Amazon FBA Product Research Saturation Test
So you've just found a killer product that would generate massive sales for you on Amazon. Maybe the product has not yet been sold on Amazon, or it might be a 7-7 product (These are products that 7 at the top 10 has more than $5,000 in revenue and & at the top 10 has less than 75 reviews). You were so excited about the product, and you quickly get everything in place, shipped your products, set up your store, then wait for your products to arrive, only for your product to be saturated before it arrived. Oops, that was sad, and so much money has been lost. You'll now have to struggle with top competitors. However, you're lucky to stumble upon this article. I'll give you a hack on how to identify products that won't get saturated before your shipment arrive. Read further to know this hack.
The best way to determine if a product would soon be saturated or not is by using Teikametrics. Teikametrics is a software that is used to optimize PPC campaigns. With this, you can study how competitive a product keyword is, and it would help you determine if the product would get saturated or not.
These are Teikametrics suggested amount for competitive categories:
- Saturated category - high competition $3 - $2 per keyword (this number can be higher for products with slim margins. In that case you can lower bids but challenged to pick up tractions)
- Growing category - increase search volume and new sellers $2 - $1 per keywords
- Niche category - with a special product offering $1 - $0.05 per keyword
So the suggested bids tell you which category your product falls into. I would give you a practical approach on how this works:
Step by step hack to identify saturated products with Teikametrics
- Setup a ghost listing - Go to 'Inventory' and add product then click on 'Create new product.
- Using letter board, set product ID, product name brand, manufacturer, condition price and other settings, just like you would do it for a real listing.
- Go to 'Campaign' then add $1 (You won't be using it).
- Choose the product to advertise
- Put the default bid to $0.02
- Select all the suggested keywords, then click 'Save and finish.'
- In the campaign section, select the product
- Go to ad group, click on 'provide your own keyword.'
- To get your keyword, use keyword tools to search for top keywords. Using Viral Launch, for example, you type in the product name; then it would give you hundreds of list of keywords to use. Download it in a CSV format, open the file, then sort the keywords by priority score(click 'Data' then 'Filter' then click 'Descending'). Copy the top 100 keywords and put it in no.8 above.
After putting your own keywords, Amazon would show you suggested bids on each keyword. Remember the range of categories provided by Teikametrics? Now look at the suggested bids of your keywords and see which category they fall into.
If most of your keyword's suggested bids are within the range of $1 - $0.05, then you're good to go. The market won't get saturated soon.
If the keyword's suggested bids are within the range of $2 - $1, then the market is already in place, and if you want to go in you'll have to spend t face your competitors.
If the keyword's suggested bids are above $2, then it's a saturated product, and you MUST not go in.
Steps in summary
- Find your product
- Create a ghost listing
- Create a campaign
- Do your keyword research
- Input the keywords
- Look at the suggested bids
- Determine if they are saturated or not.
I hope this helps? With this method, you won't have to worry about having a product getting saturated while your shipment is on the way. It's a new hack, and you can use it to your advantage to skyrocket your sales.