How to find niches using Amazon keywords research tool ?
2019-01-23

Keyword research is an important process in your Amazon product journey. Most of FBA sellers use keyword research tool to find the most important keywords which can bring more traffic to their product listing. They use this to optimize the listing after the product has been launched. But should they use keyword research AFTER the launch. Of course not! Keyword research can be a valuable decision maker during product research. A product with good keyword scope can help save lots of money, ad spend and enable easier launching and ranking effort for well informed sellers.


When you find two products that are worth selling on Amazon, their profits are similar, but your FBA budget is limited, you can only choose one of the products to Amazon sales, how would you choose?


Here is a way to choose the product you should sell by analyzing the competition of keywords.


Competition Evaluation:


Competition of keywords  =(Search Volume * Purchase Rate)/(Number of Product)


The larger the value of Competition of keywords, the better. It is more easily to get traffic.


For example, let’s consider two keywords: “book light” and “hot glue gun”,  First we use the keyword research tool of sellerSprite to find the search volume for these two keywords.




Then use the product research tool of sellerSprite to get the Number of top selling products ranked by sales volume under the subcategory of "Tools & Home Improvement", Note that the category of product research must be consistent with the category of the keyword search volume and the same month.




In this way, we bring the found numbers into the formula and calculate, “book light”=(176687 * 8.01%)/297=47.65

In the same way, we can find the search volume and number of products for "hot glue gun" :






Bring the found numbers into the formula and calculate, “hot glue gun”=(119248 * 8.95%)/88=134.83

Obviously, the Competition  value of "hot glue gun" is bigger than “book light”,  "hot glue gun" is the product you should choose to sell.


Can we use this competition evaluation only for product or niche selection ? No – it can be used for extensive amazon research.


For ex, It can help us to choose the right Product Category and the best Browsing Tree.

As we know, choosing the right Product Category and the best Browsing Tree directly affects any keywords for which you are attempting to rank as they work hand in hand. 

No doubt you know the internals of keyword optimizations such as the content for your Title, Bullets and Descriptions, plus the backend search terms. You may even be gaining momentum on your Sponsored Ads. But if your product is placed into the wrong Category, you could be throwing your money away and limiting your product exposure dramatically.

Going back to our topic, how can sellers use Competition Evaluation of keywords to choose the right product category?


Let us explain it with an example: If we should choose the correct category for "Binoculars for kids" at amazon.com, at first we use the keyword research tool of SellerSprite to find where is the traffic of this keyword in, look at the following picture,it is mainly distributed in "Toys & Games", "Sports & Outdoors" and "Electronics".




Then we use the Top Sales Monthly tool to find the number of products in the corresponding category. 


In the last step, do you remember the formula for The value of Competition of keywords?

Yes, here it is :

Competition of keywords  =(Search Volume * Purchase Rate)/(Number of Product)

Under the "Toys & Games" category, The value of Competition for "Binoculars for kids" is: (16482*9.60%) / 27 = 58.6

Under the "Sports & Outdoors" category, The value of Competition for "Binoculars for kids" is: (3797*12.12%)/32=14.38

Under the category "Electronics", The value of Competition for "Binoculars for kids" is: (3264*10.94%)/1827=0.19

Obviously, the product of "Binoculars for kids" is best in "Toys & Games", because such traffic is much larger, but the competition is less.