Finding a high-potential product on Amazon is one of the most critical steps for anyone looking to launch a private label business. Identifying a product with strong demand, low competition, and healthy margins requires careful research and the right tools. One of the most popular and effective tools for Amazon product research is Helium 10’s Xray. This tool provides powerful insights into a product’s sales volume, revenue, reviews, and competition levels, making it easier to discover lucrative product opportunities.
In this blog post, we’ll outline the steps to find a high-potential product using Helium 10’s Xray tool, guiding you through the entire research process from start to finish.
Step 1: Brainstorm Product Ideas and Niche Selection
Before diving into product research, it’s important to begin by brainstorming potential product ideas or niches that interest you. The goal is to focus on areas that align with your interests while also presenting profitable opportunities on Amazon.
Tips for Brainstorming:
- Browse Amazon Best Sellers: Explore Amazon’s Best Sellers section to find top-selling products in different categories. This is a great way to identify potential products that are already performing well.
- Explore Social Media Trends: Platforms like Pinterest, TikTok, and Instagram are excellent for spotting trending products that could be sold on Amazon.
- Think About Everyday Needs: Consider products that solve common problems or fulfill everyday needs. Niche products that serve a specific audience often have less competition but still offer strong demand.
Once you have a few product categories or ideas in mind, it’s time to move to the next step: analyzing them with Helium 10’s Xray tool.
Step 2: Install Helium 10 Chrome Extension and Access Xray
To begin your product research, you’ll need to install the Helium 10 Chrome Extension, which includes the Xray tool. This tool allows you to view real-time data about any product or niche directly from Amazon’s website.
How to Install:
- Visit the Helium 10 website and download the Chrome Extension (click here).
- Once installed, log in to your Helium 10 account, and you’ll see the extension icon in your browser.
With the extension installed, head to Amazon.com and start searching for products related to your brainstormed ideas. The Xray tool will allow you to instantly gather data about products you’re interested in.
Step 3: Conduct Initial Product Search on Amazon
Now that you have the Xray tool ready, it’s time to start your initial product search on Amazon. Here’s how to find relevant products that could be potential private label opportunities:
Steps to Follow:
- Search for Broad Keywords: Use broad keywords related to your product idea or niche. For example, if you’re interested in launching a kitchen product, search for terms like “kitchen gadgets” or “cooking utensils.”
- Look for Potential Opportunities: As you browse through Amazon’s search results, focus on products that catch your attention based on price, reviews, and potential demand.
After performing an initial search and identifying products of interest, use the Xray tool to dive deeper into the data.
Step 4: Use Xray to Analyze Product Metrics
The next step is to use Helium 10’s Xray tool to analyze the product data of the listings you’ve found. The Xray tool provides valuable insights into the following key metrics:
Key Metrics to Analyze:
- Monthly Sales Volume: This is one of the most important factors in determining product demand. Look for products with a steady monthly sales volume of at least 300 units. A higher sales volume indicates strong demand.
- Monthly Revenue: Check if the product generates at least $5,000 in monthly revenue. This ensures that the market for the product is large enough to generate a healthy profit.
- Review Count: Products with fewer than 100 reviews indicate low competition, giving you an opportunity to enter the market without having to compete with well-established sellers.
- Review Rating: A product with a low average rating (below 4 stars) may signal dissatisfaction with the current options available, presenting an opportunity to launch a better-quality version.
- Price: Focus on products priced between $20 and $50. This price range tends to offer strong profit margins and is affordable for most customers.
How to Use Xray:
- After searching for a product on Amazon, click on the Helium 10 Chrome Extension and select the Xray tool.
- Xray will generate a table of data for all the products on the search results page, showing monthly sales, revenue, reviews, and more.
- Sort the table by sales volume, revenue, or review count to quickly identify high-demand, low-competition products.
Example:
Let’s say you searched for “yoga mats” on Amazon. After running Xray, you notice that several listings have high monthly sales but low review counts, suggesting strong demand but room for a new player in the market. This could be a great opportunity to launch a high-quality private label yoga mat.
Step 5: Check Historical Trends with Xray
One important aspect of product research is understanding whether demand for a product is consistent throughout the year or if it is seasonal. Helium 10’s Xray tool provides historical sales data that can help you spot trends and avoid seasonal pitfalls.
How to Analyze Historical Trends:
- In the Xray tool, click on the graph icon next to a product’s sales data to view its sales history.
- Look for patterns such as spikes in sales during certain months (which could indicate seasonality) or consistent sales throughout the year (which is ideal for year-round profitability).
Example:
If you notice that sales for a “garden hose” spike during the summer months but drop significantly in the winter, you’ll know that this is a seasonal product. On the other hand, a product like a kitchen blender that sells consistently year-round may offer a better opportunity for steady sales.
Step 6: Validate Profit Margins
Once you’ve identified a product with high demand and low competition, it’s time to validate the profitability. This involves calculating your cost of goods sold (COGS), Amazon fees, and potential profit margins.
How to Validate Profitability:
- Contact Manufacturers: Use a platform like Alibaba to find manufacturers and request quotes for producing the product. Be sure to factor in shipping, packaging, and any import duties.
- Amazon FBA Fees: Use the Helium 10 FBA Fee Calculator to estimate Amazon’s fulfillment and referral fees. These costs can range between 15-30% of your selling price.
- Target Profit Margin: Aim for a 30% profit margin after deducting all expenses. For example, if your selling price is $30, you should aim to make at least $9 in profit per unit.
Validating your profit margins ensures that the product is not only in demand but also financially viable for a private label business.
Step 7: Evaluate the Competition
After validating demand and profitability, it’s important to do a deeper dive into the competition. Review your competitors’ listings to see how you can differentiate your product.
What to Look For:
- Customer Reviews: Read negative reviews to identify pain points. If multiple customers complain about the same issue (e.g., poor durability, missing features), you can develop a better product that addresses these concerns.
- Product Listings: Analyze how competitors present their product through titles, descriptions, bullet points, and images. Look for ways to improve, such as adding better lifestyle images or clearer product descriptions.
- Branding Opportunities: Think about how you can create a unique brand identity around your product. Packaging, logos, and your brand story can help you stand out in the marketplace.
Step 8: Launch Your Product
After conducting thorough research using Helium 10’s Xray tool and validating the product’s potential, you’re ready to move forward with sourcing, branding, and launching your private label product on Amazon.
Key Steps to Launch:
- Place a Small Order: Start with a small order to test the market and gather customer feedback.
- Optimize Your Listing: Use high-quality images, keyword-optimized titles, and clear product descriptions to make your listing stand out.
- Use Amazon PPC: Run a small-scale Amazon Pay-Per-Click (PPC) campaign to drive traffic to your listing and boost sales.
Conclusion
Finding a high-potential product on Amazon using Helium 10’s Xray tool is a powerful and data-driven process that helps private label sellers identify lucrative opportunities. By analyzing key metrics such as sales volume, competition, and profitability, you can uncover products with high demand and low competition, setting the foundation for a successful private label business.
