How to Do Product Research

Before importing from China, do thorough research! Check shipping, market demand, and your qualifications. 

The Critical Importance of Product Research When Importing from China

Regardless of what products you plan to import, conducting thorough research is the most crucial step in the process. Comprehensive product research—including pricing analysis, cost evaluation, and qualification verification—is essential for successful importing from China. In fact, it’s the foundation of any profitable import business.

Why Deep Product Research Matters

Many sellers make the costly mistake of skipping in-depth research, relying instead on gut feelings when selecting products. They purchase items that appear promising, only to discover later that:

• Shipping costs make the product unprofitable

• They lack necessary certifications to sell the item

• The product infringes on existing patents

These oversights can lead to losses amounting to thousands—or even tens of thousands—of dollars. Proper research helps you avoid these pitfalls by ensuring you:

1. Identify profitable products with good margins

2. Understand shipping logistics and associated costs

3. Verify legal requirements (certifications, patents, etc.)

4. Assess market demand before committing to inventory

How to Choose the Right Products

Whether you sell online or offline, we strongly recommend using proven e-commerce product research strategies and tools. These methods are far more effective than:

• Randomly selecting products that “look cool”

• Making decisions based on assumptions rather than data

• Failing to validate market potential

This approach is especially critical for new sellers, whether you’re operating an Amazon FBA business or a dropshipping store. The principles of selecting winning products remain consistent across business models.

Key Areas of Product Research

Before purchasing any product from China, ensure you investigate:
✅ Pricing & Profitability – Compare supplier costs with market prices
✅ Shipping & Logistics – Evaluate weight, size, and shipping methods
✅ Legal Compliance – Check certifications, patents, and regulations
✅ Market Demand – Validate demand through tools and competitor analysis

By prioritizing research, you position yourself for long-term success rather than costly trial and error.

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Here are four fundamental principles for selecting winning products to import:

1. Deliver Exceptional Customer Value
   The product should either fulfill an unmet need or provide an innovative solution to a problem. Most importantly, validate your product concept with your target audience. For example, if you’re considering selling makeup organizers as a male entrepreneur, actively seek feedback from female users to ensure your product truly meets their needs and preferences.

2. Prioritize Limited-Availability Products
   Focus on items that aren’t readily accessible in conventional retail channels. As emphasized in my previous guide on product sourcing from China, avoid commoditized goods like basic apparel, towels, or sunglasses that are dominated by major retailers. These saturated markets offer little opportunity for new sellers to compete effectively or maintain healthy profit margins.

3. Select Improved or Distinctive Products
   In today’s competitive marketplace, you’ll rarely find completely unique products. The key is to identify items where you can:

• Implement meaningful improvements

• Add creative enhancements

• Offer superior functionality

• Provide better value than existing options

4. Ensure Market Differentiation
   Rather than trying to invent entirely new products, focus on how you can differentiate existing ones through:

• Enhanced features

• Superior quality

• Better packaging

• More attractive pricing

• Unique bundling options

This strategic approach helps you stand out in crowded marketplaces while minimizing the risks associated with introducing completely untested products.

4 Essential Principles for Selecting Profitable Import Products

1. Create Value Through Customization

Transform ordinary products into premium offerings by adding unique designs and personalization. For instance:

• A basic bucket hat becomes a fashion statement with your exclusive artwork

• A standard makeup organizer turns into a luxury item with premium materials and smart compartments

This strategic customization allows you to:
✅ Command higher prices than competitors
✅ Build brand recognition
✅ Create products that can’t be easily compared on price alone

2. Focus on Market-Validated Products

For new importers, we strongly recommend:

• Selecting products with proven sales history

• Avoiding untested, speculative items

Why this works:

• Existing demand = lower risk

• You’re competing in a known market space

• Easier to forecast sales and profitability

Pro Tip: Your first import order should be a learning experience, not a gamble. Start with established products to understand the import process before innovating.

3. Improve Existing Products

Instead of reinventing the wheel, look for opportunities to enhance current products by:

• Adding practical features

• Using higher-quality materials

• Offering better packaging

• Creating smarter bundles

Example:
A standard phone case becomes premium when you:

• Add a built-in wallet feature

• Use eco-friendly materials

• Include a screen protector in the package

4. Leverage Product Research Tools

Recommended Tool: Jungle Scout

• Pricing: $49/month (7-day free trial available)

• Key Benefits:

  • Identify trending products across global markets

  • Analyze competition and demand

  • Validate product ideas before investing

Why it’s worth it: Even if you’re not selling on Amazon, Jungle Scout provides invaluable market insights that can prevent costly mistakes.

Where to Find Winning Products?

With these principles in mind, use these methods to discover profitable items:

1. Product Research Tools (Like Jungle Scout)

2. Alibaba/1688 Trending Sections

3. Social Media Trend Analysis

4. Local Market Gap Identification

Remember: The goal isn’t to find completely unique products, but to identify opportunities where you can add measurable value and differentiate yourself in the market.

Google search the Amazon best-selling new releases list

And also you can go to Google to search the Amazon best-seller list and best-selling new releases list, access to the Amazon page of these 2 lists, then you can choose the product category that you are interested in, to see if there’s any product can get your attention.

Google Trend

Google Trend is another way to know the latest and most popular products. It shows how often a particular term is searched for in Google over a specific time period and in different regions. With Google Trends, we can easily see what topics are trending and compare the popularity of different search terms.

Expanding Your Product Research Toolkit

Beyond Amazon-focused tools, dropshipping-oriented product research tools can provide valuable insights. These platforms specialize in identifying trending products through social media engagement metrics. A key indicator of a winning product is Facebook video ads achieving 50,000 to 100,000+ views, demonstrating strong market interest.

Efficient Product Pricing Research

Quick Cost Estimation Method

1. UGGAD Platform  from CHINA Ready-to-Ship Feature

   • Provides immediate, transparent pricing for small wholesale quantities

   • Eliminates supplier negotiation for initial research

   • Reflects realistic baseline costs (typically within 10-20% of bulk order pricing)

Important Note:
Be cautious of listings without ready-to-ship options, as these often display artificially low prices to attract inquiries rather than represent actual costs.

Retail Price Benchmarking

A reliable pricing formula for Western markets:
Manufacturer’s Price × 6-7 = Target Retail Price
This multiplier accounts for:

• Shipping and import costs

• Platform fees (Amazon/eBay/etc.)

• Marketing expenses

• Reasonable profit margin

For a comprehensive guide on Alibaba sourcing strategies, including supplier verification and negotiation techniques, refer to our dedicated Alibaba sourcing guide.

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Price Multipliers in Global Trade

The profit potential of importing becomes clear when examining price differentials between manufacturing costs and retail prices:

1. Typical Markup Examples

   • Phone cases:

     • Manufacturer price: $2 (Uggad)

     • US Amazon price: $14 (7x markup)

   • iPhone cables:

     • Manufacturer price: $0.30

     • US retail price: $3 (10x markup)

   • High-value items ($100 wholesale):

     • US retail price: $200-$300 (2-3x markup)

Platform Selection: Uggad vs. Domestic Options

While Uggad serves international buyers, China’s domestic platforms may offer lower prices but present different considerations:

• Uggad advantages:

  • English interface

  • International shipping options

  • Buyer protections

• Domestic platform considerations:

  • Typically lower prices

  • Requires Chinese language capability

  • Often higher minimum order quantities

Product Selection Strategy

For sustainable profitability:

• Wholesale businesses can succeed with sub-$10 products through volume

• E-commerce sellers should prioritize products with:

  • Retail prices above $20

  • Reasonable shipping dimensions

  • Clear value differentiation

Shipping Cost Realities

Transportation expenses can dramatically impact profitability:

1. Courier Services (FedEx/DHL):

   • Cost: $6-$7/kg (to US)

   • Transit: 7 days

   • Weight calculation uses the greater of actual or dimensional weight

Illustrative Example:
Shipping 10,000 paper cups:

• Actual weight: 45kg

• Dimensional weight: 105kg

• Shipping cost: $700 ($0.07 per cup)

• Manufacturing cost: $0.02 per cup

• Result: 350% shipping cost relative to product cost

Key Takeaways:

1. Price multipliers vary significantly by product category

2. Platform choice affects both pricing and order requirements

3. Shipping costs can erase margins for bulky, low-value items

4. Product selection should align with your business model and capabilities

Prohibited Items for Courier Services
Certain product categories face strict shipping limitations:

• Lithium batteries

• Liquids (including cosmetics and sanitizers)

• Powders

While specialized courier options exist for these items, they are:

• Difficult to source reliably

• Typically double the standard shipping costs

Sea Freight: The Practical Alternative
For restricted items like nail polish and hand sanitizer, sea freight becomes the only viable shipping method. Key considerations:

1. Cost and Transit Time (China to US Inland)

   • $200-$300 per CBM

   • Approximately 30 days transit time

   • 2 CBM minimum shipment requirement (~$600 total)

2. Regional Variations

   • Closer destinations to China benefit from:

     • Lower costs

     • Faster delivery times

3. Cargo Capacity Examples

   • 2 CBM can accommodate:

     • 4,000 units of 250ml hand sanitizer or

     • 10,000 bottles of nail polish

Business Implications
These shipping constraints present significant challenges for:

• Small businesses with limited order volumes

• Startups unable to meet minimum shipment requirements

• Sellers needing faster delivery times

Practical Application
Use these benchmarks to:

• Calculate per-unit shipping costs

• Evaluate product feasibility

• Make informed sourcing decisions

Qualification research

Except for researching the product price or shipping solutions, there’s also another very important thing you need to do very deep research, that is, are you qualified to import and sell this product?

1. Certification Requirements Research
Before importing, verify all necessary compliance documentation:

• Critical product categories requiring certificates of conformity:
  • Toys
  • Electronics
  • Medical devices
  • Personal protective equipment

Key Recommendations:

• Consult shipping partners (freight forwarders/suppliers) for specific requirements

• Research requirements even for small shipments to avoid customs delays

• Allow 2-4 weeks for certification processing

2. Intellectual Property Considerations
For Amazon sellers:

• Conduct thorough patent searches before ordering

• Verify marketplace-specific selling requirements

• Common pitfall: 78% of new sellers discover patent conflicts after ordering inventory

For independent stores:

• Lower risk for small operations

• Still recommend basic trademark checks

3. Complete Cost Breakdown
Understand all potential expenses before importing:

4. Realistic Profit Expectations
While manufacturer prices may suggest 600%-700% markups, actual net profits typically range:

• Standard products: 20%-30%

• Branded/unique items: 35%-50%

• After accounting for:

  • Marketing costs (15%-25% of revenue)

  • Operational expenses

  • Unexpected fees

5. Actionable Next Steps

1. Create a detailed cost spreadsheet using above categories

2. Verify all compliance requirements with suppliers

3. Conduct test shipments before large orders

4. Consult customs brokers for duty estimates

Professional Tip:
“Always budget 15% extra for unexpected costs – customs delays, certification updates, or currency fluctuations can impact margins significantly,” advises Michael Chen, Global Trade Specialist.

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Now you see, there are many important aspects that you need to research before you choose and import a suitable product to import from China. By applying our strategy, you will be one step closer to a successful trading business.

If you have any questions about how to do the product research, please contact us directly, we are happy to help you. After deciding on the product, then, how to find onlineand offline suppliers? We will see the next post.