The number one priority in starting a business on Amazon is selecting the right product. Having the right product from the start, accounts for about 80% of your Amazon success.
A common thread I find when individuals start selling on Amazon (or businesses) is not having a brand in mind that they can build a product range around.
Some people start selling and things start great by having a product that’s doing $10,000 – $15,000 per month, but they don’t have the end goal in mind. So when it comes to product number 2, they don’t have a complimentary product to release and have to start over the whole process again (rather than leveraging off your existing brand such as the packaging, email list, digital assests)
FUNDAMENTALS OF AMAZON PRODUCT SELECTION
Having a brand in mind when you start, so it’s easier to find complimentary products makes it much easier when you launch your 2nd, 3rd and 4th product.
To make it easier to find a brand, then you can look at:
- What are your interests/hobbies
- Think of the things you often buy
- Check your credit card statement and see what you bought recently
DETERMINE THE MARKET SHARE
There are different tools that can be used in identifying the market share of a category.
One of the tools that I commonly used identifying the market share of a product is Junglescout.
One of the rules in finding a product, is there should be sales of between $10,000 to $40,000 dollars per month. This is the combined sales of all the products being sold for that niche.
Thoughts to remember
- Avoid over estimating the market size and opportunities. Competing with the big players or household names will make it difficult for you to compete or enter in that market.
- Start with a market that has between $10,000- 40,000 market per month.
OUTLINE OF THE EPISODE
[01:49] Fundamentals of Product Selection
[03:04] Determine Market Share
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****** Full Podcast Transcription below *******
Here we are going to talk all things, Amazon speaking with Amazon FBA Expert from around the world to help you grow and build your Amazon business.
Hi guys. Peter here for another article of Coach AMZ. Well we talk things How to Sell on Amazon Australia and around the world. So today we’re going to talk about some interesting points about product selection and we’re looking at being successful on Amazon and provide you the best Amazon Seller Consulting Services and Amazon Listing Optimization Service. it really does start with getting the right product. I’ve talked about this before but realistically without a great product selection it makes it very hard to be in the right place long term.
The reason being it’s like the thought at the start that makes up 80 percent of your success you get that right then everything else is much easier to succeed. It still means you need to have great photography a great listing great packaging, e-mail sequence, launch strategy and a good Amazon Product Listing Optimization. You still need all of that but you had the foundations right from the start without getting the selection right. You don’t have that foundation to keep your product, off with to make it successful.
One of the common things I see and I was giving this up to 18 months ago is that people don’t start with a brand in mind. Take a look at building a random product and they don’t have things that they can build around it. The reason that becomes an issue is you may find a great product to start which is fantastic and you may get up to 10-15 thousand dollars a month relatively quickly which is great but then you come to look at your second product and unless you got the brand which can make complementary then you have to go through that whole sequence again with your launching listing all your social assets they don’t align there’s no synergy.
Whereas if you do build a brand we have a complementary product such as if you go to the steak knives you’ll often talk about maybe you look at something such as a steak knife sharpener or maybe even a cutting board or something complimentary makes it that much easier because when you get a relaunch for example you’ve already got a list of customers you can reach out to, in terms of getting reviews in terms of promotions you get the sales up. You may have some social assets already such as a Facebook page or a website and it’s easy just to add complimentary products where if it’s just a random totally different one you can’t read leverage all your assets you have. So it’s like starting over again. So all that hard work you do start you have to repeat again if you’re doing it in a different niche.
That’s why I say it’s really important as one of the fundamentals is really start with the end in mind to start something around a niche or brand that you are interested in. Well the easiest ways is a something you’re interested in or you know a fair bit about or just something that you and your peer groups know about maybe you look at your credit card maybe you look at how you spend time on your holidays where you go on weekends what you’re looking at night and if you find that it makes it that much easier.
So that’s one of the key fundamentals you want to consider when getting started. When you get through the product selection there is a bunch of things you need to consider such as liability, the size things like that. But the really key one that when you get the nuts and bolts to is the sales. There’s a few products out there, I only use Jungle scout but this is when the key ones you want to look at it and how big the market is because one of the issues I find helping businesses by offering Amazon Seller Consulting Services to select the new products or individuals launching their first product is they don’t understand the potential size of the market.