How to Systematically Conduct Market and Product Analysis

2025-03-25| Help Center|views(44)|Comments(0)

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

 


 

  1. 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.

 


 

  1. 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

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