How to Conduct Market Research for Amazon Products
Selling on Amazon successfully requires more than just picking a product—you need a deep understanding of market trends, demand, competition, and customer preferences. Proper market research helps you choose profitable, in-demand products while avoiding highly competitive or low-margin niches.
In this guide, we’ll walk through effective strategies and tools for conducting comprehensive market research on Amazon.
1. Identify Market Demand
Before investing in inventory, you need to confirm if there’s demand for a product. Selling a product that nobody is searching for will result in low sales and wasted resources.
How to Check Demand on Amazon
1.Use Amazon’s Auto-Suggest Feature:
•Type a general keyword into the Amazon search bar.
•Amazon will automatically suggest popular search terms based on real customer searches.
•These suggestions give insight into what people are actively looking for.
2.Analyze Amazon’s Best Sellers, Movers & Shakers, and Hot New Releases:
•Best Sellers: Lists top-performing products in every category.
•Movers & Shakers: Highlights products with the fastest sales growth.
•Hot New Releases: Shows trending new products with strong early demand.
3.Use Keyword Research Tools:
•Tools like Helium 10, Jungle Scout, and MerchantWords estimate monthly search volume for Amazon keywords.
•High search volume = strong demand, but also check competition levels.
✅ Example: If “wireless earbuds” has 100,000+ searches per month, it indicates strong demand. However, if competition is too high, it might be difficult to rank.
2. Analyze Market Competition
Entering a niche that is too competitive makes it harder to gain visibility and sales. Assess the level of competition before launching a product.
How to Check Competition on Amazon
1.Search for Your Product and Analyze the Top Results:
•Look at the number of reviews on top-selling products.
•If most listings have 1,000+ reviews, breaking into the market may be challenging.
•If many listings have fewer than 500 reviews, there may be room for new sellers.
2.Check Brand Dominance:
•Are big brands like AmazonBasics, Apple, or Nike dominating the space?
•Competing against well-established brands can be difficult.
3.Evaluate Pricing Trends:
•What is the average price for your product category?
•If margins are too low due to pricing wars, it might not be profitable.
✅ Example: If “standing desks” have listings with 5,000+ reviews and top brands dominate, a niche like “small standing desks for home offices” may be a better entry point.
3. Find Gaps and Opportunities in the Market
A good product isn’t just in demand—it should solve a problem or offer something competitors don’t.
Analyze Customer Reviews for Pain Points
•Read negative reviews (1–3 stars) on competitors’ listings.
•Identify common complaints (e.g., “This blender is too loud” or “The fabric is too thin”).
•Use this feedback to improve product design or highlight missing features.
Look for Unique Selling Points (USPs)
•Can you offer better quality, materials, or functionality?
•Can you bundle it with complementary items?
•Can you target a specific audience (e.g., “Eco-friendly Yoga Mats” instead of generic “Yoga Mats”)?
✅ Example: If many customers complain that “dog travel bowls” are flimsy, launching a durable, collapsible travel bowl with improved materials can give you a competitive advantage.
4. Validate Product Trends Using External Tools
Market demand should be consistent and not just a short-term trend.
Use Google Trends to Analyze Search Trends
•Search your product keywords on Google Trends.
•Look for stable or increasing search volume over time.
•Avoid seasonal-only products unless you plan for seasonal spikes.
✅ Example: If searches for “Halloween decorations” peak in September/October but drop to zero in other months, it’s a seasonal product.
Check Social Media & Online Marketplaces
•TikTok & Instagram: Identify viral trends and emerging products.
•Etsy & eBay: See what handmade or trending products are selling well.
✅ Example: If “minimalist jewelry” is trending on Instagram and has strong Etsy sales, it may indicate rising demand on Amazon.
5. Check Amazon’s Product Opportunity Explorer
Amazon’s Product Opportunity Explorer is a powerful research tool that provides insights into:
•Search volume trends for specific keywords.
•Customer demand patterns over time.
•Sales performance metrics for different product categories.
•Competitive landscape to find untapped opportunities.
✅ Example: If the “ergonomic footrest” category shows high search volume but low competition, it could be a great niche to enter.
6. Evaluate Profitability Before Investing
Just because a product has demand doesn’t mean it will be profitable. Consider all costs before making a decision.
Calculate Costs Using Amazon’s FBA Calculator
•Factor in manufacturing, shipping, Amazon fees, storage costs, and PPC advertising.
•Estimate your profit margin to ensure it’s sustainable.
✅ Example: If a product costs $10 to source, $5 in Amazon fees, and $3 in ads, but sells for $20, your profit is only $2. Low-margin products may not be worth selling.
7. Test the Market Before Committing to Large Inventory Orders
Instead of bulk ordering thousands of units, validate demand by:
•Launching a small test batch (50–100 units).
•Running Amazon PPC ads to measure clicks, conversions, and sales.
•Monitoring organic sales and customer feedback.
✅ Example: If your test batch sells out within weeks with strong reviews, it’s a sign to scale up production.
Final Thoughts
Market research is critical for Amazon success. By following a data-driven approach, you can:
✔ Identify high-demand, low-competition niches.
✔ Find opportunities for product improvements.
✔ Optimize pricing and profit margins.
✔ Reduce risks before making large investments.
Thorough research sets you apart from competitors and increases your chances of building a profitable Amazon business.