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Product Research

How to do Amazon Product Research (New Method 2024)

  1. Significance of Product Research and Evaluation
  2. Product Ideation
  3. Methodology for Product Ideation
  4. Importance of Understanding the Relationship Between Reviews and Revenue
  5. Layers of Reviews and Revenues
  6. Wrapping Up

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In today’s rapidly evolving e-commerce landscape, effective Amazon product research is pivotal for businesses looking to thrive on platforms like Amazon. As we look ahead to 2024, understanding and implementing the right product research methodology will be key to staying competitive and achieving success on Amazon.

In this blog you will learn:

  • Significance of Product Research and Evaluation
  • Product Ideation
  • Methodology for Product Ideation
  • Importance of Understanding the Relationship Between Reviews and Revenue

Significance of Product Research and Evaluation

Product research and evaluation serve as the backbone of any successful Amazon selling strategy. They are crucial steps that help sellers identify lucrative product opportunities, understand market dynamics, and make informed decisions about what products to sell on Amazon.

Product research can be broadly divided into two main parts: product ideation and product evaluation.

Product ideation is the process of generating product ideas. It involves identifying potential product opportunities based on various factors such as market trends, consumer demand, and competitive landscape.

Product evaluation, on the other hand, involves assessing the feasibility and profitability of the identified product ideas. It requires a thorough analysis of various factors like product demand, competition, costs, and potential profitability.

Together, product ideation and evaluation form a comprehensive product research process that can significantly impact a seller’s success on Amazon.

Product Ideation

Product ideation is the cornerstone of Amazon product research. It’s where sellers generate potential product ideas that could be profitable to sell on Amazon. Common methods used for product ideation include browsing through Amazon’s best-seller lists, using Amazon product research tools like Helium 10’s Black Box, exploring niche markets, and keeping up with market trends on social media and other online platforms.

Amazon Product Research
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However, these common methods come with their limitations. For instance, they often yield similar product ideas, leading to high competition among sellers. Moreover, they may not always reveal unique product opportunities that are less obvious but could offer high profitability.

Therefore, there’s a need for a unique approach to product ideation—an approach that goes beyond the common methods and taps into novel sources of product ideas. Such an approach can help sellers discover unique product opportunities, reduce competition, and increase their chances of success on Amazon.

Methodology for Product Ideation

In the realm of product ideation, a unique methodology involves leveraging Amazon’s Brand Analytics search terms. These search terms provide valuable insights into what customers are actively searching for on Amazon, thus revealing potential product opportunities.

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Unlike common ideation methods, this approach unveils unique product ideas that are not easily discovered. It goes beyond the surface level, tapping into the intricate web of customer search behavior and trends on Amazon. By analyzing these search terms, sellers can identify product ideas that are relevant, in-demand, and less saturated in the market.

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This methodology involves downloading the brand analytics data as a CSV file, applying custom filters, and extracting the data for analysis.

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The goal is to identify search terms with a high search frequency rank (SFR), indicating high customer demand. This data-driven approach to product ideation can help sellers uncover unique product opportunities and stay ahead of the competition.

Importance of Understanding the Relationship Between Reviews and Revenue

Understanding the relationship between reviews and revenue is another critical aspect of Amazon product research. Customer reviews on Amazon don’t just reflect customer satisfaction; they also significantly influence a product’s visibility, conversion rate, and ultimately, its revenue.

Positive reviews can boost a product’s ranking in Amazon’s search results, increase customer trust, and drive more sales. Conversely, negative reviews can harm a product’s reputation, deter potential customers, and result in lost sales. Therefore, managing reviews effectively and striving for positive customer feedback can lead to increased revenue.

During product evaluation and selection, understanding this relationship can provide valuable insights. For instance, a product with high revenue but a large number of negative reviews may indicate potential issues with product quality or customer satisfaction. On the other hand, a product with lower revenue but predominantly positive reviews may be a hidden gem with the potential for growth.

Layers of Reviews and Revenues

The concept of layers of reviews and revenues provides a deeper understanding of a product’s performance on Amazon. These layers represent the distribution of reviews and revenues across different sellers and products, which can significantly impact product profitability.

Understanding these layers can provide valuable insights into market trends and customer preferences. For instance, a product with a high number of positive reviews and high revenue might indicate strong customer preference and high market demand. Conversely, a product with a high number of negative reviews and low revenue might suggest customer dissatisfaction and low market demand.

Optimizing these layers involves strategically managing your product reviews and pricing your products competitively. It also involves regularly monitoring market trends and adjusting your PPC campaign strategies accordingly to maximize your product’s visibility and profitability.

Wrapping Up

In conclusion, understanding the intricate relationship between product listings, reviews, and revenues is crucial for optimizing your Amazon PPC campaigns and enhancing product profitability. Small details, such as the depth of revenue, the relationship between reviews and revenue, and the layers of reviews and revenues, can significantly impact your product’s performance on Amazon.

This in-depth approach to Amazon product research for 2022 illustrates the importance of unique product ideation and understanding the relationship between reviews and revenues. By harnessing these strategies, sellers can uncover unique product opportunities, optimize their listings, and increase their products’ profitability on Amazon.

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