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Product Hunting & Research

The document provides tips for evaluating the profitability and competitiveness of potential product opportunities on Amazon. It recommends looking for indicators that show high demand for a product with room for improvement, such as most top sellers having low ratings, variable prices, and less than 500 reviews, which suggests an opportunity for a new seller to compete and differentiate themselves. It also suggests checking for signs of review manipulation, such as spikes in reviews or high negative review rates.

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Product Hunting & Research

The document provides tips for evaluating the profitability and competitiveness of potential product opportunities on Amazon. It recommends looking for indicators that show high demand for a product with room for improvement, such as most top sellers having low ratings, variable prices, and less than 500 reviews, which suggests an opportunity for a new seller to compete and differentiate themselves. It also suggests checking for signs of review manipulation, such as spikes in reviews or high negative review rates.

Uploaded by

you for
Copyright
© © All Rights Reserved
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Download as DOCX, PDF, TXT or read online on Scribd
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The star rating on the X-Ray tool is strict; 2 stars or higher is worth

looking at; 4 stars or higher is extremely rare.

1- Less than 50% of the top 16 products are well known brands or stores.
If there are well-known brand names, you probably can’t compete against
them

2- Are page 1 prices variable or are they all the same?


Differences in price means room for competition and differentiation.
If all the prices are about the same, you’ll be competing solely on price.

3- 6 or more of the top 16 products sell more than 300 units per month (10
units/day).
4- Sales on the uptick or steady for 50% of top 16 sellers over the last year is
ideal.
Check with X-Ray tool.
You want to see the general market trending up.

5- 8+ of top 16 listings are less than 2 years old.


If most of the market is well-established, it will be difficult to compete

6- More than 4 products in the top 16 with a BSR of 10k or less.


This indicates high demand.
7- Are there 6 listings or more in the top 16 products with a rating of 4 or
less?
Shows there’s room for improvement - you could study competitors for
differentiation opportunity.
If they are all highly rated, it may be difficult to compete as a
newcomer.

8- At least 10 of the top 16 products have less than 500 reviews.


It is difficult to compete against products with a lot of reviews; that
means they are well-established and trusted.
9- No more than 2 in the top 16 have a review rate greater than 5%, nor 2 or
more with either a negative review rate or a rate higher than 10%.
. Greater than 5% rate indicates someone is likely manipulating
reviews.
. A normal rate is 2-3% if you have a good follow up sequence.
. Greater than 10% means intense manipulation or Blackhat practice.
. Review velocity is the number of new reviews in the last month.
. Just compare to units sold per month for an idea of review rate.
. Negative review rate velocity is suspicious and can indicate that
reviews were deleted, meaning the seller may have been manipulating reviews

10- Review manipulation?


. Use X-Ray to see review trends.
. Be cautious of spikes in review history.
. Did they start with a low number of reviews? If not, they may be a
listing takeover.
. Watch out for sudden drops/disappearances of reviews (means
Amazon removed them - possibility of unfair manipulation).

12- Can you differentiate the product or fix customer complaints?


Other things to note. [ check review insight ]
. If the product isn’t easy to find on Alibaba, this is good (because way
less people will find it.
. Good if similar products aren’t on deal/ rebate sites.
. Trending items on Pinterest and Etsy not found on Amazon are worth
investigating.
. Items sourced from outside China eliminate a lot of the competition.
. 2+ of top 16 selling 2x your initial investment for the past 3 months is a
good sign - this shows growth potential.
. Use the profitability tool and shrink product dimensions to lower FBA
size bracket and save fulfillment costs.
. Are any top products FBM that you can sell as FBA?
. For Brand Registry: Are there 10+ keywords under 1 million in the
Search Frequency Rating?
. Do any of the top 3 clickshares have 0% conversion share? This
indicates manipulation if so.
. Does one of the 3 dominate? If so, it’ll be difficult to compete.

13- 8 or more of the top 16 products have a listing evaluation score of less than
9: several with less than 6.
This indicates that products are in demand because poorly made listings
are still selling.
Also indicates poor listings that will be easy to compete with.
You want to do this over competing with A+ listing content

14- Net profit 30% or more; aim for retail price 4-5x cost of manufacturing;
avoid retail price below $15.
This leaves room for other costs such as FBA fees, advertising fees, etc.
Too much competition in the $15 and below bracket.
ROI >100% (ideally 150%) is best.
Compounding is the key to rapid growth (see on screen example).

15- Sort by unit sales; take top ASIN and plug into Cerebro.
. At least 3 keywords with more than 5k searches (see screen for info).
. At least 10 keywords ranking on page 1.
. Indicates several potential angles.
. Higher priced item generally means higher ROI.
. Item turnover is ideally at least 4x a year.
. Order every 2-3 months.
. If it takes too long to sell through, this hurts your inventory health.
. Use the Helium 10 Chrome extension “Profitability Calculator” tool.

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