Amazon Product Selection Guide: From Market Analysis to Product Differentiation Strategy

Many Amazon sellers have been troubled by finding attractive profit points. Today, this article will combine market selection and product selection strategies to help you make your products stand out in the fiercely competitive market and create more generous profits.

1. Choose a suitable market

1. Determine market size

A good market lays an important foundation for a good product. Market size determines the maximum number of orders your product can receive per day. We can judge the market size through the sales of products ranking first for core keywords. If your best product gets less than 10 orders a day, then you won’t be selling more than 10 orders a day. Therefore, determining the market that is suitable for us requires analyzing what needs the market meets.

2. Explore market demand

What needs are currently being met by the best-selling products? What needs can still be tapped? We can find the answer in product reviews. For several hot-selling competitive products, by analyzing their negative reviews, we can get consumers’ dissatisfaction with the products, that is, their pain points. Our products should meet these pain points to gain a better competitive advantage.

2. Choose popular products

1. Get close to the living habits of foreigners

When choosing products, you can consider the living habits of foreigners. For example, they like to drink coffee, so coffee machines are popular, but the market may be monopolized by a few big brands. At this time, we can think from two aspects: one is to think deeply vertically, considering the products surrounding the coffee machine, such as coffee capsules; the other is to think deeply horizontally, considering that foreigners like outdoor travel very much, so in addition to household coffee machines, small A portable coffee mug is also a good option.

2. Use the top 100,000 stores table to filter

By filtering through the table of the top 100,000 stores, you can find opportunities suitable for small and medium-sized sellers. Screen out less than 15 stores as benchmark stores and see what products they sell from these stores. This can avoid many risks.

3. Keyword search volume and number of online products

Select products by keyword search volume and number of products online. Find a keyword with high search volume and few online products. Through the front-end search, you can see that the first few product categories have good rankings and not many reviews. This will be a product suitable for your operation.

3. Product differentiation strategy

1. Avoid becoming a mass commodity

Be sure to find the unique features that differentiate your products and provide unique value to customers. You can start from many aspects such as design, function, material, etc. to ensure that your product stands out in the huge product pool.

2. Looking for blue ocean markets

Don’t blindly pursue high-competition markets. On the contrary, look for areas with relatively small competition and find blue ocean markets, which will make it easier to open up the situation. Use market analysis tools to find areas where demand is high but competition is low.

3. Focus on profit margins rather than low prices

Don’t blindly pursue low prices, focus on profit margins. Sometimes, a high-quality, high-priced product may bring in bigger profits. Don’t just look at sales, but also calculate net profit on each sale to find the real profit gold mines.

4. Understand target customers

Understand the needs of target customers deeply and find potential products. Understand their interests and needs through social media, questionnaires, market research, etc.

5. Pay attention to seasonal demand

Seizing the opportunity and preparing in advance can make your product a great success during the peak sales period and contribute to your profits.

To sum up, through the above strategies, I believe you can find the market and products that suit you and help your Amazon business thrive!