Amazon FBA (Fulfillment by Amazon) offers so many conveniences to sellers. Between developing and marketing your products, managing inventory, and handling customer service, they allow sellers to outsource the logistics of their business to Amazon, making it easier to focus on other aspects of their business.
One of those other aspects for sellers is figuring out what product to sell next. With so many options out there, it can be difficult to know which product is truly worthwhile to create. That’s why it’s important to do your research and gather data to make informed decisions.
In this post, we’ll cover some strategies for finding profitable products to sell on Amazon using FBA, as well as tools and resources to help you along the way.
Factors to Consider
It’s important to consider certain factors before creating a new product because doing so can help you make informed decisions that can increase your chances of success. Take these factors into account before deciding what products to create:
Does your product solve a certain problem that a customer has? Products that solve a problem or meet a need that is not currently being fulfilled in the market have a higher chance of success. By identifying a problem and creating a product that solves it, you can differentiate yourself from competitors and provide value to your customers.
Is there sufficient demand for your product? You can use tools like Google Trends, Amazon Best Sellers, or Jungle Scout to research market demand. If you want to avoid products that are fads or seasonal, then you need to look for products that have consistent demand over time.
How many other sellers are offering the same or similar products? A high level of competition can make it difficult to stand out and make sales. Research your competitors to see what they’re offering and what you can do differently to differentiate your product.
How much capital do you have to invest in your product? Consider the costs associated with manufacturing, packaging, shipping, and advertising your product. It’s important to have a clear understanding of your budget and cash flow before deciding on a product.
How much profit can you make on each sale? Calculate your cost of goods sold (COGS) and factor in all other costs associated with selling on Amazon, such as Amazon fees, shipping, and advertising. Aim for products with healthy profit margins.
Legal and regulatory requirements
Are there any legal or regulatory requirements for your product? Research any restrictions, certifications, or permits required for your product and make sure you comply with all relevant regulations.
Excellent Tools You Can Choose to Research Your Product
There are many software tools available to help with product research for Amazon FBA. Here are a few popular options:
Helium 10 is a suite of software tools designed to help Amazon sellers with various aspects of their business, including product research, listing optimization, and marketing. Here are some of the ways that Helium 10 can help with product research:
- Product Database: Helium 10’s Product Database allows you to search for product ideas based on various criteria such as niche, price, and sales volume. You can filter and sort the results to find products with high potential for profitability and low competition.
- Black Box: This tool is similar to Product Database but with more advanced filtering and sorting options. You can search for products based on specific keywords, ASINs, categories, and other criteria and analyze their sales history and trends.
- Xray: Xray is a Chrome extension that provides real-time data on Amazon product listings. It allows you to quickly analyze a product’s potential profitability, competition, and demand by displaying key metrics such as estimated sales, revenue, and review ratings. For example, you can use go to your competitor’s Amazon storefront, pick a product, and run this tool to study their sales data
- Trendster: If you’re looking to stay on top of product trends, Helium 10’s Trendster tool allows you to monitor sales trends over time and identify potential opportunities for new products or niches.
- Cerebro: This tool is designed for keyword research and analysis. It allows you to find high-volume, low-competition keywords for your product listings, helping you to improve your search rankings and increase visibility to potential customers.
ZonGuru provides a unique feature called the BEAR, which stands for Brand Expansion and Analytics Report.
The BEAR feature in ZonGuru is a brand analysis tool that provides data and insights to help Amazon sellers grow their brands. It includes features for tracking key performance indicators (KPIs), such as sales, revenue, and profitability, as well as monitoring competitor activity and identifying new product opportunities.
The BEAR tool also provides analytics on customer reviews, allowing sellers to monitor feedback on their products and identify areas for improvement. Additionally, it offers insights into product pricing and sales trends, helping sellers make informed decisions about pricing strategies and product launches.
By providing data and insights on key performance metrics and market trends, it can help you make informed decisions on what’s the ideal product to launch next.
To use the two tools we mentioned before, you need to pay for them to utilize their maximum potential. But for this one, you can do it completely free.
CamelCamelCamel is a free price tracker, and sales rank analyzer for Amazon products. While it does not offer the same comprehensive suite of tools as Helium 10 or ZonGuru, it is a simple and easy-to-use tool that can be a valuable resource for Amazon sellers looking to research their next product.
These two features especially can help you in your research:
- Sales Rank Tracking: The tool also tracks the sales rank of Amazon products, which is an indication of how well they are selling relative to other products in the same category. By monitoring sales rank trends over time, you can identify products that are gaining in popularity or declining in demand.
- Product Search: You can use CamelCamelCamel’s product search feature to find products based on keywords, categories, and other criteria. The tool also provides data on the product’s price history, sales rank, and other metrics, allowing you to quickly evaluate its potential profitability and demand.
3 More Effective Ways to Discover Your Next Product
Finding your next winning product can also be done beyond tools and metrics. Here are some other effective ways to find that hidden gem for your Amazon Business:
Conduct customer research
Talk to your existing customers and find out what they need and want. Ask for feedback on your current products and what they would like to see in the future. Doing so can give you valuable insights into what your customers are looking for and what you can offer.
Brainstorm with a team
Gather a group of people and brainstorm new product ideas together. This could include employees, industry experts, or even customers. Collaborating with others can help generate new and creative ideas and bring fresh perspectives to the table.
Visit trade shows
Attend trade shows and exhibitions in your industry to see what’s new and emerging. It’s a great way to discover new products, technologies, and ideas. Not to mention that it’s also an opportunity to network with other professionals and potential suppliers.
Make Your New Product Stands Out on Amazon
Once you find your new potential product, it doesn’t stop there. Making your new product stand out on Amazon is crucial if you want to succeed in this highly competitive marketplace. With millions of products available on Amazon, it’s easy for your product to get lost in the crowd if you don’t take steps to differentiate it from the competition.
So here are the things you can do to make sure your new products have a much higher chance to succeed:
Optimize Your Product Listing
Listing optimization involves optimizing your product’s title, description, and other details to ensure that it’s as attractive and appealing to customers as possible. This can include using targeted keywords in your product title and description, creating high-quality product images and videos, and providing detailed information about the product’s features and benefits.
The importance of Amazon listing optimization lies in its ability to help your product appear in relevant search results and stand out among the competition. When a customer searches for a particular product on Amazon, the search algorithm will display a list of products that match their search query. By optimizing your product listing, you can increase the likelihood that your product will appear at the top of the search results, making it more visible to potential customers.
Display Eye-Catching Product Images
Great Amazon product photography is essential to making your new product stand out on the platform. In fact, it’s one of the most critical factors that can impact your product’s success.
Product photography is the first thing that customers see when they view your product listing. It’s essential to have high-quality images that showcase your product in the best possible light. This is especially important on Amazon, where customers can’t physically touch or see the product in person before making a purchase.
Promote Your Product with PPC
Using pay-per-click (PPC) advertising is also an essential component of making your new product stand out on Amazon. PPC allows you to advertise your product to customers who are searching for related keywords and can drive more traffic to your product listing.
With PPC, you can target specific customers based on their search queries and demographics, ensuring that your product is being seen by the right audience. This means that you’re more likely to convert those customers into actual buyers.
One of the biggest advantages of PPC advertising is the valuable data it provides. You can see which keywords are driving the most traffic and which ads are generating the most conversions. This data can then be used to optimize your product listing and advertising strategy for better results.
PPC advertising is also cost-effective since you only pay when someone clicks on your ad. This allows you to control your advertising spend and ensure that you’re getting a positive return on investment.
Finding the right product to sell on Amazon FBA can be a daunting task, but with the right strategies and tools, such as the ones that are provided in this article, it can be a rewarding and profitable endeavor.
With persistence and dedication, you can launch your next winning product and build a successful business with Amazon FBA.