A person researching and evaluating products for Amazon FBA

How to Research and Evaluate Products to Sell on Amazon

Michael J.

Conducting rigorous product research is crucial for finding winning products with high sales potential for Amazon FBA. You want to validate the demand and profitability before investing in inventory.

Follow this step-by-step process to effectively evaluate products you’re considering:

1. Assess Demand and Competition of your Amazon product

  • Check search volume and monthly sales for relevant keywords using tools like ZonBase. There should be sufficient consumer demand.
  • Check competitor reviews, ratings and Best Seller Rank (BSR). High volumes of good reviews and low BSR indicates strong existing demand.
  • Too much high-quality competition makes it difficult to rank highly in search. Find products with demand but lower competition.
A man with money doing product validation for Amazon FBA

2. Validate Profitability

  • Estimate potential sales price based on how competitors are pricing the product.
  • Calculate all your costs: product cost, Amazon fees like referral and FBA fees, shipping, duties, advertising, etc.
  • Ensure there is ample room to profit after all costs.

3. Evaluate Product Uniqueness

  • Differentiated products are easier to market than commoditized products.
  • Create product offers rather than selling just the product. This means bundling your main product with another product or products and ideally a digital product as well. All these should complement each other and in tandem – meet your customers’ needs fully.

4. Assess Restrictions and Certifications for Amazon FBA

5. Check Size and Weight

  • Oversize or heavy products incur high FBA shipping and storage fees, reducing profitability.
  • Find appropriately sized products to maximize your margins.

6. Consider Seasonality

  • Research if demand for the product spikes or drops during certain seasons or holidays.
  • Plan your inventory and promotions accordingly to align with seasonal trends.
A graphic showing vision, goal, planning process for Amazon FBA

Thoroughly evaluating these factors will help you assess if a product has strong potential or not. The most important criteria are sufficient demand and profitability – without those, a product won’t succeed on Amazon.

Follow this process to pick winning products consumers will actually buy at prices that make you a healthy profit!

#AmazonFBA #ecommerce #productresearch

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