Grading System
Every market and product in Launch Fast gets a grade like B7 or A10. The letter tells you how strong the opportunity looks. The number tells you how much room there is for new sellers. Use grades to quickly scan markets and focus your research on the best ones.
Overview
Grades give you a quick read on any market or product so you can decide what's worth a closer look.
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 your time.
- A number (1 through 10) — how much opportunity is available. Higher means more room for new sellers.
When you see B7 on a market, it means the market looks solid on most factors (B), and there's decent room for a new seller to compete (7). That's your signal to dig deeper.
Grades help you scan and filter fast, but they're not your final decision. Always check the actual data before you commit to a market.
Market Grades
The market grade evaluates the entire niche — not a single product. You'll see it when you analyze a market in Market Research.
What Gets Evaluated
Launch Fast checks four metrics across all the products in a market. 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 doesn't affect the letter grade — it only changes the number. If the top 3 control most of the revenue, the number drops, meaning less room for you.
How the Letter Works
The letter grade is based on how many factors fail.
| Grade | What it means | How to read it |
|---|---|---|
| A10 | All factors in the ideal range | Every metric looks good. Pricing, CPC, reviews, and revenue are all where you want them. |
| B10 | Nothing failing, but some factors are borderline | No hard blockers, but one or more metrics are close to the edge. Most good opportunities land here. |
| C10 | One factor is failing | One important signal is off. Could still work depending on which metric missed. |
| D10 | Two factors are failing | Two metrics are weak. You'd need a clear edge to make this work. |
| F1 | Three or more factors are failing | Multiple red flags. Usually skip unless you have a strong reason to test. |
How the Number Works
The number (1–10) reflects how much of the market is available — meaning not dominated by the top sellers.
A market graded B7 has no failing factors (B), and the top 3 sellers control about 30–40% of revenue. That leaves roughly 60–70% of the market still up for grabs (7).
| Number | Available market share | What it means |
|---|---|---|
| 10 | 90%+ available | Revenue is spread across many sellers. Plenty of room to launch. |
| 7–9 | 60%–90% available | Competition exists but it's still workable. |
| 4–6 | 30%–60% available | Top sellers control a decent chunk. Possible but harder. |
| 1–3 | Under 30% available | Top 3 control most of the revenue. |
Why These Thresholds
These ranges are set for private label sellers getting into Amazon. Here's the thinking behind each one.
-
Average Price: $50–$250 ideal
- Markets below $30 average often have tight margins after fees and ads.
- Above $300, unit volume usually drops and you need more capital upfront.
- The $50–$250 range usually gives enough margin to absorb fees and ads while still moving units.
-
Average CPC: Under $1.00 ideal
- CPC is your cost to get seen.
- Under $1.00 usually supports a profitable launch.
- Over $2.00 can drain your margins unless your listings already convert really well.
-
Review Barrier: Over 50% under 575 reviews ideal
- When most sellers have fewer than 575 reviews, new entrants have more room to compete on equal footing.
- If under 30% are below that threshold, established sellers tend to control trust and sales history.
-
Average Revenue: $25K–$1M ideal
- Below $5K average per product is often too small to build a real business around.
- Above $1.5M usually means big players with big budgets.
Product Grades
Each individual product also gets a grade. Product grades use the same letter-and-number pattern, but with listing-level metrics instead of market averages.
| 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 as market grades — count the failing factors.
The number is different: for products, it reflects listing age instead of market share. A newer listing gets a higher number, which tells you how quickly a seller gained traction. A product graded A9 has all four metrics in the ideal range and was listed recently. C2 has one failing metric and has been around for years.
| 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. Start with the market grade. If it looks promising, then check the product grades inside that market.
| Market Grade | Product Grade | |
|---|---|---|
| Where you see it | Market Research dashboard and saved markets | Product Explorer and Market Deep Dive products table |
| What it 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) |
| Question it answers | Is this niche worth entering? | Is this product a good benchmark or competitor? |
What If a Grade Looks Bad?
A bad grade doesn't always mean "walk away." It means there's something worth thinking about before you commit. Here's how to evaluate each factor.
The price grade is low — but can you still profit with your cost of goods and ad spend? Run the numbers in the Profit Calculator. A lower price point can work if your supplier costs are low enough.
Revenue looks low — but a smaller market with less competition can still work. You don't need a massive market if you can grab a solid piece of it. Less revenue often means fewer established sellers fighting for it.
Cost per click is high — but is your product a high-ticket item? If your margins are strong, the ad cost might still be affordable relative to your profit per sale. High CPC markets sometimes have less competition from smaller sellers.
Lots of competitors have 500+ reviews — it'll take longer to build trust. But the market isn't off limits. Can you stand out with better images, a sharper price, or an angle competitors haven't covered?
The top sellers dominate revenue — but are they actually good? Sometimes dominant sellers have weak listings with bad images or few reviews. Look at their actual pages before you write off the market.
A grade is a starting point, not a verdict. A bad grade in one area means "think about this before you commit" — not "don't sell here." Your specific situation matters: your capital, your experience, your supplier relationships, and your risk tolerance all factor into whether a market is right for you.
Best Practices
Get the most out of the grading system with these tips.
Screen markets by grade first. Only dig deeper into markets graded B or above. This saves you from spending hours analyzing markets that have obvious problems.
B7 is usually a much better opportunity than B2. The letter tells you the market is healthy, but the number tells you whether there's actually room for you in it.
C means one factor is out of range — but which one? A high CPC in a high-ticket market might be fine. Always check what's actually failing before you move on.
A good market grade with weak product grades can be a great sign — it means the niche is healthy but current sellers aren't that strong. That's your opportunity.
Frequently Asked Questions
Common questions about how grades work and how to use them.
Next Steps
Now that you understand grades, put them to work in your research.