Product research is a critical process for Amazon sellers aiming to identify profitable products to resell. The goal is to find items with strong sales potential, healthy profit margins, and minimal risks when listed on Amazon. In a marketplace with millions of products, the key to success lies in efficiently finding high-margin deals that are worth investing in.
In this article, we’ll walk you through 7 practical product research tactics that will help you discover profitable products to sell on Amazon. Whether you’re new to Amazon selling or looking to refine your research methods, these strategies will save you time and improve your chances of success.
How Does Amazon Product Research Work?
Amazon product research involves discovering, evaluating, and selecting products with the potential for high profits. This process helps sellers identify products that have strong customer demand, attractive profit margins, and a reasonable level of competition.
Product research can be broken down into two primary approaches: quick research and in-depth research. Both approaches are essential because they help sellers efficiently filter through the vast number of products available on Amazon.
- Quick research is designed to help sellers rapidly assess many products and eliminate those that don’t meet basic criteria.
- In-depth research takes a closer look at the most promising products, diving deeper into profitability, competition, and risk factors before making a final decision.
In this article, we’ll cover five quick product research tactics, followed by two advanced tactics that will help you secure high-margin deals for your Amazon business.
Finding products on Amazon can be time-consuming and overwhelming, but using tools like Seller Assistant can streamline the process. Seller Assistant is a powerful product-sourcing software that enables sellers to quickly identify high-profit opportunities. With tools and features like the Price List Analyzer, Seller Spy, FBM/FBA Profit Calculator, and more, Seller Assistant makes it easier to perform both quick and in-depth product research.
5 Quick Product Research Tactics
Quick product research is essential for filtering through many potential products and narrowing down your options. These tactics are designed to help you identify high-demand, low-competition products and ensure you can sell them on your Amazon account.
1. Quick View
The Quick View tactic involves assessing key metrics to quickly determine if a product is worth your time. By using Seller Assistant’s Quick View feature, you can instantly see important product details right from the Amazon search results. This includes the product’s ASIN, Best Sellers Rank (BSR), eligibility for sale, seller count, and whether Amazon itself is selling the product.
By having all these details at your fingertips, you can quickly eliminate products that don’t meet your criteria, such as those with high competition or those that you’re not eligible to sell.
2. Reverse Sourcing (Supplier to Amazon)
Reverse sourcing is a strategy that works especially well for wholesale sellers. In this approach, you start with a supplier’s price list and then search for these products on Amazon. By matching products from your supplier with Amazon listings, you can identify profitable opportunities for resale.
Seller Assistant’s Price List Analyzer can automate this process. You simply upload your supplier’s product list, and the tool matches those products with Amazon listings. It then calculates important profitability metrics like Return on Investment (ROI), BSR, Buy Box price, and Amazon fees, helping you quickly find products worth reselling.
3. Competitor Research
Competitor research is a valuable tactic for identifying profitable products by observing what your competitors are doing. By analyzing their product offerings, you can spot opportunities where you can compete by offering similar products or filling market gaps.
To simplify competitor research, use Seller Assistant’s Seller Spy. This tool tracks your competitors, monitoring which brands and products they are selling and how they price them. Seller Spy gives you insights into market trends and helps you make more informed decisions about the products you should sell.
4. Category Research
Choosing the right product category is crucial for success on Amazon. When researching product categories, it’s essential to evaluate factors like competition levels, sales volume, and restrictions.
- Competition Levels: High-demand categories often have a lot of competition, which can lower profit margins. Categories with 15 or more FBA and FBM sellers per listing can lead to price wars, so choosing categories with moderate competition may be a better strategy.
- Restrictions: Some categories require approval to sell or have restrictions. Always check if the category you’re interested in is open to you as a seller.
Seller Assistant’s Quick View can help you evaluate competition and category restrictions directly on Amazon. The tool shows you the number of sellers in a category and flags whether you’re eligible to sell in that category.
5. Brand Research
When selecting a brand to resell on Amazon, it’s important to ensure the brand’s products are in demand, not overly competitive, and legally eligible for resale.
Here’s what to consider when researching a brand:
- Product Range: Look for brands with a wide selection of products (ideally 200+). This gives you more options to choose from, increasing your chances of finding profitable items.
- Competition: Check the Buy Box ownership. If Amazon controls over 30% of the Buy Box for a brand’s products, competition is likely fierce.
- Brand Exclusivity: Avoid brands with exclusive distributors or those that sell directly on Amazon. These brands often do not welcome competition.
- Customer Feedback: Review customer ratings and reviews. A strong customer rating indicates good product demand and satisfaction.
To automate brand research, use Seller Assistant’s Brand Analyzer. This tool gives you key insights into a brand’s product range, profitability, competition, and customer feedback, helping you make informed decisions.
Advanced Product Research Tactics
Once you’ve identified a promising product using quick research tactics, you’ll want to dig deeper to verify its profitability and minimize potential risks. Advanced product research helps ensure that the products you choose are truly worth the investment.
6. Extended Research
Extended research involves a thorough analysis of a product’s potential. You need to assess the following criteria:
- Sales Potential: Does the product have a strong sales history and consistent demand?
- Competition: How fierce is the competition? Are there price wars?
- Profitability: Does the product offer a good profit margin after factoring in Amazon fees, shipping, and other costs?
The best tool for extended research is Seller Assistant Extension. This tool integrates directly with Amazon product pages, providing you with all the necessary data to assess a product’s viability, including sales rank, estimated profit, and competitor activity.
7. Direct Sourcing (Amazon to Supplier)
Direct sourcing is a strategy that involves identifying products that are already selling well on Amazon and then finding suppliers who offer those products at lower prices. This tactic is especially useful for online arbitrage and dropshipping sellers.
Start by identifying high-demand products on Amazon using lists like Amazon Best Sellers, Movers & Shakers, or the “Most Wished For” section. Once you’ve identified these products, look for suppliers who can offer them at a lower price, allowing you to profit from the price difference. Then follow the research steps described in the Extended research tactics above.
Final Thoughts
Product research is a critical aspect of running a successful Amazon business. The process involves identifying profitable products while managing risks and competition. By using a combination of quick and advanced product research tactics, you can streamline your research efforts and focus on the most promising opportunities.
Tools like Seller Assistant—with its Brand Analyzer, Price List Analyzer, Seller Spy, and other features—can automate much of the research process, making it easier to find high-margin products and improve your overall profitability on Amazon.
By applying these research tactics and utilizing the right tools, you can confidently select products that will help you grow your Amazon business and achieve long-term success.