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August 13, 2015

#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.

2. CRITERIA

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!

To catch the next Episodes in the 10 part “Amazing FBA Startup System”, subscribe to the podcast – here are the instructions on how to do that:

HOW TO SUBSCRIBE TO THIS PODCAST

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For iPhone/iPad/iPod listeners – Grab your phone or device and go to the iTunes store and search “Amazing FBA”  This will help you to download the free Podcasts App (produced by Apple) and then subscribe to the show from within that app.  Every time I produce a new episode, you’ll get it downloaded right on your iDevice.

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For those who don’t have a mobile device – You can always listen to the show by clicking the audio file at the top of this page.

If you’re looking for an Amazon FBA UK Course and you’re UK Based – you should consider engaging with us. Having had years of experience now offering a course for selling on Amazon using the Private Label Amazon Selling Business Model and running London Based Masterminds for successful Amazon sellers doing in excess of £1,000,000 in revenue per year (in many cases 10 X that) – you’re in the right place! Check out the Private Label Process Amazon Selling Course here.

Watch How to find Killer Amazon Private Label Products

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Michael Veazey


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  1. Hi Michael, what are your thoughts on doing oversized items now? Since the Amazon marketplace has everyone looking for shoebox sized packages.

    I have been filtering through products on Amasuite (http://getamasuite.com) for a few days now. Can’t remember if you recommended it or not. Either way, I’m still finding it overwhelming the amount of data that Amazon has. I feel like a big data analyst haha.

  2. Hi Mitch, sorry for such a slow reply,
    Interesting question. Should you focus on oversized products? A few thoughts:

    Pros: Oversize does on one hand provide a barrier to entry, which is good.

    Cons: On the other hand, you have issues with Amazon limiting you storage (probably to just a few hundred items). Plus the extra costs of Amazon fulfillment – and of course the upfront investment needed (and thus the capital needed) is usually higher too because they are usually more expensive to produce.

    The answer is that you have to look at the numbers carefully.

    To work out projected P &L Project the sales (use JS chrome extension), get the amazon costs by using the FBA revenue calculator on a similar ASIN. THat’s easy.
    If it still looks viable, you need to go and get quotes for products (a quick starting point is to search on ALibaba but the upfront “official” prices are semi bullshit as we all know).
    Then you’ll need to work out freight costs, which is much more of a fiddle. For oversize products, you are likely looking at sea freight, so you’ll need to use a Freight Forwarder just to get quotes.

    If P & L looks good, you still need to calculate the investment needed upfront (product manufacture, freight, inspection in USA or UK, inbound shipping, giveaway costs) then look at your own capital and see if it’s enough. Or go raise some capital if you believe strongly in the product.

    A lot of time and effort. But that’s kind of the point! THat’s exactly why most people don’t bother.

    If you are short of time and capital, it’s not viable to do this. But then arguably, if you’re really short of time and capital, you shouldn’t be entering the Amazon Private Label market these days at all, at least not in the USA.

    Which marketplace(s) were you planning to enter? US? UK? Other?

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