The goal of doing product research is to find opportunities where demand is greater than supply. When you are doing product research you are always looking for an under-served market that you can get into. We use tools that provide data like Jungle Scout to observe that curve between demand and supply.
The opposite of an under-served market is saturation. Therefore if we understand what a saturated market looks like, we know what not to get into. You can tell if a market is saturated by the number of sellers in a market and the number of reviews a listing has.
In some way, shape, or form, every market is saturated. It just doesn’t happen that you walk into an under-served market that easily. Those who sit back and wait for the perfect opportunity to find a market that is undiscovered tend to waste more time than they do to acquire the capitalizing situation they’re wishing for.
Saturation is a situation that arises when the volume of a product in a marketplace has been maximized. At the point of saturation, you can only achieve further growth through
differentiating your product so that it can be marketed differently. Basically creating another market in a market.
The opportunity where you have the biggest change with success is where there is more demand as there is supply. Or, where there is no innovation in the market.
Product bundles for example are still huge. It creates convenience for customers. Bundling essentially is taking two or more products and putting them together as one offer.
This drone bundle is a perfect example. By putting together multiple products that a customer needs, you are making it more convenient to shop with 1 click instead of digging throughout the search results looking for each individual component.
Another way to bundle is by using bigger brand names. With this strategy, you purchase other brand-name products at wholesale prices, package them together with your product and sell it under your name.
Another way to find under-served markets is by going very niche. This is where I want to sell because there are not big, long-term established brands like there are in retail. Competing with bigger brands is difficult to do. They use external marketing and customers likely already trust and know the brand very well. This makes competing hard, but it’s possible if you have a unique selling proposition.
So going niche often means not having to compete with established brands. Those brands go towards bigger markets because there is little money for them to be made in smaller niches, but for you as an individual there is.
The riches are in the niches.
A big benefit is retail stores probably don’t sell your product. Retail stores are limited to the amount of space they have. So going niche is not a possibility or it needs to be a niche brick-and-mortar store that is solely focused on a specific niche, but you don’t find them all over the country.
The opportunity in under-served markets doesn’t stop there. Think about ethnicities and ages. I can tell you that a lot of cultures are looking for specific products that are not on Amazon or don’t even exist. They have to go towards flea markets for example to get unique products because they can’t find them anywhere else. This is just a very underserved market opportunity that you can jump on right now.
This happens because we sell in niches we know the best. Most Amazon sellers are just not from certain cultures or religions. Which creates an opportunity to sell. Now think about the elderly industry. They have a lot of money and none of them sell on Amazon. Meaning that it creates an under-served market. The elderly are also the fastest-growing age segment. For now, most elderly still don’t use the internet to shop, but this changes fast. In the future elderly will definitely shop more online.
Let’s jump to the next opportunities I want to discuss are seasonal, B2B, and governments.
I have been in the Amazon game for so long now and new gurus come and go. Every time I hear a guru talk about how new Amazon sellers should avoid seasonal I laugh. It’s like telling humans are carnivores. It’s not true.
Because of this reason, I believe seasonal is an incredible opportunity. Selling seasonal is not a piece of cake though. You will need to understand forecasting and have done market research thoroughly, but once you did and find an opportunity. You will not have to compete with many competitiors or big brands.
Just make sure you use tools like Jungle Scout to do proper research about the demand in the market. Seasonal can be difficult to start as a beginner.
Next is B2B and government, they go hand in hand with each other. You will find way fewer reviews as B2B and the government don’t have the time to leave reviews on listings. On top of that, not many sellers are jumping on this as it’s unsexy. Unsexy markets are always full of potential. Most of the time, the unsexier the business the more chance of success you have.
These organizations also don’t care about price. It’s basically a gold mine. They have a problem that some lower-level employee has to fix. He or she doesn’t care about the price of the product. They just care about fixing the problem.
I found this article on B2B very helpful. You might as well.
Now when you find an opportunity that you think is good to go after. Make sure to run it through this framework. It will help you by choosing the right opportunity to go after.
Anyway, whenever a market is unsexy. Opportunities arises.