The key to selling and having a winner on Amazon comes down to Product selection… it accounts for 80% of the success factors to have a winning product that dominates the market.
Today we talk about the foundations of what makes a great product
1. Market size: $10,000 – $40,000
2. Less than 700 product reviews
3. Priced between $20-50
It sounds simple, though a lot of people get caught and focus on Amazon optimization or fantastic imagery, without getting the fundamentals of the right product.
If you don’t have the right product, with strong margins, decent market size and not too much competition, no amount of optimization or Amazon launch strategies will help
Enjoy and look forward to hearing of your successful product selection
OUTLINE OF THE EPISODE
[01:11] Selling on Amazon Australia
[02:42] Getting the buy box
[03:00] New person in Amazon
[04:52] Importance of patent search
[05:22] Products to avoid
[06:55] Amazon profit calculator
[07:53] Bonus tip
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****** Full Podcast Transcription below *******
Hey guys welcome to Coach AMZ, and this week we’re going to go back to basics about product selection. The reason we want to go back to basics is we’ve had a few inquiries this week from people and businesses. To find out how, Get Your Free 7 Step Checklist on how to exponentially explode your sales on Amazon.
When we move on Amazon and they said what about this product what about that product. So, I thought okay this is good time. Sounds like there’s a lot of people asking about what products are suitable for Amazon. So, I will go through that today. We’ve talked about this before that success on Amazon really comes down to product selection and realistically 80 percent of success on Amazon comes down to having the right product or the other stuff is just nice to have on top of it.
It really comes down to quality product and good Amazon Product Listing Optimization where there’s enough demand and it’s a good seller. So, if you are an existing business then assume that it is an existing business and then people who want to private label, this principle applies of both. If you’re selling on Amazon in Australia we’re talking today about How to Sell on Amazon Australia because it doesn’t have all the functionality such as small and light in the US which means selling cheaper products is suitable people sign off in Australia.
You really want a product that’s minted that 15 dollars and above that’s not oversized and doesn’t have a lot of complexity and I’ll get through those shortly. So, the reason we say over 15 dollars is anything below that it’s hard to get at least 25 30 percent margin we recommend that to businesses to say well you really want to make at least 30 percent per product you’re selling on Amazon and if you’re under 50 dollars it’s hard to achieve that.
The other one is you don’t want to be oversize, there’s a link in the article about what the actual sizes are and rates. But once you get over the standard size in Amazon really putting their fees into storage and picking pack fees which doesn’t make it feasible. So, the first thing to do is make sure it’s over 15 bucks at a minimum and not oversize or too bulky if it is bulky oversize that’s fine but you need a high price point to cover the fees.
The other bit if you’re a business you need to make sure your private label if you’re resell of a product go on Amazon isn’t your best market because it just gets in the Buy Box. With the experience working in the United States, Europe and Australia, we have a diverse set of skills and experience working with different cultures and clients. So, there’s 10 sellers and you’re the resell of a same product you say the steak knives and you sell the same one as everyone else it just comes down to pretty much the lowest price and Amazon considers all these other characteristics in terms of who determines who gets a buyer box when your reseller but basically comes down to price.
So, if you’re a business on Amazon recommend it’s your own brand. It’s just a resale of a brand that everyone else is selling then it’s really hard to differentiate and unless you’re going to be the cheapest there you’re not going get the buy box. And what that means until the buyer box is with resellers seven people will be selling the same product. Who is it? The buy box that means it is your stock in your credit for the sale.
So, if you’re a business definitely recommend that you need a private label with your own brand if you get on Amazon they’ll want to consider as well when sold on Amazon if you’re a new person coming Amazon is only up your own brand. The few things I always recommend to people in this also applies to businesses. First, we with our Amazon Seller Consulting Services will make sure the market share is around 10 to 40 thousand dollars a month. The reason we say that is anything under 10000 it’s hard to get enough revenue for your product to make it worthwhile and anything above 40000 often is a whole bunch of competition you doing some real Amazon FBA Expert and professionals who do Amazon on day in day out it harder on that market share the way you work out that the market share is using a tools such as jungle scout or Amazon. What it does actually shows you the sales per month for each product.
So, if you’re selling steak knives for that exact type of steak knives or that little niche then you add up all the sales of the sellers and let’s work out how big the market share is there the two characteristics you want to look at is the reviews. We normally don’t recommend products when there’s more than six or six or seven hundred reviews the top seller. The reason being it’s really hard to compete once you get over about 700 reviews of the top seller but that’s saying if the top seller has seven hundred and the next guy only has maybe 150-200 reviews then it’s quite easy to sort of jump in there and get some of that market share.
The other thing you want to look at is what are the quality of the listings also the perfect Amazon Product Listing Optimization as well if someone’s really dominating and in 80-90 percent of that market share it is probably best passing on it, is really hard to get that take him over it often enough market share maybe the top guys got 40 next guys got 30 then 10 and 5 and 2 and 2 and to get a hundred percent because that means an easy get that sort of the next become the second tier and eventually the top one. Some guys got like 90 percent. It’s really hard to knock them off.
So, there are a couple of the characteristics you want to consider if you’re going on Amazon. The other one is and this is just a personal preference. There’s a whole bunch of ones we recommend against in terms of category so you want to make sure if you do in new product you do a patent search so that there’s not a patent out there because if you get caught the patent product Amazon will pretty much shut down your listing. What happens is the person with the payment will send a letter to Amazon that order your product check it and if it’s the same they want Amazon and you pretty much get your listing shut down and there’s nothing you can do go to get it reopened unless a person is shut it down allows it say there is no really even right of reply.
Today we move on to the different strategies for your product recommended by our Amazon FBA Expert. So, first always do a patent search to make sure it’s okay. Also avoid products with product liability so anything like back braces or anything that you know can if something goes wrong you could be sued for, we avoid ones like that. Also, products with lots of moving parts or even batteries electrical. There’s different compliance laws if you actually bringing in products with batteries or electrical. If you’re getting it from China often they don’t have all the correct regulation and compliance we recommend against those and also perhaps with lots of moving parts reason I say that is a simple product like a steak knife it really is a cheap quality and get inspected.
But if you in a product with lots of different moving parts so many different variables can go into making them go wrong and you don’t recall your whole batch to get off there before the negative reviews come in. So that’s another one we look at avoiding. Lastly, we also recommend to stay away from several variations. The reason we say that is we have first or isn’t always going to be a winner and if you get lots of variations you really have to spread your order across a whole bunch of variations which makes it harder for your initial ordering.
So Amazon FBA Expert recommend going to a place where there’s no variations which makes it much easier. So, that’s the basics of getting on Amazon is a bit of a quick one today but really you want to look at first of all if your business then it’s not a reseller because there’s too many people competing just goes and price and then your product is at least 15 dollars and it’s not oversized and there’ll be links in this in the show in the show notes. The other one we always recommend is the Amazon profit calculator.
So what that does is actually shows you if your product sells for 25 dollars and you buy it for eight let’s see breakdown what the fees are for Amazon and your costs and then what you in your profit every fortnight and that’s fantastic you actually go in there and if you know the market size is and you say okay the market size is 30000 orders a month for this product and I’m going to aim for 30 percent market share that’s pretty much forecast if you’re going to 10k revenue what your margin is going to be.
We would recommend the absolute minimum margin of 25 percent. The preference is to launch with full-priced products, as Amazon is slowly moving away to launches that involve discounted products. Anything above that is great the minimum 25 to 35 you use simple rule on Amazon on if you sell something for 30 you pay 10 a buy at Amazon take about 10 percent of fees in the last 10 bucks which is about 30 per percent profit. So, is that calculator. Amazon Seller Consulting Services provides that for every market place and there was room in that before you entered a marketplace.
So, the other bonus tips as well with your product, we were recommending some sort of bonus thing different to it so it can’t be copied if you go in and have the exact same product, assume that we are selling these steak knives in the same steak knife product out there. If you’re a new seller you’re not going to stand out. You have no reviews the other guys got great reviews imagery if you got the same product you are not going to stand out. So, you need to think of something that you can add to the product to make it different to stand out.
And one of the great benefits of that is, it also makes it harder for people to copy your listing as well because, if you do a really great sell and you get a bonus, it’s hard to find that to include in the product that it makes it much harder to find. That’s little bonus tip that we add in. So, guys that’s the rule, they are the basics that you need to start on Amazon with the Amazon FBA Expert. Think about them. Look at it definitely get some speak to an expert we’ll get some education before going to Amazon. As same as we are doing the business, we are going to send all these products.
Probably about 10000 dollars with a stock to send in and they didn’t even know about the profitability calculator. And they weren’t even going to make money on it was going to send it in and wait to see what was coming to find out what they’re going to make.
So, guys definitely get your education right. Find out what the product is, how much you’ll going to make and that’s the best way to start.
You need some help. We love helping businesses it’s what we do all the time. Searching for How to Sell on Amazon Australia? We specialized ones in Australia in the in the US. So just drop me a note. We can also give some insights and review your listing. We do a lot of stuff up front just for free to show the value we add and we’re a good fit. We got the same values and we love to work together.
So, guys hope that helped it was a bit of a short one today.
But love to help you guys take action succeed on Amazon. Life is great.