3 Crucial Scores for Your Amazon Keywords

If reviews are the currency of Amazon, then Amazon keywords are the lifeblood.

Without the right keywords in your listing, you miss out on thousands of potential sales each month. But by including your most relevant keywords, you can capture every possible impression driving thousands more in revenue each month.

Viral Launch Keyword Research, the most accurate Amazon keyword research tool on the market, provides you with a list of your product’s most relevant search terms. With one simple search, you can quickly find your most important keywords alongside search volume taken straight from Amazon.

Still not sure how to do keyword research for Amazon? Keyword Research provides all the metrics you need to determine how to best use each term. You’ll see exact and broad search volume, search volume historical trends, CPC suggested bids, dominant categories, and three important scores.

These scores include Relevancy Score, Priority Score, and Opportunity Score. Each of these metrics rates the keyword on a scale of 1 to 1,000 and will indicate, in different ways, how to best utilize the keyword for your product.

Relevancy Score

Relevancy Score is what allows Keyword Research to provide the most relevant Amazon keywords for your product of any keyword tool on the market.

Relevancy Score is a scale between 0-1000 that rates how relevant each keyword is to your seed keyword. To determine relevancy, Keyword Research runs a massive Reverse Market Lookup. This is similar to a Reverse ASIN Lookup, but bigger and better.

Essentially, we’re looking at the top-selling listings across your entire product market to ensure we’re capturing all your most important Amazon keywords and running multiple reverse-ASIN lookups. This ensures you don’t miss any crucial keywords for your market. And as a result, we gather a large pool of hyper-relevant keywords for your product.

The downside to a Reverse ASIN Lookup, as opposed to a Reverse Market Lookup, is that it only finds indexed words for one single competitor. That means you could miss some really crucial words for your product. In contrast, a Reverse Market Lookup finds the most comprehensive list of indexed words from all of your top competitors.

Next, we take that comprehensive pool of keywords and run it through our sophisticated Market Relevance Calculation. This proprietary process weeds out irrelevant terms and gives you a list of hyper-relevant Amazon keywords. From that Market Relevance Calculation, we rate each term based on its importance.

For example, garbage cans has a fairly high Relevancy Score, meaning it is very closely related to the seed term according to our Market Relevance Calculation.

 

Using the Relevancy Score

  • Place highly relevant keywords in your title and/or bullet points
  • See which keywords most directly relate to your product
  • Determine which keywords your top competitors are using most frequently

Priority Score

Priority Score is a scale between 0-1000 that rates a keyword’s importance based on relevancy and search volume. To arrive at this score, we look at the term’s Relevancy Score and factor in the search volume. A highly relevant, highly searched term will have a high Priority Score. But a less relevant, less searched term will have a low Priority Score. The higher the Priority Score, the more important the keyword, when it comes to optimizing a listing.

For example, trash can has a high Priority Score, meaning it is highly relevant to the seed term coupled with relatively high search volume.

High priority words should be placed in a product’s title, whereas mid-priority keywords can be placed in the bullet points, description, or backend. When using Keyword Research to optimize your listing, we suggest sorting your resulting terms by Priority Score to ensure you’re seeing your product’s most important keywords first.

Using the Priority Score

  • Place high priority keywords in your title
  • See which keywords have the most sales potential with a good combination of relevancy and volume

Opportunity Score

Opportunity Score ranks Amazon keywords on a scale of 0-1000 to show you terms with low competition and high opportunity to rank. A high Opportunity Score means the term has not been integrated into the front end of the top performing listings that are ranking for that keyword. A low Opportunity Score means the term has been integrated into many of the top ranking listings.

For example, garbage cans and trash cans (both plural) have very high Opportunity Scores, meaning the top products are ranking for these two terms without even having the phrases in their title, bullet points or description. In other words, the top-ranking products for these keywords are neglecting this term, which will make it easier for you to rank with the keyword in your title or bullet points. And combined, there are over 15,000 searches per month up for grabs!

Trash can (singular) has a low Opportunity Score, meaning most of the top products are prioritizing this phrase by using it in their front end.

For high opportunity Amazon keywords, there is a lot of potential to rank by simply adding the word to your listing’s title or bullet points. For example, in a search for bluetooth headphones, you’ll find the term “audifonos headphones” with over 33,000 searches per month and an opportunity score of 1,000.

This means none of the top ranking listings for audifonos headphones actually have that term in their title, bullet points, or description. Your opportunity to rank here is high because the top ranking listings are not prioritizing this keyword at all. No other keyword tool offers this kind of strategic insight

And as an added bonus, high opportunity Amazon keywords are less competitive, so these markets also tend to have lower quality listings. So if you’ve got great reviews and good photos, the addition of a single keyword could mean increased impressions and high conversion rates, bringing in thousands more dollars in sales every month.

You can also use Opportunity Score in conjunction with Suggested CPC Bids in order to find high opportunity, low-bid terms to target.

Using the Opportunity Score

  • Place high priority keywords in your title or bullet points for easy ranking
  • Find hidden-gem keywords that your competitors are neglecting to use
  • Bid on high opportunity, low-bid keywords with Sponsored ads for low competition

Prioritizing Your Amazon Keywords

Because keywords are the foundation for how your product is discovered by Amazon shoppers, it is crucial to include the right terms. On top of that, it’s important to know how to best prioritize them.

Your title is the most important element of your listing’s copy, so include highly-relevant, high-priority and high-opportunity keywords. With each sale, the words in your title are fair game for a ranking boost.

Your bullet points are secondary and should be used for your remaining important keywords, along with additional mid-level terms.

Your description and backend keywords are great places to include long-tail keywords so that you can be found for anything a shopper searches relating to your product.

Whether you’re researching a market in conjunction with the Viral Launch product research tools or you’re seeking relevant Amazon keywords for your current product, Keyword Research shows you all of your related terms with just one simple search. And with the Relevancy, Priority, and Opportunity Scores, you can ensure you’ve got the most comprehensive understanding of your product’s Amazon keywords.

TRY KEYWORD RESEARCH

Viral Launch Announces Product Discovery: The Best Amazon Product Finder In The Galaxy

Finding a great product to sell on Amazon can be tough, but with so much riding on your sourcing decision, you have to make sure you get it right.

Maybe you’ve been selling on Amazon for a while and are looking to add a new product to your arsenal. Or maybe you’re new to the selling game and just aren’t sure what type of product would perform well or need help generating ideas.

You could spend hours upon hours combing through Amazon to compile messy spreadsheets full of mediocre product ideas. Or, you could tap into Viral Launch’s unrivaled matrix of high-quality data points to quickly identify products that meet your exact specifications.

Introducing Product Discovery by Viral Launch: the best and most precise Amazon product finder in the galaxy, helping you uncover the most profitable Amazon product ideas.

Whether you’re an experienced seller or are just jumping into the game, Product Discovery is designed to help sellers at every level comb through the millions of potential products you could sell and determine which ones you should sell.

Product Discovery is a data-driven solution to finding Amazon products. Developed with Amazon sellers in mind, Product Discovery isn’t your ordinary product finder. With Product Discovery, there are four different ways to find exactly what you’re looking for. Search by Product, Keyword, Brand, and Category. Whether you want to find specific products that meet your criteria, potential keyword niches, successful brands you want to emulate, or subcategories full of up-and-coming products, you’ve come to the right place.

Let’s take a walk through the unique features of the tool, and get you on track to sourcing your next profitable product.

 

Product Search

If you’ve used a product finder before, you’re likely familiar with searching by product. This method is actually not the most effective way to discover product ideas. In fact, we recommend staying away from Product Search for idea generation.

It may seem more direct, but you lose out on the holistic view of the market by only looking at one specific ASIN. Making a sourcing decision based on one product is dangerous because you have no idea what that seller is doing to achieve that success. Maybe they’re Facebook ad gurus, or maybe they’re always running a promotion … you just don’t know. It’s much more advantageous to look for keywords and research the market in its entirety so that you can see all the products you will compete with and better gauge your likelihood of success.

We do include Product Search as an option for sellers who are already comfortable with the search method, but if you’re wanting to make a confident sourcing decision, we highly recommend using our Keyword Search instead.

So let’s go through Product Search. Say you’re already selling a variety of baby products and want to stick to that category. You’re looking for a product with high growth and high profitability – so up-and-coming products with healthy margins. Select Baby from the category list, plug your desired ranges into the filter slots, and Product Discovery will pull up a list of products that meet your exact criteria:

The top products that meet your criteria will be listed, along with their brand name, fulfillment method, BSR, monthly sales, revenue and profit (after fees), price, rating and number of reviews, and the number of sellers on this listing. You can sort the results by any one of the above features, so whether you’re looking for a product with high BSR or a low number of reviews, you can see those first with the simple click of a button.

Other features include a button to view the product on Amazon and a Market Intelligence button so you can quickly get started on market research for that particular product by researching its main search terms. You also have the option to download the search results as a CSV by clicking the download button in the top right corner. If you find a product you want to keep your eye on, you can “pin” that product to your Pinned Ideas board to track and monitor.

Right next to the CSV button is the option to view advanced data. Toggle on to reveal more unique criteria for each product, including how the product is performing now compared to how it has performed historically and how quickly the product is gathering reviews.

If you want to narrow your list of product results even further, Product Discovery offers advanced filters, including estimated initial investment cost and profit, average profit margins, best sales period, current sales pattern, sales to review ratio and more. Our advanced filters allow you to customize your search criteria and generate a list of products that meet your exact investment and sales goals.

To get a broader view of how the market is performing, including your potential competition, we highly recommend our next search option: Keyword.

 

Keyword Search

While Product Search allows you to hone in on individual products that meet your criteria, Keyword Search takes a step back and views the market from a broader scope. Rather than zeroing in on a particular ASIN, Keyword Search considers the top products for a specific search term or phrase and averages the growth (or decline).

If you’re newer to the Amazon game or are looking for a straightforward approach to finding your next profitable product, we recommend starting in the Keyword Search tab.

The basic filter options are fairly similar to those under Product Search, except that the monthly revenue, sales, price, and review count are averages since your results will consider multiple products.

We’ll go ahead and stick with the baby category for this tutorial, but once you’ve input all your desired filters, Product Discovery will provide the top keyword phrases that meet your criteria. The results shown will look slightly different than your product search results.

You’ll see average price and profit margin, average monthly sales, average number of reviews (and rate), average monthly revenue, and the sales to review ratio for the top products under that particular keyword. If you want to sort your results by any listed data point, just click on the arrow next to the column title, and you can see results from the highest to lowest number of reviews, lowest to highest sales and more.

A unique and extremely helpful feature under the keyword search results is the Idea Score. The Product Idea Score is only available if you subscribe to one of our annual plans. This is an extremely beneficial metric because you are able to sort by Star Rating. For those of you who have used our product research tool, Market Intelligence, you know the Idea Score is our rating system for profitable ideas based on our ever-expanding network of data.

5-Star Ideas are markets that we’ve determined likely have great potential, through our custom, complex, in-house rating algorithm. A 1-Star Idea is one that we recommend staying away from due to any number of factors, including but not limited to: high barrier to entry, high competition, declining trends, etc. With an annual subscription to Product Discovery, the ability to sort by Idea Score provides a quick and effortless way to see the best products first. Once you’ve filtered for markets that fit your goals, sort by Idea Score to see the markets that Viral Launch quickly and easily verifies for you! Then, dig into the market with Market Intelligence to make sure the market data aligns with what you’re looking for.

Clicking on the advanced data button for your keyword results will reveal some similar data, such as the price change in the last 90 days, the sales change in the last 90 days, the review change and review rate. Unique data points to this search type include the sales percentage year over year, the current sales pattern (declining, typical, seasonal or up and coming), and the best sales period (month) if applicable.

Advanced filters are offered under keyword search as well, so you can get as specific as you want and find some killer, profitable keywords. And once you’ve found them, you can pin your favorites, view them on Amazon and in Market Intelligence, or download the results as a CSV.

 

Brand Search

You might be thinking … product and keyword search are great, but I’m already selling and I’d love to be able to track the top brands in my category, monitor their success, or spy on top-selling brands in other categories to potentially replicate their successes …

We’re one step ahead of you. We created our Brand Search option as a unique way to check out specific brand names, their products, sales, revenue, reviews and more. You can also easily find killer products to source by checking out the brand’s top selling products in their Full Scan page. We’ll talk more about that page later.

Whether you’re a new seller trying to navigate the ins and outs of a profitable brand in a specific category or you’re a more experienced seller looking to monitor the top competitors in your space, our Brand Search has just the criteria to help you identify the brands you want to watch or emulate.

When you’re tracking a brand, you probably want to know their success level and growth rate right? That’s what we thought.

In Brand Search, you can filter for brands that are in the top 25%, top 5% or top 1% in a category and have growth rates anywhere from slow to insane mode. You can also set quantities for the brand’s monthly sales or revenue, total or average review count, average price and more. Your results will include data from across all their products, whether they have 1 or 10,000.

For advanced Brand Search filters, you’ll see some similar options such as average profit margin, sales year over year, best sales period, sales pattern, sales to review ratio, and price, review and sales change in the last 90 days.

There are 3 new advanced filters you’ll see in Brand Search: Quick Win, Moderate Win and High Upside Products. These metrics allow you to set ranges for the number of each “type” of product from that brand. Quick Win products may be easy to replicate but have lower revenue streams. High Upside products are more difficult to replicate but generate more revenue. Moderate Win products are somewhere in the middle.

Once you’ve set all your desired parameters, hit view filter results and start discovering the brands you want to keep your eye on and the products that are driving their success.

Your results will display some familiar options like the “view on Amazon”, “pin” and “download as a CSV” buttons. If you’re searching for advanced data in Brand Search, click on the Source logo and you will be taken to a new page featuring a Full Scan of data detailing the brand’s sales, trends and more. This Full Scan page is loaded with information for you to really dig into the brand, including their top products.

On the main results page, you will also see the number of products the brand has, their monthly sales and revenue, average price, number of reviews and their success (compared to top competitors) and growth (based on recent sales data). If you want to sort your results by one of these metrics, simply click the arrow next to the column title.

 

Category Search

Our final search option is by Category. This is the most wide-lensed way to find a product but can be highly effective once you get the hang of the search criteria. Whether you’re looking for a niche product within your current market or just a niche subcategory that hasn’t been tapped into yet, Category Search is the way to go.

Category Search comes with a higher learning curve, as it’s something that many sellers will be unfamiliar with. However, this search method can prove to be an advanced seller’s best friend with the countless avenues provided to arriving at profitable products.

When you take a look at the filter options in Category, you’ll notice two newbies: Opportunity Score and Maturity Score. We created these two scores to simplify the process of finding the categories you’re looking for. Opportunity score is a way to determine the number of “good opportunity” products within a specific subcategory, so a lower score will yield subcategories with a smaller number of “good opportunity” products and vice versa for a higher score. Maturity score allows you to filter based on how mature, or established, the subcategory is, so a high maturity score yields subcategories that may be more difficult to enter and have a lower ROI initially, and vice versa for subcategories with a low maturity score.

Other basic filters for Category include average price, average monthly sales in units, average review count, sales to review ratio and more.

The advanced filters for Category Search are similar to the other three categories, including the Quick Win, Moderate Win and High Upside product ranges from Brand Search. Three advanced filter options unique to category Search are Number of Products, Unique Brands, and Name Brand Market Share. Although they are fairly self-explanatory, number of products allows you to set a range for the amount of active products in that category, unique brands lets you set a range for the number of brands selling in that category and name brand market share allows you to determine what percentage of that category is dominated by name brands.

Once you’ve set all the filters to meet your criteria, your results will provide the monthly sales and revenue, number of reviews, average price and number of brands across that subcategory. You will also see the opportunity and maturity scores, which are color-coded to help you determine the right combination to meet your criteria (red = “bad” or low, yellow = moderate, green = “good” or high).

Other options you’ll recognize are the download, pin, view on Amazon and Source buttons. Similar to Brand Search, clicking on the Source logo will take you to a Full Scan page for that subcategory detailing a variety of data-driven metrics, from sales and review data to the top products within that subcategory. Again, the Full Scan page will break down some of the overview metrics you see in the result list, as well as identify some additional in-depth metrics. And, don’t forget that you can sort the results by any one of the desired filters by clicking the up or down arrow next to the category title.

 

Other Features

Now that we’ve taken you through each of the four main search options, we wanted to point out a couple more unique features of our product finder.

In the top right corner, you’ll see a category drop down bar, which allows you to drill down from top-level categories into subcategories, similar to how you would on Amazon. When you click the blue scan button next to any category or subcategory, you will be taken to a Full Scan page with detailed information and data about that category. This feature is a quick and efficient way to check out our Full Scan pages if you know the category or subcategory you are looking for or just want to browse.

The final, helpful feature of our product database is the Pinned Ideas tab. Remember how you can pin your favorite products, keywords, brands or subcategories in each of the search options? To check out all those pins, hop on over to the left sidebar and click on the Pinned Ideas tab under Product Discovery. Here you will find everything you’ve saved so you can once again see all the information, check the idea out on Amazon, or continue researching the idea with Market Intelligence. And, if you no longer want to monitor a pin or want to make room for more, just click the remove icon to get rid of it.

 

So Why Product Discovery?

We know we aren’t the only product idea software on the market, so why choose us? Sure, we might be biased, but here’s a few reasons why we think you should choose Product Discovery to find your next great profitable product:

1. Personalized

Product Discovery allows you to be as broad or as specific as you’d like when filtering for product ideas. You can keep it simple and just use the basic filters or hone in on specific types of products, keywords, brand, and categories with more advanced filters. With the ability to perform such targeted searching, you can quickly expand your product offering and reach your business goals.

2. Fast

E-commerce is always on the move and always growing, especially Amazon, so we know you don’t have weeks or months to find a good product to source. Time lost is sales lost, which is why we created Product Discovery to help you discover a profitable product in minutes. Beating your competitors to the next profitable product is a huge advantage, and Product Discovery is the fastest way to do just that.

3. Quality Data

If you’ve used Market Intelligence before, then we probably don’t need to convince you about the quality of the data we provide. We aren’t interested in providing our clients with invaluable metrics or archaic data points. We aim for data that is up to date, hyper-accurate and extremely catered to your needs.

4. Comprehensive

We’ve got everything you’re looking for all in one tool, so you don’t have to waste time switching between different software. Product Discovery has all the data, allows you to download your search results, integrates seamlessly with Market Intelligence and lets you save and pin the products you’re interested in, the brands you want to track and more.

 

If you’d like to learn even more about Product Discovery, check out our detailed walk-through video so you can get a visual explanation of how the tool works. Or, if you’re ready to find your next great profitable product, sign up and pick the subscription package that works for you!

Try Product Discovery!

A Better Product Research Tool: Market Intelligence Gets an Update

Market Intelligence, the Amazon product research tool you know and love, is getting an upgrade.

Making a purchasing decision is the most important aspect of running your own Amazon business. A great product with plenty of potential can lead to huge sales. Conversely, poor products can sink your business before you even get started.

That’s why having a trustworthy product research tool is so important. The right tool can tell you almost instantly how much potential your products have. Market Intelligence has provided sellers with the best product data, and now Viral Launch’s product research tool is even better.

With Viral Launch’s upgrade to Market Intelligence, you can get even more accurate data to make better product choices.

Not only does Market Intelligence have a snazzy new design, but a new cost calculator function gives you a better, more accurate estimate of your costs (and profits!).

Better, More Accurate Product Research Results

The biggest change to Marketing Intelligence is the “Cost Calculator” tab, which features a fully integrated FBA calculator.

Market Intelligence already provides you with the market data and insights you need to make an informed sourcing decision to find a profitable product. Now you can learn:

  • How much you will need to invest
  • The number of units you should order to meet your goals
  • Potential profit you can make in that market

The FBA calculator allows you to change every variable to get a truly customized solution. You can choose:

  • Whether you want a conservative or aggressive selling approach
  • The price you will sell your products
  • Your purchase price, and so much more

As you change each data point, the corresponding results will upgrade to show you how much you can expect to spend up front, how much inventory you should order, and your potential revenue and profit.

Market Intelligence Update

Before:

Market Intelligence provides you  plenty of data to make a smart product purchasing decision. The Top Sellers tab shows data about each brand, BSR, historical sales, monthly revenue, price, unit margin, review rate and more.

You can also view market trends and take a look at Viral Launch’s analysis of the product.

Now:

Not only does a new design improve the look, but the Cost Calculator provides more data.

The Cost Calculator allows you to change most granular data points for all of your potential products. Now you can quickly and easily see how much it will cost to enter the marketplace, how much you will sell, and your projected return on investment.

 

You can view your estimated upfront costs, monthly expenses, monthly profit, and net profitability based on the number of units, sales information, diligence costs, product promotions and software and service expenses.

Run Product Comparisons

Trying to decide between two or three different products? Want to know your potential profit at different landed costs and price points? It’s even easier to make comparisons and decide which product makes the most sense for your Amazon business with the new Market Intelligence. 

New comparison capabilities let you run side-by-side tests to see how changes to order size, landed cost, selling price, and more will change your results.

 

The Best Product Research Tool

Unlike other FBA calculators, Market Intelligence incorporates sales data into searches. What does that mean for you? You are given realistic investment and revenue projections based on the the exact market you want to enter. Sales data integration in the Cost Calculator tab provides with you a more accurate assessment of the investments you will make and the reward you will receive.

The Most Accurate Data

Market Intelligence provides Amazon sellers with the most accurate sales estimation data of any product research tool on the market. Nightly algorithm updates ensure that the data you receive always reflects the most recent info.

Amazon Data Incorporated

It only makes sense to incorporate Amazon data into your decision-making process. Market Intelligence allows you to do just that by leveraging billions of real Amazon data points. So not only can you see the Amazon trends, but you can also predict the future of the market and avoid selling a product with a short lifespan.

Market Intelligence Can Improve Your Business

The wrong product research tool could cost you thousands of dollars, either because of lost income potential or choosing a product that’s a complete bust.

Market Intelligence’s new update ensures you have all the information you need all in one place so you can make the best product decision and start your Amazon business with fewer risks. 

Take a look at the new updates to Market Intelligence.

The First of the FBA Amazon Seller Tools Available On the Alexa

0Introducing the very first Amazon Seller Tool on Alexa: Market Intelligence.

As an Amazon FBA seller, you’re constantly thinking about what your next great product is going to be. The majority of your best product ideas don’t hit you when you’re sitting in front of your computer ready to validate it with any of the available Amazon seller tools. So for all of those times you get that “next big idea” while you are, say, washing the dishes, taking a shower, or whenever private label brilliance strikes you, and you are without a killer research tool at your disposal, problem solved:

 

 

Enabling Market Intelligence On Your Amazon Echo Device

To enable this Amazon seller tool on your Alexa compatible device,  simply head to the Alexa Skills Store (or use the Alexa app), search “Market Intelligence”, click into the skill with the title “Viral Launch – Market Intelligence”, and press Enable.

How To Do Product Research Hands Free

  1. Make sure Market Intelligence is enabled on your Echo device.
  2. Say to Alexa: “Alexa, open Market Intelligence.” (Alexa will respond: “Astronaut online”).
  3. Say: “Search [insert product/keyword here].” (Alexa response: “We are go for [[product/keyword]]”).
  4. Alexa will now begin counting down from 10. This gives our systems time to grab all of the necessary market data and run our proprietary analysis.
  5. If our system was quick enough, immediately after saying “one“, Alexa will tell you the star rating of the product as well as any tips, warnings, and alerts.
  6. If the system was not quick enough, you will need to say “blast off“, at which point Alexa will give you the searched product’s star rating as well as any tips, warnings, and alerts associated with your search.

 

The Next Breakthrough In Amazon Seller Tools?

No, we don’t expect the next wave of FBA tools to start emerging on your Echo device. We just thought this would be a fun way to use and share our killer product research tool, Market Intelligence!

All in all, even if you just use the Alexa skill once, we hope you enjoy and have fun with it!

What do you think?!

Amazon Product Research: Interpreting and Analyzing Market Data

“Amazon Product Research: Interpreting and Analyzing Market Data” is an excerpt from Viral Launch’s Ultimate Guide to Sourcing Private Label Gold Mines ebook. Download the full ebook at the bottom of this post.

Interpreting and Analyzing Market Data

Sourcing tools provide A LOT of information! Having more data, assuming it is accurate and relevant, is always going to help sellers make better sourcing decisions as they’re researching products on Amazon. However, that is assuming those sellers know how to interpret and leverage that information to inform their decisions. Here we will do our best to highlight all of the available data, what it means, and how it should influence your sourcing behavior.

Doing Amazon product research using Market Intelligence begins when you run a search for the product you have in mind. We highly recommend that you search the product’s most relevant yet basic term. For example, if you are searching for a vitamin c serum, don’t search “Vitamin C,” which is too broad, or “Vitamin C Serum for Women,” which is too specific. Simply search for “Vitamin C Serum.”

 

Identify what customers are purchasing for this search term

Knowing what is selling for a search term and/or product market is crucial. Imagine you wanted to sell some gloves to cover your hands while grilling, and you had a product like this in mind:

Well, when you search “grill gloves” or “grilling gloves”, you’ll find that more customers are actually looking for a five finger glove made of either silicone or another heat resistant material.

Sourcing the wrong type of widget for the search term you’re researching can have major implications. Sure, you can still sell the widget with different positioning that is more relevant to what is actually selling (in this case you would need to position your “grilling gloves” as oven mitts), but the market landscape for oven mitts may be completely different than for grill gloves.

You may have to sell at a completely different price point in a market that could be far more competitive. We’ve seen instances, much worse than this example, of sellers not knowing what is already selling when trying to enter a market. Most of the time, it ends with a much lower ROI than anticipated.

In conclusion, know the proper positioning of your widget, and sell a product that is very similar to what the market is already purchasing.

 

Identify Outliers

When it comes to analyzing a market, you may come across a listing that has abnormally high or low sales and/or reviews. Generally, in your market considerations, we suggest dismissing those listings as outliers. In our experience, these listings are not worth taking into account when performing your analysis as they are not representative of the market or what you should expect for your product. As you can see in the image above, the highlighted row has an astronomically high number of sales relative to those listings around it. Market Intelligence will automatically flag those outliers for you when you display data in the Filtered View.

 

Product Category

When it comes to Amazon product research, knowing the product category is crucial for estimating sales. Sales are estimated based on a product’s Best Seller Rank within its respective top-level category (ex. Home & Kitchen). Knowing the product’s category may also help you understand how other sellers are positioning the product. Finally, you’ll want to make sure that you know the requirements for certain categories and products requiring approval. Sourcing a product in a gated category without proper preparation will set you up for a headache down the road.

 

BSR (Amazon’s Best Sellers Rank)

What is it?

The Amazon Best Sellers Rank is a metric of a product’s sales relative to the rest of the market within a particular category. The top selling beauty product would have a BSR of 1. The second best seller would have a BSR of 2. This is very important for sourcing. Amazon product research tools use this metric to estimate a product’s sales by leveraging a proprietary algorithm that translates BSR to estimated sales. Market Intelligence shows a sparkline of BSR over the last 30 days to help give a quick view of how sales have trended for that product over the last 30 days.

Clicking into the BSR 30 sparkline will present a popup that shows how the Best Seller Rank has trended over the last 3-4 months for the product.

Source Smarter

Looking at how BSR has trended for a particular product can help explain certain scenarios. For example, a sudden drop in BSR could indicate a promotional giveaway. In combination with the price trends, you may be able to explain fluctuations in BSR with fluctuations in price.

 

Monthly Revenue

What is it?

The purpose of this metric is pretty obvious. Monthly revenue is calculated simply by multiplying the monthly sales metric by the current price point. Knowing what other sellers are grossing in the market is important for knowing what the top line revenue potential is for the market.

Source Smarter

We strongly suggest not basing your expected sales on what the top 1 or 2 sellers in the market are selling. This suggestion goes back to not basing your expected results on any particular ASIN. We suggest taking an average monthly revenue from a few of the listings you feel confident you could compete with on ranking position, price, reviews, etc.

For example, I would expect to start-off selling around $10k/month in gross revenue based on this screenshot versus the $100k+ the top two sellers are selling at because they have very high review quantities.

Underestimating monthly revenue will do you much better than overestimating when calculating sales projections. It’s great to be optimistic, but this is an area where practicality will serve you well.

 

Price

Price is an important metric for informing your sourcing decision in two ways: 1) If you have a revenue/profit goal in mind, knowing how much you can charge per unit will help you know how many units you will need to sell each month. 2) Price will allow you to determine your product’s unit margin.

While some markets are more price sensitive than others, price can be a major lever in increasing/decreasing traffic, but can also have a major impact on profitability. We’ve seen so many sellers source “higher quality” products which forces them to charge much more than the average market price. There is certainly a time, place, and strategy for doing this. However, from our observations, this tends to end up being a mistake, and the product struggles to match projected sales volume.

Source Smarter

Make sure you can match the average market price with plenty of margin!

 

Unit Margin

What is it?

Unit Margin is the amount of money Amazon will pay out for each product purchased (considering no returns and promotions). The unit margin takes into account Amazon’s marketplace referral fee (Amazon’s fee for selling on their platform), the short term inventory storage fee (charged based on the product’s dimensions), Amazon FBA order handling fee (calculated based on the product’s weight and dimensions). You also have the option to input your landed unit cost to get an accurate representation of associated variable costs. The bottom line “Margin” figure offers a glimpse into what you can expect to be paid out by Amazon per unit. Tip: Changing the landed unit cost for one product will apply the landed unit cost to all products shown in the “Top Sellers View” for your convenience.

Source Smarter

Pay close attention to this field. For example, having the potential to drive top line revenue of $100k per month is fantastic, but let’s say the unit margin is close to $0, then that $100k top line figure is worthless as it won’t actually contribute to your bottom line. Another factor to be cognizant of is that the margin across markets can decline over time. If you find a market and product that allows you to have a comfortable margin, you will essentially have insurance for a profitable future.

 

Monthly Sales

What Is It?

Estimated monthly sales is an estimation of the number of orders a product has had over the last 30 days. Based on an enormous amount of aggregated market data, both historical and current, we’ve created a custom sales estimation algorithm that is updated and improved nightly. By observing a product’s Amazon Best Sellers Rank within a top level category, we are able to estimate the number of orders a product has seen. Part of our superior accuracy is our Composite Estimate. Looking at historical data, we provide estimated sales volume per day for the last three to four months.

Source Smarter

Knowing how other sellers in the market are performing is critical to identifying the sales potential. Sales volume is the largest indicator for success in a market. Products with high sales volume are performing well, those with low sales volume are not performing well. Estimated sales act as an indicator for many scenarios:

Product Type: By being able to observe how each individual ASIN is performing in estimated sales volume, allows you to identify which types of products are performing well. For example, looking at a Fish Oil, observing which pill counts have higher estimated sales will help inform you which pill counts you should consider sourcing and which you should avoid.

Sales Potential: Let’s say the top 10 sellers are driving less than 100 estimated sales per month, is this a market worth getting into? Yeah, maybe if each unit is selling at $100 per unit ($100 * 100 = $10,000), but if you can only charge $20 per unit with a top line revenue of only $2,000 it’s likely not worth getting into.

Inversely, let’s say that the top 20 sellers are averaging over 1,000 sales per month (excluding other factors). That means there is high potential and considering other factors, this could be a great product to get into so long as you can cashflow the inventory.

 

Review Quantity

What Is It?

Review quantity is one of the largest barriers to entry for a market. You must definitely pay attention to the review quantities of top performers. We’ve observed plenty of instances in which sellers enter a market due to high sales potential, but do not take into account the significance of the competition, and struggle to ever hit that sales potential.

Source Smarter

Pay close attention to how review quantity impacts sales.

Do all top sellers have a high relative review quantity? If so, this is an indicator that you will need a comparative number of reviews in order to sell at the same volume.

Are there plenty of ASINs with low relative review quantity that are selling at a high volume? If so, you may have the opportunity to sell at a decent volume with a low review quantity. This is generally a great thing, but you want to be careful to know this definitively.

Are there only one or two ASINs that are selling well with a low relative review quantity? A warning to the wise, we would identify those listings as outliers, and would suggest not taking their performance into account. If you want help identifying outliers, we suggest clicking on the “Filtered View” where we attempt to programmatically identify outliers for you.

 

Average Rating

What Is It?

This metric displays the average review rating for a product.

Source Smarter

While it is important to source a high quality product, knowing how other products are performing is an opportunity to know how your product needs to perform in order to stay competitive. For example, finding a product market with a low average review quantity (ex. Market average of 3.5 stars) could be an opportunity to source a higher quality product that customers are going to be satisfied with.

The savvy sellers will be sure to click in and read the reviews of many products in the market to learn what customers do/don’t like about current offerings as well as potential deficits and opportunities to provide a better experience. With that said, be mindful that your product updates/alterations do not cost too much on a per unit basis so as to drastically diminish your unit margins.

 

Who Owns the Buy Box

What Is It?

Here we denote what fulfillment method is being used, or identify if the product is shipped and sold by Amazon.

Smart Sourcer?

At the time of writing this piece, we feel that this metric should not have much of an impact in sourcing decisions. There are benefits to knowing what the competition is doing, for example, if many listings are fulfilling via FBM, are not Prime eligible, and economically it makes sense for you to fulfill via FBA, this may be an opportunity as shoppers and keyword ranking favor Prime eligible listings. There are also some concerns with trying to enter markets that are dominated by products sold by Amazon directly. These ASINs typically perform well and can be a bit more difficult to compete with.

 

Sales to Reviews Ratio

What Is It?

This is a simple ratio calculation of estimated monthly sales divided by current review quantity. We call this the “ROI Ratio”. We explain the importance of this metric later in extensive detail.

 

Net Profit

What Is It?

The Net Profit is an estimation of the payout the product produced over the last 30 days based on the calculation of estimated sales multiplied by the unit margin. (ex. $5.50 per unit *100 units sold = $550)

 

Download the Complete Guide

Did you enjoy learning about Amazon Product Research and how to interpret and analyze market data effectively? To get other golden nuggets on sourcing your next home run, download the Ultimate Guide to Sourcing Private Label Gold Mines.

Contents include:

  • Crucial concepts
  • Product data vs. market data
  • Interpreting and analyzing market data
  • The key metric to ROI
  • Plotting your course for success

And more…

Fill out the form below to receive the guide and start sourcing gold mines:

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Amazon Product Research: Interpreting and Analyzing Market Data

Related:

The ROI Metric: Identify the Best Products to Sell on Amazon

Generate Amazon Product Ideas: 3 Creative Methods for Sellers

The ROI Metric: Identify the Best Products to Sell on Amazon

“The ROI Metric: Identify the Best Products to Sell on Amazon” is an excerpt from Viral Launch’s Ultimate Guide to Sourcing Private Label Gold Mines ebook. Download the full ebook at the bottom of this post.

The Key Metric to ROI: ROI Ratio

Finding the best products to sell on Amazon includes identifying and sourcing high ROI product markets.

Generally, the largest barrier to achieving sales potential in a given market is relative review quantity. We have overwhelming data showing us the relation of organic sales to relative review quantity. For example, let’s say that the majority of listings on page 1 for search “xyz” have over 1,000 reviews, but one listing has only 130 reviews. Relative to the rest of the listings, 130 reviews is quite few.  

Based on what we have observed, the product with 130 reviews will struggle to sell at a similar volume compared to it’s competitors with ample social proof at 1,000+ reviews. Review quantity is a major determinant considering all else is approximately equal (price, review rating, etc.). There are certainly exceptions, but this seems to essentially be the rule. This has been observed nearly daily in our experience helping newer products achieve keyword ranking among more mature listings.

While there are certainly ways to supplement a high review quantity to drive a relatively high volume of sales with other forms of social proof (ex. Best Seller badge, Amazon’s Choice badge, superior aesthetics, etc.), reviews are generally the product market’s “economic moat”. Overcoming competitors’ economic moat (reviews), is a function of time multiplied by your review rate. The faster you are able to achieve reviews, the quicker you will be able to overcome that competitive moat. This translates to: as a product achieves a relatively similar review quantity to its competitors, organic sales volume will increase.

For this reason, we identify the market’s comparative review threshold to be the amount of “investment” necessary to reach a market’s sales potential.

 

ROI Ratio = Monthly Sales Potential ÷ Review Quantity

Example of high ROI Ratio: 1000 units/month / 100 reviews = ROI Ratio of 10!

Example of low/bad ROI Ratio: 1000 units/month / 1000 reviews = ROI Ratio of 1

We generally suggest looking for product markets where the average ratio is somewhere above 2-3, as these are typically some of the best products to sell on Amazon. Conversely, stay away from markets where that ratio is less than 1. The higher the ROI Ratio, the more likely it is a good market to get into (it is still important to analyze the rest of the market metrics).

 

An Example of Sales to Review Ratio (AKA the ROI Ratio)

Imagine the average top seller in a market was driving 1,000 sales per month with an average review quantity of 45. The sales to review ratio would be (1000 / 45 =) 22! That is incredible. Driving just 45 reviews is a very simple feat (depending on the product as some products naturally are harder to obtain reviews for). So the amount of investment, time and money spent achieving just 45 reviews, is very low considering the sales potential of ~1,000 sales per month. We would consider this a very favorable market to get into – a great product to sell on Amazon.

Conversely, here is an example of a product market where the ROI Ratio (sales/review ratio) is approximately 1 or less. The amount of investment (time and money) needed to obtain a competitive number of reviews (1,000) in order to reach the sales potential (~1,000 units/month) is far too high for our liking. There are obvious exceptions: maybe you have the money to bully your way to the top, perhaps you have a dramatically superior product (very RARELY is this a viable excuse), maybe you are okay with a low sales volume for this product as it’s a natural extension of your brand, among others.

 

The Psychology of Review Quantity

Here is a brief rundown of our assumptions into the customer psychology of this phenomenon. Review quantity stands as the most evident form of popularity to the consumer among the products shown in the search results (while Amazon provides BSR to provide an indicator of popularity, a simple survey of Amazon buyers will quickly reveal this is not a well known metric nor is it shown in the search results). Which product do you think has sold more units?

As consumers we want a “safe bet” when it comes to making a purchase. We want to be sure that whichever widget we purchase will completely satisfy our needs and will not break within an unreasonable time. Consumers also fall subject to the bandwagon effect in which they buy the item because it is “popular”, which in turn, increases its popularity. “Many others are purchasing/not purchasing this widget for a reason, so I will take the safe bet and follow suit.”

Download the Complete Guide

Did you enjoy discovering the key metric to identifying the best products to sell on Amazon? To get other golden nuggets on sourcing your next home run, download the Ultimate Guide to Sourcing Private Label Gold Mines.

Contents include:

  • Crucial concepts
  • Product data vs. market data
  • Interpreting and analyzing market data
  • The key metric to ROI
  • Plotting your course for success

And more…

Fill out the form below to receive the guide and start sourcing gold mines:

[activecampaign form=6]

 

The ROI Metric: Identify the Best Products to Sell on Amazon

Related:

Generate Amazon Product Ideas: 3 Creative Methods for Sellers

Understanding the Amazon Best Sellers Rank (BSR) – The Definitive Guide

Generate Amazon Product Ideas: 3 Creative Methods for Sellers

Don’t you hate it when you’re ready to source your next Amazon product but you cannot come up with any good product ideas? Same.

By using Viral Launch’s new Market Intelligence tool, you can research and validate your product ideas through an in-depth analysis of different product markets. But, what good is a product research tool without any product ideas?

We’ll walk through some creative methods for generating product ideas, and by the time we’re through, you’ll have an extensive list of potential product markets to plug into Market Intelligence! With just a little bit of time spent brainstorming, you’ll be on your way to sourcing your next gold mine.

 

How to Generate Amazon Product Ideas

Before brainstorming product ideas, it’s important to understand the basic criteria of a successful Amazon product.

Good products to sell on Amazon are typically:

  • Small, light, and durable for lighter shipping and manageable returns.
  • $10-50 typically for good sales numbers and margins on Amazon.
  • High-margin for a good return on investment.
  • Niche for a more specific audience and potentially higher conversions.
  • Not dominated by a name brand for more opportunity to grab market share.

These are just guidelines for your thought process but don’t feel like you need to stay inside a box of specific criteria. If you think of a heavy product with great margins, that product may be perfect for you. Now, you’re ready to brainstorm ideas.

We’ll go over three creative techniques to help you generate product ideas for Amazon FBA.

  1. Alibaba Catalogs and Storefronts
  2. Niche Discovery Method
  3. 10 Ideas Each Day

Alibaba Catalogs and Storefronts

Right now in China, a supplier is manufacturing a product that has potential to make you thousands, maybe even hundreds of thousands of dollars. It’s just up to you to find out what that product is!

A great way to discover product ideas is by looking through a supplier’s complete product offering. This can be found in the supplier’s catalog as well as on their Alibaba.com storefront.

First, send a message to Alibaba suppliers asking for their product catalog. Contact suppliers by running a search for any product and then clicking the Contact Supplier button.

Here’s the message I sent to about 5 or 6 suppliers:

Hi there,

Can you please send me your product catalog? I’m interested in sourcing a product, and I would like to look through what you offer first. My email is example@gmail.com. I’ll look forward to seeing what products are available from you.

Thank you.

Send a similar message, and you’ll get a document back containing every product offered by that supplier. This is a great source of product inspiration! For example, a knee brace manufacturer sent back a multi-page document showing everything they offer. Here’s one page from their catalog:

From this catalog, I found other product ideas, such as gymnastics grips (★★★★), lunch bag (★★★★), doormat (★★★★), and shin guards (★★.5). Many catalogs have a similar layout, and others will be a spreadsheet containing details about each product.

The product ideas you’ll get from catalogs may not all be home runs, but looking through everything a manufacturer offers is a great way to get your creative juices flowing. Once you’ve got a list of potential product ideas, plug them into Market Intelligence to discover which markets are duds and see if you’ve come across a gold mine.

Another similar method is to visit storefronts on Alibaba.com. Find these by clicking on the Supplier’s name in search results.

On the supplier’s homepage, you’ll see the products they offer. You can also navigate their products by the Product Categories tab.

As you’re combing through the storefront, you can plug the product ideas into Market Intelligence to research the market and determine if its a good fit for you. One cool feature of Market Intelligence is the ability to run multiple searches, up to ten, at once!

You may find that some markets are oversaturated, but with enough searching around, you’re sure to find your next money-maker.

With this method and the storefront shown above, here are some of the products I came across and did some quick research on: cosmetic bag (★★★.5), card holder (★★.5), ice bucket (★★★.5), and inflatable travel pillow (★★.5).

 

Niche Discovery Method

Put your thinking cap on. It’s time to discover some Amazon product niches. This method can help you find smaller product markets within more popular categories. You may find some golden nuggets, and you’ll likely come across some really goofy products. But bear with me here – sometimes finding the perfect niche requires thinking out of the box.

  1. Collect Items

Get up, and go grab 7-8 items that fall within our “good Amazon product” specifications. As a reminder, those are products that are small, light, durable, $10-50, high-margin, niche, and not dominated by a name brand.

Today in the office, I’ve picked up a water bottle, straws, yoga mat, coffee cup, gloves, scissors, and a laptop case.

  1. List Adjectives

Once you’ve got your items, get out a piece of paper and a pen. Write down ten common product adjectives. You can choose your own, or you can use these examples:

  • Mini
  • Large
  • Bulk
  • Travel
  • Personal
  • Industrial
  • For Kids
  • For Men
  • For Women
  1. Search Combinations on Amazon

run a search on Amazon for each product that you collected in step one, with each adjective attached to it. For example, I’ll search mini scissors, large scissors, bulk scissors, travel scissors, and so on. These search terms may seem a bit odd, but trust the process 🙂 Sift through the product results to see if you can identify a product niche within that search… maybe a product that you haven’t thought of before.

Don’t be afraid to veer off the path as you click through products and niches. You may just run into the perfect product opportunity.

When sifting through the search results for bulk scissors looking for interesting niches, I came across products like scissor caddy, rolling scissors, and desktop organizer. These are all potential markets that I wouldn’t have thought up on my own.

Here are some additional niche product markets that I came across in my searches:

Write down your list of niches. Now, some of these products are going to be horrible products dominated by huge review numbers or marginal sales. But that’s ok. Not every idea is going to be a home run.

After using this niche hunter method, you’ll have a solid list of product ideas for your Amazon product research. I even found a 5-star product 😉

Plug your ideas into Market Intelligence, our Amazon product research tool, and see if you’ve come across a winner. You’re now one step closer to determining what to sell on Amazon!

Want a tougher challenge? Head to your local Walmart, Walgreens, Target, or Home Depot and jot down the products you see that may be a good fit. Use Market Intelligence on-the-go on your mobile device, or go research-crazy when you get home!

 

10 Ideas Each Day

“You have to come up with a new way of thinking. A new way of having ideas, a new way of interacting with the outside universe. You’re in crisis, it’s time to change. Time to become an IDEA MACHINE”James Altucher

James Altucher is a best-selling author, entrepreneur, and venture capitalist. Years ago, he found himself at rock bottom, so he started coming up with ideas to make a change. He would take his waiter’s pad, go to a cafe, and write down 10 ideas each day. Some were business ideas, some were book ideas, some were solutions to problems he faced. In doing this, James strengthened his “idea muscle,” and the results were twofold: he could always come up with ideas when he needed them, and he came up with some really good ideas.

To help you brainstorm Amazon product ideas, I want to challenge you to strengthen your idea muscle. You’ll come up with good ideas, and after some time, you’ll be a more creative thinker. Sit down each day without distraction. Pick a category, and write down 10 product ideas.

While this may seem easy, but you may discover that around number 6 or 7, your “brain starts to sweat,” as James puts it. Think about it: when you work out at the gym, the muscle-building comes after you’re comfortable. If you stop lifting the weight when it starts to hurt, you won’t see results. When you’re brainstorming, get past the difficulty and push yourself. And this is where you may find some of your golden nugget ideas.

And just like working out, you must make it habitual to make any sort of difference. Challenge yourself to do this every day, and after lots of practice, you’ll become an idea machine. Of those hundreds of ideas, you’ll likely find some ideas for good products to sell on Amazon after a bit of Amazon product research using Market Intelligence!

Here are some categories to get you started:
  • Coffee, Tea & Espresso
  • Pet Supplies
  • Camping & Hiking
  • Computer Accessories
  • Storage & Organization
  • Office Supplies
  • Sports & Fitness

 

Research Your Amazon Product Ideas

After you’ve gone through these exercises, you should have a list of potential product ideas. Now, you’ll want to do some extensive research to determine which products will make the most sense for you and your Amazon business.

To understand whether or not a product market has potential, you’ll want to take many factors into consideration. These include, but are not limited to: average monthly sales across the market, possible monthly sales if you were to source this product, the sales/review ratio, sales trends, price and review count trends, the best selling period, and the number of reviews needed to sell well.

Sounds like a lot of research? Well, it is. It is crucial to do your research and understand a market before jumping in. If you go in blind, you’ll likely be blindsided and unsuccessful. But, if you know what you’re getting yourself into, you’ll set yourself up for success.

Luckily, Market Intelligence conveniently places all of the necessary information at your fingertips. You’ll understand where the market has been, where it’s at today, and where it’s headed. Recognition of potential downfalls, trends, and crucial data pays off considerably. After looking through Market Intelligence, you’ll be confident in your decision to source or walk away from that product.

Check out Market Intelligence for free and take the next step towards sourcing your next home-run product!

 

Your Amazon Sales Data Is Costing You Thousands

The foundation of a successful Amazon business is great Amazon sales data. How’s that, you ask? Well, in order to have a successful Amazon business you have to have great products. And in order to source great products, you need to be able to identify great market opportunities. You need accurate and comprehensive Amazon sales data. We have hundreds of sellers come to us each month asking for help with their business. And why are they struggling? Poor product selection. Many of them have gotten into insanely competitive markets and don’t have the budget to achieve success. Others sourced products where they were forced to lower their price and now sell with razor-thin margins.

Many of these sellers even used a market research tool to determine whether or not to source. So what went wrong? Their Amazon data wasn’t giving them an accurate picture of the market. Most software is grossly inaccurate, calculating estimates using a single snapshot of BSR data 

Where Other Amazon Product Research Tools Are Lacking

Snapshot Data

Most tools that use the Amazon Best Sellers Rank as their indicator for estimating sales are relying on the brief snapshot of what BSR is RIGHT NOW. Those tools are estimating sales over the last 30 days, based on a metric highly influenced by the last 24 hours. Using Snapshot data to analyze performance is like looking at a still frame of a movie and trying to predict the plot. It can be extremely inaccurate. As we discussed in our blog post covering the Amazon Best Sellers Rank, BSR can vary drastically hour to hour, day to day, month to month, etc.

Using a product’s BSR to estimate sales can make a market look awesome one hour and completely different 12 hours later.

  • Do you do your product research primarily on the weekends? Be careful. Consumer buying behavior in some product markets will affect BSR and those snapshot estimates over the weekend.
  • Do you do your market research primarily in the mornings? Again, be careful. Some markets see higher sales in the morning hours, meaning BSR will be lower. That means that tools with snapshot estimates will show higher sales volume than they would if you did your product research at night.

To accurately estimate sales, you need to take into account all the fluctuations of BSR that occur throughout the month.

Have you ever tried doing product research during November and wondered if the estimated sales numbers were inflated due to holiday sales or if those numbers were consistent throughout the year? Perhaps you have done research on some of the weight loss products during January and February when sales are much higher than they are throughout the rest of the year. There are tons of consumer buying trends you may not be intuitively aware of, so how do you know the likelihood of your estimated sales numbers remaining consistent across time? 

Not knowing how sales are trending across a market as a whole is dangerous when sourcing a product. To not have a complete picture of how sales trend throughout an entire calendar year for a product is kind of insane when you consider the amount of time and the thousands of dollars you spend getting initial inventory, creating a listing, and trying to gain traction.

ASIN Focused

Don’t look at just one ASIN. While some sellers may be well aware of this common fallacy, we’ve seen plenty who have unknowingly made this critical mistake. When doing research to determine which product markets you want to get into, you should be focused on the performance of the market as a whole, not a specific ASIN. Tracking how well a particular ASIN is performing in sales, keyword ranking, reviews, price, etc. is dangerous. There are so many potential external factors and reasons as to why sales are where they currently are.

Perhaps an ASIN with very few reviews but really high sales is only performing that well because the seller is a wizard at driving external traffic. Can you match that performance? There are plenty of reasons that sales may fluctuate per ASIN: running out of stock or driving external traffic. There are also plenty of reasons that price may fluctuate: split testing, temporarily attempting to push traffic. There are reasons that almost every metric you can track for a given ASIN may be fluctuating. But when you look at snapshot data, you don’t see the fluctuation, and you definitely don’t see what’s going on behind the scenes for that product. 

Research should not be a question of “how well is this specific ASIN performing?” but a question of “what is the sales potential in this market?” Ask yourself what the barrier to entry is for the market, and what the opportunity to outsell the competition is. Both of these questions require you to look at all of the top competitors and analyze the whole market.

Validation 

We work with the entire spectrum of sellers on Amazon. From large brand names to sellers trying to find their first item. For those in Facebook groups, I’m sure you’ve seen it a million times where someone posts a screenshot of the results from a sourcing tool where they ask “should I source this?” or “is this a good idea?” For every one of those posts, there are hundreds of sellers who don’t ask for help and end up getting into a product market where they waste precious resources: time and money.

At Viral Launch, we truly do believe that every product is a good product to sell so long as the numbers make sense for you. But there are some basic principles that make certain products absolutely great investments and others potentially risky. Think of it this way: if you’ve never been ice skating before, you’re probably not going to try competing against Olympic athletes the first time you lace up your skates. If you’re a new seller you don’t want to take on a highly competitive market like Vitamin C Serum. And even as an established seller, you might not want to take on a big brand like Tide in a market like Laundry Detergent. With the right knowledge, anyone can sell on Amazon. But that doesn’t mean anyone should sell in any market. And we believe your market research software should help you determine which markets are most favorable for you.

Product Suggestions

Imagine if you could snap your fingers and instantly know exactly which products you should source. That would be like every seller’s dream come true. And that’s why lists of hot products get so much attention. But a good product idea instantly becomes a bad product when it is easily accessible to many sellers. We have seen it plenty of times. Someone posts their list of hot new products, and within a couple of months, we have 20+ sellers come to us with those hot products. These product markets very quickly become saturated and the barrier to entry increases dramatically. Price wars cut margins in half, and suddenly that market that looked so good is terrible.

Unfortunately, for some sellers who have already placed inventory orders, by the time their product gets to FBA, the market has already turned sour. The way to avoid this nightmare scenario is to avoid products featured on these lists! We’ve seen it happen as a result of a product being mentioned by a guru or from popular webinars or demonstrations. The same can and does happen with programmatic product suggestions. That’s why Product Discovery offers warnings for popular results. Our goal is to help inspire new product ideas and then help you determine how great that idea is. Of course it would be incredible to have someone provide unlimited “secret” high potential product market suggestions. Unfortunately, it’s dangerous for the sellers who jump in.

Not Mobile Friendly

Our phones are a huge part of our lives these days. And we expect to be able to answer the questions that we have when we’re out to lunch or waiting for the subway. Market research software needs to be available in the same way that Google is available. It’s like your second brain. It’s right there when you need it. Because a product idea is going to hit you smack dab in the middle of your evening stroll around the neighborhood. Your best product ideas don’t always come when you’re sitting at your desktop. They probably come randomly, whether you’re out shopping, on your morning walk, in the bathroom, etc., having the opportunity to do a quick lookup on the go can be very helpful.

Stale Data 

Most software in this space does not update their information or algorithms regularly allowing estimates to become stagnate and remain that way for longer than 6 months. A BSR of #1 in Beauty back in 2015 is a lot different than a BSR of #1 in Beauty in 2017. As Amazon continues to increase in popularity and more consumers shop on Amazon, the amount of sales any particular BSR represents, continues to increase.

Market Intelligence: Our Version of an Amazon Market Research Tool

Not Snapshot Data, Comprehensive Data

Amazon’s Best Sellers Rank can be extremely volatile hour to hour, day to day, and week to week. So in our mission to develop the world’s most accurate sales estimation tool, we had to build a tool that was going to take into account the vast fluctuations in BSR that occur all month, and we’ve done just that.

Our Amazon Market Intelligence tool tracks and analyzes seasonal trends and displays aggregated sales across the market for up to two years. This allows any seller to identify how seasonal consumer behavior may be affecting current sales numbers as well as how future seasonal trends may have an impact on future sales.

 

Not ASIN Focused, Market Focused 

From our “outlier detection”, to our page of collective Market Trends (from sales to price to review quantity), to our Product Idea Score, we do our best to push users to focus on the principles of the market as a whole versus anticipating to replicate the results of a single ASIN.

Validation 

Our Market Intelligence’s “VL Analysis” page is dedicated to helping sellers validate or invalidate their product idea providing them with a 1 – 5 star rating based on a customer algorithm analyzing an impressive number of market indicators. We go a step further and provide sellers with key tips, warnings, and alerts of the market if they do decide to enter in. This allows sellers a comprehensive view of a market’s potential outcome for success.

Not Product Suggestions, Product Idea Inspiration 

While we are strongly against providing Amazon product/market ideas, we are very keen on providing inspiration or tactics of coming up with your own ideas! This is why we started our Sourcing Saturdays to help you develop your own ideas to then research with our Market Intelligence software.

Not Stale Data, Fresh Data Every Day

Our Market Intelligence tool continually updates our BSR to sales mapping algorithm each night. This allows our calculation to remain severely accurate and consistent with the natural trends of the market. Due to seasonal trends across Amazon, as well as Amazon increasing in popularity, estimation tools that do not refresh their algorithm regularly will find their estimations quickly become stale and continue to decrease in accuracy as time goes on.

The Most Sophisticated Amazon Product Research Tool

There are three major components to our Amazon product research and validation software.

Market Research – Top Sellers

The market research component of our sourcing tool provides a view very similar to what most are used to. Essentially we grab the top ranking products for a provided search term.

We provide data specific to each product such as brand, price, product title, estimated units sold over the last month (see why our sales estimation algorithm is more accurate than any other tool), review quantity, the sales to review ratio [[include link to another post]], net profit per unit, and estimated monthly net profit. If you click into any of the highlighted metrics you will be provided with historical data from the last 3-4 months. This is important for developing a better understanding of how products have been performing and what to expect if you happen to jump into the market.

Under the “Filtered View” tab, you will see essentially the same information with some rows of the table possibly highlighted in light pink. Highlighted rows depict market outliers. An outlier is a product we’ve determined to be statistically insignificant due to either their sales or reviews being far outside the market norm. The general rule of thumb is simply to ignore those listings.

 

The “Competitive View” allows you to see important metrics also shown in the “Standard View” as well as the opportunity to see the product’s full image set and title. The intention here is to allow you to quickly identify the types of products potential competitors are selling for the given search term as well as identify possible areas where you could provide better creatives to out compete.

Clicking into an image allows you to quickly flip through each product’s image set.

 

 

Market Trends

Making a sourcing decision based solely on the metrics of NOW can be incredibly dangerous. Our trends tool allows you to quickly identify how sales across the market have been trending over the last two years (provided data is available) as well as how the average price point and review quantity have trended. Has price been dropping significantly over the last 90 days? It may not be a great market to get into as margins look to be declining. Is the average review quantity growing at a relatively slow rate? May be an opportunity to come into the market with a better review funnel to outpace competitors and dominate the market.

 

 

For convenience we display how price has trended over the last 90 days in a simple percentage metric. We display the product’s best selling period throughout the calendar year. This can be a single month or a few months depending on consumer buying behavior. Finally we display, the rate of increase in reviews per month (ex. +10 reviews/month).

Viral Launch Analysis

The Viral Launch Analysis tab is our attempt at algorithmically helping sellers steer clear of money wasting products and into potential gold mines.

 

To kick off, we show our “Product Idea Score”, which is programmatically generated based on a large variety of factors and metrics both real time and historical. We’ve put all of our knowledge and experience running over 16,000 product launches, working with thousands of brands large and small, into this rating algorithm. A five-star product means that you’ve found a potential gold mine so long as you are comfortable with the provided numbers. A five-star rating means that the sales potential compared to relative barrier to entry is ideal, in addition to satisfying other market indicators we’ve identified contribute to successful products.

          At the bottom of the page you will find our “Tips, Warnings, and Alerts” section. Here we try to bring to your attention some of the opportunities, topics to be aware of, and potential success crippling aspects of the given product market. An example of a tip would be to consider bundling the product as it appears others in the market are doing it with a degree of success. An example of a warning would that the average price point seems to be declining in the market so be cognizant of the potential cannibalizing of profit margin. An example of an alert would be a scenario in which page one is dominated by known name brands that are consuming the majority of the market share.

Other Features

ADVANCED SEARCH 

We’ve included two opportunities to customize the results based on your specific situation. Do you have a minimum monthly units sold threshold? Plug in your sales minimum and we will take this into account when calculating your Product Idea Score. Have an idea as to what the landed cost may be per unit for the product you’re looking to source? Plug that into the advanced parameters and we will take that into account when calculating the net Amazon profit for each product shown.

The Search For Smarter Sourcing Decisions

We didn’t build our Amazon product research tool because we thought we could make money if we provided a marginal improvement on a tool similar to what others before us had created. We HAD to create this tool to help sellers avoid the potentially tens of thousands spent getting into product markets they have no business being in. We are now starting to manage more and more accounts as a company and we needed accurate market data. It’s impossible to make accurate future projections without knowing where the market has been. The old adage, “you have to know where you’ve been in order to know where you’re going” is incredibly relevant to jumping into a product market.

Start making better sourcing decisions when you sign up for the most sophisticated Amazon market research tool in the galaxy!

START RESEARCHING

 

We would love your feedback on how we can improve. What additional information, either historical or real-time, would help you make better sourcing decisions? What calculations or computations would help you to be more informed? We would love to hear your thoughts so we can all benefit!

They’ll Hand You Debt-Free Cash To Fund Your Next Amazon Product Inventory

Don’t pay it back until your Amazon inventory begins selling

Maybe this happened to you…

Or you know someone affected by this.

But if you keep reading you’ll learn how you can stop an epidemic Amazon sellers face.

It all starts when a product flies off the Amazon warehouse shelves and into the grubby hands of buyers.

Excited by all the cash flow, the seller realizes they must have Amazon inventory.

No problem… right?

They can funnel the new money into their Amazon inventory.

Sure… they could do that, but this seller wants to expand their business and offer more products instead of buying more Amazon inventory.

There’s not enough money to pay for inventory and then source a new product.

So they forgo the new product and focus on what’s making them money. Their cash goes into inventory.

They maintain what’s working, instead of sourcing to grow… their hope is to source that product in the future.

But a competitor discovers the same product potential. They source and sell on Amazon to gain the competitive advantage.

The seller who so desperately desired to source that same product yells out, Oh [insert your choice expletive here]!!!

A fortune lost because the cash wasn’t there.

But what if I told you this didn’t have to be?

Here’s how you fund your Amazon inventory

Instead of cash flow problems, investors are eager to hand you thousands of dollars so you can source and sell that product.

Sounds expensive… doesn’t it?

Like you’ll have to go into debt and pay back thousands of dollars so these investors can maintain their rich and lavish lifestyle.

Or that you’ll have to pitch your product idea to a group of investors like on the Shark Tank.

But it’s nothing like that.

This is a crowdfunded platform just for you, the Amazon seller.

Investors could be your next-door neighbor, your relatives, friends, or someone with billions.

You don’t pay back investors until your product starts selling on Amazon.

And investors love this platform as they can generate a 10% return on their investment in six months.

That’s faster than the stock market, which, as Warren Buffett points out, will only rise between 6–7% a year.

You can fund your inventory in as little as a day or two… just please be prepared to buy that inventory when the money rolls in.

Your information is private. Investors only see your:

  • First name
  • Product category
  • Total 12 months of Amazon sales
  • Return to investors
  • Amount to raise
  • Past total feedback and reviews

Recently closed campaign

It doesn’t matter what type of Amazon seller you are (Private Label, Wholesale, Arbitrage) you can get funded.

This all sounds too good to be true now, doesn’t it?

But it’s not… it’s a real platform to assist you in raising the capital necessary for your next successful Amazon product.

If you’re tired of watching all the other sellers making money hand over fist on Amazon, then it’s time to grab your inventory to start making fat cash.

What do you have to lose?

Head over to UpFund for your quick and painless decision you’ll receive in minutes.

Related: Research your next Amazon product idea with the Viral Launch Sourcing Tool

Amazon Success Guide Step 1: Sourcing A Great Product At A Great Price

Let me first begin by saying just about every product available to sell on Amazon as a private label product is a GREAT product to source, so long as it fits into your business’s strategy, you have the resources, and it makes sense for you as an entrepreneur. So the difficult thing is not finding a product to source. Go to Amazon.com’s home page, and you’ll see plenty of sourceable widgets. The difficulty lies in finding a product to source that fits You and Your business.

In this article, it’s our goal to help you identify what makes a product great for you, so you can build the foundation for the level of success you are looking for!

 

Identifying What Private Label Success Looks Like To You

While we are largely going to try to help you identify how to choose products that fit your ideal success model, we are also going to be challenging your definition of success. We’ve seen many many sellers succeed, and unfortunately our fair share of sellers fail despite our efforts. With the experience and data we have, we’d like to help you avoid the pitfalls we’ve seen others make.

So what does success look like to you in the private label world? Are you looking to hit a couple of home runs with some high volume products that profit you $10,000+ per month each? Are you looking to source a variety of low volume products that when added up bring in a hefty profit each month?

This is a decision you will have to make for yourself. If you expect to profit $5,000/month on a single product, but get into a product market where the average sales price is $10 and the average sales volume among the top sellers is around 500 units per month, you will be severely disappointed. If you are looking to source 5 products that add up to a monthly profit of $5,000/month, then this very well may be a good choice. See how expectations and how you define success matters?

Obviously we would all like 100 products that profit us $20,000 per month, but so does everyone else, which means you are going to be competing with a ton of other sellers. So in order to appropriately define your definition of success, you also need to understand how plausible your ambitions are given your current resources both financially and time-wise. Do you have a big team? Do you have thousands, tens of thousands, hundreds of thousands, a million+ to invest in your Amazon business?

Questions To Ask Yourself In Determining What A Successful Product Should Look Like

How Much Money Do I Want To Invest?

Do you have thousands, tens of thousands, hundreds of thousands, a million+ to invest in your Amazon business? The amount of money you have to invest will determine how much inventory you can afford. This may influence the products you select based on their per unit cost. This also has an impact on how large of team you can build initially (if necessary). The quantity of inventory you are able to purchase also has an effect on the amount of promotional units you will be able to give, having major implications on your ranking strategy. 

How Large Is My Team? How Large Of A Team Do I Want To Build If Necessary?

Some sellers prefer to not grow any larger than themselves and a couple of VAs they hire hourly. Other sellers are willing and ready to build a massive infrastructure of warehouses and employees. Obviously this is not a question if you are just getting into the business, but for some later stage sellers this may be a barrier to growth if growing a large team is outside of your comfort zone.

What Kind Of Profit Margin Am I Looking For Per Product And Collectively?

Are you wanting to go deep on a few high volume products? Are you looking to go wide meaning going after a larger variety of low to mid volume products? There are pros and cons to each, and we’ll outline those down below!

In total are you just wanting to add a few thousand dollars to your bank account each month or are you looking to build a mammoth $1,000,000/month Amazon business?

How Many Products Am I Looking To Sell In the Next 3-6 Months?

For sellers just getting started, again, this is not a question you can answer accurately right now. It is also highly dependent on your capital. Some sellers are okay launching just a couple of products and reaping the benefits each month. They don’t want the added stress and pressure of continuously launching product after product. Keep in mind the amount of profit you are looking to make total. Going after a couple of products that may add $1,000 of net profit will not get you to your total goal of $5,000 if you are only wanting to sell two products in the next 3-6 months.

What Is My End Goal With This Business?

Is this going to be a lifestyle business for you or are you looking to maximize sales to shoot for an acquisition?

This may or may not have an effect on how you choose your products. For example, from our experience with Amazon business acquisitions in the private label world, companies are looking for strong brands. So selecting products that will allow you to build a cohesive brand will be important. With that said, Amazon businesses that are purchased solely for cashflow purposes do not typically put emphasis on having a unified brand(s). Either way, it is an important consideration in how you will position yourself for acquisition if that is your goal.

How Things Will Change With the New Amazon TOS Update

Post TOS update, from our perspective, sellers must be more precise in selecting a “good” product because the playing field has been leveled. Pre-update, it was very easy to give away a large amount of product in exchange for reviews. Doing so generated a competitive number of reviews and built a sales history that got that product ranking for each and every keyword that the seller selected.

So if you had a super competitive product, you were okay so long as you had the money to run enough promotional sales.

Post-TOS update, generating a competitive number of reviews becomes much more difficult. Generating reviews today rests solely on having a killer product that customers want to review and leveraging a killer email follow-up sequence to ask your customers to actually leave a review.

So how will this affect your decision making in selecting products to source?

You need to be drastically more concerned with the number of reviews page one and two competitors have. While there is some misinformation in the space around a “magic number of reviews” needed to generate organic sales, our data shows us that the key to selling well organically is having a “competitive” number of reviews relative to those listings you find yourself around.

What that means is, if the page one sellers have reviews that look like this RUN FAR AWAY!

 

 

 

Here is a screenshot from the same keyword, “vitamin c serum” that shows how important having a competitive number of reviews is. The listing ranked 6th has 10,000 reviews and is selling 3,000+ units per month. The next guy, although ranking really well for a very high level keyword, is only seeing 270 sales per month. At the 8th position they have a decent number of reviews, especially compared to the the 7th and 9th position, so they are seeing a moderate volume of sales. At position 9 the seller is hardly seeing any sales at all because they have 0 reviews! While there are multiple factors that come into play when a customer decides which product to ultimately buy, reviews and price typically have the most substantial effect.

 

Are Home Runs Dead?

The short answer is no. Not at all. If you have already been working on a home run type product (home run = high volume product), then definitely don’t give up. Depending on where you are at in the product launch cycle, you may need to adjust your strategy, but don’t worry, success is still a very attainable goal.

If you are just getting started with a home run and it is your first product on Amazon, beware. It is likely to be a long and costly battle depending on what the market looks like. It can be best to get started with a relatively simple product to understand the market, the processes, and the expected results.

Our suggestion for new sellers is to get into markets where a “competitive” number of reviews is below 500. Ideally you could find a product where page one sellers ranking between #3 – #12 have a sales volume of 500-1000 units/month and have around ~250-500 reviews. These products are much easier to break into the market with and allow you to learn a lot of the ins and outs of selling on Amazon without investing too much money.

 

Keys To Sourcing Great Products Regardless of The Amazon TOS Update

  • Find a quality product!
    • Reviews are king on Amazon! If you have a poor quality product you are going to find yourself with a product that continues to generate poor reviews. Before too long you end with a product noone wants to buy. There is nothing worse than having thousands of dollars in unsellable inventory.
    • Quality products can result in the sales boosting effects of word of mouth, positive reviews, and repeat customers (depending on the product of course).
  • Find a product at a great price!
    • If you are sourcing your product at a 25% higher cost than your competitor(s) for the same exact product, they will always be able to beat you on price. You can quickly lose to the competition on listing price, promotion capabilities, etc.
    • Product sourcing Guru Alan Basinger has a quote that I love! He says, “You have to win on the buy!” It is spot on. Alan has a logistics company that helps bring products into the US as well as sourcing directly from manufacturers in China.
    • Go to China directly! The Viral Launch CEO recently went to Yiwu with a group called SourceInAsia as a mentor and saw just how powerful working with manufacturers directly can be to negotiating quality product at a great price.
  • Find a product with great margin!
    • Margin is a huge consideration for product price. Make sure there is a great margin between the price at which you source and the price at which you sell is key! If you’re not making much money per item what is the point in selling? The other fear is if the market decides to start competing on price you want to make sure you are not priced out. We’ve seen this happen all too frequently over the last couple of months.
  • Watch Out For Name Brands
    • We’ve seen a couple of sellers get into products that are largely dominated by name brands. This is common in baby/children’s products. For example, sourcing crayons as a private label product can be insanely difficult because the first couple of pages are almost completely dominated by Crayola. Good luck competing with them.
    • Also be weary of sourcing a product where the main keyword(s) is also a brand’s name. Ex. “Yeti Mug”. It can be very difficult to outrank a brand if the main keyword is the search term. Amazon attributes a LOT of rank power to the brand’s name.
  • Consider product size, weight and durability!
    • Knowing how the size and weight of a product will affect shipping is crucial to estimating margin and expense. Work with your sourcing agent or manufacturer to understand the costs associated with shipping your product into the country, to your warehouse, and/or FBA.
    • You will also need to know what Amazon’s FBA fees associated with shipping will be. For that you can use Amazon’s FBA Revenue Calculator which will give you a good idea (don’t bank on the accuracy of the fees).
    • Durability is key to providing a good customer experience and avoiding customer returns. You may want to avoid easily damaged items.
  • Long-Term Brand Building Or Revenue Generation
    • Are you looking to build a long lasting brand or just looking to solely focus on increasing revenue (not that building a brand won’t help you generate revenue)? If you are looking to build a brand, make sure to choose products that will allow you to easily add products that make sense such as a yoga mat, and some yoga massage balls. The added benefit here is you can take advantage of bundling and upselling. It also saves you time and money by allowing you to pay to have one brand created (logos, label/package archetypes, etc.).
    • If you are looking to simply grow revenue you can be very selective in the products you decide to source. Meaning, if the numbers make sense, source it. Sellers who take this approach end up selling products as different as a eye cream and a pet bed.
    • Either approach is great so long as it aligns with your idea of success in running a private label business.
  • Make Sure Your Product Is Created With Customer Approved Materials
    • You don’t want to source a cream that is going to cause rashes.
    • If you say your product is organic/natural/paraben-free/etc. make sure that it is. If all of your competitors are able to make such claims, you will miss out if you cannot, but don’t lie to your customers. Trust me, they will find out if you are!

Tools To Use When Product Sourcing

Jungle Scout

The Viral Launch team uses the Jungle Scout Chrome plugin religiously when putting together launch strategies. This tool is great at allowing you to quickly analyze the most important stats of products that rank for a given search term without clicking into each listing (at least that’s how we use it). Jungle Scout also has the most accurate sales estimates overall I’ve seen.

When sourcing, Jungle Scout also allows you to easily compare how a style of product is selling better than others. For example, let’s say you are wanting to sell grill/cooking gloves (which I would advise against due to the amount of competition). You would want to know if you should invest in the type of gloves that have 5 fingers or the mittens that have one slot for your thumb and one for the rest of your fingers. Choosing incorrectly could have major implications.

We also use Jungle Scout to estimate the number of units we will need to give in promotions to achieve keyword ranking and to help give for reviews. With the TOS change these numbers will differ (which we will get into in a different section of this guide), but having an idea as to the number of units you will want to use for promotion are crucial to understanding the total costs associated with launching a product.

Greg at Jungle Scout has plenty of tutorials on how to effectively use the tool. We personally use the tool for a very limited scope of its total potential!

Project Sourcing Success (Name To Be Announced Later)

Viral Launch has seen too many sellers lose thousands of dollars by making bad sourcing decisions. By the end of October of this year we are planning on launching a new tool that will help you make more intelligent decisions around product sourcing. It will go wonderfully along with Jungle Scout or similar type tools.

If we can help our clients avoid bad sourcing decisions, we will gladly seize that opportunity!

 

Conclusion

It would take us many blog posts to effectively cover the entire ins and outs of product sourcing, and to be honest, we are not the best company to handle how to source end to end.

With that said, our extensive knowledge, data and experience in running over 11,000 product launches and working mega sellers doing 50-100 million a year in sales on Amazon, we do have plenty of beneficial tips and knowledge that can help you avoid some major pitfalls that can have serious repercussions.
At the end of the day, you need to make sure you are selecting products that appropriately align with your idea of success and your resources. What is a good product for the next guy may not be a good product for you.

 

If you have any questions, we will be happy to answer them in the comments! If you have any feedback, we would love to hear it as well!

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