How to use sellersprite's market research tool?

2019-08-21

Have you been troubled by these problems for a long time?

 

1. In the past two years, the US market is almost saturated. Can you still choose products?

2. The indicator of product selection is too abstract to be implemented, such as, market demand, capacity, monopoly and competition. What data can be used to measure?

3. There is no complete product selection dimensions. Neither knowing how to start, nor whether considering all dimensions that need to be considered. Do you lack of confidence in the selected products?

4. Counting big data of the whole market is very cumbersome and time-consuming, and the data is constantly updated. Counting the regularly updated data takes up a lot of time. Do you stay up late to do more than a dozen forms in order to do a market analysis?

 

Don't worry. SellerSprite give you the answer!

 

Today, we will analyze a subdivided market, and hope to provide the market analysis ideas and reference basis through the presentation of the objective data in SellerSprite.

 

Find the market

 

On the market research of SellerSprite, I choose the ”Health & Household” category on US marketplace.

The definition of New Product is 3 months, the “Listings of Sample Size” is 100 by default, and the number of Top Listings is 10



Choose “Sort Descending” with “New Products” , this subdivided market attracts my attention:

The Complete Subdivided Category: Health & Household>Household Supplies>Paper & Plastic>Disposable Drinkware>Straws



New product Proportion is as high as 43%, and after clicking this category to link to Amazon, we can find that they are basically straws sold in set, which are light in material, small in size, and convenient in distribution.

 


So what information can we get from the above data?

1. The total monthly sales is 157070, and the average monthly sales is 1570. The market capacity is large, while the total number of product under this category in Amazon is only 6450, which is far less than demand;

2. The proportion of sample’s average monthly sales or average monthly revenue and top listings’ average monthly sales or average monthly revenue are not large, which indicates that the market monopoly is not high;

3. The average price of new products is slightly higher than the average price of sample, which shows that new products do not need to enter the market with low prices for price wars;

4. The average rating is as high as 4.6, which means that the cost of return and listing maintenance are relatively low;

5. A + proportion is 3%, which states that the cost and requirement of building listings for new products in the early stage are relatively low;

6. AMZ proportion is 1%, which avoids the competition with Amazon.

7. The average reviews of new products is 78, which manifests that new products can compete with other sellers without too much operating cost.

.....

At first glance, all the data looks pretty good, then let's move on.

 

Market demand

We initially confirm the market demand and supply relationship through the supply and demand index.

(Supply and demand index = core keyword searches / total products)

The industry demand and trends



We can see from the monthly searches trends for top 5 products’ core traffic keywords in this category:

The average monthly searches of the core keyword “straws” is over 200,000, and the average monthly searches of “reusable straws” has reached more than 500,000 in the past year. However, the total number of products under this category in Amazon is only 6450. The supply and demand index is large, and the supply is far less than the demand, which leading to a small market competition.

The overall trend of the market is stable and rising, with no obvious seasonality.

 Market Monopoly

Commodity concentration (26.7%)



Brand concentration (41.2%)



Seller concentration (43.3%)



The top 100 listings include 59 brands and 61 sellers;

The overall sales trend is generally flat, and is not monopolized by a few listings, brands or sellers;

The purple columns (the new product definition is 3 months) are widely distributed among them, and 3 of the Top10 are new products with strong impact;

 

Fulfillment



AMZ proportion is low and its market share is low.

 

Market competition

Launch Time



The sales of products which were launched for 1-6 months accounts for 37.07%, which means that the activity of new products is high;

The sales of products which were launched for more than 3 years also accounts for 11.73%, which shows that the product life cycle is long.

 

Launch Time Trend



Products which were launched in 2007 also have a place in the TOP100, which indicates that the market has a long life cycle;

Products which were launched in 2017-2019 account for the highest market share, which indicates that products which were launched in the last three years are the most popular among consumers.

 

Reviews



The reviews intervals with the highest sales proportion are [1-50], [100-200], and [above 500];

It shows that the acceptance of new products is high, and the life cycle of listings is long.

 

Rating



Products with above 4.0 occupy the majority of market share, and products with above 4.5 account for 74.93% of the sales;

The quality of products in this market is high, and the after-sales and listing maintenance cost are low.

 

Price



Product price is mainly below 10$. For sellers who want to enter this market, they can consider marine to save cost;

Or you can find a lighter, reusable, and high-quality product to exploit market share in higher price ranges.

 

Reference 



From SellerSprite’s market data overview, you can link to “Product Research” to view the product details of this subdivided market.


We could find this product quickly:



The launch time is in April 2019, reviews is 44, rating is 4.6, and the sales is not low. The monthly sales in July is predicted to be 3599.

Linking to Amazon to view this product also reveals:



There are 2 different child ASINs, which means different price ranges and profit margins.

 

Profit calculation



Find the similar product on alibaba.com. The price is about 1.62$. 

Then calculate the profit by using profitability calculator:

The purchasing cost is $1.62, item price is $6.99, “ship to Amazon” cost is $0.3, and PPC cost is 10%. It can get a profit margin of around 13%.



This product is a necessity of life. However, many states in the United States have introduced restrictions on disposable plastic products, and people's environmental awareness has increased. Therefore, reusable materials can be selected to reduce environmental pollution.

You can also choose products that are easily degradable. When used up, it can be directly buried in the lawn as fertilizer. Consumables are used quickly, and the repurchase rate is high.

Sellers with supply chain can also sell combinations of straws and plates, or tableware, etc.

 

Conclusion

Is market analysis not as difficult as you think?

Find the market - market demand analysis - market monopoly analysis - market competition analysis - find reference - profit calculation

In fact, as long as you master the logic of market analysis, and use “Market Research” in SellerSprite, you can quickly become an expert in product selection.