Amazon Product Development : That is, by figuring out user pain points and solutions, conceiving high-value, highly perceived, and highly differentiated products, and then launching innovative products in a "steady, accurate, and ruthless" manner.

Let me first state a premise: product development is based on operations, and operations must be done well and in a solid manner.

So when we are developing Amazon products, clear screening conditions are crucial. We must clearly know what kind of products can be made? What kind of products are absolutely not allowed to be touched?

The more detailed your initial screening conditions are, the less likely you are to make mistakes when you put your products on the shelves later . Zhaodanmao Cross-border has summarized the following six screening dimensions and five major thinking directions, which I believe can help you avoid many pitfalls in product selection and product development!

Amazon Product Development Process

Market/demand discovery - product discovery - preliminary profit calculation - category/keyword situation analysis - negative review analysis - copyright and patent search - supply chain search - product finalization - profit review

①New products are the key📅

Try to choose products that have been on the shelves within one year. Such products are less likely to be monopolized and also represent the future development trends of platforms and categories . Follow the trend and find new opportunities in it!

For example, if there are a large number of new products listed in the top 100, it reflects that user demand changes rapidly, which means that products are iterating quickly, and there are greater opportunities for new sellers to enter.

Here is 14%, which Zhaodanmao Cross-border thinks is OK. From the new categories tried before, we can study and distinguish the success rates of the categories. Some categories have very low success rates, while some categories have relatively high success rates. A high success rate means that the competition in the category is not very fierce, there are still opportunities, and there is a high probability of stable orders. Therefore, we should try to conduct in-depth research and development in the categories with high success rates.

② The market capacity must be large enough📈

The market capacity is too small and the orders are few, so it is meaningless; focus on the sales of 40-50 in the category, which is also the ranking range you have the opportunity to reach.

Don’t always focus on the top of the category. Those products with thousands of orders a day have nothing to do with you. If the top 40-50 in the category can have more than 200 orders a day, it is a good data range.

③ Sales growth rate of more than 5%🌱

Choosing a product means choosing an industry, a track, and a competitor. Don’t touch a track where the market continues to decline. A monthly sales growth rate of more than 5% is a must, which represents the future development trend!

④ Average order value is more than 20 USD💵

Don’t try to get low-priced products that don’t have a monopoly; Amazon is about to launch a low-price mall, and the survival space for low-priced products will only get smaller and smaller in the future.

If the category is severely monopolized, don’t even look at it, you won’t stand a chance.

Also, check whether domestic sellers or North American sellers account for the majority. Don’t touch categories where North American sellers account for the majority.

⑤ Comprehensive operation requirements cannot be too high🤹‍♂️

The most typical one is the number of reviews. If you find that there are many products in the category with few reviews but good sales, it would be a better choice.

Or you can specifically select products that have reviews below four points but have good sales, and find ways to optimize the problem of negative reviews.

Through comment analysis, we can quickly find out what the most complained about problem is among the negative reviews of the product and what problem they most want to solve. If this pain point can be solved, the sales of this type of product may be able to reach a higher level.

⑥ Gross profit margin should be higher than 20%-25% 💰

The higher the gross profit margin, the greater the margin for error. Even if you spend more on advertising and the return rate is higher, you can still handle it. The only thing to worry about is that the gross profit margin is extremely low, and you lose money if you spend a little on advertising. How can you still play then?

Five major thinking directions for product development

Direction 1: Keep updating, if you don’t make progress, you will fall behind! 🚀

No matter what model you are running on Amazon, new products are always the best! All products have a life cycle. If you just sit back and wait, your competitors will eat away at your profits. Even if your performance is good now, you can't relax. You must continue to develop new products and research the market. Launching new products every month or quarter can not only keep you competitive, but also seize new market opportunities!

Direction 2: The correct way to use product selection software🔍

The real value of product selection software lies in "judging trends" and "finding good product entry points". After reading the information about competing products, think about why these products are selling well? What problems do they solve for customers? Are there better products that can be launched? Remember, data is only the result, and demand is the key!

Direction 3: Don’t be blinded by data, demand is king📊➡️👥

The biggest misunderstanding in current product development is to rely too much on data-based product selection and ignore the research on demand. Others sell well not only because of the product itself, but also because of the right time, right place and right people. The same product cannot replicate the same success. We should pay more attention to the real needs of customers instead of worrying about whether a certain data is accurate.

Direction 4: Newbies should select products quickly, accurately and ruthlessly! 💥

Product selection for beginners is not a slow and careful process, but a quick trial and error process. Don't stare at the hot-selling products and end up only selecting one product in a month, which may not be a good one. Test in batches quickly and accumulate experience to avoid waiting for feedback before the market has changed.

Direction 5: Two major product selection routes: meeting demand vs. seizing the initiative 🌟

Boutique line : Starting from market research on user needs, we upgrade best-selling products and create differentiated and innovative models.

Precision laying: Take advantage of the supply chain to obtain information about new and popular products, and quickly test to seize the market. Both methods allow you to deepen your vertical field and develop more competitive products.

If the above six dimensions and five directions can be met, the developed product will definitely not be bad!