In setting your sales targets, it is as simple as saying that you want to make $50,000 a week, or a $100,000 a week.
The process is finding your niche first, determines the market size of that niche and then determines what is achievable from the niche (it’s got of reverse engineering).
KNOWING THE MARKET SIZE
It is easier to know your sales target if you already have an idea of what the market size is of your chosen niche
There are lots of 3rd party tools that can help, one of it is Jungle Scout.
JungleScout is a 3rd party tool that allows you to check the market size for a specific product,
This tool will allow you to know the market size of a product and it is accurate to about 80-90% all the time.
EXPANDING YOUR BUSINESS
Once you already start selling a product and decided to expand your business, you must stick with the niche you started with.
Remember you should only expand when your base product is already established and is already generating sales. It is easier to increase your incremental sales when you have already maximized your market share.
Aiming for at least 15-20% market share for your base product is the ideal level before investing in a new product.
Investing in new products takes time and money as you need to create new photos, ads, branding, packaging and launch assets which all add up
OUTLINE OF THE EPISODE
[01:05] – Knowing the Market Size
[03:15] – Expanding Your Business
If you are an expanding business, want to launch or Amazon or just work with a trusted partner but wonder how to sell on Amazon Australia and around the world, then please contact us to see how we can help
Listen to Our Podcast and make your Amazon Sales Shine
****** Full Podcast Transcription below *******
Here, we are going to talk all things that Amazon speaks with Amazon FBA Expert from around the world to help you grow and build your Amazon business with the best Amazon Seller Consulting Services. Hey guys! Welcome to another article of Coach AMZ where we talk all things How to Sell on Amazon Australia and the USA specifically hoping you be the best possible seller you can on Amazon with the help of Amazon Seller Consulting Services.
Today, I want to talk about what’s the target you should set in selling on Amazon whether you’re an established brand doing seven or eight figures a year or with the first starting out with your first product trying work out what you should be aiming for. Now we’re going to talk about here is not what you’re aiming for in terms of dollars you should be saying you should be selling 10000 a week 20000 50000 a week 100000 a week of 500000 a week. But, what you should be selling in your niche is all what Amazon Seller Consulting Services will help you to get through.
So, depending what your product you are selling you may be selling steak knives. It’s very easy to work out how big that market share is if you have a tool like jungle scout you can go into Amazon. Look at the product you’re looking for. For example, steak knives you put the key words and generally the top sellers appeared at the top excluding the sponsored ones and if you use tools like Jungle scout you can quickly find out the market size of those products and it’s accurate to about 80 to 90 percent.
So, if you’re selling steak knives, you know in Amazon find the top page of sellers, put in a key word and you run jungle scout pretty quickly work out what that market size is in a month. So, some products like vitamins that the market huge it’s 1 or 2 million a month just for one type like maybe Vitamin C maybe fish oils those ones can sell up to 1 to 3 million a month.
Or some other categories are much smaller. For example, steak knives maybe 100 or 200 thousand dollars a month. But once you find out what the market size is, you can quickly determine what your goals should be and know How to Sell on Amazon Australia.
I find in the smaller niches say some nations selling 20-30000 a month. One person can take up to 50, 60 even 70 percent of the market. But once you get into the niches of the markets where it’s one to two million plus per month. It’s not common. It’s not often that people have over 30 to 40 percent market share, then the top guy.
So, using that, that can quickly give you a guide in terms of what you should be achieving. Now, it’s unlikely in your first month of launching, you will be the top seller in a competitive niche if you are selling in a niche it’s any doing 20000 a month within three months you can easily be the top seller if you have an excellent launch platform offered at Amazon Seller Consulting Services an amazing product excellent imagery and top customer reviews.
So, that’s what’s possible within a very short time frame. So, that gives you a basis of working out how you should approach your figures, I wouldn’t sort of start saying I’m selling 50 or 100 thousand dollars a month. I’ll be saying what can I achieve in one niche with the number of products and then launch with. So, if you’re starting off with one product and your selling steak knives and you know that market’s about 200000 a month and the top guys and he got 30 or maybe 40 percent then you can easily aim for I say within a short period of time we one or two months you take up 10 percent market share.
But, to do that you should have an excellent launch and then you say okay within two three months I want 10% market share. So, when we do 20000 a month then I find product 2 and 3 on to be adding on an extra ten or fifteen thousand dollars a month. But, what I would recommend as I have talked with Amazon FBA Expert is when you are expanding always expand within the same niche and have a pop on of products you can do expand before you’ve already got your base product established.
So, if your market share is $200,000 a month and you are not above 10 percent yes you are above 20,000. I would look at getting more gains within that niche before moving to a new product a complimentary one. The reason I say that it’s much easier to increase your incremental sales with existing one when you haven’t maximized the market share rather than launching new product to the market.
So, the market size is 200,000 you’re at 10 I’ll say get to at least 15 or 20 before bringing that new product and that really allows you to maximize all your assets, all the tools you already built before investing in a new product. Because when you invest on a new product. You need to update the packaging you need to do another launch you need to do a listing more photography and to do it properly it does take time.
So, I recommend get your first product to lease that sort of 15 20 percent market share and really aim hard, work hard to get that in terms of getting that I’ve got the podcasts about how to launch a product and it’s really important to launch it in a concerted way. A few things make a huge difference in terms of conversions, imagery. I talk about that on the prior one.
So that’s what you will be looking at before we even expand. So, when people work with businesses come along and I say I will be doing $50,000 a week on Amazon or we’re currently in $100,000 a week on Amazon we only get to 150. You really want to look at the niche because if they’re performing at a very low part of that market maybe 5 percent market share they can get those gains really quickly to go from 5 to 10 percent.
Doubling your business is not hard on Amazon, if you know the right tools and techniques have you look at their business and they’re already at 50 percent going from 50 to 75 which is only a 50 percent increase in sales takes a lot more work. So that’s why it’s really important just to take a look at where at the moment the market in terms of working out what your sales can be.
So today is a shorter podcast but I just want to ends that for a few people. Because there are people who’s been coming to me and say hey Peter we’ve we want to take our business to this amount. How quickly can we do it? Always work with businesses and our goal is to get you a 50 percent increase within six months but that will depend on your maturity in the marketplace.
But hopefully today I’ve given you really clear direction on how to forecast what your sales should be and the timing around when you want to start looking at bringing new products. Guys, were helping a lot of businesses now in Australia the US and if you go to business and you want expand or launch on Amazon and I’ll love to hear from you guys drop me a note we’ll schedule call and I’ll see how we can really add value to your business to get it firing.
Have a great day and always remember keep moving forward. Take action.