Market research is a critical component of running a successful business on Amazon. It helps you understand your target audience, identify market trends, and make informed decisions to maximize your chances of success. In this blog post, we will guide you through the process of conducting Amazon market research, providing you with the tools and strategies you need to thrive in the competitive marketplace.
Identify Your Target Audience:
Understanding your target audience is crucial for tailoring your products, marketing messages, and overall business strategy. Utilize Amazon’s customer insights, reviews, and product categories to gain insights into your ideal customers. Analyze their demographics, preferences, buying behaviors, and pain points to refine your offering and position yourself effectively.
- Amazon Seller Central Page: Access valuable customer insights, demographic data, and sales performance metrics through your Amazon Seller Central account. Utilize this information to understand your target audience better and tailor your products and marketing efforts accordingly. Ex: Amazon DSP Audience Insights Report
- myHorizons Customer Insights pages: Utilize myHorizons pages such as Repurchase Analysis and Cross-Selling to learn more about your customers. Access unique metrics such as CAC (customer acquisition cost) and LTV (lifetime value).
Market Research / Analyze Competitors:
Thoroughly researching your competitors allows you to identify market gaps, assess their strengths and weaknesses, and differentiate your brand. Explore competitor listings, pricing strategies, customer reviews, and product ratings to gain valuable insights. Identify opportunities to offer unique value propositions and improve upon your competitors’ offerings.
- SmartScout: Use SmartScout for competitor analysis and subcategory data. SmartScout lets you dive into the details of an entire brand, allowing you to see how many products they sell and their estimated revenue. View information on all 4K subcategories on Amazon- each subcategory has an estimated total value to help you see its potential. In addition, SmartScout provide metrics like Market Share of brands on Amazon, number of sellers, average product price, etc.
- myHorizons Share of Voice: Measure your brand’s visibility compared to your competitors with the myHorizons Share of Voice tool.
Leverage Keyword Research:
Keywords play a vital role in optimizing your Amazon product listings and driving organic traffic. Utilize keyword research tools, such as Amazon’s Auto Suggest feature, Google Keyword Planner, or third-party tools, to identify relevant keywords that potential customers are using to search for products in your niche. Incorporate these keywords strategically into your product titles, descriptions, and backend search terms.
- Helium 10: Utilize Helium 10’s keyword research tool to discover high-volume keywords, analyze search trends, and identify relevant long-tail keywords. Optimize your product listings to improve search visibility and drive organic traffic.
Monitor Trends and Seasonality:
Stay up-to-date with market trends and seasonality to capitalize on emerging opportunities and plan your inventory effectively. Analyze sales data, customer reviews, and external sources to identify patterns and predict demand fluctuations. This will help you make informed decisions about product launches, promotions, and inventory management.
- Envision Horizons Category Reports: Access Envision Horizons category reports here to gain insights into market trends, competitive landscape, and demand patterns within your product category. Stay informed about market dynamics and identify potential opportunities for growth.
- myHorizons Inventory Management: Leverage myHorizons Inventory Management pages to forecast demand based on historical sales data, optimize inventory levels, and ensure you have sufficient stock to meet customer demand during peak seasons and fluctuations. Also, check out our inventory forecasting blog.
Utilize Customer Feedback:
Customer feedback is a goldmine of insights that can drive product improvements and enhance customer satisfaction. Monitor customer reviews, answer customer questions, and engage with your audience to gain valuable feedback. Leverage this feedback to identify product enhancement opportunities, identify common pain points, and build brand loyalty.
- Reduce Return Rates Blog: Learn how to minimize return rates and address common customer concerns by following the best practices outlined in our Reduce Return Rates Blog. Gain insights on improving product quality, addressing customer expectations, and reducing the likelihood of returns.
- Generate Positive Customer Reviews Blog: Discover strategies to encourage positive customer reviews through programs such as Amazon Vine, and manage your online reputation without violating Amazon’s policies.
- myHorizons Product Reviews Page: Utilize myHorizons Reviews Page to track and analyze customer reviews for your products. Identify common themes, address customer concerns, and gather valuable feedback to improve your products and enhance customer satisfaction.
- myHorizons Returns Analysis Page: Efficiently track your account and individual ASIN return rates to gather valuable insights about health and performance. Oftentimes, the graph will show a spike in returns during online events like Prime Day, Black Friday, Cyber Monday, and Christmas. Other times, the graph will show a spike in return rate that could be indicative of a larger issue. Track the common reasons for returns and track the number of products reimbursed.
Test and Optimize:
Amazon market research is an ongoing process, and it’s crucial to test your assumptions and iterate based on the insights you gather. Conduct A/B testing for your product listings, pricing strategies, and marketing campaigns to identify what resonates best with your target audience. Continuously refine your approach based on data-driven insights to optimize your business’s performance on Amazon.
- PickFu: Use PickFu to conduct split tests and gather feedback from a targeted audience. Test different variations of your product listings, images, and marketing messages to determine which ones perform best and resonate with your target audience. Use this link for $10 off your first poll.
Here’s a quick recap of the tools mentioned in this Amazon Market Research blog post:
- Amazon Seller Central Pages: Amazon DSP Audience Insights Report
- myHorizons Customer Insights pages
- myHorizons Share of Voice
- Helium 10
- Envision Horizons Category Reports
- myHorizons Inventory Management
- Reduce Return Rates Blog
- Generate Positive Customer Reviews Blog
- myHorizons Product Reviews and Returns Analysis Pages
Remember that Amazon market research is an ongoing process, and staying proactive in gathering insights will enable you to adapt to changing market dynamics and meet your customers’ evolving needs effectively. Invest time and effort into understanding your target audience, keeping an eye on competitors, optimizing your listings with relevant keywords, monitoring trends, listening to customer feedback, and continuously testing and iterating to improve your Amazon business’s performance.