It is not easy for us to find a potential product, we have to do a lot of work on researching. Maybe you have seen a lot of strategies on how to do product research. Sometimes knowing what you cannot do is more important than knowing what you can do! So this time I want to share with you the things you have to be careful of when you do product research.
What you should be cautious about?
1. Price is too Low
For products with a unit price of less than $10, you should be cautious.
It is easy to understand, if the price is less than $10, the profit of your product is very low. In this way, you have no more budget to pay for the high cost of PPC.
In addition, because you can not make money from the product at a low price, it is absolutely you will lose your confidence in your business.
A bundle sale is a great way to deal with low price products. Generally speaking, this kind of product is relatively small in size and weight, and if you are doing a vertical category, there must be a strong correlation between the products you develop.
At this time, through the combination of low price products and high price products, it is very easy to make a differentiated listing.
2. Too Small a Niche
When you choose a niche, keep in mind, avoid to choose a too small niche. It is not good for you to expand your business.
You can take a tool to do the product research to get the estimates for several products in a given niche to get a good idea of how many sales the niche typically gets in a given month. Just put the product keyword, you can know the monthly search volume, monthly orders, and a purchase rate of the keyword.
3. Seasonal products
For some seasonal products, such as swimsuits, swimming rings, etc., you must be cautious when sending them to the FBA warehouse. If these products are unsalable, you will lose huge because of the excess inventory.
If you want to sell this kind of product, you’d better estimate your inventory more accurately and consider Plan B to process the excess inventory. Yes, it is necessary. If the inventory is unsalable and cannot be sold, can you bear the risk of unsalable sales in the later period, or is there any other platform that can do auxiliary sales?
4. Categories with monopoly brands
We must be cautious when making choices for some products with a very serious category monopoly. Even for some giants that have not yet intervened, but there are categories that are likely to be covered. As we all know, there must be a great brand in the monopoly categories. Once the brand seizes the minds of consumers, the latecomers will be difficult to shake unless they have disruptive innovations!
For these products, basically, the market share is concentrated in the hands of the top sellers. For the remaining little market share, many sellers compete for it. Hence when you start to do product research, it is necessary for you to avoid these categories.
5. Products with risk of infringement
Maybe you are not sure whether the product is infringing, it is better for you to confirm this before you choose the product.
If you ignore it and send the products to the FBA warehouse, you will be in big trouble. There are so many Amazon sellers who eat huge losses because of the infringement products.
Many Amazon sellers will encounter some products that they are not sure whether they are infringing.
6. Products with quality problems
Some products seem to be great and sales are well, but there are very serious quality risks. And it is not easy to be found, we may ignore these risks in the research process.
During the preliminary investigation, it is necessary for us to conduct detailed product pain point research and pain point analysis, including whether we can solve this potential risk and pain point through innovation?
And the great way for us to find these problems is to read the low rated reviews to see how we can improve the product.
7. Highly competitive products
As we all know, it can not be ignored when we do product research to check the degree of market competition.
We can make a ratio between the search volume of a product’s core keywords and the number of listing searches on the core keywords. Through this ratio, we can roughly estimate a degree of competition in the overall market. The higher the ratio, the lower the competition. The lower the ratio, the more intense the competition.
For the highly competitive products, what we have to do is to see if we can find some differentiation opportunities. Yes, it is hard for you to sell undifferentiated products.
Final
Finding potential products is extremely tedious and detailed work. Market capacity evaluation, product profit margin evaluation, competitor analysis, competitor inventory survey, sales analysis, and supplier survey analysis are all you need to do.
Faced with such a complicated matter, you can make a more sensible decision with data support. Make use of keyword tools to help you find the opportunities of the marketplace.