Before starting your product research journey, you should set up criteria to quickly screen out products that are not suitable for your business. Product research doesn't have to be difficult, but you should have a plan. Stick to your standards and be patient as you comb through hundreds of products before you find one!
The following are the standards we follow:
High Demand: You need to make sure that the product you are selling is actually in demand. For example, if it's a trending product, demand may die over time, so look for products that have consistent demand throughout the year.
Low Competition: If you are a new seller, we recommend that you search for products with low competition. Of course, this is easier said than done, and with product research tools available, you can find popular, high-demand products with lower competition.
Profitable: This one is obvious, right? After deducting product cost, shipping, and of course Amazon’s fees, you have to be profitable. Jungle Scout's browser extension is a great tool for estimating the profitability of each product you're exploring selling while you're actually browsing Amazon.
Ease of selling: Look for products that don't have too many moving parts, complicated electronics, fragile, or oversized —at least when you're first selling them.
Potential for Improvement: Look at what your competitors are doing and identify ways to improve products so that they are better than what is already done. Can you improve the quality? Can you improve the effectiveness of the product?
Legal Issues: Before selling a product, make sure there are no legal issues surrounding it. For example, you don't want to sell a product if another company owns the patent on that product.
Find Profitable Products Using Product Research Software
You can use different tools to find high demand and low competition products to sell on Amazon.
Easily narrow your product search by adjusting the many filters available in the tool. Below are the filters we use when conducting product research:
Price (for profitability): $20-70 target
Sales (on demand): Target at least 300 units per month (approximately 10 units per day)
Number of reviews (for competition): We want to make sure that the top 10 products have an average of 500 or fewer reviews, ideally 3 to 5 of them have fewer than 50 reviews
Ratings: Find products with low star ratings, aim for a maximum of 4 stars (this will give you the opportunity to improve your product and beat your competition)
Listing Quality Score or LQS: Look for products whose listings have room for improvement, aiming for a maximum of 5 to 7 LQS. That's exactly what we recommend, take some time to browse the tool and adjust the filters according to your criteria, budget and product interests.