E-Commerce Market  Insights

3 Ways to use Amazon’s Product Opportunity Explorer (Part 1 of 2)

By David Oberlander – November 12, 2022

If you’re an Amazon seller and you’re not yet familiar with Amazon’s Product Opportunity Explorer, you’re missing out. It’s a great tool for finding products niches, search terms and product targets for advertising, and even insights to product development. Below is the first of three actionable ways to make use of data in the Product opportunity Explorer.

Identify and Research Potential Niches

Amazon refers new product ideas as niches, so keep this in mind as I will refer to niches often when talking about this tool. To start off, you’ll need to enter a search term that relates to the niche you are interested in. Once you enter the search term, a list of relevant niches will populate In my example, I will use the search term “salt pepper grinder.”

In the list of niches, you’ll find useful data fields to give you a better idea about the sales volume of the niche, trend, sales volume, average price, and distribution of clicked products. Looking at the data, salt and pepper grinder set looks best to me because of strong search volume and growth (consumer demand) with a price range I feel I can be competitive in, so I’ll proceed with the niche, “salt and pepper grinder set.”

The first tab of five it’ll direct you to see is the Products tab. This is a list of top clicked on products for this niche, accompanied with data that will give you insights about what drives CTR (click through rate), and if clicks are concentrated.


What Drives CTR

You can draw conclusions about what drives CTR for this product niche by referring Click Share to Average Selling Price, Total Ratings, and Average Customer Ratings.

Looking at the electrified salt pepper grinder sets data, I can conclude reviews are a large part of what drives CTR. The top clicked through item has the lion share of CTR (21.6%) in this product niche, and it has almost twice as many reviews compared to the runner up item (9,119 vs. 5,851). With the price range of the products about relatively equal at about 10% deviation ($28.1 vs. $25.79), I can conclude shoppers prefer to go with a highly reviewed item, even if there are comparable products that are 10% cheaper.

CTR Concentration

Checking the contentration of CTR around top rated BSR products will indicate how distributed sales are in this niche. The more distributed the sales are, the easier (cheaper) it is to enter this niche, and vice versa. Looking at the data, the top ranked products do get most of the click through, and the runner ups tend to only get 3-4% (Top #1s- 21.6%/7.9%/4.7%; Next 3- 4.5%/4.3%/4.2%). This indicates to me this is a winner takes all category and I need to plan to rank my product top row in page 1 or expect to have suboptimal CTR and sales.

Next, let’s look at the Insights tab.

Here you’ll see more data that indicates product success rate, position/brand dominance, and listing quality.

Product Success Rate

Looking at the # of New Products Launched vs # of Successful Launches numbers, you may think that’s weird, I thought this category would be difficult to get into. I have to admit, this is a bit deceiving on Amazon’s part. Note the top line in the page, “All metrics in the table below only include the top products that cumulatively received 80% of clicks after customers entered any search term in the niche.”

This means the numbers shown above do not include the new product launches that did not get within the 80% of clicks on Amazon. You can assume those sharing the 20% of CTR is a long list of products where most are now in the Amazon graveyard. RIP. Nevertheless, there is a takeaway from the Product Success Rate. If you can get your new product within the top 80% of CTR, you can expect $4,000 of sales per (Amazon’s metric of successful).

Position/Brand Dominance

Similar to the CTR concentration, this metric tells us on an overview level how concentrated the clicks share are for Top 5 Products and Top 5 Brands. In our example here, we have 40.8% for position and 56.3% for Brands. This tells me a sizable number of shoppers are looking for high ranked and trusted products, and even more are shopping on brands. Ideally, I prefer to have both figures under 50%, where lower the better.

Listing Quality

The Customer Experience section and Average Number of Reviews figure tells me how formidable the existing product listings are from current sellers. The higher the average number of reviews, average review rating, and average listing quality, the more difficult it is for me to compete in this niche. At 4,470 average reviews, 4.51/5 average review rating, and 98/100 listing quality, I can conclude this niche is a highly competitive with established listings.

This concludes the first ways to use Amazon’s Product Opportunity Explorer in identifying and Researching potential niches. In the next part, we’ll discuss ways to use Product Opportunity Explore to add search terms and product targets to your advertising, and customer review insights to develop products.

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David Oberlander

David is the co-founder of One Apollo, an e-commerce business and service provider based in Santa Ana, and the founder of Ameratec, an architectural hardware distributor based in Hong Kong. David lives in the U.S. but has a decade of experience living and working in China. His interests are macroeconomics and geopolitics, focusing on the United States and China.

David is the co-founder of One Apollo, an e-commerce business and service provider based in Santa Ana, and the founder of Ameratec, an architectural hardware distributor based in Hong Kong. David lives in the U.S. but has a decade of experience living and working in China. His interests are macroeconomics and geopolitics, focusing on the United States and China.