout: AMZ Scout is a great alternative for Jungle Scout. The software provides a competitive way for sellers to find products and track sales. Using the software comes at a cost and there are three plans for you to choose from. If you’re unsure and want to try out the tool before you buy, you can try it for free for 7 days.
Zonbase: Zonbase is an all-inclusive software for every Amazon seller who wants to build a profitable business from scratch to finish. The software contains every single tool that you are going to need to be successful on Amazon. You will also get exclusive training on how to use all these tools. Apart from Amazon seller tools, the software also offers a mentorship package for sellers who would like expert guidance on their journey. The software is not free to use, so you must subscribe to one of the two plans available to access it. But there is a 7-day free trial available if you would like to test the features first.
If you haven’t already done so, go ahead and take advantage of the FREE trial today and see if you like it or not.
Amazon FBA Business Models
There are several Amazon business models. So setting up a seller account is not the problem, choosing the right business model then finding profitable products is where the issue often lies. For a start, here are the Amazon business models available for you to consider.
Arbitrage (Online or Retail)
Retail Arbitrage requires you to buy products at a retail price and sell them on Amazon at a slightly higher price. Under this model, you will have to source your products from physical or online retail stores. There are many liquidation stores that sell products at very low prices. Profit is earned by buying these products at low prices and selling them on Amazon at a much higher price. The arbitrage model is quite difficult to scale as you have to constantly find products to list on Amazon.
Wholesale is buying bulk orders directly from the manufacturer at a discounted rate and reselling them. If you choose to use this model, you will have to engage in thorough research to find profitable products. This is because it requires huge capital investment and an investment in the wrong products can lead to massive losses.
This model is best suited for sellers who want to build their brand on Amazon. Under this model, you’ll have to work directly with manufacturers who will manufacture the products for your brand. The products will then carry your brand name and packaging so the manufacturer has no right over them. This model also requires huge capital investment, so you must first find out the hottest products on the marketplace before settling for one. Failure to do this may be you setting yourself up for losses.
This is one of the easiest business models on Amazon. All it requires you to do is to create listings and get orders. After collating these orders, you’ll send them to the manufacturer and have the order sent directly to the customer. Here, you have no direct contact with inventory, but product research is still a necessity.
How To Choose An Ideal Product To Sell on Amazon?
Choosing a profitable product to sell on Amazon is not as difficult as it seems. Here are some qualities to look out for when choosing profitable products.
- Price range between $18 and $50- Low product price makes it easy to cover some costs like Amazon charges, advertising costs, etc.
- Small in size and lightweight- For Amazon FBA business, you will need products that are small in size and lightweight. It will be less expensive to ship from the manufacturer and send to Amazon’s warehouse.
- Simple to Manufacturing- Avoid Products that contain glass that can create problems while shipping.
- Low Seasonality- Find a product that is available all year round, not just one or two seasons.
- Huge Demand and Low Competition: The profitable product is the one that has huge demand in the market but has low competition.
What Are The Best-Selling Product Categories On Amazon?
Books: Books are one of the best-selling products on Amazon and their demand is not going down anytime soon. Whether it’s hardcopy, paperback, or Kindle edition, books are more popular than ever, and they come with a huge profit margin.
Baby Products: Babies are born every day, so there will always be a demand for baby products. Items in this category are a great option because baby products are small in size, lightweight, durable, and always in demand.
Jewelry: Jewellery products are always fast-selling items on Amazon. Yes, the market is saturated, so you have to be pro at marketing to make it profitable. The profit margin for products in this category go as high as 50%+.
Gym and SportsWear: People of all ages want to be healthy. To do that, they need to exercise, and here’s where you come in. There is an increasing demand for workout wears on Amazon and these products come with a good profit margin.
These are 4 of the most popular product categories to start your Amazon FBA business as a beginner. Of course, there are more product categories, you just have to use the right strategy to discover them. Here are a few tips to help you find profitable products to sell.
Tips to find profitable items to sell on Amazon FBA
- Find products that address the needs of your audience. Products that are not solving any issue or addressing any needs will be difficult to sell on Amazon or any other marketplace. But a good product with the right marketing strategy will definitely be profitable. So, find out what problems customers are facing, then try to solve those problems with your products.
- Read product reviews. When you discover a potential product, don’t just go all in and invest in it. Check out competitors who already sell it and read their customer reviews. These reviews will help you estimate the product’s market demand and what customers think about it.
- Always have a look at trends. If you become one of the first sellers to sell trendy items, there is a big chance for your product to go on the best-selling lists.
- Finally, look for products with good p[rofit margins. Always take all costs into consideration, from manufacturing to shipping. If you’ll be using FBA, you can use a sales estimator tool to gain an idea of the FBA fees.
Tips For Amazon Sellers In 2022
Do the research and select your niche carefully
If you are still searching for your niche, choose those that have high-demand products and low competition. Finding the right niche is important but it doesn’t happen overnight, it takes a lot of time and patience. But, in the end, it will be worth it. Do your research and make use of available resources to find products that have high demand. Why should you choose niches that have high-demand products and low competition? Because it helps you gain more visibility. So, if you choose a product with high demand in a niche with low competition, you should be able to scale your business effortlessly.
Be a Proactive Marketer
The next step to being successful on Amazon is to heavily advertise your products. You can’t just list your products on Amazon and sit back waiting to make sales. First, create a great product listing, then optimize it. It’s important for you to include a great product picture, titles, and descriptions in your listings. Don’t forget to include the right keywords in your product descriptions and titles. Using relevant keywords in your listings will help you gain more visibility and make more sales.
Know your competition
Competitive analysis is a crucial aspect of every online business. The competition on Amazon is fierce, so there is a good chance that you’re not the only one in your niche. Hence, you should study what other sellers in your niche are doing. Check out their marketing strategies and pricing. Don’t handle your business with levity, always evolve as the market changes. The best way to find out how your competition is doing is to check their product reviews. Learn what people are loving and complaining about in their products. Then use their strengths and weaknesses to make your product that meets those needs.
Increase your profits
One way to increase your profits is to market your products right. It is almost impossible to increase your profits if you sell only one product. So you should launch new products every now and then. Always be on the lookout for new product trends and best-selling products in your niche.
Best Software For Amazon Sellers In 2022
If your goal is to build a successful business on Amazon, you will have to juggle a lot of tasks. Product research, keyword research, and listing optimization are the most essential aspects of every Amazon business. Executing these tasks can be time-consuming and overwhelming especially for new sellers who are just navigating the marketplace. Thankfully, they can be automated using Amazon software. There are different software available on the market and they all claim to be the best, so it may be a bit difficult to choose one. But here’s one that we absolutely trust and recommend: ZonBase!
ZonBase is the best Amazon software to invest in if your goal is to scale your business seamlessly. The software offers a set of research and listing optimization tools. It also offers a photo enhancer and sales estimator. Seeing as it’s important to use high-quality images on your listings and estimate the sales potential of your products, these tools may come in handy.
The software offers two paid plans at very affordable prices. There’s also a 7-day FREE trial for sellers who want to try it out first.
Every seller wants to build a profitable business. There’s only one way to do that – Amazon product research, but not everyone knows how to go about it. If you use the tips provided on your way, you’ll be on your way to joining the league of top sellers on Amazon.