How to Conduct Product Research Using Historical Data

Why Do You Need Product Research on Amazon?

Why does it all matter? The past matters. Michael Ende said it best in “The Neverending Story”: without a past, you can’t have a future. Sales analysts might think of it as extrapolation. Whichever way you look at it, historical data is useful. It allows you and other sellers on Amazon to:

• Identify trends in an item’s popularity. On Amazon, products come and go. Some go viral due to social media influencers and then fade into oblivion. Others only really take off at sales events. Tools like the Helium 10 browser extension can show a keyword’s monthly search volume, daily sales, and sales rank. But a glimpse at historic sales charts can give you a much better understanding of when is the best time to list an item.
  
  
• Tell when a product is past its prime. Lots of products are seasonal. But that doesn’t mean they’ll sell well this season. There’s always the option to use the Jungle Scout Sales Estimator and input the product’s sales rank to get an idea if an item is likely to sell again. But looking at older sales data can show if this type of item truly is nearing its decline stage.
  
  
• Understand customer needs. Sellers often try Google Ads, create an account, pause their campaign, and gain free access to the keyword planner. They also look at Google Trends for specific keywords (e.g., vegan). But people’s needs change. This change will influence demand. Buyers can grow to expect new-fashioned features. But they can just as easily grow tired of fancy doodads and prefer a cheaper, no-frills option.
  
  
• Keep an eye on the competition. Knowing your competitor’s product and stock levels can help optimize FBA shipments, ad timing, etc. Lots of sellers check their rivals’ stock levels daily by adding 999 units to their cart and letting Amazon display the maximum available quantity.
  
  
• Decide what part of the history is worth repeating. It’s not unusual to run out of stock mid-season or miss out on a sales event altogether (e.g., FBA shipment is late). Knowing when buyers tend to order most means you can time your inventory so that it’s sold at the right time.
  
  
• Avoid analysis paralysis. Sellers can overthink things and waste time haggling with suppliers or focusing on minor design issues instead of launching their item. A quick look at daily sales estimates can bring things back into focus. Is saving $2,000 worth losing 7 days of sales, for instance?
  
  
• Prevent bias from clouding your judgment. It’s easy to become biased with a passion product. As we pointed out in Best Product Categories to Sell on Amazon in 2023, historical data can help detangle yourself from the allure of an item you like a little too much. Look at your own purchases and ask yourself what you wish would pop up in your Amazon search, but don’t assume all customers want the same thing.