Before you enter any platform or take up any new opportunity, research into it is of utmost importance. The same goes for any online sales platform or eCommerce platform you wish to enter to expand your business. eCommerce platforms are rising as serious business opportunities, and a massive influx of merchants is happening towards these platforms. While this brings growth opportunities for the sales platforms, it also increases the competition level for sellers entering these marketplaces. When we talk about the leading online marketplace Amazon, the competition level is sky-high because there is a saturation of merchants.
In such a scenario, if you plan to enter the Amazon FBA module, you must know about in-depth product research to sell in-demand products and create a niche. At a time when the Amazon platform is saturated with products, effective product research is the only tool to set yourself apart from a swarm of products in the virtual world. Product research makes you aware of the current market scenario and the needs that the customers want to be met. Any Amazon product research tool works on the principle that when you enter a marketplace, you must be aware of the market trends.
Using good product research tools helps sellers sell the most relevant products on Amazon FBA to make profits and sustain their online business quickly. Product research on eCommerce platforms is an absolute need and helps eliminate any initial jitters and doubts about starting and sustaining an online retail business.
Here are the reasons to invest in a good product research tool for Amazon FBA sales. The multiple benefits of a good product research tool will improve multiple areas of your business operations.
A product research tool helps you quickly research your Amazon product on one platform. You can start by using a free Amazon product research tool. When you advance towards higher levels of product research after stabilizing the business, you can choose a paid Amazon product research tool with additional features. A good Amazon product research tool helps you save time searching through multiple algorithms and pages to find the most trending product categories on different parameters. When you have an excellent product research tool, you do not have to spend much time or effort on number crunching and organizing the product categories. Without a product research tool, you will have to do all the processes of product research, like searching the web, searching the platform, and data entry manually, which can be tiresome.
Using a good product research tool on Amazon can help you control business risks linked with the platform. By doing thorough research and studying market trends and sales data, sellers can ensure that they are investing in products backed by data and worth investing in. In this way, the FBA sellers only sell products bound to bring revenue and profits. So, the risk factor in the buying and selling process is minimized to a great extent. With low business risks, sellers can invest in various products and expand their lines while consistently making profits.
Amazon product research tools work as competitor research tools too. When you do product research, you also research your direct and indirect competitors. You get a glimpse into what kind of products they are selling and how their marketing tactics are performing. When you enter a highly competitive space like Amazon, investing considerable resources into competitor research is essential. A good product research tool helps you do both as you collect data about your leading competitors. If you do competitor research manually, it can be very time-consuming and repetitive. So, choosing a free Amazon product research tool that doubles up as a competitor research tool is a great idea when you have limited resources.
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Once you know the benefits of product research tools, you can invest in good product research. When doing product research on Amazon, you must focus on multiple critical areas of the product's characteristics. The must-have characteristics are as follows-
When researching product categories, we are looking for a massive demand for the products. When you have a huge demand for certain products, you should invest in these products. The demand for such products changes occasionally, so you have to look for these characteristics when doing product research.
The profit margins for each type of product you sell matter a lot. The profit margin is how much profit you are expected to make when you sell one product from that category. When the profit margin is high, you can make a lot of profits from the category. As the profitability of any product matters a lot and drives the cash flow, the profit margin of the researched product is the parameter you should be looking at.
When looking at viable product categories, you can invest in; you should search for low-competition categories. Low competition categories are challenging on Amazon, but they can be found with amazon product research tools with advanced features. Compare different product categories and choose the category that has low competition with a lesser number of competitors. When there is a deficient number of competitors, you can create a niche for yourself and a brand from your business.
When choosing a product category, you will sell on Amazon FBA, you want a product you can bank on. A reliable product sold year-round in high volume is ideal for the Amazon platform. Products like skincare, personal care, beauty products, and clothing items like undergarments, dresses, and accessories have low seasonality. These products see a constant customer demand and produce consistent profits for the seller. If you invest in products with high seasonality, like raincoats, umbrellas, or Christmas décor, you will be unable to profit for a long time. An excellent approach to launching product categories online is choosing low-seasonality categories for the long term and investing in high-seasonality categories at certain times of the year. This will balance out the profits and create opportunities for increasing profits too.
When you are choosing product categories to invest in, make sure that the research tool focuses on things that are not illegal in your country of operation. Certain things are banned in specific countries. Be aware of what is legal and what is illegal in your country. You will be surprised to learn how many things are banned in different countries. So, research illegal things and stay away from them. Do not deal with illegal things, as that can lead to trouble for your online business.
Lightweight items are the first choice in product categories because lightweight things are easier to sell and deliver to people. When you look at the order fulfillment process, choosing lightweight items can improve the speed and efficiency of it. When the products are lightweight, they are easy to pack together and carry. Therefore, lightweight items with good profit margins tick all the right boxes for the supply chain of online businesses. The same thing goes for small things. This also depends on the psychology of people. Customers prefer to buy large, bulky items physically, whereas small, lightweight items are mainly ordered through Amazon because they are easier to carry and receive. People are also looking for unique lightweight, and small items on Amazon that they can use for multiple things. Such items are very much in demand and will bring in a lot of orders.
If you can choose a product that performs better than your competitors, you can establish the business as leading. For this, during the product research phase, you must thoroughly study the competitor products and ensure that you see room for improvement. Then you can either create or outsource better products for your Amazon FBA shop. Learning from your competitors' shortcomings is a great move to make for a successful business.
Let us look at the basic requirements for shortlisting products to go through further research.
You can generate ideas for product research by browsing through Amazon bestsellers and amazon storefronts. You can also explore the retail stores and operational locations near your area to explore new product categories and trends. You can also look for Amazon Basics listings to see what Amazon is coming up with as its products. You can also see what many people buy as combos under the customer also bought category. You can also research through the listings of other eCommerce platforms to choose universally appealing product categories.
While researching the most relevant product categories, we should also research to know which product categories to avoid. If you are trying to do product research manually and are curious, you can go through case studies of what products are always in demand on the Amazon platform. You can also think of unique or international products that still need to be launched in your area of operation. This way, you can introduce a product trend in Amazon FBA.
Now that we know what goes into Amazon product research let us talk about the tools for product research. Better than the manual way of product research, Amazon product research tools give you great results in a short period. If you want to do months of product research in a few minutes, choose a good Amazon product research tool with unique features.
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Jungle Scout is a powerful and multipurpose research tool that you can use for product and competitor research on Amazon. The tool is an amazing one that sellers have used for a long time. It is easy to use and is available as a web extension. With the help of this tool, you can research different product categories using different filters. You can also look at the estimated sales of different product categories and choose the right one for your business. You can also narrow down a product list for shortlisting by mixing and matching filters. The tool also has a FBA profit calculator that helps you estimate profits accurately. Because of its great features and ease of use, it is preferred by Amazon sellers worldwide.
SellerApp is also a great product research tool used by Amazon. The product research tool is a feature-rich one with an easy subscription model. The essential subscription provides users with necessary features like automatic study of product trends and research. The tool is also used to do keyword research for Amazon SEO tactics. The tool is also great for listing SEO and using the index checker. SellerApp is the perfect marketing assistant for Amazon sellers. With the help of this app, sellers can improve their marketing efforts and run ad campaigns for their stores.
Helium 10 is a leading Amazon product research tool that automates long product research processes. It is known for its simplified platform and ease of use. You can use the tool as a web application on your phone or as a Chrome extension. Helium 10 recently launched the Blackbox app that helps you search for the exact products according to your customized category filters. The advanced filters of this product research tool help you find your niche in a highly competitive environment.
In conclusion, we've discussed how to find the most profitable products for Amazon sellers using various free product research tools - some of which can be a great option when you don't have additional funds to spend on expensive subscription services. The tools we discussed should give you enough information to start making informed decisions about what products you should be selling. Ultimately, the key is to remain patient and always remember that time spent experimenting is an investment so that you can gain profitable insight into what works best for your store. Additionally, if you need further assistance or would like help filling out those orders more efficiently, don't hesitate to contact Simpl today and get the support tailored to your eCommerce needs.
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