There is a saying that in 2019, Amazon came to the era of heavy capital operation. The cost of products, freight, and promotion expenses. But in fact, if the idea of product selection is right, and the market is accurate, it can also enter with light capital and low risk!
The first Look
This is a market that looks unremarkable.
We use SellerSprite to find a market on Amazon, which seems unremarkable with first look.
Node ID: 12900371
Node Name: Special Education Supplies
Firstly, we analyze the market monopoly from three aspects: market capacity, brand and seller.
It can be seen that the total market capacity (TOP100 products’ monthly sales) is 20808, and the sales curve is flat, which indicates that the product monopoly is not high. The monthly sales after TOP 1 is stable, with about 1100-100.
Brand and Seller Analysis
From the chart of brand and seller sales distribution, it can be concluded that there are 69 brands and 71 sellers in this market, and the sales trend of these two are flat, which indicates that different brands and sellers in the market have certain sales. Changing the new product definition to 6 months at the top right, we can see that purple columns(representing new products) are distributed among them. New products have a impact, and the market is not cured.
All in all, the monopoly of the market is not high, the number of sellers and brands is large, and new products still have room to enter in.
The second sight
This is a market with surprises.
Then, the competition of this market can be judged again through the analysis of reviews.
As can be seen from the chart:
[100-200] Products: 14; Sales Proportion: 29.18%
[50-100] Products: 15; Sales Proportion: 16.51%
[0-50] Products: 62; Sales Proportion: 45.44%
For new sellers, the reviews of this market is very friendly. Among TOP100 products, the number of listing accounts for 62%, and sales accounts for 45.44%, which means that the cost of accumulating review for entering the market is very low, and new products can compete with similar products with only a few reviews.
Thus, we further analyze the market situation in data overview.
We mainly focus on new product data. New products account for 16% (excellent performance), and the average price of new product is 26.33$. It seems an operational market.
The third sight
This is an interesting market for deep research.
Finally, we find that many of the products in this sub-category are “pencil grips”, which belong to “Special Education School Supplies”. It contains ring sets, stress balls, chair belts, and compression vests, etc; while pencil grips occupy the most, and the majority are new products.
It means that “pencil grips” is a rapidly-developing emerging market. Although it has not been classified to an independent sub-category on Amazon at this time, the development prospect is good, and sellers can seize the opportunity to enter the market quickly.
By convention, let’s calculate the cost and profit of the product.
Find similar products in alibaba.com, and the price is about $0.2
Calculate the profitability of this product in SellerSprite's profit calculator. The purchasing cost is $0.2, the Item Price is $6.99, the “ship to Amazon” fee is $0.5, and the proportion of PPC cost is 10%. Results show that the gross profit rate in this category is still 30%.
The product is low in cost, light in dimension and fast in logistics.
The capital turnover is fast and the market risk is low.
The point is coming! ! !
How do I quickly find such a market on Amazon?
In SellerSprite’s Market Research, select the category of “Office Products”, click “Search Now”to view all sub-categories, then sort by “new products” in descending order. Through the analysis of various data dimensions, we quickly find out this market.