Guest Post by our friends at Mommy Income
Finding profitable products to sell is on every seller’s priority list. The problem most sellers face is doing endless searches only to find highly saturated categories and products with no profit. Ugh!
Product research can be a real time waster if you do not have a process. The good news is you do not have to stay stuck in a circle when looking for profitable products.
Here are a few steps to perform proper product research.
Step 1: Start with a problem or need
Instead of looking for bestselling items or competitive data to find products, start with a problem or need. Every product on the market meets a specific need or solves a problem. For example:
A puppy owner purchases food to keep their dog living a long, healthy, active lifestyle. They look for the dog food that will best meet the nutritional needs of their canine companion instead of purchasing food designed for senior dogs.
An office worker looking for a solution that will eliminate pain in their feet, knees, and back may purchase a footrest for under their desk.
While looking for products to sell, think about who will buy the product and how they will use it. Ask yourself: What problem does the product solve? What need does it meet that sets it apart from other items in the marketplace?
Step 2: Niche down
Once you find a category or products, look for smaller sub-niches to find less saturated products you may have overlooked that have less competition.
We use MerchantWords to do a broad search in order to find these more specific and less competitive products. Here’s an example:
First, do a general search for “guitar parts.”
Next, scroll down to the “sweet spot” – these are the search terms with between 3000 and 6000 searches per month where you can find sub-niches. You can also find these keywords using the filters in the upper right corner. Some sellers might run for the hills thinking these numbers are really low, but we challenge you to rethink that.
In this 30-day search volume span, there are many hidden niches with very little competition. When the demand outweighs the supply, there is money to be made.
The further down you go on the list, the more detailed the keywords become. These are sub-niches ready for you to explore.
Step 3: Validate your idea with other platforms
While conducting product research, it is important to check other platforms. Compare your product ideas with the number of listings or posts on eBay, Etsy, Walmart, Pinterest, or other marketplaces. While reviewing these other sites, take note of similar products and listings to gain a new perspective on what sells well in the new sub-niche you have discovered.
Step 4: Look at the competition
Make sure to look at existing products to validate if the demand is greater than the supply.
Let’s say you’re researching "dish drying racks for recreational vehicles (RV)." You find that there are only a handful of products and 3000 searches a month. Great! There is room for your product.
On the other hand, if you found 3000 searches and 200 existing products in the same niche, you should start researching another niche. If demand is greater than supply, you have a potential winner. If supply is greater than demand, it’s time to move on to another niche.
The key to finding profitable products is looking where others aren’t. Plain and simple, your competition is lazy. They want the low hanging fruit – the easy to find products. A little extra digging into the keywords and exploring other platforms will give you a bigger picture of the marketplace, as well as a competitive advantage.
About the Contributors
Kristin and Amy have more than 20 years of e-commerce selling experience with the bulk of their time focused on Amazon. They’ve done it all, from book sales and retail arbitrage to online arbitrage, wholesale, and private labeling. They are passionate about sharing what they’ve learned to help other sellers succeed. To learn more from them, head over to Mommy Income.