Conduct an industry analysis and adequate category research – consider which categories have the greatest potential and the competition involved.
- Category growth potential: Research via Google trends or use any third-party analytical websites.
- Barrier to entry: Additional supporting documents may be required for more gated categories (e.g. Compliance or Product Safety Certification). You should also ensure that your products are compliant with Amazon’s product regulations
- Competitive landscape: Search for the product type and observe the number of substitutes available on Amazon.ii)
Consider your product positioning – how do you differentiate yourself based on customer shopping behavior or demographics?
- Product innovation and unique selling point: Take into account the market and business needs.
- Point of introduction, changing trends and seasonality: Determine the best time to launch your new selection by using tools like Google trends or Product Opportunity Explorer
. For products that are not impacted by seasonality, it is recommended to launch by March to optimize the store before peak sales seasons like Prime Day.
- Customer reviews and ratings: Use this to find untapped potential for your products. Pay particular attention to bad reviews which signals an opportunity to introduce a new product that avoids similar mistakes.iii)
Choose the pricing strategy – how should you price your new products to give yourself a healthy profit margin?
- Consider Amazon selling fees: Take into consideration your monthly subscription plan, referral fee, fulfillment fees (if you intend to use FBA) and other costs. Learn more here
- Pricing band opportunities: Research average product pricing on Amazon before deciding your product pricing strategy. If you are pricing it at a premium, your product should have a unique selling price versus other similar products.
With these in mind, you will be well poised to pick the right products to sell on Amazon.