1. Analyze the market supply and demand relationship

1. Query the existing supply in the market

Generally, the quantity searched in the Amazon front-end search box is mainly used. judge. In order to avoid inaccurate judgment of keywords, you can select bestseller products in the search results. Use tool software to perform keyword reverse checking to obtain the main traffic keywords of competing product listings. Enter the main traffic keywords of the bestseller products found in the front-end search box to get a rough market supply and make the first step to make a judgment for product selection.

2. Check the search volume to determine the market demand

The first potential of hot items is that supply exceeds demand, so checking the market demand is crucial. Market demand is the sum of the monthly search volumes for each primary keyword. You can use the keyword mining function in software tools such as Ziniao to find out several main keywords for this product, and add up the search volume of these main keywords. If the quantity is relatively large, it means that the market demand for this product is pretty good.

2. Estimated market capacity

If the sales of the products on the homepage are very average, it proves that the market capacity of this product is very small, and then there is no practical significance for us to enter this market. .

1. Estimated sales volume of competitors:

· Infer based on the number of reviews of competitors each month. Generally, the review rate for organic purchases is about 2%. Use Multiply the opponent's number of reviews in a month by 50 to get the estimate of the opponent's monthly sales.

·It is also possible to check inventory and estimate sales by adding the opponent's listing to the shopping cart and entering the maximum purchase quantity of 999. But if the opponent sets maxorder, this method will also fail.

·You can use paid software to check your opponent's monthly sales, sales ranking, average price and average number of reviews. Some software will also give a score on the overall potential of the product.

2. View other Amazon homepage competition situations

·Look at the Amazon homepage competition review situation.

Enter the main keyword of the product and see the listings of the main competitors in the search results. On the home page of the search results, it is best not to have more than three competitors with more than 1,000 reviews. If there are more than three products with 1,00 reviews, it is not recommended to buy from small stores. Because these front-row listings will intercept most of the traffic, they are not a wise choice for small businesses.

·Check the product status on the homepage advertising space.

Are there any sellers who have very few reviews but occupy advertising space on the homepage for a long time? As we all know, advertising when the number of reviews is insufficient is basically a situation where ACOS is extremely high and you lose money and make money. If there are such sellers, it proves that there are many sellers burning ads to promote this product, so the competition will be very fierce in the later period, and sellers should think twice about entering.

3. Determine whether the product is seasonal.

Enter the product keywords you want to view on the product selection software, and it will display the search trends of this keyword in certain countries (or around the world) in the past year or even five years. If there are large fluctuations in the product curve, it means that the product has obvious off-season and peak seasons and is a seasonal product. Experienced sellers can try it, novice sellers should be cautious.

4. Check whether the product has a design patent

Determine whether the product is infringed and avoid the listing being removed due to infringement. There are two main relevant websites to query:

U.S. Patent and Trademark Office official website, select the patent tab. The other one is Google because it involves illegal words.

5. Accounting costs

Amazon’s operating costs generally include: product cost (including domestic express fees) + first-leg fee + FBA fee + 15% Amazon commission + later promotion fee ( CPC advertising, evaluation, deals, etc.) Generally, a product with a gross profit margin of around 50% is considered a good product. It is not recommended to do it if the gross profit is less than 20%, because later you will find that 20% gross profit is not enough to support operating costs.