January 7, 2020

The Data-Driven Amazon Product Strategies for Finding & Launching Your Amazon Product

Choose a private label product, slap your brand on it, ship it to Amazon’s warehouse, advertise it, and sales will start rolling in. Sounds simple, right? I have bad news for you; it is indeed simple, however, there is a lot of work going on behind the scenes when starting your own highly profitable Amazon FBA business.

There are no shortcuts towards a successful Amazon business, if you want to be successful on Amazon, you need to put in the hours when launching new products and managing your business.

What will you learn in this article?

You will learn the 4-part perfect Amazon product strategy to use data to find a product, assess and differentiate it, then optimize your product listing to be launched on the Amazon marketplace. Apart from that, you will also learn strategies to manage your Amazon business so you can grow it to where it needs to be.

The 4-Part Perfect Amazon Product Strategies

Part 1: Evolution of the Amazon Marketplace & How to Use The Data-Centric Approach to Finding Products

We’re sure that you’ve heard about Amazon FBA and how the marketplace is maturing apace with a lot of sellers jumping on board to start their own ecommerce businesses. There’s a lot of work involved when growing your Amazon business and we strongly believe that when you have access to powerful tools, accurate data, and driven mindset, you can still thrive within the competitive marketplace.

You are going to struggle if you are trying to compete in the “red ocean” where competition and product search volume is high. The smarter way of doing things is to aim for the “blue ocean” where competition is low while search volume is still in the mid-range to drive higher sales conversions, thus, increasing your profit.

Data-driven metrics are by far the best way to find potential products to sell on Amazon. Your main goal is to dive into the blue ocean and search for products with mid-volume and medium competition in the marketplace.

There are three key data points that you need to figure out when researching potential products:

  • Search Volume: The number of exact customer searches that are expected for a keyword within a certain period on Amazon.
  • Relevancy: The importance and relevance of a keyword to each product listing on Amazon. Meaning the most relevant products that Amazon will display when a customer searches for a product using a specific keyword.
  • Competition Level: The competitiveness within the category based on the keyword searched. This takes into account many key data such as the number of product reviews, product titles, number of sellers, and many more.

To obtain all this data, you need to leverage tools to help extract and compile it into a readable format. Below is an example of data that is being extracted from Amazon using a simple Chrome extension by Zonguru.

Amazon Selling Strategies for Beginners

With this tool, you get to analyze data such as bestseller ranks, product prices, product reviews, estimated monthly sales, ratings, and more for any listing on Amazon. Using this data, you can determine potentially profitable products you can sell on Amazon. Keep in mind to also check the prices so you can estimate how much capital you will need to start selling the product.

A few rules of thumb when deciding on a product to sell are:

  • The Search Volume Should be Greater Than or Equal to 5000: If there aren’t many searches for the particular product then it may not be worth the resources to sell it.
  • Half of the Products on the Page Should Have Less Than 100 Reviews: If you see 10-15 products with over a hundred reviews on page one, it’s going to be harder to rank—even more so when there are products with 1000+ reviews.
  • The Price Must be Lower Than or Equal to $100: The higher the price, the longer it takes for customers to make a purchasing decision. Products with lower prices have more of a chance to make the sale due to impulse buying. For instance, you may not think twice when buying a $10 product compared to a $100 product.

Part 2: Product Differentiation Assessment

Once you’ve done your product research and decided on a product to sell, the next part is to focus on the strategy to differentiate your product from competitors so you can drive more traffic to your product listing and convert shoppers into lifetime customers.

A great question to ask yourself now is: “Why would customers choose my product over any other competitors’ products?” Think about how you can differentiate your chosen product in Part 1 so you can thrive within the blue ocean.

Here are a few key points of product differentiation:

  • Differentiation Through Product Packaging: It’s important that you don’t overcapitalize and spend more than you should on product packaging as this will lower your profit margin.
  • Differentiation Through Functionality: Can the product do more? Is it more effective than most products in the marketplace?
  • Differentiation Through Customer Connections: Such as branding and running ads that customers can relate to.
  • Differentiation Through Product Design: Is your product well made?
  • Differentiation Through Visual Appeal: Does the product look different, or connect with your customer avatar better? Creativity is key to visual differentiation.
  • Differentiation Through Product Bundling: For instance, bundling two complementary products such as essential oils and diffusers.
  • Differentiation Through Customer Service: By providing amazing customer service.

Another great way to generate ideas around differentiation within your product category is by checking competitor’s product reviews. Go through them and see what customers love and hate about their products. This way, you have a better understanding of what your target audience looks for in a product.

Part 3: Listing Optimization & How to Maximize Traffic/Sales & Beat Your Competition

The third step focuses on the importance of optimizing your product listing and how to maximize traffic to your listing so you can generate more sales and beat your competition.

When you generate steady sales at the beginning from targeting long-tail keywords, Amazon will likely reward you with better rankings and be more likely to also display your product for short-tail keywords searches. This is called the “halo” effect and it’s what you should aim for.

Here are the 5 key points that will help you create the “halo” effect to maximize sales.

  • Keywords/Customer Search Terms: There are plenty of online tools you can use to generate a list of relevant keywords that customers are searching for on Amazon. You need to filter out long-tail keywords (because they’re usually less competitive) that are highly relevant to your product and make sure those keywords are inserted into your listing’s copy. You can also create a manual Amazon PPC campaign using these keywords. Once you convert on those long-tail keywords, Amazon’s A9 algorithm will likely notice and begin to improve your rank for more competitive (and higher demand) short-tail keywords.
  • Optimize Product Listing: You need to analyze your product listing’s visibility for all keywords to make sure your product is seen by potential customers. A few elements within your product listing that you need to optimize with keywords are:
    • The product title
    • The product description
    • The product features (use bullet points)
    • Any backend keywords
  • Extract Competitor’s ASIN Keywords: Extract your competitor’s backend listing copy so you can easily see what keywords they’re using to drive extra traffic. Pay attention to things like misspellings and colloquial terms that your competitors use to drive traffic because they might be using terms you’ve never thought of! There are a couple of online tools that you can use to spy on your competitor’s backend listing such as Keyword Spotlight by ZonGuru.
  • Track Keywords: Monitor your product rankings for important keywords on Amazon so you know your current position and how to improve it. You can keep track of how your product ranks for specific keywords by manually searching for the keyword on Amazon then browsing for your product before checking your product ranking. Be sure to keep track of your progress in a spreadsheet for comparison.
  • ASIN Index Checker: So you’ve inserted keywords in your product listings but are they being indexed by the algorithm? You need to check and determine if your product is being indexed by Amazon’s A9 algorithm for relevant keywords so your customers can find you. Keep in mind that the greater your product visibility, the more sales you can potentially generate. Use an ASIN index checker to determine whether your keywords are being indexed.

Part 4: Listing & Business Management

Managing your Amazon business is all about what is leftover, not what you’ve turned over. You need to know how much profit you’re making after deducting all your costs so you can reinvest and scale your business.

There are 5 main components of managing your business, in no particular order:

  • Competitor Tracking: You need to be aware of and understand what your competitors are doing and how their positioning, pricing, strengths, and weaknesses will affect your business. Insights that you gather will help improve your marketing strategies and help you stand out from your competitors. Tracking your competitors might even provide more ideas for your next product launch!
  • Profit & Loss Management: Knowing your Amazon business’ most important trends and metrics is vital so that you understand how well your business is performing and what needs to be changed to boost performance. Be sure to analyze your Seller Central business dashboard and download any necessary reports to track how your business is performing. Important data such as items sold, gross revenue, net margin and profit, inventory level, payments, and others will assist you in making critical decisions such as reducing product returns or adjusting your advertising budget.
  • Inventory Management: Running out of stock is a seller’s worst nightmare. You can get information about storage fees, opportunities to drive sales, and suggestions to help improve returns on your inventory through the Seller Central dashboard. Knowing manufacturer delivery and shipping times can help you manage your profits and re-order timelines effectively.
  • Customer Service Management: Great customer service means ensuring your customers’ needs are met in a timely and attentive manner which, in return, reflects positively on your business. It’s important that you utilize an email automation tool to build and nurture relationships with your customers automatically. You don’t want to be going through every purchase order and email customers manually as that is a complete waste of your time. Automate these simple work tasks so you have more time to spend on the bigger picture which is scaling your Amazon business.
  • Optimization Management: Optimizing all your product listings with relevant keywords on a consistent basis will help to generate more traffic, sales, and conversions. You need to constantly improve your product listings and your business or risk being taken down by your competitors. As Tony Robbins would say, “If you are not growing, you are dying.”


So there you go! The 4-part perfect product strategy driven by data to find and launch your product on Amazon. When you have a strategic plan, abundant data from Amazon, and tips from expert sellers, then you are going to be ahead of the game in finding and launching great products to sell on Amazon.

If you’re looking to grow your Amazon business to a new level then Zonguru’s tools might very well be your secret weapon. I hope you gained lots of actionable strategies from this blog post and wish you the best success selling on Amazon.

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