Understanding the market is key to succeeding on Amazon, and SellerSprite's Market Research Tool can help you do just that. This tool provides valuable insights into product trends, competitor performance, and keyword opportunities.
By using SellerSprite, you can identify high-demand products and optimize your listings to attract more buyers. In this article, we'll guide you through the steps to effectively use SellerSprite's Market Research Tool. Whether you're a new seller or an experienced one, these tips will help you make informed decisions and improve your sales performance on Amazon.
Have You Been Troubled by These Problems for a Long Time?
- In the past two years, the US market has become almost saturated. Can you still choose the right products?
- The indicators for product selection are too abstract to implement, such as market demand, capacity, monopoly, and competition. What data can be used to measure these factors?
- There is no complete set of product selection dimensions. Do you not know how to start or whether you are considering all the necessary dimensions? Do you lack confidence in the products you select?
- Analyzing big data for the entire market is very cumbersome and time-consuming, and the data is constantly being updated. Regularly updating and analyzing this data takes up a lot of time. Do you stay up late to create more than a dozen reports for market analysis?
Don't worry. SellerSprite has the answers!
In this article, we will analyze a specific market segment and hope to provide market analysis ideas and a reference basis through the presentation of objective data from SellerSprite.
How to Use Sellersprite's Market Research Tool
1. Find the Market
On the market research of SellerSprite, I choose the ”Health & Household” category on US marketplace.
The definition of a New Product is 3 months, the “Listings of Sample Size” is 100 by default, and the number of Top Listings is 10
Choose “Sort Descending” with “New Products”, this subdivided market attracts my attention:
The Complete Subdivided Category: Health & Household>Household Supplies>Paper & Plastic > Disposable Drinkware > Straws
The new product Proportion is as high as 43%, and after clicking this category to link to Amazon, we can find that they are straws sold in sets, which are light in material, small in size, and convenient in distribution.
So What Information Can We Get From the Above Data?
1. The total monthly sales are 157,070, and the average monthly sales are 1,570. The market capacity is large, while the total number of products under this category on Amazon is only 6,450, which is far less than the demand.
2. The proportion of the sample’s average monthly sales or average monthly revenue compared to the top listings’ average monthly sales or average monthly revenue is not large, indicating that market monopoly is not high.
3. The average price of new products is slightly higher than the average price of the sample, showing that new products do not need to enter the market with low prices to engage in price wars.
4. The average rating is as high as 4.6, which means that the cost of returns and listing maintenance is relatively low.
5. The A+ content proportion is 3%, indicating that the cost and requirements of building listings for new products in the early stage are relatively low.
6. The AMZ proportion is 1%, which avoids competition with Amazon.
7. The average number of reviews for new products is 78, demonstrating that new products can compete with other sellers without incurring too much operating cost.
At first glance, all the data looks pretty good. Let's move on.
2. Confirm the Market Demand
We initially confirm the market demand and supply relationship through the supply and demand index.
(Supply and demand index = core keyword searches / total products)
The industry demand and trends.
We can see from the monthly search trends for the top 5 products’ core traffic keywords in this category:
The average monthly searches for the core keyword “straws” exceed 200,000, and the average monthly searches for “reusable straws” have reached more than 500,000 in the past year.
However, the total number of products in this category on Amazon is only 6,450. The supply and demand index is large, and the supply is far less than the demand, leading to minimal market competition.
The overall trend of the market is stable and rising, with no obvious seasonality.
3. Check Different Metrics
Commodity Concentration (26.7%)
Brand Concentration (41.2%)
Seller Concentration (43.3%)
The top 100 listings include 59 brands and 61 sellers;
The overall sales trend is generally flat, and is not monopolized by a few listings, brands, or sellers;
The purple columns (the new product definition is 3 months) are widely distributed among them, and 3 of the Top10 are new products with strong impact;
4. Analyze the Fulfillment Rate
AMZ's proportion is low and its market share is low.
5. Check Market Competition
Launch Time
The sales of products launched within the last 1-6 months account for 37.07%, indicating that the activity of new products is high.
Additionally, the sales of products that have been on the market for more than 3 years account for 11.73%, demonstrating that the product life cycle is long.
Launch Time Trend
Products launched in 2007 also have a place in the TOP 100, indicating that the market has a long life cycle.
Additionally, products launched between 2017 and 2019 account for the highest market share, showing that products introduced in the last three years are the most popular among consumers.
Reviews
The review intervals with the highest sales proportions are [1-50], [100-200], and [above 500].
This indicates that the acceptance of new products is high and the lifecycle of listings is long.
Rating
Products with above 4.0 occupy the majority of market share, and products with above 4.5 accounts for 74.93% of the sales;
The quality of products in this market is high, and the after-sales and listing maintenance costs are low.
Price
The product price is mainly below 10$. For sellers who want to enter this market, they can consider marine to save costs;
Or you can find a lighter, reusable, and high-quality product to exploit market share in higher price ranges.
Reference
From SellerSprite’s market data overview, you can link to “Product Research” to view the product details of this subdivided market.
We could find this product quickly:
There are 2 different child ASINs, which means different price ranges and profit margins.
How To Calculate Profit
Find a similar product on Alibaba.com with a price of approximately $1.62.
Then, calculate the profit using a profitability calculator. Here are the details:
- Purchasing cost: $1.62
- Item price: $6.99
- "Ship to Amazon" cost: $0.30
- PPC cost: 10%
With these values, the profit margin is around 13%.
This product is a necessity of life. However, many states in the United States have introduced restrictions on disposable plastic products, and people's environmental awareness has increased. Therefore, selecting reusable materials can help reduce environmental pollution.
You can also choose products that are easily degradable. When used up, they can be directly buried in the lawn as fertilizer. Consumables are used quickly, which leads to a high repurchase rate.
Sellers with a supply chain can also offer combinations of straws, plates, or other tableware items.
Conclusion
Is market analysis not as difficult as you think?
By following a systematic approach—identifying the market, analyzing market demand, assessing market monopoly, evaluating market competition, finding references, and calculating potential profit—you can simplify the process significantly.
Once you master the logic of market analysis, using the Market Research Tool in SellerSprite can help you quickly become an expert in product selection. SellerSprite offers comprehensive tools that streamline your research, making it easier to identify lucrative opportunities and gain a competitive edge.
So why wait? Check out SellerSprite's plans to get access to their tools today and transform your product selection process!
Related Posts To Read:
- Amazon Keyword Research Tool - SellerSprite Keyword Mining
- Amazon Sponsored Product Ads Insights Tool
Frequently Asked Questions
What is Seller Sprite on Amazon?
Seller Sprite is a powerful market research tool designed for Amazon sellers. It helps users analyze market trends, identify profitable niches, and optimize their product listings. By providing detailed insights and data, Seller Sprite enables sellers to make informed decisions and stay competitive in the Amazon marketplace.
What are the four types of market surveys?
The four types of market surveys are product surveys, customer satisfaction surveys, competitor analysis surveys, and brand awareness surveys. Product surveys gather feedback on specific products, helping businesses improve their offerings.
Customer satisfaction surveys measure how happy customers are with a company's products or services. Competitor analysis surveys collect data on competitors to identify strengths and weaknesses, while brand awareness surveys assess how well a brand is recognized in the market.
What is the Amazon seller tool?
An Amazon seller tool is a software application designed to help sellers manage and optimize their Amazon business. These tools offer features like keyword research, product tracking, inventory management, and sales analytics.
By using an Amazon seller tool, sellers can streamline their operations, improve their listings, and increase their sales.
How do you market your product on Amazon?
To market your product on Amazon, start by optimizing your product listing with high-quality images, detailed descriptions, and relevant keywords. Utilize Amazon Advertising to run targeted ads and reach potential customers.
Additionally, gather positive reviews and ratings to build trust and credibility, and consider using social media and email marketing to drive traffic to your Amazon listings.
How to promote Amazon products on Facebook?
To promote Amazon products on Facebook, create engaging posts that highlight the features and benefits of your products. Use high-quality images and videos to capture attention, and include a direct link to your Amazon listing. You can also run targeted Facebook ads to reach specific audiences, and join relevant groups to share your products with potential customers who have similar interests.
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