Offering a popular product on Amazon can be a fruitful opportunity but offering it ahead of the competition can be a challenging task. Finding the right one is even harder. Selling the right product at the right time can play a pivotal role in when you wish you to sell successfully on Amazon. Many sellers are often unable to ride the wave as they find it difficult to keep track of the products gaining popularity. When cut-throat competition in the market is clubbed with the range of products sold online, it becomes even more difficult.
In such a scenario, how can you create a bankable product? In the following section, I share key aspects to consider while evaluating the market opportunity of a trending product.
1) Competition and Market Size
As a seller, you don’t want to venture into a category that has cut-throat competition and no clear differentiation. At the same time, the size of the market should be big enough to accommodate new players. If your product falls into a particular niche that is yet not established, initial growth may require an aggressive push.
Additionally, sellers must assess if there are any trademarks associated with the products or if there are any government regulations that don’t permit you to sell it.
If the category is dominated by a few players, with cost and supply-chain advantages on their side, it means that the barrier to entry is significant. No matter how lucrative a product seems, if you can’t source products on time, it will lead to longer delivery periods.
If your products are locally sourced and manufactured, it may play to your advantage by reducing your go-to-market time.
3) Timing and Purchase Frequency
When you are thinking about launching a new product, it is important to think about when your product is going to hit the market. You must figure out how soon you need to start working on each aspect to capitalize on the demand when the product is at its peak.
If there is a behavioral trend that is gaining momentum, it is important to understand what stage the demand is and take a call based on when it would get saturated.
Products with high usage frequency, such as consumables, lead to better recurring revenue cycles. This gives the power to business owners to invest in product, supply, packaging, and look for the next big thing in that space. For example, health and immunity products are witnessing an ever-growing demand in the current scenario.
4) Cost Considerations
When launching a new product, the costs associated with each stage need to be evaluated. For trending products, it becomes all the more important to understand the cost of accelerating the efforts. If sourcing, manufacturing, fulfillment, and marketing costs together form substantial figures to launch it in a given time frame, it will directly impact your bottom line.
Some key factors to consider here include the size and weight of the item, FBA and referral fees, and budget for PPC campaigns.
How to find new products?
One of the best ways to find trending products to sell on Amazon is to look at a combination of on-site and off-site channels.
Here are some ways to look at Amazon to find new product inspiration and ideas. Amazon has a dedicated section for this which are mentioned below:
1) Amazon Best Sellers
In this section, most popular products are displayed across all categories, which are updated on an hourly basis. This gives an insight into what people are actively looking for and what is gaining traction in the market.
2) Amazon New Releases
This is Amazon’s best-selling new and future releases section, which is updated every hour. It helps in tracking of brand new launches from other sellers.
3) Amazon Movers & Shakers
This section lists products that are the highest gainers in the sales rank in the past 24 hours.
4) Amazon Most Wished For
The most wished for section is a treasure trove of product opportunities. This tells what people are adding to their wishlist, signaling a higher intent to purchase.
If you further want to substantiate the demand for products, I would suggest you do a quick search on the following:
1) AliExpress – It has a host of OEMs (Original Equipment Manufacturers) on AliExpress who supply hot, new products across the globe. Many sellers source these products with custom changes and sell them on marketplaces. This makes it a reliable resource to look for products that are gaining popularity even before hitting the market.
2) Google Trends – Google is a leading discovery platform that tells you what people are looking for. Google Trends provides results for a particular search query over a period of time. This would help in identifying whether the product has a rising interest from the users.
Without a doubt, you can do wonders by selling trending products on Amazon but to launch successfully, sellers must arm themselves with the right preparation to enter the market. Market size, barriers to entry, timing, seasonality, and cost constraints must be evaluated to decide whether the product is apt for your business.
If you already have a product idea in mind, use the above-mentioned tips to refine your choices. If not, start with the basics by looking at what people search most on Amazon and off Amazon to keep an eye out for new product opportunities.