Bytesense boasts its own proprietary methodology to help customers on Amazon and other e-commerce platforms achieve more effective product selection. The company conducts thorough market research prior to product development, with each product featuring tailored solutions addressing pain points specific to different markets. Partnering with Bytesense allows for more targeted product selection and successful product launches to platform customers.
Product selection is the lifeblood of both Amazon and independent store operations. Choose the right product, and subsequent operations will be twice as effective with half the effort; choose the wrong one, and even the strongest promotion capabilities will struggle to break through. Drawing on practical data from multiple categories—such as projectors in the Middle East and beard combs (a niche category in the US)—we’ve summarized a universal, actionable product selection framework. This guide will help you avoid red ocean traps and accurately lock in high-potential winning products for 2025.
The first step in product selection is determining "whether the track is worth entering," focusing on three core dimensions: scale + growth + supply-demand balance.
Use third-party tools (e.g., SellerSprite, Sorftime) to capture the total monthly sales volume and GMV of the top 100 products in the category. For example, the US beard comb category has monthly sales of over 83,000 units and an average monthly sales volume of $120,000, making it a "small but beautiful" track. Meanwhile, Middle Eastern projectors have monthly sales of 25,000-30,000 units and a GMV of 8-10 million AED, qualifying as a "blue ocean booming" track.
Compare the sales growth rate over the past 2-3 years (e.g., projectors have a compound annual growth rate exceeding 35% from 2023 to 2025). Combine Google Trends and Amazon Brand Analytics (ABA) trends to judge the category life cycle. A growth rate exceeding 20% with no signs of decline indicates an upward phase; a growth rate below 5% with a saturated total number of products is likely a red ocean stock market.
Calculate the "ASIN supply-demand ratio = total number of ASINs / total monthly sales." The lower the ratio, the more traffic new sellers can capture. For example, the supply-demand ratio of the mid-range quality projector price segment is only 0.015, far below the industry average of 0.02, making it a golden gap with "high demand + low competition." For the beard comb category, the total number of products is 836, with a supply-demand ratio of approximately 0.01, also offering entry opportunities.
Avoid categories with strong seasonal dependence (e.g., Christmas decorations) and prioritize "year-round necessities + small peak seasons." For instance, projectors have peaks during Ramadan (February-March) and camping season (November-December), while beard combs see increased demand for moisturization in winter. This ensures basic sales while capitalizing on peak season dividends.
No matter how good the market is, new sellers will struggle to break through if competitive barriers are too high. Focus on concentration + new product survival rate.
Pay close attention to CR10 (market share of the top 10 products), brand concentration, and seller concentration. A CR10 below 40% and brand concentration below 60% indicate scattered competition (e.g., projectors have a CR10 of only 35%). If CR10 exceeds 60% (e.g., some 3C accessories), the top players hold a monopoly, and new sellers should proceed with caution.
Analyze the survival rate of products that entered the top 100 list in the past 6 months. A survival rate exceeding 30% means the category still offers breakthrough opportunities (e.g., the new product survival rate for projectors is 40%). If the new product survival rate is below 10% and the top products have been listed for over 2 years, the brand moat is deep, and such entry is not recommended.
Prioritize categories where Chinese sellers account for 50%-80% and Amazon Basics accounts for less than 10% (e.g., Chinese sellers account for 75% of projectors, and Amazon Basics accounts for only 5%). In categories dominated by Chinese sellers, supply chain advantages can be leveraged; if Amazon Basics accounts for too much (e.g., over 20%), it will be difficult to compete with the platform in terms of traffic and price.
The core of product selection is "meeting unmet needs," not blindly following trends. The key is to do a good job of demand decomposition + pain point clustering + compliance localization.
Break down user needs by "core functions + scenario adaptation." For example, projector needs include "large screens for family Majlis" and "portability for desert camping," while beard comb needs include "anti-static + easy cleaning." Extract core selling points from the titles and bullet points of top products to avoid feature bloat.
Deeply analyze negative reviews of the top 50 products to quantify high-frequency issues. For example, 35% of projector negative reviews are about "overheating shutdown/noise," and 28% are about "sand and dust ingress." For beard combs, focus on issues like "too dense tooth spacing causing beard pulling" and "allergenic materials." Targeted solutions will create differentiation.
Different markets have clear compliance requirements. For example, Middle Eastern projectors require TRA/CITC certification, BS1363 plugs, and pre-installed Shahid streaming services; US categories need to comply with standards such as FDA (beauty and personal care) and CPSIA (baby products). Even the most popular products will be removed if they lack compliance certification.
Refer to the average rating (≥4.2 stars) and number of reviews of top products (e.g., the top 50 projectors have an average of over 1,200 reviews). New sellers should set a "quality passing line"—for example, projectors should truthfully label ANSI lumens, and beard combs should have a return rate controlled below 3% (lower than the category average of 3.16%)—to avoid falling into a vicious cycle of negative reviews due to quality issues.
The ultimate goal of product selection is profitability. It is necessary to calculate "traffic costs + operational thresholds + profit margins" in advance.
Use tools to query the CPC and ACOS baseline of core keywords. For example, the CPC for core projector keywords in the Middle East ranges from 2.2-3.5 AED, with an ACOS baseline of 25%-35%. If the ACOS exceeds 40% and cannot be covered by product premium, the traffic cost is too high, and profitability will be difficult.
Check the visual configuration coverage rate of the top 100 products (A+ pages, main image videos, 360° rotating views). If the coverage rate exceeds 80% (e.g., 85% of projectors have A+ pages and 90% have main image videos), visual investment is required; if the coverage rate is below 50% (e.g., some niche tool categories), rapid growth can be achieved through visual optimization.
Conversion rates (CVR) vary greatly by category and region. Refer to regional characteristics—the Middle Eastern market has a CVR of approximately 2.2%-3.0%, while the US market has a CVR of 1.5%-2.5%. New sellers must ensure that after optimizing the product listing, the CVR is not lower than the category passing line (e.g., ≥2.3% for projectors); otherwise, the product or listing needs to be adjusted.
Core formula: Gross profit margin = (Selling price - Procurement cost - Logistics cost - Platform commission - Advertising cost) / Selling price. Prioritize categories with a gross profit margin of ≥40% (e.g., the average gross profit margin for beard combs is 52.79%, and 40%-45% for mid-range quality projectors). Categories with a gross profit margin below 30% rely on scale to succeed, which is difficult for new sellers to sustain.
Even in red ocean markets, winning products can emerge. The key is to find "gaps not covered by others," focusing on three core directions:
Avoid the "low-price involution zone" and "high-end no-man's land," and focus on the middle price band with "high sales + few ASINs." For example, projectors avoid the low-price war of 100-300 AED and position themselves in the mid-range quality segment of 400-800 AED; beard combs avoid the low-price zone of $0-10 and focus on mid-to-high-end quality models of $15-35.
Do not blindly pile on features, but "strengthen core functions + solve pain points." For example, projectors abandon unstable autofocus and choose electronic focus with a low failure rate, while enhancing dustproof and heat dissipation; beard combs simplify redundant designs and focus on optimizing tooth spacing and anti-static materials.
Develop "exclusive configurations" for niche scenarios. For example, projectors are designed with "PD power bank charging + lightweight body" for camping scenarios and "short throw + dual speakers" for home scenarios; beard combs are designed as "foldable portable models" for travel and "models with cleaning brushes" for home use, accurately matching niche needs.
There is no "absolute winning product formula" for Amazon product selection, but following the 5-step process—market screening → competition assessment → product adaptation → profit calculation → differentiation positioning—greatly increases the probability of success. The core logic is: do not chase "popular winning products," but find niche tracks with "unmet needs, breakthroughable competition, and guaranteed profitability." Make decisions based on data, not intuition.
The key to successful product selection is never "picking the right product once," but establishing a replicable product selection logic. When you can stably judge track potential, decompose user needs, and calculate profit bottom lines, winning products will naturally become an inevitable result.
Ready to kickstart your 2025 product selection journey? Start by applying these 5 steps to analyze your target category—you’ll be one step closer to finding your next winning product!
