Doing product research for Amazon needs to be done carefully. Get yourself up and running with PL on Amazon with Stephen Somers.
PL Winner Percentage
6-7 out of 10 in Stephen’s case succeed.
Out of the 3, 1 sells slowly.
One is a loser. It will take 18 months to sell through.
They define a double initial investment within 9 months
Even a product that is selling 1 unit a day.
Click into products that don’t have reasons to avoid (checklist of 15)
Look at generic keyword/search term eg “plastic shoebox”.
Look at what number of results does Amazon return eg 1 of 2000 results.
Typically they like to have sub-1000 results.
Shows you the BSR of different products scrolling down the page.
What BSRs are the products on the first page
Sub 30,000 BSR
They don’t bother with tools that estimate sales data.
They want real data from own sales.
If everything is 100, 500 BSR, they get nervous because the market is big.
When the Results are low and the BSR is low, they get excited (big demand, modest competition).
But if BSR is around 40,000, 200,000 not so exciting.
Roughly 1200, 5000, 6000 BSR means…
Do the same with subcategories and related items:
Then you find “hidden gem” products.
It does take time- but by using those filters…
Putting in a generic/short tail keyword
You start to see opportunity with bad listings.
They used to sell a wholesale item (satellite box from Labgear) that was BSR 2 and literally hundreds of units a day sold.
Say it does £1000 in revenue per continent (US or EU), it’s still of interest!
That’s £30 a day!
It’s still making you £300 profit at 30%
It is better to build a business with 100 SKUs doing £1000 each month than one with 2 SKUs with the same revenue.
They follow Amazon’s TOS -one day the all caps etc. will get wiped out by Amazon.
Because selling lower competition products.
Conversion rates can be as high as 60%
For example a hunting mount (like a moose’s head) – a member had 60% conversion rate
“Bacon bandages” – had something like 7,000 searches a month
Yes, you can make outrageous money selling supplements.
But everyone is competing with you.
You have to bid against others for Amazon ads space.
Their volume on Amazon is really high BUT had to build a massive brand off Amazon to start with.
Ryan has a hair-replacement company
Amazon is just a distribution platform
Covers that go under the feet of a washing machine.
They do YouTube videos about this to be transparent
Example: stud finder – finding studs in the wall
Bought from the wholesaler at the time.
Listed poorly on Amazon
Then it suddenly took off
Stephen went back to the company asking for 2000 stud finders and company said they didn’t do them any more.
Developing expertise in
Robert will find 4-5 products in an hour now.
Yes, you need to create a brand, get a trademark etc.
But you can’t even get a trademark without trading!
You start with a “house brand name” – get it trademarked.
Then you put all the products under that brand.
Real high-end eCommerce is great when you know what you’re doing.
But it comes with lots to learn.
Get yourself up and running with PL on Amazon.
Get excited again – the fact you can trade in multiple countries.
Your goal is to amass as many products as you can.
Then you can start scaling your brand.
You’ve learned your skills
Taleb was an options trader who had some of his own money in the game and made himself “F…. You money”, retired and now writes books and lectures, essentially because he cares about it.
His simple contention is: having skin in the game means you make better decisions.
(And not having skin in the game leads to poorer decisions).
If Stephen had tried to do eCommerce with no knowledge, he would have failed.
Amazon takes care of a lot of things:
Stephen used to answer 150 Customer Service tickets a day.
Everyone was“Where is my item?”
They didn’t KNOW!
Whereas Amazon does track this all.
A friend of Stephen sold a high-end high priced kitchen cabinets for $2000-3000
That’s not what Amazon is designed for.
The price is so high, so you need videos etc. etc.
The profit is higher, so you can afford to drive traffic to it.
If it is $20, you better have a backend!
You need more interesting products – kitsch/weird
Dollar Shave Club for example.
Redirect to an affiliate link (ask Stephen)