The importance of doing proper product research when selling on Amazon

We get it. Nothing is more exciting than the prospect of becoming an entrepreneur and beginning your journey toward a successful future. So many exciting elements are involved and one of the MOST exciting bridges to cross is finding a product.

Now, there are all types of sellers (particularly on Amazon) right? We have wholesalers, retail arbitrage resellers, vendors, patented/unique products/brand registered merchants, and “me too” products sellers – all having pros and cons to each approach.

Regardless of your platform, it’s important to implement product research so you understand demand, niche, profit, keywords, and competition. Some of these hurdles can be clarified through Amazon-focused software tools. And, while there are dozens of tools out there to help hone in on what you want to sell, not all of these tools are created equal.

As this article in Helium 10 explains: Without proper product research, you’re simply guessing. Amazon is a marketplace, not a crowdfunding website like Kickstarter where one can bring a new invention to market and expect to build demand. This is not to insinuate that you can’t introduce a totally new product on the conglomeration that is Amazon, but you have to understand that Amazon’s entire platform revolves around keywords. In practice, it is an end-of-the-funnel marketplace that relies on customers using keywords to direct them to products they want to purchase. If you are selling a product that nobody has ever heard of, this poses a whole new set of problems regarding searchability.

In general, you need to validate that there is existing or emerging demand for the product you wish to sell. You also need to research the competition to make sure that you can obtain market share while staying profitable.

Why Many of the Amazon Product Research Tools Fail You

Product research is only as valuable as your strategy and, unfortunately, many new sellers don’t understand the proper methods to implement their strategy nor do they understand how to avoid the same mistakes their fellow sellers are making. Part of that lies in the fact that newbies are all taught the exact same methods when deciding a product to sell.

Let’s take Helium 10’s Product Research Tool for example. Easily one of the most sought after Amazon tools in the space, H10 promises access to over 450 million products in its database, which is second only to Amazon.

This software contains multiple Amazon seller tools to help you find high ranking keywords, identify trends, spy on competitors and optimize product listings. The Amazon optimization tool suite is specially designed for sellers looking to grow their Amazon FBA businesses exponentially.

Here’s the problem though. If everyone is using the same tool, what are the chances that a significant portion of users come up with the same products? Pretty high, right? It’s kind of like being a dancer and using the same trainer that all your competitors are using and hoping for better results. The likelihood is pretty… well… unlikely.

This is not to suggest that Helium10’s software tool has no value – it certainly does. But it’s value is limited to the fact that it provides metrics based on keywords.

Let’s say for example that you use the H10’s discoverability tool and it suggests that (based on search volume, category, and competition) selling pop-it toys for kids with autism (like this one) is your ideal product. The reality is that a LOT of other sellers are going to be getting the same feedback which means there is a very high likelihood that the niche will suddenly become saturated. Plus, the H10 tool doesn’t factor in things like evergreen products, overhead costs, and scalability.

The reality is that a product that looks good on paper doesn’t necessarily translate to a product that actually pays the bills, and isn’t that the entire purpose behind entrepreneurship?

Why AMZ Savages’ Legendary Product Research Tool Negates All of The Issues With Regular Product Research

First and foremost, the Legendary tool was not the product of some company that wanted to make a few extra bucks. With software companies like Helium 10 or Jungle Scout, those programs weren’t originally designed for product research. They were additions to the portal so that they could claim they were a “one-stop service station for all Amazon needs.” Let’s be clear: adding tools to a software company that wasn’t originally designed to truly help with product research should be a red flag for anyone. These tools are primarily based on keywords (which are obviously important). However, it totally negates the reality of customer behavior and operating costs for YOU.

The AMZ Savage Legendary Tool was specifically designed to help new sellers navigate the unknown waters of choosing a sure-fire product. Of course, our metrics are based on keywords, demand, and search volume, but that’s just the tip of the iceberg. Our software factors in soooo many more variables to establish a profitable product that is right for you.

Here are some of the ways our portal is completely different than others on the market:

Our tool will find a product for you with our proprietary product research learning machine.
Our tool will offer you a UNIQUE product each time, with a GUARANTEE that you won’t be suggested a product that all other users are being offered.

Our technology was curated over years of personal experience and really studying the market and the many variables that contribute to product research
We implement REAL companies that provide REAL services to give you REAL metrics on what your supply-chain, landing costs, COGs, marketing, and FBA fees will be
We don’t pedal the false claim that you can start an Amazon company with $5,000 as many of the gurus like to claim. You can set your budget yourself (at $10,000 or more) and we will use that information to find you a product, tally your overhead costs, and give you realistic profit margins for that product.

What Overhead Costs Does Amz Savages Factor In?

Here are just a few things that our tool factors in when providing expected overhead costs:

Chain-Supply Costs: Based on the average price of manufacturers that can make your product and how many units you sell (we base this number off of 500 units), we provide a calculated expense.
Inspections: As a seller, you are responsible for ensuring your products comply with your market’s laws and regulations (REACH, CPSIA, Prop 65, etc.) Plus, inspections are CRUCIAL for keeping shoddy products from reaching your customers.

Shipping: We factor in the costs for both shipping across seas from your manufacturer as well as the costs Amazon enforces for Prime. This is based on weight and dimensions of your product.

Storage Fees: Amazon FBA charges monthly fees for holding your inventory that are also based on category, weight, and size. This number can fluctuate based on the time of year (i.e. Christmas).

Amazon Fees: The cost of selling on Amazon.com varies based on your product characteristics, fulfillment method, optional services, and other factors.
Marketing Expensives: Your marketing strategy should definitely be a huge factor when calculating your profit margins. Expenses like PPC, Facebook ads, Manychat funnels, email marketing, and google ads NEED to be considered when you figure out how much you need to mark up your product to ensure profit. Our tool tabulates these numbers based on average costs of marketing to help you tally this.
Photography and Listing Optimization: Customers don’t care about keywords. They care about images and content and its now more important than ever to invest in great, persuasive sales copy as well as images that really stand out. Such services cost a decent amount which is why the Legendary tool takes those numbers into consideration as well.

The Bottom Line

Not only does AMZ Savages cover all of your basis when applying for a product – you can guarantee you won’t be suggested a product that all other users are being offered. That’s because AMZ Savages’ extensive database doesn’t offer the same product to more than one client. Even if you have the same budget, category, and parameters, once one person has been recommended a product, that particular product is no longer available to newcomers. Even more important, founders Raj and Fabian found a gap in the market for tools that, you know, actually HELPED sellers succeed. In short, they were wick of the smoke-and-mirror tricks and the B.S. that was happening with all the other software companies on the market. That’s how AMZ Savages came to fruition.

Unlike most of the comparable tools out there, we WANT you to succeed. We CARE about providing good information that is applicable in the real market. We’re a one-of-a-kind company with a one-of-a-kind tool that is dedicated to helping you find a one-of-a-kind product.

Source:

The importance of doing proper product research when selling on Amazon

What Overhead Costs Does Amz Savages Factor In?

The Bottom Line

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