E-commerce is a powerful way to increase profits without the expensive overhead of physical retail. But e-commerce sales can be unpredictable and volatile.
To make sure you’re selling products that will generate a profit, start by looking for items with high demand and low competition. The best way to figure this out is by analyzing Amazon’s Best Seller Rank.
Product Research
Product research is a critical part of any business that sells products. It involves determining whether a product is a good fit for your market and can be sold profitably. It can also help you identify possible issues before launching a new product and determine how to improve an existing one.
When conducting onsite product research it is important to look for products that have a high Best Seller Rank (BSR). The BSR number indicates how often a product has been purchased over the past 90 days which is an indicator of a product’s sales potential. Another valuable tool for product research is Google Trends, which allows you to see clear seasonal trends and ebbs and flows in a product’s demand.
Market Research
Whether you’re developing an ecommerce business or aiming for profitability in your existing operation, extensive market research is critical. A free tool like Google Trends is a great way to uncover the latest consumer trends and determine whether your product’s demand is seasonal or steady year round for consistent monthly recurring revenue (MRR).
Market research allows you to discover what features consumers rate highest in order to modify products and services to improve customer experience. Moreover, a deeper understanding of customer needs and expectations helps you align operations, people and technology across the value chain to unlock new efficiencies that enable profitability.
Competition Research
The first step of competitive research involves understanding how your competition is promoting, advertising, and growing their business. This is important because it allows you to determine what opportunities your eCommerce business can capitalize on, the strengths that it should leverage and the threats to avoid.
The best way to understand your competitor’s product marketing strategy is to look at their “Best Sellers Rank” (BSR). A quick Google search for a BSR calculator will reveal a variety of tools that can help you sift through and identify high-performing products in your category.
Market Trends
In the omnichannel age, consumers can purchase products both in-store and online. This means that retailers must find ways to optimize their online and in-store product selection for profitability across all channels. Using ecommerce analytics tools to understand shoppers’ purchasing behavior is one way to do this. Another is to encourage shoppers to shop in-store and use the buy-online-pickup-in-store option. This can reduce both shipping costs and returns costs.
Market trend analysis can help you identify profitable products that will drive sales and improve customer satisfaction. Conducting this type of analysis can give you an edge over the competition. It can also help you build better relationships with customers and drive growth for your business.