Before Amazon sellers start their online business, they usually have to figure out what they can sell and decide what to sell in their storefronts. Therefore, conducting product research effectively is absolutely of great significance to boost their future sales. However, in the process of doing AMZ product research, many sellers may make mistakes that can hinder their success.
Here are 10 common mistakes to avoid with Amazon product research in 2024 as follows.
1. Ignoring Market Trends
One thing sellers need to be aware of is that consumer preferences vary frequently. Sellers who fail to stay updated with the latest market trends may risk investing in products that are declining in popularity. This can be a significant oversight for Amazon sellers because understanding these trends is critical for achieving your sales goal by aligning product offerings with what consumers are currently interested in and buying. Leveraging tools like Google Trends, Amazon’s own bestseller lists, or SellerSprite can help you stay ahead.
2. Not Analyzing the Competition Adequately
A common mistake is starting an amazon business without thoroughly analyzing the products, pricing strategies, and customer reviews of your competitors. Nevertheless, keep an eye on your potential competitors and adequately analyze the competitive context you are in will directly relate to the success of your product research. Tools like SellerSprite offer deep insights into how your competitors are performing and what gaps you might fill. The tool Competitor Lookup of SellerSprite is definitely worth a try!
3. Overlooking Seasonal Variations
Some products sell well during certain periods of the year and slow down in others. Some sellers often overlook this, resulting in unsold inventory and high storage fees. Analyzing corresponding historical sales data for a comprehensive insight can help you forecast demand fluctuations and make a better choice.
For example, the demand and sales of gardening tools reach a peak in April or May of every year and decline in other months, indicating a seasonal relevance that gardening tools are usually in great demand during spring. Therefore, choose the right time to sell gardening tools and stock up rationally!
4. No Diversity in the Product Price Range
Many sellers may ignore the price range when doing product research. If you find that the mainstream market share in the top organic search result listings is dominated by low-priced products, it becomes difficult for new sellers to offer higher-priced quality products and ensure satisfactory profit margins. Generally, it is not recommended to pursue products with these characteristics.
5. Neglecting Keyword Research
An Amazon Keyword is a word or phrase that potential buyers use when searching for products on Amazon, indicating potential customers' demand. Those keywords can range from broad, generic terms that describe a category or type of product, to more specific, long-tail keywords that describe the product in detail, including brand names, product features, or use cases.
Neglecting to research and optimize the proper keywords for your product listings can significantly diminish your product's visibility. It is recommended to utilize keyword research tools to identify high-traffic keywords that are relevant to your product. In this aspect, I personally believe the module Keyword Sprite of SellerSprite will do you a great favor.
6. Underestimating Costs
Failing to account for all costs, including shipping, manufacturing, promotions, and Amazon fees, can lead to pricing your product uncompetitively or losing money. Detailed cost analysis should be an integral part of your product research.
You can browse sellercentral.amazon.com for more detailed Amazon standard fees. Properly estimating and continuously monitoring all the expenses associated with selling products on the Amazon platform are essential for maintaining a healthy and profitable Amazon selling business.
7. Skipping Product Quality Research
Compromising on product quality can lead to negative reviews and high return rates, which harm your brand reputation. Remember that Amazon monitors seller performance, including customer feedback and return rates.
Poor performance metrics can lead to warnings, account suspensions, or even closures. So always ensuring the quality of your product by sourcing samples and checking supplier references is crucial for sustainable development of your online business.
8. Without Product Differentiation
Product differentiation is a key factor that helps sellers to stand out in the vast marketplace of Amazon. Sellers who fail to differentiate their items will encounter many difficulties.
- They may be caught in fierce competition due to the lack of uniqueness, which probably results in a price reduction for appealing customers, thus squeezing their profit margins.
- The lack of differentiation makes it hard for sellers to build strong brand recognition and customer loyalty, and as a consequence, consumers may continue to look for other more attractive options.
- Sellers may be faced with lower profit margins and not be able to gain higher pricing power by offering unique value.
- It may become more difficult for sellers to respond effectively to market changes and competitors' strategic adjustments, creating barriers in the response of consumer demand and inventory management.
9. Involving in Infringements
You may get excited when you find a product that sells one hundred orders in a single day as soon as it is launched. However, product research is not such a simple case. As a seller, you can not only focus on the sales of an item, but also consider other relevant factors that may impact your product research.
Amazon is an e-commerce platform that places great emphasis on intellectual property and brand protection. Amazon infringements generally contain Patent Infringement, IP Infringement, Copyright or Trademark Infringement, etc. When you find a potential item to sell, make sure to check if there is any infringement to avoid possible losses.
10. Not Using Advanced Analytical Tools
In 2024, the technology for market analysis is more sophisticated than ever. You may miss your opportunity because of not utilizing advanced seller tools that provide real-time data and predictive analytics. Making full use of these technologies can provide a competitive edge and assist you to better achieve your goal.
At this point, SellerSprite, as a professional Amazon Keyword Optimization and Product Research Tool worldwide, may be an excellent option for you!
Conclusion
Avoiding these common mistakes when making Amazon product research can significantly enhance your chances of success on Amazon. Remember, effective product research is not just about finding a profitable product; it's about understanding the market dynamics, competition, and your own capabilities and limits.
With careful planning and the right tools, you can position yourself to thrive in Amazon's competitive environment.
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