How to Validate Product Demand on Amazon
Before launching a product on Amazon, it’s crucial to ensure there is consistent demand to avoid wasting time and resources on a product that won’t sell. Validating demand involves analyzing market trends, competition, and customer behavior to determine if a product has long-term profitability. Here’s a comprehensive guide on how to validate product demand effectively.
1. Conduct Keyword Research to Measure Demand
One of the most effective ways to gauge product demand is through keyword research. When customers search for a product on Amazon, they use specific terms. By analyzing the search volume of these keywords, you can determine how frequently people look for a particular product.
How to Conduct Keyword Research for Product Demand
•Use keyword research tools like Helium 10 (Magnet & Cerebro), Jungle Scout, MerchantWords, or Sonar to find the monthly search volume of relevant keywords.
•Look for keywords with at least 5,000+ monthly searches—this indicates significant demand.
•Avoid products with extremely low search volume (less than 500 searches per month), as this may indicate weak demand.
•Consider long-tail keywords, such as “ergonomic office chair with lumbar support,” instead of generic ones like “office chair,” to find niche opportunities.
✅ Example: If “reusable silicone food bags” has over 10,000 searches per month, it’s a strong sign that the product is in demand.
2. Check Amazon Best Sellers Rank (BSR)
Amazon assigns a Best Sellers Rank (BSR) to every product based on sales performance within its category. Analyzing BSR helps determine how well similar products are selling.
How to Analyze BSR for Product Demand
•Search for similar products on Amazon and check their BSR in the product details section.
•Focus on products ranking below 10,000 in their category—this indicates strong demand.
•If multiple listings in your niche have BSRs under 5,000, it means the market is competitive but profitable.
•If a product’s BSR fluctuates frequently, it might be seasonal.
✅ Example: If the top 5 listings for “electric lunchbox” have BSRs under 5,000, it suggests steady demand and consistent sales.
3. Analyze Competitor Sales Data
Understanding how much competitors sell each month can help you determine if a product is worth pursuing. Many Amazon research tools provide estimated monthly sales for different listings.
How to Analyze Competitor Sales
•Use Helium 10 (Xray), Jungle Scout, or AMZScout to see how many units competitors sell per month.
•Look for products selling at least 300+ units per month, indicating steady demand.
•Avoid niches where only one or two sellers dominate, as this might indicate limited opportunities for new sellers.
✅ Example: If a “portable camping stove” sells 1,500 units per month, and multiple sellers are achieving similar sales, it’s a strong market.
4. Monitor Seasonal Trends with Google Trends
A product might have high demand only during specific times of the year, such as holiday items or summer products. Google Trends helps determine whether demand is consistent or seasonal.
How to Use Google Trends for Product Validation
•Go to Google Trends and search for your product keyword.
•Look for stable or growing search trends over time.
•Avoid products with extreme demand fluctuations, unless you are prepared for seasonal sales.
✅ Example: “Weighted blanket” has steady searches year-round, while “Christmas LED lights” spikes only in November and December, making it a seasonal product.
5. Evaluate Customer Reviews and Ratings
Customer reviews provide insight into demand, product quality, and potential gaps in the market. Analyzing reviews helps identify:
•Common complaints and areas for improvement—an opportunity to create a better version of an existing product.
•Review volume—a high number of reviews typically indicates strong demand.
•Customer interest in additional features—suggesting potential product enhancements.
✅ Example: If many buyers complain that a “collapsible water bottle” leaks, you can launch an improved, leak-proof version to meet demand and differentiate yourself.
6. Consider Pricing and Profitability
A product may have high demand, but if it lacks profitability, it won’t be sustainable. Before committing to a product, ensure it has good margins.
How to Assess Product Profitability
•Check the average selling price of competitor products.
•Use Amazon’s FBA Fee Calculator to estimate fulfillment fees.
•Factor in manufacturing, shipping, and advertising costs to determine your potential profit margin.
•Look for products with a profit margin of at least 30% after all costs.
✅ Example: If a product sells for $25, but manufacturing and shipping costs total $10, and Amazon fees are $5, you’d have a $10 profit per unit (40% margin), making it a viable option.
7. Test Demand with a Small Product Launch
Instead of investing heavily upfront, validate demand by testing with a small batch before scaling up.
How to Test Demand Before Scaling
•Order a small inventory batch (e.g., 100–300 units) to gauge customer response.
•Run Amazon PPC ads with a small budget to drive traffic.
•Monitor conversion rates, sales velocity, and customer feedback to determine if scaling is viable.
✅ Example: A seller launches 200 units of a “bamboo dish drying rack” and sees strong sales with positive reviews, confirming product demand before increasing inventory.
Final Thoughts
Validating product demand on Amazon is essential for long-term success. By analyzing keyword search volume, competitor sales, BSR, seasonal trends, customer reviews, and profitability, you can make informed decisions before launching a product. Testing the market with a small inventory batch allows you to assess demand without significant risk. Taking a data-driven approach ensures that your chosen product has consistent demand, low risk, and high profit potential.