Every e-commerce business today wants their product to be the best, but finding the perfect product is not easy. Everyone wants something original and life-changing, but there are already over 500 million options. It takes serious research skills and patience to find those hidden “golden eggs” among millions of other products, because this is the most important stage that will lead your business to success.

Product research is the most critical stage and if you don't spend significant time on this step, you will probably FAIL! There are two types of sellers: those who make decisions based on their narrow observations and those who follow strict criteria. This blog will reject both. No tool can give you a magic formula to pinpoint the success of the product. It must be a mix of data analysis, observations and experience that allows the golden egg of success to hatch.

Product and Product Strategy:

Each product is unique and has its own market destiny. Just like the uniqueness of each product, the “go-to-market” strategy will be different for each one. Only if the right approach is taken can your product succeed.

New Sellers - Experienced Sellers:

New sellers are either very enthusiastic or very risk-averse when they have to make a new decision. Depending on your situation, the balance of risk is important. In this article, we will give you some tips to reduce your risks. This guide is designed for those who are either just starting out or are struggling with the sales process. Some are thinking of quitting completely, others want to start selling again in a different way.

Some experienced sellers often look for a product with absolute precision and mathematically evaluate every decision after using market tools, but this is not the right approach. For the right approach, you need to combine data analysis with objective evaluation to make the best decision.

1. High Demand and Low Competition:

Your product needs to be in high or medium demand. This demand is the criterion that will determine how quickly your product will sell out when it goes on sale in your Amazon store.

You can think of demand like the flow of a river, and each product has a different flow. The best option for you is to follow a process that will get you to your destination quickly and not frustrate you on the way.

We will also analyze the competition and the total number of competitors so that we can make the right choice to enter the market. The number of competitors can be logically compared to the depth of a river. The more competitors there are, the deeper the river is and the more effort you will have to put into bringing your product to the surface and gaining visibility.

Tip: It makes sense to find a product with a good sales velocity and a small number of sellers that you can easily stand out from. Whatever product you choose, you will need to develop an appropriate strategy to get it on page 1.

How do we 'pinpoint' demand? The plain and simple answer is that we cannot determine it with certainty, but we can only guess and get an idea of the level of demand using different tools.

One of these tools is the Jungle Scout (JS) Chrome Extension. For first-time users or those in the beginning stages, the JS Extension provides line-by-line data for Amazon sellers and offers an opportunity score.

Usually, beginners are advised to start with products with an Opportunity Score of 6, 7, 8, 9, as these represent products with high or medium demand and medium or low competition. You will also need to analyze total revenue, price, reviews, number of daily sales, etc. (We will cover these later in the blog.

Sellersprite is a different and emerging tool that provides the same results as Jungle Scout.

2. Keyword Search Volume:

This should be second on your checklist in terms of importance. You should treat keyword search volume exactly the same way sales and marketing professionals look at customer flow in a mall or marketplace. The more people enter the mall or search for the keyword, the more likely the product is to sell and thus its demand is considered high.

Thanks to the FBAPro Private Label 2.0 training, which can guide you in processes such as Product Finding, Keyword Identification, PPC Campaigns and Bidding, Product List Creation, Sales, American Company Establishment, you can proceed more healthily and minimize the risks that may occur during the process. Get Information About Training.

3. Seasonality:

The product we choose should not be a product that is in high demand only for one season or once a year. We can easily check the product demand trend by searching product keywords on Google Trends. Products that tend to sell only in a certain season will have unpredictable sales and will only be successful for a certain period of time. Therefore, it will be more difficult to start selling in these categories, especially for new sellers.

4. Monitoring Consistency of Product Behavior:

Demand, Keyword Search, Seasonality, results will only give us the data of the moment.

Therefore, to monitor product behavior, you need to set a specific timeframe, from a few weeks to a month or more, depending on the product, and see if the product behaves consistently over that period of time. There are various tools for monitoring product behavior and one of them is Keepa. Keepa is useful here, so you can see your competitors' sales price changes over time, sales volume fluctuations, etc. and draw conclusions.

5. Product Title:

The keyword is one of the most important issues to be considered when creating a product title. While preparing the product title, competitors and the market should be analyzed well, the right keywords should be chosen, and a clear and visible title should be created. If mistakes are made in this step, this will directly affect your ranking and therefore have a negative impact on your sales.

6. Profit Margins:

This step is often a mistake risk for beginners. They get excited by misinterpreting the product results and declaring it a profitable product. But they don't consider the cost of producing and shipping the product and the price they will sell it for. You shouldn't risk all the time, effort and money you've spent by making mistakes of caution.

Products on Amazon are sold at low and high prices, and most products fall somewhere in the range. In 2023, the products sold on this platform are largely split into two price ranges: more than half (52%) fall into the $11 to $25 range, while 32% are sold above $25!

You can check the Amazon FBA calculator (Amazon FBA Revenue Calculator) to check margins and get a reasonable idea. You can also check the FBAPro Private Label 2.0 Training for detailed information and specific techniques on Sourcing Platforms other than Alibaba to reduce sourcing costs and on manufacturer negotiation stages.

7. Average Revenue and Average Monthly Unit Sales:

In order to make a sustainable profit from a product, it is recommended that the average profit margin should be between 10% and 30%.

The bigger the market is, the bigger the slice of the pie you can get. Similarly, another indicator of sales volume is the number of units sold. If 300 units of the product are sold on average, there may be enough room for a new seller to establish themselves.

8. Reviews:

The more reviews and the more highly rated they are, the better for making sales. So why is the number of reviews important? First of all, everyone knows that Amazon has recently tightened its control on reviews and increasing reviews is a difficult task in itself. So, if you don't have enough means, you should avoid products with an average of 1,000 reviews or more.

Put yourself in the customer's shoes; when you see a few reviews, there may be a feeling of mistrust. Whereas a product with a high number of reviews will have more credibility in the eyes of the customer.

Tip: If the top 3 sellers exceed 1,000 reviews, the market will be challenging. In this case, you are likely to spend a significant amount of time and money. Therefore, keep in mind that new sellers should stay away from such products.

9. Product Size and Weight​:

Our recommendation is to choose a product that weighs less than 1 pound (~500 g) and does not have extraordinary dimensions. Why do we make this recommendation? For sellers, expenses are important in the startup phase and they are often frustrated by unnecessary surprise costs.

Heavy and oversized products increase the cost of transportation, which is calculated based on the volume of the product. At the same time, the cost of Amazon keeping your product in their warehouse will also increase. Since most of their calculations are based on dimensions, we advise you to check your product size and weight. Because eventually you will need to increase the price of the product to pass on to the end consumer.

10. Seller's Rank (BSR):

Only Amazon knows exactly how the seller's rank (BSR) is calculated. However, based on experience, the closer the product's BSR is to 1, the higher the sales volume.

Recommended BSR ranges are 20,000 and below, depending on the category.

11. Product Differentiation:

You should examine the reviews of brands in your product category with relatively high review numbers and see suggestions from customers or points of improvement that the brand needs to work on. Add value to the market and offer solutions to customers by innovating and differentiating the product.

12. Features to Avoid

12.1. More than 1,000 Reviews:

As explained earlier, to start with, you should stay away from products with more than 1,000 reviews on average. To deal with sellers of such products, you need to develop a long-term strategy and be willing to increase your capital.alısınız. 

12.2. Products Dominated by Amazon or Big Brands:

You may have seen Amazon on product listings or software. This refers to products that Amazon sells under its own brand. Although there are exceptions for products that Amazon itself sells, Amazon is generally dominant. This may also apply to big brands. Some specific brands in a product may be taking the bulk of the overall sales of the market. If you really see an opportunity in the product, you should make sure that Amazon or big brands do not have a dominant position in these markets.

12.3. Fragile, Glass, Ceramic Products:

The product leaves the manufacturer's warehouse, arrives at the Amazon storage center and is then shipped to the end customer. In this process, it may take some bumps and your products may break. Therefore, products that tend to break easily during transportation should be avoided.

In these cases, you will be much more likely to get negative reviews. However, if you are really interested in the product and see an opportunity, you can overcome this problem by taking additional measures to ensure the safety of the product.

12.4. Multi-Piece Products, Chess, Letter Boards:

For example, if there is complexity and incompleteness in assembling the parts of the product, this can lead to problems such as the parts not fitting together properly. An unhappy customer who experiences such problems may leave a negative review and eventually make you unhappy.

12.5. Gated Categories:

Some categories require prior approval from Amazon, such as Health & Beauty Products and Grocery products. Beginners should start with unrestricted categories, commonly known as “Ungated”, to avoid unintended situations and slowing down the process.

12.6. Electronic and Battery Products:

We recommend avoiding electronic and battery-powered products, especially in the beginning. Since your margin of error acceptable to Amazon is extremely limited, you don't want a small transistor issue to ruin your Amazon selling experience.

In the electronics category, factory or wholesale suppliers tend to have a larger volume, as issues such as returns are not as damaging as a result of their large volume. In addition, if you want to sell products containing batteries on Amazon, you will need to provide a full list of information about batteries and Safety Data Sheets.

12.7. Patents and Legal Issues:

Amazon may require some patents or legal permissions from you for the sale of certain products. You can search the internet or check Amazon's own rules on this topic to investigate any legal limitations you may unknowingly face after your product arrives at the warehouse.

Conclusion:

As you can see, there are many factors to consider when choosing a product to sell on Amazon. Understanding the data about these products and using it as your guide will allow you to make informed decisions that will be successful for your business. Whether you want to apply these principles or access more detailed data and analysis, our AMZ E-COMMERCE team is here to help. We offer a wide range of digital marketing services to take your business to the next level. Contact us today for more information!