Digital Indicators on Amazon to Determine Market Demand

In the previous article, we used keyword tools to test the potential of Amazon products. Here, we will teach you to observe the digital indicators on Amazon to determine whether your product has market demand? There are two numbers on Amazon that are very important, one is the number of comments, the other is Best Seller Rank, because these two numbers are directly related to sales.

Consumers usually leave reviews after purchasing goods, including good reviews, functionality, and even negative reviews. Many people ask on Quora, what percentage of customers leave a review on Amazon? Based on the experience sharing of many sellers and our observations, about 0.5% of consumers will leave their comments. This article will introduce these digital indicators appearing on Amazon in sequence, and what are the interesting features of these numbers and market potential Related!

Do numbers really speak? -Amazon reviews

Does Pakistan’s most popular selfie stick have market potential abroad? Searching for Selfie Stick on Amazon, there are 16 search results on the first page. We clicked in to the number one Mow Selfie Stick. There were nearly 2000 reviews (Figure 1). Remember we mentioned about 0.5% of consumers will leave a comment. In this example, about 400,000 people have purchased this product. Do 2,000 reviews mean that this product has market potential? 2000 reviews represent that this product has market potential, but its competitors may be relatively large. In addition to looking at the list of products, we can make the most correct judgment by knowing how many similar competitive products there are.

Description of Amazon Best Seller Rank

Amazon updates its ranking based on the sales of many sellers every day, which we call Best Seller Rank. To put it simply, if your product ranks at 1000, it means that the sales of 999 products are better than your products. Of course, it is difficult for us to know the sales gap between rankings, and the rankings of different categories will be different. Take the selfie stick as an example. It is ranked 86th in Cell Phones & Accessories, but it can reach the top 10 in Stands. Here you should have a question, why is their ranking gap so big? It’s very important to analyze the rankings. You can’t look at it from a small perspective, because a high ranking in a small category does not mean that it does have market potential, because it may be too detailed. If you take this example, if the selfie stick is in Cell Phones & Accessories ranks at 8000, so it may not be a product with market potential. It is recommended that you study the rankings under different classification names, so that you can analyze the potential of your products.

The special relationship between your product sales and Amazon Best Seller Rank

We often advise Pakistani brand operators that if they want to cross-border, they can start with existing foreign demand, and it is not recommended to consider products that are rarely used abroad. Under the condition of insufficient initial resources and insufficient brand visibility, seldom-used products can hardly sell well.

Amazon has an all-encompassing product range. If it resembles a traditional retail industry, usually 20% of the products will contribute 80% of the revenue. For example, if there are 100 products and about 20 products contribute 80% of revenue, product sales and Best Seller Rank will show an exponential growth state (Figure 3). You may have questions. Can Best Seller Rank estimate the number of product sales? The answer is difficulty. Because of the lack of real data on sales and rankings, it is difficult to estimate the real number of sales.

How to use Google Ranker to analyze the Seller Rank of a single product

In addition to observing the ranking of products on the Internet. In addition to seeing the price changes of a single product over a period, this website can also analyze the ranking changes of a single product. If you take a selfie stick, its ranking in April was 909, but it was in May. There will be a big ups and downs to rank 182, and then it begins to grow steadily. Observing this graph can help you understand the popularity of this product on the market, and even predict the future development of this product.

Digital Indicators on Amazon to Determine Market Demand
Digital Indicators on Amazon to Determine Market Demand
Marketingskull reminds you what you need to pay attention to when analyzing:

The current high Sales Rank does not mean that its long-term sales can be maintained at this position. It is necessary to observe the ranking of the same product for a long time to know whether the sales of a product can be maintained at this position.

Human nature, when you encounter a number with a high ranking, you will always pay special attention to it. But don’t ignore low-ranking products. Low-ranking products don’t necessarily have no market potential, because market demand is changing rapidly. We recommend that you observe a low-ranking product for a long time and take the lead when it is quickly rising in the ranking.

In summary, the evaluation will directly reflect the accumulated sales, and Best Seller Rank can tell whether the product has market potential at present. In addition to judging whether there is market potential with your own intuition, you can also use the methods we introduced more!

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