How to Systematically Conduct Market and Product Analysis

New Seller Product Selection Process: Category Selection → SKU Selection → Market Analysis

1. Obtain Data Samples & Generate Market Reports

• Extract core keywords from Amazon's top two pages of search results.

• Identify the top 100 products in the target category’s BSR.

• Review the top 100 products by sales volume in the target category.

• Tools: Market Research, Competitor Lookup, Extension - Market Analysis

2. Category Analysis

2.1 How Profitable is the Market?

• Profit Margin: Generally recommended to be 30% or higher.

• Consumer Habits: Consider factors such as repeat purchase rates.

2.2 Market Size Evaluation

• Keyword Search Volume: Reflects market demand.

• Total Monthly Sales: Helps determine actual market conversion potential.

  • Larger markets attract more sellers, making differentiation crucial.

2.3 Market Potential & Growth Trends

• 5-Year Keyword Search Trends: Analyze market lifecycle and seasonality.

• 1-Year Search Volume Trends: Avoid markets with declining trends.

2.4 Competition Analysis

• Sales Monopoly: Evaluate the top 3/5/10 products' sales concentration.

• Brand Monopoly: Analyze leading brands' market share and entry opportunities.

• Seller Types: Assess Amazon-owned product share.

• Seller Location: Consider feasibility.

2.5 Market Maturity

• A+ Content Penetration: High penetration suggests strong competition.

• Review Volume & Ratings: Assess entry difficulty and consumer satisfaction.

• Average rating:

  • 4+ stars indicate high customer satisfaction.

  • Lower ratings signal higher after-sales risk and maintenance costs.

• Product Lifecycle: High turnover of top ASINs suggests good entry potential.

• Return Rate: High return rates indicate operational risks.

2.6 Market Entry Opportunities

• Supply Chain Feasibility

• New Product Performance: High acceptance of new products suggests market openness.

• Price Distribution: Identify price bands with high sales and low competition.

• Shipping Methods: Markets with high FBM share may benefit from flexible fulfillment strategies.

2.7 Entry Barriers

• Consider patents, infringement risks, shipping constraints, and certification requirements.

3. Competitor Identification & Product Research

3.1 Identify Competitors

• Recent Bestsellers: Analyze ASINs launched in the last six months.

• Top 100 Sample Products: From BSR and high-sales categories.

3.2 Custom Market Analysis Report

• Analyze mainstream product styles.

• Identify profitable pricing opportunities.

• Tools: Market Research (Custom Categories)

3.3 Competitor Analysis

• Material, size, color, function, pricing.

• Review analysis, Q&A analysis, listing descriptions.

• Tools: Review Analysis, Q&A Download, Listing Bullet Points Download.

3.4 Consumer Insights

• Gender, age, income, purchasing habits, product preferences, usage scenarios, consumer demands.

3.5 Competitor Launch Strategy

• Analyze launch timing of Top ASINs to identify optimal entry points.

• Tools: Keepa Alternative, Related Products