How to accurately select products in the highly competitive Amazon market: Strategies based on new markets, product maturity, market monopoly and market fluctuations

In the current increasingly competitive Amazon platform, sellers must have a precise product selection strategy. By analyzing new markets, product maturity, market monopoly and market volatility, sellers can effectively identify potential stocks and profit opportunities.

Exploring new markets

With the development of the market, new markets have gradually become the focus of sellers. Using the “Keyword Product Selection” function, sellers can filter out products whose search volume in the current month is significantly higher than that in the same month last year. First, after selecting a category, use the “Category Soaring List” button to set the condition that the monthly search volume exceeds 10,000, and ensure that the search growth rate is at least 10%. By checking the “New niche” box, sellers can find products that didn’t appear last year but are seeing a surge in searches this time.

These new markets often feature high demand and low competition, which are potential opportunities for sellers to break through. Using keyword big data to select products, sellers need to set the most accurate filtering conditions according to their actual situation and conduct a comprehensive market analysis in order to decide whether to enter the market. Many sellers have relied on accurate selection of potential markets to maintain stable sales growth even if they do not participate in many promotional activities.

Analysis of product maturity

For factory-type sellers, they usually have strong capabilities in product production and research and development, but due to production line limitations, product categories are relatively single. Therefore, it is recommended to conduct in-depth research on specific categories and pay attention to the maturity of the product, including details such as material, size, color, style, etc., for market segmentation and differentiation. [2]

Through the “Unsatisfied Market” product selection mode in the Seller Wizard, sellers can target products with high monthly sales but low ratings. This type of product has potential for improvement, and factory-type sellers can use this to conduct in-depth analysis of reviews to understand product quality and buyer needs, so as to upgrade their products. Especially those products with a sales volume of more than 300 but mainly self-shipping are suitable for novice sellers to test the waters with zero inventory.

Considerations of market monopoly

In Amazon’s competition, the monopoly of the market has a significant impact on operating costs. Sellers need to analyze the monopoly of listing, brand and seller. If any aspect is high, competition will be fierce. Therefore, through the “Select Market” function, sellers can obtain data on product concentration, brand concentration, and seller concentration to determine the degree of market competition.

Set the sample product to the top 100 sales products and the top product to the top 10 sales products to calculate the concentration index. The higher the concentration, the more intense the competition in the market. On the contrary, low concentration means relatively less competition, providing more opportunities for new sellers.

Research on market volatility

The volatility of the market is closely related to the speed of product updates and iterations. A market with high volatility may usher in a continuous influx of new products. By analyzing the performance of new products in a certain market segment, sellers can determine how easy it is to enter the market. Under the “Select Market” function, sellers can sort according to the number of new products. Markets with a high proportion of new products often mean greater opportunities.

In addition, novice sellers should pay attention to the shipping model. The FBM model has more advantages in terms of cost and risk. Setting conditions to screen out market segments where FBM accounts for more than 30% of the market can not only reduce inventory pressure, but also help flexibly respond to market changes.

Through effective analysis and application of new markets, product maturity, market monopoly and market volatility, sellers can find opportunities to make their products stand out in a highly competitive environment.