How does Amazon analyze the market? What aspects does it analyze?

Amazon is the best developed cross-border e-commerce platform now. There are quite a lot of merchants opening stores on Amazon. After opening a store here, what merchants have to do is to operate and promote the store. How does Amazon analyze the market? I believe many merchants have questions.

1. Market Ceiling Research

After sellers operating on Amazon decide on a product, they need to understand the market ceiling of the product. This ceiling will determine how much sales and profits the seller can bring after the product stabilizes. You can search for keywords related to products on Amazon. In the search results in the upper left corner, sellers can see the number of related products on sale on Amazon. This can help sellers operating on Amazon determine whether the product has a market.

Amazon divides products into categories, and sellers operating on Amazon can easily find the category corresponding to the product. After finding the correct category, you can view the top 100 in the category, and use software to capture the sales of the product. Through the sales of the top 100, you can judge whether the entire market is worth doing. The sales of the best seller is basically the ceiling of the market.

II. Market Competition

Amazon operators can use keyword query software to capture the monthly search volume of a certain keyword on Amazon, compare it with the current number of products on sale on Amazon, and analyze the market competition.

If a keyword has a large search volume, but there are not many products for sale on Amazon, it means that the competition for this product is not fierce. You can make a rough estimate based on the ratio of the two. If the product competition is fierce, you can directly exclude it.

3. Brand Concentration

If most of the products in a category come from the same brand, you need to pay attention to whether this category is monopolized by a single brand. In the case of a monopoly, buyers will be more willing to buy products from this brand.

In addition, you need to pay attention to whether there are a large number of Amazon self-operated links in the category. Amazon also acquires some brands and sells them on its own. If a large number of links in the category are Amazon self-operated, then you don’t need to try this category.

4. Competitive Product Analysis

Many novice sellers have just settled in Amazon’s US site. To sell on Amazon, they need to know themselves and their competitors and analyze products similar to their own.

The main thing is to observe the price, number of reviews, product features, etc. of competing products.

In addition to the above main aspects, sellers need to analyze the sales performance of products in different category rankings, and analyze whether competitors rely on unique factors to achieve such rankings and sales.

After reading the above introduction, you should know how Amazon analyzes the market. In fact, after analyzing the market conditions, Amazon merchants can take timely measures to respond. The advantage of doing so is that they can operate Amazon stores better.

Recommended reading:

What are the fees for Amazon Business Purchasing? Introduction to the basic costs of opening a store

How to open Amazon Business Purchasing? What is the activation process?

How to write the registration address for Amazon in the United States? Introduction to the registration process