Amazon FBA product research is becoming more and more important especially as data in the Amazon ecosystem is becoming even more developed.
Jon Tilley is the CEO and co-founder (with Adam Hudson) of ZonGuru an all-in-one software toolset to help Amazon sellers scale their business.
Background
TACTICS FOR MARKET RESEARCH
Problem 1: Using keywords and data to choose product niches
And how to visualise it when you do Amazon FBA product research.
As a private label seller, there are two factors in the product niche:
The data - 50% of the solution
The more creative skill around differentiation.
The data side
The data is becoming more and more important especially as the Amazon ecosystem has developed
Paid search
Ranking algorithms getting more and more important
The key areas
Exact search volume from customers. In partnership with amazon, Zonguru gets access to exact search volume.
Actual $ from keywords - access to this data - for top 25 sellers
Money from keywords
Understanding what keywords to target for your launch - there are many 1000 variations for Amazon FBA product research:
Which produce the most revenue?
Find out which is the most competitive?
What keywords, therefore, to focus on?
It’s a combination of:
Relationship with Amazon
Revenue share and market share
Reverse engineering and testing it against the algorithm
“Keywords on fire” - type in a keyword phrase
Reverse lookup against ASINs
Data from Amazon
Exact search volume
competition
The spread of market share
Based on
Based on the Brand Analytics API
which listings get the biggest click %
In market A Top 3 are getting top 60% of clicks
In market B top 3 are getting only 20% of clicks
Dollars from keywords tool
Example
Eg “Back brace for men” top 3 sellers 12% - $330K/mo
“Posture corrector” - top 3 sellers 15% - $220k/mo
How to define a market?
Specific metric - niche score (“Rainbow niche score”)
Demand
Competition
Relative investment to launch
Amount of net profit
There are 20 metrics that go into that
The strategy is to go into a niche category - objective to rank on page 1.
How would you define “too competitive”?
You could put in a phrase like “gardening tools”
From a filtering perspective
Search volume filter out <2000 search volume/mo
Anything under an average of 400 reviews (filter out very mature markets)
$ from keywords
50-review mark
Story
What’s your background?
Before Amazon was as an account director at advertising firms, esp in the digital space.
With Blue chip clients in London - lead “Have it your way” for Burger King.
In 2014 came across the Amazon selling and brand building opportunity
Built own Amazon business which got self out of day job
Adam Hudson and Jon who founded the company both sold on Amazon
CTO also sells on Amazon.
Unique perspective - a dev team of sellers!
Within the Zonguru business, every employee is encouraged to have their own Amazon business.
It flows into the software.
Even provide zero-interest loans for stock purchase to employees!
So 50% of workforce sell on Amazon.