Grading System
Every market and product gets a grade like B7 or A10. The letter shows opportunity strength. The number shows room for new sellers. Use grades to scan many markets quickly.
Overview
Researching Amazon markets means reading many signals across many products. Grades collapse that into a quick score so you can decide what to investigate next.
Every grade has two parts:
- A letter (A through F): how well the market or product scores across key factors. A is strong, F is usually not worth the time.
- A number (1 through 10): how much opportunity is available. Higher means more room for new sellers.
When you search "yoga mat" and see B7 on the banner, it means the market is solid enough on most factors (B), and there is decent room to test there (7). That is your signal to open the products list and then the Deep Dive Dashboard.
Grades help you scan and filter fast, but they are not your final call. Check the actual Deep Dive Dashboard data before you decide.
Market Grades
The market grade appears on the banner when you search any keyword on Amazon. It evaluates the entire niche, not a single product.
What Gets Evaluated
Launch Fast checks four metrics across all the products in the search results. Each metric is scored as ideal, watch, or fail.
| Factor | What it measures | Ideal | Watch | Fail |
|---|---|---|---|---|
| Average Price | Typical selling price in the niche | $50 – $250 | $30 – $50 or $250 – $300 | Below $30 or above $300 |
| Average CPC | Cost per click for advertising | Under $1.00 | $1.00 – $2.00 | Over $2.00 |
| Review Barrier | % of sellers with under 575 reviews | Over 50% under 575 | 30% – 50% under 575 | Under 30% |
| Average Revenue | Typical monthly revenue per product | $25K – $1M | $5K – $25K or $1M – $1.5M | Below $5K or above $1.5M |
Launch Fast also measures how much the top 3 sellers dominate revenue. This does not affect the letter grade. It only changes the number. If the top 3 control most of the revenue, the number is lower, which means less room for you.
How the Letter is Determined
The letter grade is based on how many factors fail.
| Grade | What it means | How to interpret |
|---|---|---|
| A10 | All factors ideal | Every metric is in the ideal range. Pricing, CPC, reviews, and revenue are favorable. |
| B10 | No fails, some watch | No hard blockers, but one or more metrics are borderline. Most opportunities land here. |
| C10 | One factor fails | One important signal is off. A single fail can still be meaningful depending on which metric missed the range. |
| D10 | Two factors fail | Two metrics are weak. You usually need a clear edge to proceed. |
| F1 | Three or more factors fail | Multiple red flags across key factors. Usually skip unless you have a strong reason to test quickly. |
How the Number Works
The number (1–10) reflects how much of the market is available and not dominated by top sellers. A market graded B7 has no failing factors (B), and the top 3 sellers control about 30–40% of revenue. That leaves about 60–70% still available (7).
| Number | Available market share | What it means |
|---|---|---|
| 10 | 90%+ available | Revenue is spread across many sellers. More room to launch. |
| 7–9 | 60%–90% available | Competition is present but still workable. |
| 4–6 | 30%–60% available | Top sellers control meaningful share. |
| 1–3 | Under 30% available | Top 3 control most revenue. |
Why These Thresholds?
The ranges are calibrated for private label sellers entering Amazon. Here is the reasoning behind each factor.
-
Average Price: $50–$250 ideal
- Markets below $30 average often have tight margins after fees and ads.
- Above $300, unit volume usually drops and capital requirements rise.
- The $50–$250 range usually gives the best balance of margin, demand, and scaling.
-
Average CPC: Under $1.00 ideal
- CPC is your cost to acquire visibility.
- Under $1.00 usually supports profitable launches.
- Over $2.00 can drain margins unless your listings already convert exceptionally well.
-
Review Barrier: Over 50% under 575 reviews ideal
- When most sellers have fewer than 575 reviews, new entrants often have more room to win.
- If under 30% are below that threshold, incumbents tend to control trust and sales history.
-
Average Revenue: $25K–$1M ideal
- Below $5K average can be too small for sustainable testing.
- Above $1.5M often indicates heavy competition and higher capital intensity.
Product Grades
Inside the Deep Dive Dashboard and on product cards, each listing gets a grade. Product grades use the same letter-and-number pattern, with listing-level metrics. Product grades check these metrics:
| Factor | Ideal | Watch | Fail |
|---|---|---|---|
| Revenue | $5K – $100K/mo | $2K – $5K or $100K – $200K | Below $2K or above $200K |
| Price | $20 – $70 | $15 – $20 or $70 – $150 | Below $15 or above $150 |
| Reviews | 0 – 500 | 501 – 1,000 | Over 1,000 |
| BSR | 1 – 100,000 | 100K – 300K | Over 300K |
The letter is determined the same way. The number is different: for products, it reflects listing age. That number estimates how quickly a listing can gain momentum after launch, so you can compare how a newer seller might realistically catch up. A product graded A9 has all four metrics ideal and is relatively new. C2 has one failing metric and has been listed longer.
| Number | Listing age |
|---|---|
| 10 | Under 3 months |
| 7–9 | 3 – 12 months |
| 4–6 | 1 – 3 years |
| 1–3 | Over 3 years |
Market Grade vs Product Grade
Two grades, two questions. Use both together. Start with the market grade. If it's B or above, then evaluate product grades inside that market.
| Market Grade | Product Grade | |
|---|---|---|
| Where | Deep Dive Dashboard header | Insert cards, product table |
| Evaluates | The entire niche (averages across products) | One specific listing |
| Factors | Avg price, avg CPC, review barrier, avg revenue | Revenue, price, reviews, BSR |
| Number means | Available market share | Listing age (newer = higher) |
| Answers | Is this niche worth entering? | Is this product a good benchmark? |
Best Practices
Use grades to narrow your research:
- Screen markets first, then open the Deep Dive Dashboard for B+ markets only.
- B grades are often the best opportunity zone.
- Watch the number, not just the letter. B7 is usually better than B2.
- Understand the failing factor before rejecting a C-grade option.
Frequently Asked Questions
Common questions about how grades are calculated and how to apply them in research.