Are you considering adding new products to your Amazon inventory? The decision to stock additional inventory is one that requires careful research and analysis. After all, you don’t want to get stuck with slow moving inventory (and the associated long-term storage fees if you’re selling via the FBA platform). You also don’t want to source an item that is too competitive, which may cause you to struggle to get sales traction.
In this post, we'll reveal the data smart merchants collect before making sourcing decisions
Data to Gather
When it comes to product research, there are many factors to consider. What's the competitive landscape? How much will it cost you to fulfill each order?
Here are just a few data points to research:
Current prices on Amazon
Costs from suppliers
Total number of FBA sellers
We know this can become quite the project. Using the Amazon product pages and the Amazon FBA Calculator, you can compile the information you need to determine your potential margins and decide if you want to source individual products.
Tracking down these details can be time consuming, but it’s important to do thorough research to keep your business competitive. As you know, selling on the Amazon marketplace can be incredibly profitable. However, sourcing the wrong products can seriously cost you.
You have a few options when it comes to product sourcing research. You could always just skip the research and select a product which might turn out to be a flop. You can do all the research yourself, trying to keep information for multiple products organized as you scour Amazon listings. Or, you can spend pennies to get the details automatically, thanks to MarketScout.
Automate Your Research
Researching products is tedious work. If you prefer to delegate the task while devoting your time to other items on your to-do list, MarketScout has you covered.
To get started, all you need to do is build your list of ASIN/UPC/EAN codes and enter them into the first column of the MarketScout upload template. If possible, include your cost for each item in the second column next to the item code. Save your file, then upload it to MarketScout. You’ll receive a report with all the competitive intelligence you need, such as: