How To Do Product Research For Your eCommerce Business

Introduction.

Starting an eCommerce business can be exciting, but let’s be real—choosing the right products to sell is probably the most nerve-wracking part. It’s one of the biggest decisions you’ll make, and it can make or break your business.

With millions of products available and trends constantly shifting, how do you pick the ones that will sell? That’s where product research comes in.

In this post, I’ll walk you through everything you need to know about product research for your eCommerce business.

Why Is Product Research Important?

When you choose the right products, you’re not just setting yourself up for more sales—you’re also saving time, effort, and money.

Imagine launching a product that nobody wants. It’s disheartening, right? Thorough product research helps you:

• Understand demand: Find out what customers need or want.
• Reduce risk: Avoid investing in products that won’t sell.
• Stay competitive: Spot trends early and beat competitors to the market.
• Maximize profit: Choose products with high margins and consistent sales potential.

Now that we know why it’s essential, let’s dive into how to do it.

How Can I Do Product Research For My eCommerce Business?

Step 1: Look at Market Trends

The first step is understanding what’s trending. Start with tools like:

1. Google Trends: It shows how search interest for a product changes over time.
2. Social Media Platforms: Platforms like TikTok, Instagram, and Pinterest are goldmines for spotting trending products.
3. Amazon Best Sellers: Amazon’s top-sellers list is a great indicator of what’s popular.

Let’s say you notice a spike in searches for “eco-friendly home products” on Google Trends. Pair that with a growing number of influencers showcasing reusable kitchen items, and you might have a trend worth exploring.

Step 2: Identify Your Target Audience

Who are you selling to? Understanding your audience is key to finding the right products. Think about:

• Age group: Are your customers teens, young professionals, or retirees?
• Interests: Do they care about sustainability, tech gadgets, or fashion?
• Budget: Are they looking for premium or affordable products?

For example, if your audience is health-conscious millennials, products like plant-based protein powders or stylish gym accessories could be a great fit.

Step 3: Analyze Competitors

Don’t be afraid to learn from others in your niche. Study what successful competitors are doing:

• Their product offerings: What are their best-sellers?
• Customer reviews: Check what people like or dislike about their products.
• Pricing: Are they underpricing or overpricing their items?

Tools like SimilarWeb or SEMrush can also help you analyze their website traffic and marketing strategies.

Step 4: Check Supplier Options

A great product is useless if you can’t source it reliably. When researching products, consider:

1. Cost: Will the supplier’s price leave room for profit after factoring in shipping, marketing, and other costs?
2. Quality: Always request samples before committing to bulk orders.
3. Shipping: Can they ship quickly and affordably to your target market?

Platforms like Alibaba, AliExpress, and Faire are good starting points for finding suppliers.

Step 5: Test the Product

Before going all in, test your product idea. Here’s how:

• Dropshipping: Use dropshipping to sell products without holding inventory. This lets you test demand before investing in bulk stock.
• Pre-orders: Launch a pre-order campaign to gauge interest.
• Run Ads: Create small ad campaigns on platforms like Facebook or Google to see if people are clicking and buying.

This approach saves you from wasting money on products that don’t sell.

Tools and Resources for Product Research

Here are some tools to make your product research easier:

• Google Keyword Planner: Find keywords people search for related to your product.
• Jungle Scout: A tool for Amazon sellers to analyze demand and competition.
• eRank: If you’re selling on Etsy, this tool helps you find trending products.
• Facebook Audience Insights: Learn about your potential customers and their interests.

Common Mistakes to Avoid

• Ignoring data: Don’t rely on gut feelings alone; use real numbers to back your decisions.
• Overcrowded markets: Avoid products where competition is already intense unless you have a unique angle.
• Overcomplicating: Start simple. Focus on one or two products instead of a huge catalog.

FAQs

Q: How long should I spend on product research?

A: It depends, but aim for a few weeks to gather solid data and test your ideas. Rushing can lead to costly mistakes.

Q: What profit margin should I aim for?

A: A good target is 30-50% after all expenses. This ensures you have enough room for marketing and other costs.

Q: Should I follow trends or stick to evergreen products?

A: Both have their advantages. Trends can lead to quick profits, while evergreen products provide long-term stability. Ideally, mix the two.

Q: Can I do product research on a tight budget?

A: Absolutely. Many tools like Google Trends and Amazon Best Sellers are free. Social media and forums are also great resources for understanding customer needs.

Conclusion

Product research isn’t something to skip—it’s the foundation of a successful eCommerce business. By understanding your audience, analyzing trends, and testing ideas, you can increase your chances of finding products that sell.

What strategies have you tried for product research? Or, if you’re just starting, what challenges are you facing? Let me know in the comments—I’d love to hear from you!