How to do market analysis through amount of ratings and reviews?

2023-12-04| Help Center|views(324)|Comments(0)

Average number of ratings: The average number of ratings for products within the sample range of market 

Example: (Sample number: top 100) The total rating of the top 100 products sold at the end of last month was 5000, then the average rating is 5000/100=50

The average rating indicates the difficulty of creating new products in niche.

If the average ratings of products in a category is high, to launch new product here, they also need more ratings to compete with them, which makes it difficult to create.

Average star rating: the average star rating of products within the sample range of this market.

Example: (Sample number: top 100) For the top 100 products,  The average star rating reflects the buyer's satisfaction with the product in this category. If they are 4.3> then it is supposed good, if it is 4.5> then we can suppose excellent. 

If the rating average of products in a category is high, it means that buyers are highly satisfied with the products, and for the sellers returning or exchanging products will be relatively low. But on the other hand, it also shows that the quality of products in this category is generally high, and it will be more difficult to differentiate or improve  new product.

In contrast, if the average star rating is low, it means that buyers in this category are not satisfied and the seller may face a higher risk of return or exchange rate. We could suppose it good metrics for someone is starting this category. Nee to analyze market and reviews, find out core problems, develop new product by removing those problems and start selling. 

A high product rating and a low product rating also represent two different product selection strategies.

1. Category: Sports Bottle; Average Star Rating: 4.7:

Categories with high rating average have more dispersed sales distribution, difficult to develop  new product lower requirements for new products, and low entry opportunities.

2. Category name: Chin support strap; Average star rating: 3.6:

Categories with lower average star ratings: can develop new product, and easy entry opportunities.

When selecting products, you can use the rating average as a special indicator. If the star rating of the category or product is very low, but the sales volume is good, or the upward trend is obvious, it may be a good market.

For example, product selection conditions: a certain category + monthly sales greater than X + FBM delivery + rating less than 3.7

If a market has trends in all aspects, but buyers still pay, is the demand very strong?

It is recommended to combine keywords to see the overall market trend.

User Comments

  • Add photo
All Comments(0) / My Comments
Hottest / Latest

Content is loading. Please wait