Product Research

In This Section, You Will Learn:

• • What makes a profitable Amazon product
• • Research tools and methods
• • Analyzing competition
• • Calculating profitability
• • Avoiding product mistakes

Profitable Product Criteria

• Price Range:
• • Sweet spot: $15-$50
• • Enough margin after fees
• • Impulse buy range
• Competition Level:
• • Top sellers have less than 500 reviews
• • Room for improvement in listings
• • Not dominated by big brands
• Demand Indicators:
• • BSR (Best Seller Rank) under 50,000
• • Consistent sales throughout year
• • Growing search volume

Research Tools

• Free Tools:
• • Amazon Best Sellers page
• • Amazon search suggestions
• • Google Trends
• Paid Tools:
• • Jungle Scout: Most popular ($49/month)
• • Helium 10: Comprehensive suite ($39/month)
• • AMZScout: Budget option ($29/month)
• What Tools Show You:
• • Estimated monthly sales
• • Revenue estimates
• • Competition analysis
• • Keyword search volume

Calculating Profitability

• Amazon Fees to Consider:
• • Referral fee: 15% (varies by category)
• • FBA fee: $3-$8 per unit (size dependent)
• • Storage fee: ~$0.75/cubic foot/month
• Profit Formula:
• Profit = Selling Price – Product Cost – Shipping – Amazon Fees
• Target Margins:
• • Minimum: 20%
• • Good: 30-40%
• • Excellent: 50%+
• Use Amazon FBA Calculator (free) to estimate fees

Competition Analysis

• What to Check:
• • Number of reviews on top listings
• • Quality of product images
• • Listing optimization level
• • Price points
• Green Flags:
• • Poor quality listings with sales
• • Common complaints in reviews
• • Opportunity to differentiate
• Red Flags:
• • All listings highly optimized
• • Dominated by major brands
• • Patent/trademark protected