Starting a business on online marketplaces is exciting. You dream of seeing your products fly off the digital shelves, orders coming in, and revenue steadily growing. But let me tell you something I learned the hard way: without proper research, your business can fail before it even begins.
When I officially launched my business on Marketplaces (Amazon India, Flipkart & Snapdeal) in April 2017, I had spent months studying the ecosystem before listing a single product. For me, that preparation wasn’t optional - it was the foundation that saved my business from costly mistakes and guesswork.
In this post, I’m going to take you behind the scenes of my pre-launch research and share the four pillars that guided every decision I made. If you’re an aspiring business owner or currently selling on marketplaces, these insights can save you months of trial-and-error and give you a competitive edge from day one.
Pillar 1: Market Research: Understanding Where You’ll Compete
The first pillar of research is market research. Before investing in inventory or listing products, I spent days exploring Amazon, Flipkart, Snapdeal, and even international marketplaces like Alibaba.
Here’s what I focused on:
Selling structures: How does each marketplace operate? What are their policies on returns, cancellations, and banned accounts? Understanding this helps prevent unexpected penalties.
Competition analysis: Which products dominate your category? Who are your direct competitors, and what are their strengths and weaknesses?
Logistics and supply chain: How are products stored, shipped, and delivered? Which packaging materials prevent damage? Who are the delivery agents, and what challenges do they face?
Differentiation factors: What makes a seller stand out? How can your listings rise above the noise?
Key Takeaways:
Before you invest in products, know the ecosystem inside out. Study how marketplaces operate, who your competitors are and what it takes to win visibility. This knowledge will guide your product selection, pricing, and even marketing strategies.
Pillar 2: User Research: Understanding Who You’re Selling To
Once you know the market, the next pillar is user research. A business cannot survive without understanding its users (stakeholders) - the buyers, the sellers and even the delivery agents.
A) Sellers
I spoke to over 50 sellers who were actively selling or had tried selling online. These conversations revealed:
The operational challenges of fulfilling online orders.
How returns, fake cancellations, and logistics issues impact profit margins.
Marketplace loopholes and how buyers exploit them.
Minimum budgets and resources required to start.
B) Buyers
Understanding buyers is crucial because even the best product won’t sell if your audience doesn’t trust or know about it. I asked buyers:
What motivates you to make online purchases?
What stops you from buying?
Which categories do you prefer?
How do you research and decide before buying?
These insights helped me pick products that buyers wanted and design listings that answered their questions upfront.
C) Delivery Agents
Finally, I spoke to delivery agents to understand the supply chain. I learned:
Which packaging materials prevent damage.
Which products are “friendly” to e-commerce.
How logistics affects order fulfillment and repeat purchases.
Key Takeaways:
Talk to real people in your ecosystem. Sellers, buyers, and delivery agents all provide unique insights that help you refine product choice, logistics, and customer experience.
Pillar 3: Product Research: Choosing the Right Products
The third pillar is product research. After market and user insights, I narrowed down products that had:
High demand but limited competition.
Easy procurement with flexible quantity options.
High profit margins due to lower logistics, packaging, and storage costs.
Minimal returns and cancellations.
I also studied product reviews on marketplaces to understand common complaints and gaps. This allowed me to choose products that solved real problems and provided superior quality.
Key Takeaways:
Product research isn’t just about finding what sells. It’s about finding what sells profitably and sustainably. Understand demand, cost, margins, and buyer pain points before committing to inventory.
Pillar 4: Legal & Compliance Research: Avoid Costly Mistakes
The fourth pillar is often overlooked but equally critical: legal and compliance research. Every marketplace has policies, and every business must comply with government regulations.
Taxes: What are the applicable taxes? Are there exemptions for certain products?
Marketplace compliance: What actions can get your account suspended?
Government regulations: Are your products compliant with local laws, packaging, and safety standards?
Ignoring this research can cost you money, reputation, or even the ability to sell altogether.
Key Takeaways:
Treat legal research as foundational, not optional. Knowing the rules helps you avoid mistakes that can cripple your business before it grows.
How Research Helped Me Strategically Launch
By thoroughly researching these four pillars, I was able to:
Prioritize the right marketplaces for each product.
Understand buyer preferences and tailor my listings.
Select products with higher margins and lower risk of returns.
Avoid legal and compliance pitfalls.
When I launched, I didn’t just list products - I launched strategically, armed with data, insights and confidence.
Actionable Steps
Here’s how you can replicate this approach:
Map your market: Study competitors, marketplace policies, and logistics.
Talk to your users: Buyers, sellers, and delivery agents. Listen carefully and take notes.
Analyze products: Demand, competition, cost, and usability. Focus on products with clear advantages.
Understand the law: Taxes, regulations, and marketplace compliance rules.
Start small, but research deeply. This preparation drastically increases your chances of early success.
Why this matters?
Launching a business without research is like walking blindfolded into a minefield. Every decision feels risky, and every failure feels personal. But with research:
You gain clarity, reducing stress and fear of the unknown.
You gain control, knowing why decisions are made and what to prioritize.
You build confidence, ready to face challenges knowing you’re informed.
Research is not just a step - it’s a mindset that transforms uncertainty into opportunity.
My Thoughts!
Many new sellers rely on guesswork, trends, or ads to kickstart sales. I learned that deep research beats shortcuts every time. By understanding the market, users, products, and legal landscape, you lay the foundation for a business that doesn’t just survive but grows strategically.
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If you want to understand how to pick the right products, build a compelling brand, and position your marketplace business for sustainable growth, book a one-on-one strategy session.