As you begin your journey selling on Amazon, you’ll want to make sure to take your time and research the marketplace and select products that are in demand, yet not saturated, and most importantly products that will give you strong and steady returns on your investment. Here is a simple guide on steps you need to take when doing market research and choosing products that are profitable for business.
Determine your target market: Before you can start looking for products to sell on Amazon FBA, you need to determine your target market. This includes researching demographics such as age, gender, income, and location.
Conduct keyword research: Once you have identified your target market, you can start conducting keyword research to identify potential product ideas. Use keyword research tools such as Google AdWords Keyword Planner or Amazon Keyword Tool to identify popular search terms related to your target market.
Analyze product demand: After you have a list of potential product ideas, use tools such as Jungle Scout, Helium 10, or AMZScout to analyze the demand for each product. Look for products with high demand and low competition.
Analyze product competition: Next, you need to analyze the competition for each product. Look for products with a low number of competitors or with competitors that have low-quality listings or reviews.
Evaluate product profitability: Once you have identified potential products with high demand and low competition, evaluate the profitability of each product. Consider the product cost, shipping costs, Amazon fees, and other expenses associated with selling the product on Amazon FBA.
Test your product: Before investing in a large quantity of inventory, consider testing your product by ordering a small quantity and selling it on Amazon FBA. This can help you evaluate the market demand and profitability of the product.
Optimize your listing: Once you have selected a profitable product, optimize your Amazon listing by creating a high-quality product title, description, images, and pricing. Use keyword research to optimize your listing for search terms that your target market is using to find products similar to yours.
By following these steps, you can conduct market research and select profitable products to sell on your Amazon FBA business. Remember to do your due diligence and carefully evaluate each potential product to ensure that it is a profitable investment. If you want to learn more, please schedule some time to chat with us!
