#3 – Amazon Product Research
This episode is where the rubber really hits the road:
Part 1 of a 7 Part Series:
“The Amazing FBA Amazon Business Launch System “
This System describes the step-by-step process of how I got from zero to $20,000 in sales within 6 months with Amazon FBA and private labelling – and how you can do the same, faster & more efficiently than I did, by learning from my mistakes and successes!
Part 1: Basic Research Process:
1. MINDSET. Before you start research, bear in mind:
-You’re looking for a Market of Customers not one Product. So choose 2-3 categories first & browse within those.
-Although we avoid too much of it, expect some competition. Absence of competition usually means there is no profit to be made.
-Have clear goals, including Sales (number of units sold and $sales)
-Plan for the long term. Delay making profit; Focus on gaining market share from the competition, & building a customer base & a brand.
a. DEMAND: sales of 10 units/day=300 per month.
Best Seller Rank (BSR) probably therefore 500-2000, depending on your chosen category.
b. COMPETITION: no more than 500 reviews (pref 300) for the no.1 product on page 1; and no more than 100 reviews for the “slot” you are targetting on page 1 (for example 6th position) for your main keyword
c. PRICE- between $15 & $40.
d. PROFITABILITY – 30-50% gross profit.
For 33% profit margin, source product (Total Landed Cost) at 1/3 of selling price. For 50%, source product at 1/4 of selling price.
e. WEIGHT & SIZE
Weight under 2 lbs, preferably 1 lb.
Size: longest size under 18 inches (ca. 45 cm)
3. RESOURCES MENTIONED
a. Jungle Scout (Chrome browser plugin). It exists in 2 versions now: $87 basic version (what I bought originally) and for $147, a Pro level which includes extra features: (just click Jungle Scout see these). I suggest if budget permits, get the Pro level, otherwise stick to the basic level for now.
b. Google Trends (Silicone Spatula example) (for seeing seasonal variation in product demand)
c. Alibaba.com (for quick profitability check)
As ever, if you have any questions, Click here & ask the questions, & I promise I’ll try to answer them in the next podcast!
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