The importance of Amazon product research and characteristics of a great product

What is Product Research?

Product research is a process of analyzing the current trends in the market and coming up with a perfect product that can sell well and can also provide a good profit margin. You should do a lot of product research to get hold of a winning product. The process enables you to select a product that is easier and cheap to produce or import which can also sell at a decent price in the market. A random product of your liking should not be taken to sell since the actual market place will hinder the sales and profit with a lot of factors including competition, demand, high initial cost, etc. This article covers the importance of product research and the requirements for a good product.

Table of Contents

•           Importance of Product Research

•           Benefits of Product Research

•           Characteristics of a good product

•           Characteristics of a bad product

•           Numbers to be met

Importance of Product Research

Amazon is the world’s largest online market place selling almost every product out there. With such a vast opportunity for trade and millions of competitors, it is not at all easy to choose a product that can be sold profitably. So, a set of strategies are required to list out the requirements for a good product and choose the best product matching those requirements. This process is known as product research. Without any product research, you will be lost in the ocean of competing products and may end up with a loss.

Benefits of a product research

By following the steps of strategic product research, you can enjoy the following benefits.

•           You can end up with a product worth to invest in

•           You can have a high-demand; low competitive product

•           You can reduce the cost of production and shipping

•           You can increase the sales and profit margin

•           You can reduce the fear of loss

Characteristics of a good product

A good product can be identified with the following characteristics.

•           Decent Price range – The product has price somewhere between $15 to $50 that includes a decent profit margin

•           Regular sales guarantee – The product is of high demand that can produce noticeable sales every day irrespective of season peaks

•           Similar to a product with a BSR within 5000 – The product should be similar to a product that is ranked within 5000 in the Amazon Best Seller list

•           Weightless product – A product with a weight less than 3 pounds making it easily portable with reduced shipping costs

•           Durable – A product that is not fragile enough to break or get damaged during the packaging and shipping processes

•           Copyright-free – A product without any legal issues in selling including copyright and trademark issues

•           Products that can be improved – A product that can be improvised to have better features than a similar product in the market

•           Easily sourced – A product that can be easily imported or manufactured at a reduced rate

•           Low production cost – A product that costs below 25% of the selling price to be set up

•           Expandable – A product that can influence the customer to buy an additional product thus expanding your business (E.g.: related products)

•           Fewer reviews for competitors – A product whose competitors are having less than 100 reviews

Characteristics of a bad product

The products that have the following characteristics will be considered as a bad product.

•           High Seasonality – A product that can be sold only during specific seasons and cannot be sold throughout the year

•           Highly-priced – A product with a high selling price that makes it difficult for the customers to buy it easily

•           High cost of production – A product that costs more than 40% of the final price to have it set up for delivery

•           Highly Fragile – A product that is prone to get damaged

•           Large product – A product with a size that cannot be ported easily

Numbers to be met

Some of the numbers and values of various factors involved in product research are listed below. However, you can have slight differences in the numbers.

•           Targeted Selling Price range – $10 to $50

•           Weight of the product – 2 to 3 pounds

•           Average monthly searches using the keywords – More than 35000

•           Profit margin – At least 60% of the final selling price

•           Reviews count for competing or similar products – Less than 100


Knowing the importance and benefits of product research is the key to success for an Amazon seller. If you know what the characteristics of a good product are, you can narrow down your selection to a minimum of 10 to 20 product ideas to choose from. This will definitely be helpful than to get lost in between millions of products. If you choose the product with the requirements for good product as a concern, you will definitely come up with a profitable product that wins in the competitive market.

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