10/04/2022
Everyone is searching for the golden egg, an ideal product, a life-changing product. Well, guess what? This product is neither going to appear magically in front of you nor anyoneโs ever going to put it on a plate for you. You will have to swim through the ocean of 500+ million products on Amazon and make an informed decision after diving in.
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Product hunting is by far the most crucial stage and if you donโt spend considerable time here you WILL fail! There are 2 kinds of sellers, the ones who make decisions based on their narrow observations and the ones who follow strict criteria.
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Product & Product Strateg~~
Every product is special and has its own market destiny. Just like the uniqueness of each product, the โgo-to-marketโ strategy for each will also be unique. Any product can be a success if the right strategy is adopted.
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High Demand & Low Competition
Itโs absolutely mandatory for us to find a product that has a high or even medium demand.Demand will determine how much time our product will take to sell off once it is up for sale on our Amazon storefront .
IโLL also be looking at our competition and the number of competitors in total to analyze if this will be the right market for us to dive into. The number of competitors can reasonably be compared with the depth of the river. The more the competitors, the more the depth of the river and more chances for our product to drown. So our product would have to swim more in order to come to the surface level for visibility.Usually, it is recommended for beginners to start with products having Opportunity Scores 6, 7, 8, 9 as they represent products in high or medium demand with medium or low competition. Weโll also have to analyze the total revenue, price, reviews, sales per day..
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Tools
Helium10. Jungle scout.
In some market we use Egrow too to hunt the product
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. Keyword Search Volume
This should stand second on our checklist in terms of its importance and relevance. We should always treat keyword search volume exactly the same way like a Sales & Marketing Professional looks at footfall in a mall or a market place. The more the people enter the mall or in our case are searching for the keyword (broad or specific) the more likely the product is going to sell and thus, judged as high in demand.
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Seasonality
The product that we select should not be a hot selling item for just one season or is in demand once a year. The product demand trend can easily be checked using Google Trends by punching in the product keywords. Products with low seasonality will first of all be unpredictable wrt their sales and secondly will only deliver for a specific duration. So, itโs a no go area for the new sellers especially because it will only be a battleground for factories or whole sellers in these categories.
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Monitoring the Consistency of Product, Keyword Search, Seasonality, checking their results once it is like taking a snapshot of the situation for that particular moment. We need to keep this in our mind that whatever results we get are for that specific time only. So we need to set a specific time, spanning from weeks to a month or maybe more than that based on the product, just for monitoring the product behavior and see whether it is behaving consistently over a period of time. Using โKeepaโ will also be helpful here to see the age of our competitors and the selling price patterns over time.
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Product Title
When using Jungle Scout or AMZ Wordspy, we should not make a mistake by using the product title but we should use the main keywords while analyzing the product being investigated. Itโs a common rookie mistake to get excited with JS Opportunity Scores or AMZ Wordspy ratings by using incorrect terms.
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Healthy Margins
This is quite often a pitfall for newbies. They get excited looking at product results erroneously and finalizing a product declaring it to be a hot seller. What they fail to take into account is the fact that how much will they be able to source the product for and how much are they going to sell it for. We are putting so much time, effort and money not to earn cents but dollars and lots of them. So I recommend that the selling price of the product should be between $15 โ $40 (at least for newbies). In order to check margins and have a reasonable idea, we can check the FBA calculator.
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Average Revenue & Average Monthly Unit Sales
As per experienced sellers, the average revenue for the targeted product niche should be more than $5,000. This is an indication of the sales volume, the total market in terms of $ the product is currently operating within. The bigger the cake, the bigger a slice that can be cut and the bigger the bite we can take. Similarly, another indication of the sales volume is that the number of units, if 300 units of the product are sold, there might be enough room for a new entrant to squeeze into.
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Reviews
Reviews constitute social proof, the more the merrier. Why is the number of reviews critical after all? First of all, we know that Amazon has laid a strict hand on reviews lately and that raising reviews is one โhelluvaโ of a job itself. Unless we are glued up to a product and that we have ample time & money on us,We should avoid products with reviews in the bracket of 500 โ 5,000. Put yourself in the customerโs shoes, there is some sense of security and safety when you see some number of reviews. โThat figure of 2,500 reviews has gotta mean something, I mean there might be some paid/fake reviews but they canโt be that many, can they?โ These are some questions that usually cross by your mind.
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Small & Light Weight
My advice is to choose a product which is of less than 1 pound weight and does not have extraordinary dimensions. Why do I suggest this? Sellers are extremely sensitive about their expenses at least in the beginning and they usually get frustrated about surprise costs that just uselessly pop up every now and then. Heavy and large-sized products will increase the transportation cost which is computed based on volume.
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Sellerโs Rank
Although no one except Amazon truly knows exactly how the sellerโs rank is calculated but based on experience, we can define it as a number that denotes the popularity of a product within its category. Highest the BSR of the product, higher the sales volume .
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Margin for Improvement
We need to go through the comments of new and established brands within our product category to see any suggestions from customers or any improvement points they want the brand to improve upon. Innovate the product, add value in the market place and provide a solution to the customers.