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Guide · analysis

Market and product analysis before a marketplace launch

Daniel Pawłowski · Amazonway · 9 min read

Most problems we see on marketplace accounts start before the first listing: a product chosen because it sells well in the store, a market chosen because it is “the biggest”, a price set because “the competition is cheaper”. This guide orders pre-launch analysis into six steps, in the order you make the decisions. Each step has its own chapter or article where we go into detail.

Short answer

Pre-launch marketplace analysis is six questions in order: is there demand (product potential), who you compete with (competition), where to sell (marketplace and country), which products first, at what price, so you are not competing on price alone, and does it add up (profitability). The result is not a forecast but a hypothesis to check in a short test with a clear criterion.

1. Product potential is there demand 2. Competition who you compete with 3. Marketplace and country where to sell 4. Product selection which ones first 5. Pricing without a price war 6. Profitability does it add up Market test: list from existing stock, with a deadline and an exit criterion test results feed back into steps 1–6
Six steps of analysis before launching on a marketplace

1. Product potential: is there demand

The first question is not “is the product good” but “is anyone looking for it on this platform, in this country”. The basic sources, available without paid tools:

  • Marketplace search suggestions. The phrases Amazon or Allegro suggests after you type a category name show how buyers actually name the product.
  • Category bestseller lists. They show what sells now and how many similar products compete for the same spots.
  • Seasonality from Google Trends for the country. A product that sells two months a year needs a different stock plan from a year-round one.
  • Your own data: store sales, enquiries from abroad, traffic from a given country.

Once your brand is registered with Amazon, Brand Analytics adds Amazon's own data on searches and shopper behaviour. All the data sources, with how far to trust each, are in the chapter on product potential analysis.

2. Competition: who you compete with for the customer

On a marketplace, competition is in plain sight; you just need to know what to look at. For each product you are considering, check the first page of results for the main search term:

  • How many sellers offer the same product. If several, you compete for the buy box, where price including delivery mostly decides. See our piece on the buy box.
  • Number and content of reviews. Products with hundreds of reviews are hard to catch in a month, but competitors' negative reviews tell you what customers did not get, which is where you can stand out.
  • Ad density. How many first-page spots are sponsored. Lots of ads means expensive traffic.
  • Prices and their stability. Whether category prices are stable or someone keeps undercutting.

This is product competition, not company analysis. Three market types and an entry strategy for each are in the chapter on marketplace competitor analysis.

3. Marketplace and country: where to sell

Choosing a channel is in practice choosing a customer, and each additional country brings its own legal obligations and costs. The whole decision, with a decision tree and a channel comparison, is in the chapter on choosing a marketplace and country, with details in separate pieces:

4. Product selection: which to list first

Once you know where you sell, run your range through five filters: platform approval, dangerous goods, margin after fees, size and weight, and returns and EPR. The first wave is simple, profitable products with no paperwork. The full method, with a margin-versus-complexity matrix, is in what to sell on Amazon.

5. Pricing: how not to compete on price alone

A price war starts where product and seller are interchangeable. The levers that let you hold price are a unique offer, bundles and variants, price architecture, value shown on the product page, and delivery. Plus two limits: in the EU you may not impose a minimum resale price, and Amazon removes the buy box from offers with significantly inflated prices. All of it is in the chapter on marketplace pricing without a price war.

6. Profitability: does it add up

The last step is the arithmetic on one product: price, commission charged on the price including delivery, logistics fees, advertising, returns and legal obligations. If the margin does not hold in that calculation, it will not hold at scale. The method is in our piece on Amazon profit margin.

A test instead of a forecast

The most careful analysis is still a hypothesis. So we end it with a test: listing from existing stock, without tying up capital in stock abroad, with a deadline and an exit criterion set upfront. Four weeks is usually enough to see whether the product gets traffic and converts. The results feed back into steps 1–6: sometimes the price changes, sometimes the market, sometimes the whole product list.

How Amazonway handles it

We go through this process with every client before launching on a new marketplace, from the product list and competitor analysis to the profitability calculation and test plan. The scope is on our competitor analysis and strategy page, and if you would rather hand over the selling straight away, see marketplace account management.

FAQ: market and product analysis

Where should pre-launch marketplace analysis start?

With demand: whether buyers on the platform and in the country are looking for your product. Then competition, channel choice, the product list, price and the profitability calculation.

Do I need paid tools for the analysis?

Not to start. Marketplace search suggestions, bestseller lists, Google Trends and your own sales data are enough to rule out products with no chance. Paid tools help at larger scale and for more precise estimates.

How do I check competition on Amazon?

On the first results page for the main search term, check how many sellers offer the same product, how many reviews they have and what customers write, how many ads there are and how stable prices are.

How long should a product test on a new marketplace last?

Usually four weeks when listing from existing stock. Set the deadline and the assessment criterion before launch, not after a month without sales.