How to Conduct Product Research
Conducting effective product research is a cornerstone of ecommerce success. For ecommerce managers, marketing leads, and founders, understanding how to systematically identify, evaluate, and select products that resonate with target customers is essential to scaling online marketplaces profitably. Product research informs everything from inventory decisions to marketing strategies, helping brands stay competitive and agile in a fast-evolving digital landscape.
This article provides a strategic, step-by-step guide on how to conduct product research with precision and insight. Drawing on industry best practices and emerging trends, it offers actionable advice to help you uncover winning products, validate market demand, and optimise your ecommerce growth. Incubate Agency, with over 50 years of combined leadership experience, shares expert guidance to reinforce your marketplace strategy and accelerate brand success.
The Importance of Product Research in Ecommerce Growth
Product research is the process of gathering and analysing data about potential products to understand market demand, competition, and customer preferences. It is a vital step before launching new products or expanding your ecommerce catalogue.
In 2025, product research has become more data-driven and sophisticated, leveraging tools like AI, big data analytics, and real-time market insights. Effective product research helps you:
Identify unmet customer needs and emerging trends
Reduce the risk of product failure by validating demand
Optimise product-market fit for higher adoption and sales
Stay ahead of competitors by spotting opportunities early
Maximise return on investment (ROI) in product development and marketing
A 2024 Deloitte study found companies investing in product research are 2.3 times more likely to outperform competitors in revenue growth and market share1.
Step 1: Define Clear Research Objectives
Before diving into data, set specific, attainable goals for your product research. These objectives should align with your overall business strategy and product vision.
Common research objectives include:
Validating a new product concept or idea
Identifying untapped market segments or niches
Improving existing product lines based on customer feedback
Exploring geographic or demographic expansion opportunities
Having clear objectives focuses your research efforts and ensures you ask the right questions throughout the process. For example, are you researching to confirm demand, understand pricing sensitivity, or evaluate competitor strengths?
Step 2: Analyse Market Demand and Trends
Understanding market demand is critical to selecting products with growth potential. Use a combination of quantitative and qualitative methods to assess interest and viability.
Tools and Techniques
Google Trends: Track search interest over time for product-related keywords.
Social Media Listening: Monitor platforms like TikTok, Instagram, and Twitter for trending products and consumer conversations.
Industry Reports: Access market data from sources like Statista, IBISWorld, and CB Insights for size and growth forecasts.
Ecommerce Marketplaces: Analyse best sellers and trending products on Amazon, Walmart, and niche platforms using tools like Helium10 or AMZScout23.
Emerging Trends for 2025
Personalisation and niche products are increasingly popular.
Sustainability and ethical production influence buying decisions.
Omnichannel retailing demands seamless product availability across platforms41.
Step 3: Conduct Competitive Analysis
Competitive analysis helps you understand the existing market landscape and identify gaps you can exploit.
Key Areas to Examine
Product Offerings: What are competitors selling? Look for product features, variations, and bundling strategies.
Pricing: Analyse price points and discounting patterns to position your product competitively.
Customer Reviews: Study feedback to identify pain points and opportunities for differentiation.
Marketing Strategies: Observe competitors’ promotional tactics, advertising channels, and messaging.
Use tools like Crayon or Kompyte for real-time competitive intelligence and monitoring1.
Step 4: Identify and Evaluate Suppliers
Reliable suppliers are essential to product success. Research and vet suppliers carefully to ensure quality, cost-effectiveness, and timely delivery.
Minimum order quantities (MOQs) and pricing tiers
Shipping costs and lead times
Supplier reputation and certifications
Flexibility for customisation or private labelling
Platforms like Alibaba, ThomasNet, or local trade directories can help you find and compare suppliers. Establishing strong supplier relationships also aids in managing inventory risks and scaling efficiently5.
Step 5: Gather and Analyse Customer Feedback
Direct customer input is invaluable for refining product ideas and features.
Surveys and Questionnaires: Use targeted surveys to understand preferences and pain points.
Focus Groups: Conduct moderated discussions to explore customer attitudes in depth.
Online Reviews and Forums: Analyse reviews on your products and competitors’ to detect common themes.
Social Media Polls: Engage your audience with quick polls to test product concepts.
Synthesising this feedback helps tailor your product development to real customer needs and expectations65.
Step 6: Use Advanced Analytics and AI Tools
In 2025, leveraging AI and big data analytics can dramatically enhance product research efficiency and accuracy.
Predicting future trends and consumer preferences using machine learning models
Conducting sentiment analysis across social media and review platforms
Segmenting customers into micro-niches for targeted product development
Optimising pricing and feature sets based on usage and behavioural data
Tools like Helium10, AMZScout, and AI-driven market intelligence platforms empower brands to move from intuition-based to data-driven decisions13.
Step 7: Validate Product Ideas with Small-Scale Testing
Before full-scale launch, test your product concepts with a limited audience or pilot run.
Launch minimum viable products (MVPs) to gauge interest
Run targeted advertising campaigns to measure conversion rates
Collect pre-orders or crowdfunding commitments
Use A/B testing on product features or pricing
This approach minimises risk and provides real-world insights to refine your offering before larger investment61.
Step 8: Monitor and Iterate Post-Launch
Product research is an ongoing process. After launch, continuously monitor sales data, customer feedback, and market shifts.
Track key performance indicators (KPIs) such as sales velocity, return rates, and customer satisfaction
Stay alert to competitor moves and emerging trends
Use insights to iterate product features, marketing, and distribution strategies
Ongoing optimisation ensures your product remains relevant and competitive in dynamic marketplaces6.
How Incubate Agency Can Elevate Your Product Research and Marketplace Growth
Incubate Agency specialises in delivering tailored, transparent, and strategic ecommerce consultancy. With over 50 years of combined leadership experience, we help brands:
Develop data-driven product research strategies aligned with business goals
Leverage advanced tools and market insights for competitive advantage
Optimise Amazon and other marketplace performance through expert management
Scale sustainably with clear, actionable growth plans
Learn more about our Amazon performance management and marketplace consultancy services designed to accelerate your ecommerce success.
Conclusion
Conducting thorough product research is fundamental to ecommerce growth and marketplace leadership. By defining clear objectives, analysing market demand, evaluating competitors, engaging customers, and leveraging advanced analytics, you can uncover winning products that align with your brand and customer needs.
This disciplined, data-driven approach reduces risk, enhances product-market fit, and drives sustainable revenue growth. Incubate Agency stands ready to partner with you to unlock your marketplace potential through expert product research and strategic execution.
Ready to scale your marketplace growth with a partner who gets it? Book your consultation now.