What is Product Research and Why is It Important?
Amazon has been driving businesses to its services in many aspects. Amazon is believed to be one of the largest E-commerce companies globally and they drive millions of products every day on their shopping portal in and out. But this analogy of placing products or businesses wanting to orient with bulk buying or drop shipping always tend to find it difficult to “clear the clutter and get the gold” they need because of high listing of products. This is where Amazon product research tools step in for help.
Not just companies but regular customers with this tool can help find themselves required products at an effective price. Now, before we move in to understand what is Amazon product research and the tools present in the market we must first see what is product research in the e-commerce industry and how important it is while searching for a project.
Product research in basic terms enables you to understand and collect credible data that is associated with a buyer’s preferences in regards to the quoted offer or value. This major helps to be more familiarized with customer needs and also the decision-making pinpoints and ideology of the end-user over the purchased product.
Importance of product research:
- An edge over your competitors:
Many companies that carry regular checks and product research always have a better grip when it comes to the global market and this also allows them to stay ahead of their competitors.
- Innovation drive:
The budding need for product research also lies in the fact that it provides the scope of greater innovation that can help organizations in creating high value and sustainable systems. This further can push the organization to also improve their design concepts and also strategies for the organization in a high metric field.
What are Amazon FBA product research and the software or tools used to do the same?
Listening to any product research may sound an easy task where you just are searching for some good products and list them on Amazon earning profits.
But when you look at the bigger theme it looks like a complex process. Amazon attracts so many entrepreneurs and retailers to bring in their products for listing on the Amazon platform. It also utilizes the marketplace incentives present to create an environment so competitive that it brings down the prices and allows Amazon to offer the best prices to the shoppers and a variety of options in each category to choose from.
This is also the reason why Amazon is known as “The Everything Store”. Amazon also ranks its sellers based on multiple aspects that are impacting the level of service that the sellers provide to customers.
In an ideal scenario as a seller you will select products based on shoppers’ interest and need or also what you think will sell best. While this was one of the best approaches a few years back but this now is a risky move in today’s e-commerce atmosphere. Sure you might come across the perfect idea to try and transform the way your business works and generate high revenue. Or you can also find the right items which have stiff competition, lower in demand and the presence of lots of alternatives.
Just because you have a special soft corner for one particular type of product won’t necessarily mean it will sell well on Amazon. To avoid losses on the guess based product selection, It is better to formalize a group of specifications to set criteria of your ideally perfect product and use the product, sales, and customer data to authenticate the potential opportunities. Hence, to support all of this Amazon FBA product research is there to help you.
The Amazon FBA product search enables you with the required knowledge while providing the current market atmosphere or trends via trend analysis through gathering information. The stored information is best to be analyzed and then used to drive businesses by selecting the best decision with help of data gaining maximum results. Some of the most important advantage that you get by bringing in the Amazon FBA product research are as follows:
- Gain higher profits by generating greater sales with data-centric updates
- Finding and choosing the right suppliers
- Sourcing the products based on data that are easy to produce and take less capital for manufacturing.
- Based on customer data and needs, find good product development ideas.
- Keep a check not only on the seasonal items but also on the products which have a steady demand year-round the market.
Before going for tools and strategies first we must understand what type of FBA seller we are. Essentially the most important aspect is finding and choosing the right products. The first and foremost important step is how will you be bringing the chosen products to the market. By having a better hold on the mechanism of the e-commerce market for your business it will be easy for you then streamline the process of reaching the decided goals. To broadly categories, the FBA business fall in the following categories:
- Retail Arbitrators:
This type of business on Amazon is primarily concerned with finding an opportunity where we bring products from the retails stores and sell on the platform for gaining profit. To determine, if there is an opportunity present for arbitrage, the resellers in retail use barcode scanners and similar applications on their phones or other mobile devices.
Whenever the barcode is scanned by the application it analyzes an array of factors such as competition for that area of product type, the chances of item selling, the volume of sales, and the price trends seen to check the best selling price of the product and the probability of gaining profit from the item up for sale.
Just like retailers online, resellers fall in the same category as both follow the Amazon trading activities and that of the varied stores you can find at a local shopping store or mall. The business model if briefly said is “Buy wholesale, sell retail”. Resellers present value to the market by breaking in bulk and providing convenience in the form of options to the buyers.
Some people thought such types of buying and selling might not seem to be presenting much value. However, these resellers play an important role in the entire Amazon ecosystem of e-commerce. Resellers are the ones who bring competition to the table which enables Amazon to keep prices down and present customers with more options.
- Private Labellers:
Working as a private labeler in the Amazon business involves taking the already existing products and adding one’s brand to them. The private labelers augment the product offering and present value to the market. There is a wide spectrum of people in this category of sellers.
From the people who add their logo to an existing product to the organizations that create innovative goods that work and solve specific problems or develop new opportunities. As they deal directly with the producers, they have a higher degree of flexibility to customize their products presented in the market based on feedback from the customers.
How Amazon FBA product research can be done?
Given below are the following steps of conducting Amazon FBA product research. As it is not the only way to confirm which items to be sold on Amazon. Yet as they have been followed by many and have found success by the same they are presented here.
Note: Follow them only if you understand the concept and feel your business can adapt to the same.
- Decide what type of seller you want to be as brief in the above types of sellers.
- Set business suitable and market-oriented product sourcing criteria which include competition, demand for the product, seasonality, weight, and finally profit margin.
- Analyze and use the information to conduct product research and find the hidden opportunities which can pave a direction of high profits over the items sold.
- Once finalizing the supplier’s contact and get assurance in the said product supply.
- Have a feedback system that will allow you to collect data for creating future updates based on the data over supplier selection, product selection, and other aspects.
Keeping all this aside, we can also see that Amazon FBA product research is imperative in nature because unlike the other marketplace sources, with the Amazon FBA, each product can be listed only once. This where the sellers face major problems if they are interested in putting up multiple products of different categories. So to avoid this, and if your business relies on a multi-product posting on the Amazon e-commerce platform and wants to gain higher then it is recommended to utilize a third-party solution software or tool. Some of these tools are as follows:
This is all about how product research is crucial and if you are a seller on the Amazon e-commerce platform then categorize the type of seller you can benefit from the multiple tools available to grow your business.