Market Research for Sourcing Products in 2023 and More News

News Digests

Last updated March 4, 2024

ByJake Pool

Reading time 3 mins

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Happy Valentine’s Day! Here’s a statistic for you: According to a National Retail Foundation’s 2023 Valentine’s Day Spending Survey, Valentine’s Day spending in the United States is expected to reach approximately $26 billion this year. That’s an increase of $2 billion over last year, so we hope your online store is getting a piece of the 🥧.

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In Friday’s newsletter, we reported on more layoffs coming in the ecommerce world. eBay announced a 4% reduction in staff, joining a growing list of platforms who also made cuts recently — Amazon, Wayfair, BigCommerce. 

Efficiency — after two years of pandemic spending — seems to be the trend for large retailers. What does that mean for sellers? It’s important to get on board with programs that can help you optimize your online store right now. And that starts with sourcing your products. 

To help you adapt, we’re continuing our focus on store efficiency through product sourcing and taking a closer look at Market Research. Before you order your next product, read our tips to be sure you’re not wasting money on the wrong product. 

Market Research Tips for 2023

If you’re not doing your due diligence on products you stock in your store, then you could be bleeding revenue. Follow these tips to ensure you’re looking at the right factors when researching a product.

1. Identify your target audience:

If you can’t identify your audience, then don’t buy a product. Leverage tools like Google Analytics to gather information about your target audience. Consider factors like age, gender, income, location, and interests.

2. Research your competition:

It is important to understand your competition and how they position their products in the market. Search for similar products online and analyze pricing, marketing strategies, and product features. This will give you a good understanding of what works in the market and what doesn’t.

3. Determine the potential demand for your product:

Once you identify your target audience and research your competition, determine the potential demand for your product and its market — known as product and market viability. Use tools like Google Trends, Ahrefs, and social media analytics to gather data on the popularity of your product idea.

4. Conduct customer surveys:

Customer surveys are an effective way to gather information about your target audience and their needs. You can use online survey tools such as SurveyMonkey or Typeform to create and distribute surveys. Ask questions about their needs, preferences, and opinions on your product idea. Then, use this information to refine your inventory and make it more appealing to your target audience.

5. Analyze market trends:

Last, as a seller, you must stay up-to-date on market trends and understand how they may affect your inventory. Monitoring industry news, reading market reports, and attending trade shows will help you stay ahead of the competition and make informed decisions about your product.

For example, here’s a trend Amazon sellers should know:

Between 2022 and 2027, fashion and apparel is forecast to be Amazon’s fastest-growing product category, with sales expected to grow at a compound annual growth rate of 12.4 percent.

Also in the News:

• Online prices fell for the fifth consecutive month. Adobe Analytics.

The Chinese government is reporting a logistics rebound for January. XinhuaEnglish.