(upbeat music) - What's up guys? Today, I am pumped for this video. This is gonna be on
product research for 2021. I'm gonna be giving you 10 steps for finding your next product on Amazon. And I'm gonna be doing this
with real world examples. That means you're actually
gonna see a real products I'm looking at right now. You can look further
into those if you wish, and I urge you to really
stay till the end, because I'm gonna give
you my verdict on each, as well as my verdict overall on which one I would
actually choose, and why. I myself have had failed
products, successful products, so I hope that you learn
a bit from that as well. Now, over the past couple of days, I've been using AMZScout
to do my research. And guys, I got to tell you,
this too is really good. There's a lot of little
hidden secret features that have really been
helpful during my process, and I think it's gonna help save you time during research. You're gonna see a lot of
them demonstrated today. Big points we're gonna cover today is what criteria you should be using, how you can use reverse ASIN tools to identify your primary key word, because obviously that's important with which market do you evaluate, using AMZScout's data blocks, which are presented to
you on top of the results, and how much that can save you time. And of course, we're gonna be doing a deep evaluation of these products, even down to how to
differentiate these products through review research, how to get estimate
costs, work out profits, and ultimately choose the best product. And if you like what you
see with AMZScout here, I have partnered with them
where you get an extra bonus if you use my link in
the description below. So check the description
below if you're interested. That said, all the
principles covered today can be applied to any of
the tools you're using. So let's jump in. Now, as I've been doing my research, I realized there's three primary things I'm looking for, with products now. Number one is higher prices, because I know most sellers
are looking for price points around $20, $25, maybe $30 now that that cat's out of the bag. But they're not looking at 40, $50. And I'm gonna talk more
about this as we do it, but going with a higher price means you're competing with fewer sellers, particularly fewer newer sellers. Secondly, there're certain
costs in this business which are fixed. For example, based on
the size of your product or size of your shipment. FBA fees are related
to your product's size, not your product's price. So if you have a product over
here and a product over here that are the exact same size and weight, but this one sells for $60,
this one sells for $20, they get the same FBA fee. They're also gonna get the same
international shipping cost. And so if we deduct those off the price, you can see that this one is
left with a lot more money, but also the percentage of
those costs is much smaller. It impacts the seller far less. So you're leveraging fixed costs
with higher prices as well. Number two, I look for
development potential, especially creative development potential. What I mean by this is some products lend themselves to you improving them, making them better, making
them visually more creative and fitting for the customer, while others do not. They might be really
functional in some cases, where the customer
doesn't care how it looks or what you've added to it. So we're looking for products
that lend themselves to us for us to develop them further. And thirdly, I look for low
competition/ an acceptance of low reviews by the customer. Either of those. So a low competition market is generally just gonna
have lower reviews, whereas an acceptance of
low reviews by customers, you might have quite a few
high review competitors there, but you notice that the customers also buying from low review sellers. In fact, sometimes they're buying more from a low review seller,
someone with like 40 reviews, over a higher review seller,
someone would like 600 reviews. That's also going to tell
you that it's relatively easy to enter this market. So these are the three
big things I just want you to keep in the back of
your mind as we do this. Higher prices, development
potential, lower competition, or an acceptance of low
reviews by the customer. Step number one, is our 2021
product research criteria. Here, we're looking for a price above $40, monthly sales above 300,
reviews of less than 100, a weight of under 4.75 pounds. You can round that up to
under five pounds if you wish, and a size beneath 18 by 14 by 8 inches, also called large standard size. Step number two, this is to
use AMZScout's product database to find products. Now, you can see it on screen here. I'm gonna be searching for the USA. If you're in another market,
you can change that over here. It does support all these markets. In here, we're gonna put a price from $40. Reviews up to 100 reviews, and estimated sales above 300. We can also choose our
categories over here, and I'm gonna choose these three today. Once you've done that, we
can click on Find Products. And at this point, you're gonna see a whole lot of results on screen here. As you can see, all of these results. And there's a couple of things I want you to keep in mind
as you go through this, which is gonna help you narrow quickly. Number one, we're avoiding
anything that is seasonal. Two, we gonna avoid dangerous products, and you might wanna avoid
PPE products for now, because of the extra verification needed. Three, we're gonna avoid those that belong to a very big brand name. We don't wanna compete with big brands. Four, an optional one, but
you wanna avoid products that have a lot of sizes or variations, if you wanna keep it simple when starting. 'Cause remember, those
are gonna cut up your MOQ, or cut up your order
quantity a lot when ordering. Five, even at this point, you can start avoiding those that don't have development potential. There's no real way to improve them. And six, I would avoid products
that are the next big fad. Think about fidget
spinners, things like that, maybe even PPE currently. It's stuff that's gonna have a huge spike, and then a huge drop off. I'm more long-term in my approach, and I recommend the same for you. So as we go through this, we're keeping that top of mind. For example here, PPE, probably not going to do those. Over here, you can see a
office chair or gaming chair. This is gonna be a very big product. Now, we didn't have the size
option to declare up here. However, this is gonna be too big, so that's another thing you're
just keeping top of mind. Over here, you can see smart dimmer plug. Now, this I already know, is
a very competitive market, but what I wanna point out here is that this is a very
difficult thing to develop. It's something really
difficult for you to take and make your own. It's very functional in nature. People don't mind the design, et cetera, they just want this type of
product to fulfill the function. And so we won't be doing that one. So here's one that might be good. You can see this as a
cake pan set of four. And it immediately stands out to me, because this is something we
might be able to make our own. It's something that's quite light weight. It's probably pretty small, because each one can go inside the other, so a small package. Has a really good price point here, only has 10 reviews, and you can see they're doing
an estimate sales of 29,000, which is unbelievable. Now that's so high, it makes me think maybe it's a variation on
another listing, but we'll see. Let's save this to have a look at. And any time you wanna save
a product from this list, you simply click this plus icon over here. And once you've clicked the plus icon, this actually goes into
your product tracker. Now at the top of the
page, see it says tools. If we drop this down, you can see, here is the product tracker. So get the database
here, and the track here, which is gonna be full of products you've clicked the plus on. And then here, this is really interesting. So you can see this looks
like a whiskey glass set, and this is a product that is small, it sells for a premium,
as you can see here, we have very low reviews, and we're doing 1500 sales a month. 1400 sales a month. This is a really healthy,
realistic number here as well, and this is something with a
lot of development potential. It's something we could
really make our own and change for customers. This is the opposite of functional. Although the product is functional, people care a lot about
how this product looks. The accessories, the overall
aesthetic of the product, so this is a really good
example of a potential product. So we're gonna save this one as well, and then I'm gonna find at least two more, and I'm gonna share those with
you in the product tracker. So once you save those, click on tools, come to
your product tracker. And here in the tracker, you're now gonna have your
list of potential products. Here, we're gonna be looking
at the whiskey glass set, we're gonna be looking at
glass jars for food storage, and we're gonna be looking
at a photography turntable. And the last one of course,
is that cake pan set, to see if this is not too competitive. So your goal at this point is to find at least
five potential products. So now, how do you go
about actually finding the market for this product on Amazon? Well, this brings us to step number three, which is to use AMZScout's,
reverse ASIN lookup to find your primary keyword. Now, how you wanna do
this is on this page, you simply wanna copy that ASIN. So let's say it was this one. We're gonna copy this ASIN, and we are now gonna come to tools. We're gonna go to reverse ASIN lookup, and we're gonna drop this ASIN in here. Once we've done that, we're gonna set the number
of words one to eight, because we don't wanna limit this, and find keywords. And at this point, the tool is going and
looking at that listing, and saying, how are customers
finding this listing the most? And that's gonna help us establish what our primary keyword is. And on-screen here, you can
see it's returned keywords, the volume for the month, and
the relevance to our product. Now rotating display stand,
that's quite relevant, but this has particularly
a photography turntable, so I wanna see if that is here. Here we go. So a photography turntable is here, and that's actually gonna
be our primary keyword. It's the most relevant, it's actually being typed in on Amazon. This is how you can check, and this was also a keyword at the front of this product's title. That's another way you can
find your primary keywords and the other competitors in that space. They're generally gonna put the best keyword at
the front of the title. And now for each of
those products we found, we're gonna take this keyword, and we're gonna go drop it into Amazon. And once we dropped that
in, we search Amazon, and this is the market that
we are gonna be evaluating. And we're gonna do the exact same for those other products. For the whiskey product, that keyword is a "whiskey
gift set for men", so we're gonna put that in. And for the glass jars, it
is "glass jars food storage". And for the cake pan set, it was "cake pan set of 4". So at this point, you've
discovered your markets, you've found their primary keywords, and you're now looking at the
specific markets on Amazon. And step number four, is
to click the Like button. Actually step number four is
to use AMZ Scout's data blocks which are present on the front page. And the reason we're using those is to establish how much demand there is for different offerings, and offerings at different review levels. We're also just gonna get a general feel for the competition in each market, as we look at them next to one another. So let's start with our cake pan set here. We can see at the top, we
have a sponsored result. You're gonna ignore the
sponsored results for now. Now, the first organic result
has a huge amount of reviews. Second, only 13 reviews, third, a lot of reviews. And then we can look at sales amounts. So these are the on-page data
blocks AMZScout gives you. And you can see how this
speeds things up massively, 'cause I already know how much each of these products
is selling per month, with the total monthly sales number. So I almost don't even have to open an extension or anything, I can just see that right there. And moving a bit down the page, we can see here also, very
big review counts here. And at those review counts, we can see very large
sales numbers as well. And then another thing you
wanna look for at this point is how are the low review sellers doing? You can see, you've got a 2
review and a 41 review here. And you can see their sales, 60 and 43, are drastically lower than
those with higher review counts. This is what you wanna avoid. Because remember in the beginning, you are not gonna have many reviews, and you don't want a really,
really slow-moving item. The reason for this is this again is quite a functional product. Product development is
only gonna go so far. Customers are much more
gonna buy one that's trusted, been tested by reviews, and so this would not be the best market out of the options we have here. This is the one I'm actually gonna discard even at this point, because those review counts
toward the top of the page are just too high, and I don't see an ability for us to really develop this
product any different, or in a meaningful way
that's gonna stand out and allow us to get
over this review hurdle. And so even at this stage, you can begin making decisions on which products you're removing from your list of four or five. - Traps. - So now let's take a look at
the photography turn table. And here again, we're gonna
skip the sponsored one, but here we can see the
first organic result, with 206 reviews, they are
doing 452 sales a month. Coming down the page, 151
reviews, over 300 a month, 75 reviews, we don't
have data on this one, but we can check with
the Chrome extension. 111 reviews, and then 894 reviews. So a higher one over here,
but this is sponsored. This product's actually irrelevant. Here, we have 30 reviews with
50 sales, so a lower amount, but at a very, very high price point. And here we have 75 reviews, again, doing over 300 sales a month at quite a high price point. A little lower down the
page, lower price point, 250 reviews, almost 1,000 sales a month. And a bit lower down the
page, $30 price point. We would probably go above this, but 183 reviews doing
over 500 sales a month. Just from looking at the front page here, this is much more appealing
to me than the prior product. It just looks like it has better entry. We're also seeing some
breakup on page one, where we saw that light box instead of a photography turntable. That's early breakup, which
means this is a newer niche. There's not so many people selling here. Another thing I notice, and that you wanna focus
on when doing this, is just look at the main images. And does everything look
quite similar as it does here, or have people really gone all out in terms of differentiating,
great packaging, et cetera. Here, I see no packaging, I see really standard images. And again, that's an opportunity for you. I think the most creative
thing we see here is that they've included
different color tops in case you need say, a black top here, 'cause your product's actually white. So they have made this a better experience for photographers who
would use this product. Now another really cool thing of AMZScout, is if I hover over the
image, as you can see here, it's actually gonna bring up
what's in those bullet points, as well as the actual reviews score. As you can see is 4.2 there, and some other data points at the bottom. So they're making your job a lot quicker, by representing the info
right on top of the page, instead of having to go in and out of listings the whole time. So let's take a look at
our whiskey glass set. And I am actually doing these three, in order of competition. Ascending in competition. photography turntable
lowest, then whiskey, then our glass jars. Now, if we deal with the whiskey glass, we're gonna skip the sponsored ones here. First organic, 26 reviews. That's an excellent sign. We've got higher reviews over here, higher again here, and quite high here. But, and this is exactly what
I was talking about earlier with an acceptance of low reviews. But look at this, 836 reviews, 263 sales. Our offering over here, only
26 reviews, 632 sales a month. And so that's why I said, it's not always just
based on review counts, it's also how the customer
accepts those review counts. And here, they're buying this product way more than this product,
which has more reviews. And that's because here, there's a lot of product development. You can make your product better, and then customers are gonna
evaluate the actual product, not your review count. Moving down the page here, we can see decent reviews here. Four reviews here, and over 300 sales a
month at four reviews. You can see this again here. 437, 4. This one is selling more. Why? Probably product design,
what customers really want. Customers don't care so
much about the reviews. So I love this market. And looking at our glass
jars for food storage, we can see our first competitor, 719. Okay, we got some high
review count at the top here. Coming down. Okay, 39 reviews in fourth
place, which is good. Some very high ones here. Wow, this is a big review count. But we do see 39 reviews,
selling 830 units a month. Okay, they're are at a $30 price point, so that's something to consider. It's a bit lower than these, and that could be the result. Remember, you don't wanna
be competing on price. Down the page here, we can see some medium and
lower review offerings. These are still selling quite well here. Further down, okay, 34
reviews, 796 sales a month. Great price point. This is really interesting,
this offering here. And again here, guys you can see some review counts here much higher, yet this one is outselling all of them. The reason for that is
what is the product? It's probably because people enjoy this specific type of glass
jar, how it functions, if the glass is thick enough, little things like that. So that's what you wanna be looking at, especially when entering higher demand, higher competition areas, is can you change the product so things are not just based on reviews? And further down, we
got these review counts. Interesting, all these
low review offerings, they're all selling around 300 a month, which is a very good sign, but we do have some
bigger competitors here. This is definitely a
more competitive market than the two we just looked at. And at this point, you
wanna remove offerings which you feel are too competitive. At this point for these three, I wouldn't say any of
them are too competitive, because some of them, we can see an acceptance of
low reviews by the customer, so there's still an opportunity there. I'm gonna keep these three for now. Step five, use AMZScout's Chrome extension to do a deep analysis. So in each of these markets, the same page with the
same keyword you used, we can open up the
AMZScout Chrome extension. It loads up like this, and you can see it actually
gives you an overall score, which it might even adjust
further as this loads. But it's gonna give you, what is your profit potential, demand potential and
competition potential. Now, here we can see medium competition, which we would expect with
a photography turntable. Medium demand, that's to be expected. It's not a huge demand niche. High profit. These do sell at a higher price, and we're gonna have to see how the profit turns out. And we can close that little window, and this is what our Chrome
extension looks like. You can expand or reduce
this box as you wish, and you can also personalize this view. I sometimes remove certain ones here to bring price, sales and
reviews a bit closer together, 'cause those are the ones I focus on. It also gives you this cool
score here for private label, which a lot of you are focusing on, creating your own product
and selling it on Amazon. Gives you a score for those here as well. Now here, what you wanna
focus on are these columns, price, sales, reviews. And we're looking at, okay, so for these review numbers,
how many sales are they doing? And we kind of sold this
relationship on the front page, but this kind of gives you a
more tabulated view of this. And anytime you click an offering, you can see that you have
all these extra options at your disposal as well. The two scores I really
like to look at here are saturation score and niche score. Niche score is based on that prior little box that popped up, competition, demand and profit. Saturation score, in my
opinion, even more important. This tells you how many
of AMZScout's users, and it's kind of expandable
to how many sellers, are looking for this product, or have found this product before. And you want this to
be as low as possible. 1 is the very best score you
can get, 10 is the worst. That means everyone's looking
for it and discovering it. So 1, not 1% of our users have found this. That's excellent. That's what you're looking for. And then we would do the exact same on our other markets here. So if we bring it up for the whiskey set, so here, we can see we
have very high profit, medium demand, medium competition. I would say demand is higher here than the photography turntable, so this is good. And then of course our normal
columns, but especially here. Niche score of 7, really good. And again, saturation score, 0% this time. A very, very small percentage are currently using
AMZScout's tools to find this. So this is a very good thing. Another icon you might see
here is this 'hot' icon, which basically means the
products considered hot, because it's sales grew by
20% or more in the past month. So it's really starting to ramp up. And lastly, we're gonna bring this up on the glass jars here. And in this case, we
can see profit is high, demand is great. As we've seen, there's a
lot of sales happening here, and competition is medium. I'd even put that at kind of
medium high for this market. Again, a nice score of 7 here. Saturation, also a 1. Other things you can pay
attention to here is FBA fees. Remember you don't want
these to be too high, and also listing quality score, LQS, as this is gonna tell you if people have really got gone
all out on their listings, if you have advanced sellers with you, or if it's a niche full of novice sellers and people not paying that much
attention to their listing. For example, if we compare the LQS now to the photography turntable, this one's photography, you
can see these LQS scores are actually quite a bit lower. So we have sellers here who
care less about those listings, or perhaps just don't know how to fill out those listings properly. (cup filling) And step number six,
determine customer favorites using AMZScout's data blocks. And the way you wanna do this is you wanna look at the
offerings getting the most sales, but which have lower reviews. In this case, this would be our stand out for photography turntable. We don't have that many reviews, but we're getting a lot of sales. And you can see here that
this is the 12.6 inch version. Whereas when we look at other offerings, for example, they might be a bit smaller and not selling as well. So it's gonna give you inklings toward what type of product
you wanna start with. It's telling you which ones
are the customer favorites. And to give you a better example, let's look at our whiskey sets. We've got our more general ones like this selling quite well, but then we do notice
that a lot of these ones are doing very well. These crate ones. They look stronger, more durable, really like a manly whiskey set. Those tend to be doing very well, when you look at their
reviews versus sales. So, both of these here have
that kind of crate aesthetic, and seem to be doing better. And you can see that when you compare it with offerings like this one, 519 reviews, similar price
point, only 143 sales. So in that way, you can quite quickly see what a customer is currently favoring. It's often things that
are in lower supply, 'cause they're newer releases. And you wanna put yourself
on that trajectory. And lastly, on the glasses here, I would say it's definitely this one. This one only has 34 reviews, still maintains their premium price, but is doing very well at
almost 800 sales a month. And I think as we do our research here, that's gonna be attributed to
just a higher quality product. Thicker glass, it seals properly, it's simple without some weird opening closing mechanism
that's a bit flimsy, might be dishwasher-friendly. It's something like that, but this one is a standout for sure. And we can kind of
double check that as well looking at similar
offerings like this one. Yes, we got a lot more reviews here, but really simple product, and again, doing huge amounts of sales. And you can compare it with
like opposite offerings to confirm this further,
like this one here. These jars over 100 reviews, so higher than the one we looked at, much lower price point,
and yet doing fewer sales, less than 1/2 the sales. So it tells you, people
are willing to pay more for that quality product, and that's how you can begin focusing on the customer favorites using
AMZScout's boxes like this. And step number seven
is to leverage reviews to select your differentiation strategy. Now, as you do your review research, you wanna focus heavily on
your 3 and 4-star reviews. Those are usually the most objective. They say the product's
great, but I wish this. So that's what we're gonna be focusing on, and I'm gonna break down
each of the research findings for these products. And of course you can find those reviews at the bottom of your
competitors' listings, and you want to be focusing on number one, your strongest competitor in the market, and number two, the customer
favorite or favorites that we just identified. You wanna be focusing on those two sets. It could be three or four or
five of those competitors. Your strongest ones, and
the customer favorites you're gonna be following. And in those, you wanna look
at the 3 and 4-star reviews. And so at the bottom here, you
can actually select 4 star, and then it's only gonna show us the 4-star reviews on the item. And you are looking for the complaints that are mentioned the most. What's most significant to
a broad range of consumers? That's what you wanna change. And as you do this, I want you to think of how could I make that visual? If you can make a visual change, that's much more powerful
than a non-visual change. If it's on the exterior of the product, that's much more valuable to
you in terms of marketing, than the internals of the product. And so as we did this,
this is what we found. For the photography turntable, the biggest complaints were that one, the motor makes a noise. It makes a buzzing or
humming sound as it turns, obviously that top turntable, and humming and buzzing is
really not good for videos. Number two, the plastics used feel cheap. The product itself feels cheap. Number three, the system
is just too complex. People were saying there's
far too many options and buttons on the remote,
it just needs to be simple. Four, the wire to the product,
which powers the product, gets in the way, especially
if you're gonna use this inside a light box. Five, this was not a complaint, but the customers loved that option where they had different
color options for the top, so could make the white top black if they had a white product, et cetera. So that's something we're gonna keep, and that's something you also
wanna look for in reviews. What do people say that they love, because you do wanna retain those aspects. And so from that, we can establish that our photography turntable would have to have a quieter
motor, higher quality plastic, or maybe be made of aluminum or similar, a simple system with less features. No wire if possible, and that could be achieved
with a wireless system or a battery-operated unit. And five, different color
options for the top. Now, most of those can
actually be visually expressed, especially in like
competitor versus images we could have on the listing. The most visual ones would
be if that unit was wireless, and also those different
color options for the top. Those are the things
we could really express and emphasize in the main image, to drive click-through rate. And as we saw, the larger and
more minimalist turntables are selling the better. So we would follow that
route, and we would have at least a 12-inch diameter
turntable that is wireless. And on to our whiskey gift set for men. So in this one, we found the
biggest complaints to be, the glasses came dirty,
scratched, chipped, or with little bubbles in them. So when people opened the product, it really didn't look good. The glasses were often
dirty, musty, et cetera. Two, the glasses themself, what it was made of was not
crystal glass as expected. Three, the glasses are strange to hold. So this is a very important
thing with us, I've noticed, that it has to be ergonomic and nice to hold those whiskey glasses. Four, the opening
experience can be improved. A lot of them complained about this, saying that when you open the product, things have all moved around. The coasters are on top of the glasses. Things need to be held in position, and that was not done well. Five, the whiskey stones, which is an accessory often included, do not keep the drink chilled. Six, the box itself is quite fragile, especially the box hardware, like the hinges on the back, et cetera, does not feel durable, it feels like it's gonna
break and fall apart. And seven, the accessories feel cheap. Things like the coasters,
et cetera, the peripherals. So from that, we can
establish that our offer would have to have
impeccable representation. As you open it, everything's
clean and it looks good, for a good opening and gifting experience. included there, is we would want specific secure compartments holding those accessories in place, so it doesn't all fall all over the place. Two, is we would want to use crystal glass in our whiskey glasses. Three, is ergonomic glasses that need to be very comfortable to hold. Four, high quality coasters, and any accessories also
need to be high quality. Five, a very high quality box, a strong durable box with strong hardware. And this might actually be why
we see some of those crates and tougher looking
options selling so well. Now again, most of those
changes could be made visual, could be well expressed to
a competitor versus image. The most visually expressible would have to be the higher quality box, as well as actually using crystal glass, which is something we could
represent well in those images. And one that would be like hard to stand out on, for example, is the great representation as a gift. Improving that, it's quite hard
to stand out based on that. And why I say so is because
so many of these competitors are already advertising that, that their product looks
great when it's opened, but in fact, sometimes, that's
a downfall of their product. But still, the customers don't know yet. So that's something that would
pay us back in the future, but it's not something that's gonna get you to convert right now more than any other seller. And so with everything we've
looked at and strength in mind, we would definitely go with
a more tough crate option that we see beginning to sell so well, we would do our own
version of that product. That's probably the best route to follow. Moving on to the glass
jars for food storage. The biggest complaints we found, the glass is too thin and
delicate, so it's likely to break. Number two, the glasses are
not air tight as advertised. Three, the latches don't
open and close well, and feel very flimsy. Four, the jars are not dishwasher safe, so you can't actually put
them in the dishwasher. Five, you cannot stack
the jars to save space. And of course that depends
on which option you're doing. So from this, we can
establish our offering would have to have thicker
glass, an airtight seal, strong latches or no latches
at all, if we went that route. Included there is it must be
really easy to open and close. Four, it must be dishwasher friendly, and five, if we do go the stackable route, they have to be stackable as well. So quite a few of these can be expressed visually in our images. However, again here,
it would be quite hard to stand out based on
emphasizing the airtight nature, because everyone's already doing that. And the most visual would have
to be using thicker glass, as well as latches that aren't flimsy, or just using no latches at all. As well as dishwasher friendliness. That's something we could
also express quite visually. And based on what we see
selling really well here, the most simpler, thicker glass options, that's what we would follow. We are doing all glass options, so the jar and the lid are
glass, there's no latch involved, and it's an airtight option
of at least three jars. And so now that we've chosen
our differentiation strategy and what kind of path we're gonna follow, it's time for number eight. And this is to get cost
estimates on your product. Now to do this, keep your
proposed product top of mind, and we're gonna head over to Alibaba, and we're gonna try and find a base cost of what those products
are likely to cost us, and then we're also gonna include there a bit of international
shipping as an estimate, just so we have an estimated landed cost. Making this available for
sale in the Amazon warehouse, how much would that cost
us with this product? That's what we're trying
to establish here. So you're gonna head over to Alibaba here, drop in the same keyword. Might actually be different
on Alibaba though, so make sure you just use
Alibaba's autocomplete. For example on this one,
you could do photography t, and let it autocomplete, and it will tell you what they call it. But photography turntable did
give us relevant results here. And we're looking again, for the item that we
would likely want to sell. In this case, at least a 12-inch unit. And here we're doing
this based on 500 units. That's what we're gonna
compare all these products on. Remember, there are
more expensive products, this one, particularly, but at 500 units, we could probably do the photography turntable
at $24, including branding. And if we add a $2 per unit international shipping cost to that, just based on the size of
that product as an estimate, this is gonna cost us about $26 to get to the Amazon warehouse. That is our landed cost for the turntable. If we do the same now for
the whiskey glass set, you can see here, we found a
very similar offering over here as to what we would try and do, and here we would be looking at probably an $8.50 per unit price for 500. The reason I say that is
you can see this range here from two 2.13 to 6.54, and that is for a minimum
order of 500 pieces. So if you do the minimum order, it's gonna be 6.54. If you do more than the minimum order, it's gonna come down towards the $2 range. So at 500, it's at least
gonna cost us that, but remember, we wanna customize and improve this product quite a lot. So I'm gonna put this at $8.50 per unit. Shipping is gonna be $2 a unit again, and we're gonna be looking at a $10.50 landed cost for this product. And if we look at our glass
food storage jars here, you can see that we
would probably get these for about $2 per jar. Now, we do have to account
for perhaps customizations, branding on the jar, maybe branding on the packaging as well. And since we're not sure if that's gonna be included at 500 pieces, it probably would though, since the minimum order is one here, but since we're not sure,
let's say $2.50 per jar. So that's gonna be $7.50 for the manufacturing
of three different jars, and then we're gonna add shipping to that. Now this is probably a larger package, when you actually put these jars together, and so the shipping might be
a little more, like $2.50. So here, we're probably gonna have a landed product cost of about $10. And step number nine, we are
going to calculate the profit that we can expect for these products. To do those, we're actually gonna use AMZScout's built-in Profit Calculator using our cost estimates. Now, as you do this, you wanna select that option
you saw customers favor. So each of you will have
your customer favorites in the market that you're looking at, as we do for each of these three. And in this case, this
was our customer favorite for the photography turntable. This is the one we're likely to follow. So that's what you're
basing this calculation on. Once you're on that offering, you're gonna open up your
AMZScout extension again, and it's gonna be the item
right at the top here. And you can see if we click on that, it does give us these extra
options for this item. click on Profit Calculator, and in here, we are gonna input our product cost. And as we already calculated, that is gonna be $26 in this case. Again, that is your landed product cost. Everything from
manufacturing and shipping, getting it to the Amazon
warehouse and available for sale. Now, if you're aiming to sell this at a different price point, a lower price point or a
bit of a higher price point, you can adjust the price here as well, and it is gonna calculate
everything else for you. Your pick and pack fee, which
is your FBA fulfillment fee, your referral fee, and then at the bottom here you can see your total FBA fees, your profit per unit that you sell, and then your net margin,
in this case, 55%. Now, something I wanna point out here is that this number here is usually gonna be quite a
bit higher, your referral fee. This obviously sits in a category with a lower referral fee, but very often this is gonna
be 15% of that sell price, which would make it something
like $12 or $13 or so. So it would be a bit higher. We would probably still have
a net margin above 40% here. In this case, if it's categorized in a lower referral fee
category, that's great, 'cause it's obviously
boosting our margins. Another thing you might find useful here is we can see a 55% margin. But what you can also do is
deduct about 7 or 8% from that to account for PPC, 'cause remember, you're
also gonna be paying for sponsored ads as
you sell this product. And once optimized, you can expect your total
advertising cost of sale, this is between organic
and sponsored listings, all your sales, to be about 7 or 8%. In other words, you deduct 7% from 55%, and you're left with your
actual expected profit margin, which would be more like 47, 48%. And if we do the exact same
for our whiskey glass set, open Profit Calculator, and again we're dropping in our cost here. And here, it was $10.50. Once again, it works out our fees. Here, you can see this
is a 15% referral fee, 15% of 50, and we would be
left with a net margin of 49%. Also really, really strong, and we would actually make $24 per unit. Once again, you can deduct
your expected PPC spend of 7% or so from that, and we would still be at
over a 40% profit margin, which is magnificent. And lastly, let's do the
same for our glass jars. If we open the Profit Calculator, we're gonna drop in our cost here, and once calculated, you can
see our pick and pack fees are a bit higher here, because again, when you actually
put those jars together, it's a bigger package. So here, we're actually
ending up with a 37% margin. If we then add PPC costs to that, we're now gonna be at about a 30% margin, which is not so good. And so in terms of profitability, doing the jars, that might
be the most challenging. And lastly, number 10. This is to tally up all the pros and cons and select your final offering. And so at this point,
once you have an idea of the costs, the profit, the
differentiation possibilities, how you can develop things, one product should really
start to stand out. If you're stuck at this point, I really recommend you
make a pros and cons list. So this is what I've established
from these three offerings. Let's start with the
photography turntable. The pros here, it's an
under-supplied market, there are terrible listings, there's some low quality products here. There's a lack of customer usability. Like the sellers are not listening to what the customers want. For example, with so many of them not including different color table tops. There's a huge potential to stand out on a main image with packaging. All those main images look really similar. Demand is likely to grow in the future. There's also two primary keywords here. One is rotating display stand, and the other one is
photography turntable. And that can make things
like targeting keywords and PPC spend a little bit easier, 'cause you have two routes to your market. It's definitely premiumable, because it's in the photography market where people spend a lot. This is a type of product that could have a great promotional video. The larger size of these
products still remains within the large standard size
for FBA fees, which is good. The market tends to lack advanced sellers, so it's either a new or emerging niche, or just something that other
sellers are not finding. It's likely to be a cheaper PPC spend and a cheaper launch for you. This market is evergreen. This product is gonna be bought winter, summer, doesn't matter, it's used indoors. And there's also a really high
profit margin here of 47%. Although that's something I
would work out more closely. And remember, you might
not wanna sell a product at that high of a price, at like $89. You might solve for less. So if you do this product, just be careful on the profit margin. Make sure it's over 40%. So that's the good stuff. The cons here, there's
not huge demand currently, and that can be a big turnoff
for a lot of sellers here. They're not seeing huge sales volumes. They might worry it's never gonna pick up, so there is a lower demand here. Electronics do have the
malfunction draw back. They might get a bit
broken during transit, or customers might see malfunctions or just get frustrated with
the electronics in the device. And apps, if your product is app-enabled, it can really frustrate consumers, and it's also something
you need to then evaluate and maybe even build
out on the product side, if it requires an app. Since it's electronic,
this is also something that's going to require different plugs, if you ever expand into other markets. And moving onto our glass
jars for food storage. The pros here, very high demand here. These products are selling a lot of units. Customers are choosing
based on the offering, rather than reviews, which
is an awesome thing to see. Although this is actually
a simple product, we see a lot of variation. And that gives rise to our ability to develop this product further. Sellers often avoid niches
where glass is involved. So if you're willing
to take the extra steps to protect this product very well, then you're going to see less competition in niches that include glass. And this product evergreen,
it's gonna be bought all year. So the cons here, glass can break in transit. So unless you're careful and you take time to
design good packaging, you might have a lot of
broken units on your hands. There are some high
review competitors here, and that might scare off some sellers. There are some very strong
listings here and savvy sellers. They know what they're doing. It is a more mainstream niche that other sellers are likely to find. Multiple jars in one package results in a bigger overall package which can increase FBA fees. This is also premiumable
only to an extent, because this is also a
very functional product people buy for its purpose
rather than design. This is likely a more expensive launch, and you're likely to pay
a bit more here on PPC. And here, we only have a 30% profit margin after adjusting for those PPC costs. So this is the worst on profit margin. And moving on to our
whiskey gift set for men. The pros here, high demand. People are selling a lot of units. Customers favor design massively here. They are choosing based on
offerings and not reviews, and we have a lot of evidence for that, where they're choosing
a lower review offering based on the design of the
product, which is great for us. And then tied in there,
some very low review sellers are selling extremely well. This is highly premiumable,
because it's a gift. It's bought in a large part as a gift, and people are willing to
spend more when they do that. This one has huge creative
development potential, and it's something if you spend time developing it really well, the customers will notice. This is not differentiating
for differentiation's sake. It is a perfect example of a product where if you listen to your customers, it's going to pay you back. This is an excellent size product for FBA. A lot of sellers again,
are gonna avoid this one, because it involves glass. What I also like about this one is it could allow you to
create a niche-focused brand, where you focus on whiskey,
whiskey accessories, and that becomes your niche. If you spend time creating a quality box and packaging for this, the glass breaking issue
should no longer be an issue. So you can kind of work around that. And we have very healthy
profit margins here, at 42% after adjusting for PPC. So that looks great. The cons here, they are
some excellent listings and good sellers. In fact, this is one of the best listing quality score
markets I've ever seen. The sellers are spending a lot of time creating amazing listings. And even if you don't do
this product or any of these, I recommend you go look at this market, because the A+ content is incredible. There are some high review sellers here. You do have the drawback of glass potentially breaking in transit, and this one again, is likely
a more expensive launch, and a slightly higher PPC budget. And so guys, after this full evaluation, all the pros and cons, my personal favorite is the
whiskey gift set for men. And that's because the premium price due to that giftability
combined with the product size is gonna result in heavy profit margins. Then you combine that with the fact that this has the biggest product
development potential. We can really get creative and create something very
very good for these customers based on their feedback, something that's gonna be
valued and be highly unique, jump off those main images. And of course, this also
has a kind of pathway into creating a brand
within this one niche. That said, the photography turntable would have to come in second place for me, simply because the jars for food storage just had that lower
profit margin estimate. So I'd go secondly with
the photography turntable being very careful on product quality, as well as size for those FBA fees, make sure that that's gonna be profitable. And in last place would come the jars. I do think there's opportunity there, but you gotta to be very careful on cost. It's gonna be a quality/cost war, I can see with that product. If you go higher quality,
people will love you for it, but are you gonna be
able to charge a price they're willing to pay
and still be profitable? And if you're still stuck at this point, which you really shouldn't be, another thing you can
do is actually draw out your envisioned main image of
your differentiated offering, draw out each of them,
and look at that and say, is this enough, would this convert? Would this look different
enough on that main image? Is this addressing customer concerns? Then you can even ask a
positive objective person whether or not they
would buy your offering, or consider your offering, or if that would address their issues, is that the one they would want most. That can also give you
invaluable feedback. But really at this point,
you should be down to one. Looking at profit margin, which is the most
aemotional way to decide. And how much you can actually
develop that product, and how much customers will appreciate your development of that product and your ability to
stand out by doing that. And lastly, competition in that market, or customers' acceptance
of the lower review items. Between those three, you
should really be down to your final offering. And at this point, of
course, you're gonna go ahead and start communicating
with manufacturers. And once you find some
really good manufacturers, you are then gonna get samples
from those manufacturers, choose the best manufacturer, actually list your product on Amazon, begin manufacturing, and start selling. Again guys, if you liked
the look of AMZScout, check the links in the description. You're gonna get a special bonus if you use that link as well. And also, if you do wanna know more about sourcing,
dealing with manufacturers, some confusing terms, or how to list your product
early and why that's important, be sure to check out these
videos up here as well. If you enjoyed the video,
got value in the video, please smash that Like button for me. Remember, subscribe below, and turn on those bell notifications. That way you're never
gonna miss an upload. But I hope you guys are ready for 2021. I hope this set you up to
find your next product, and I will see you in the next video. (upbeat music)
