This product made us over $5,000 in profit
last month. But in around an hour from now, you’re going to know exactly how to start
your own e-commerce business by following these four simple
but very detailed steps. And it all begins with product research. Now, trust me when I say this,
even if your family, friends and your dog think you have $1,000,000 idea, you need more than just a gut feeling
that your product will sell. For example, if you're anything like me
and you love drinking wine, you might think it's a really good idea
to sell these wine glasses. However,
even though these are in high demand, the category is just way too oversaturated
and already dominated by the established brands, meaning it's going to be really hard and expensive
for a new product to gain market share. Now, luckily, you chose to watch this video,
so you're not going to be one of those people
getting stuck in the wrong situation. The product you choose to sell is the single biggest factor
in whether or not your business succeeds. So that's why we're going to spend
the majority of this video diving really deep into both product
and market research. So now the question is,
how do you finally push through and find a product
that checks off all the boxes? Well,
the key is to look for products that meet most or ideally all six of these factors. If your product does, then you should feel really good
about investing your hard earned money into the business. Now, we're going to circle back to this
in just a second. But first, it's important
to understand that the need to hit all six of these factors
will depend on two things where you plan on selling
and how you plan on selling. Let's start
with one of the biggest decisions you need to make, and that's
where you're going to sell your products. Of course, you can sell on any
and all platforms, but when first starting out, I strongly recommend
just starting on one marketplace first. And then as your business scales,
you can add additional marketplaces. And right now, these are the two
biggest ones Amazon FBA and Shopify. And personally, I believe
the best strategy is to test the market on Amazon first and then later reinvest
those profits into a Shopify business. And here's why. The majority of online shopping
still happens on Amazon. And this puts you as a new seller
in a very powerful position. You're essentially starting out
with a built in customer base, and you didn't even need to convince those millions of people
to visit your website. Whereas on Shopify, on the other hand, you're 100% responsible
for driving traffic to your website. Shopify does not do that for you. You can have the best product
in the world, but if people don't know that your brand
exist, you obviously won't get any sales. Think about it. When's the last time you bought something from a random website
you've never heard of before? Now, when's the last time
you bought something on Amazon from a brand
that you probably never heard of before? Right. Not too long ago. Right. Also, Amazon's FBA
service will make it so much easier for you to run your business from home
without having to quit your day job. They'll take care of all your inventory,
storage order, fulfillment returns
and even customer service for you. This makes it easier for new sellers
to just focus on growing their business rather than having to find
a storage facility and then pick, pack and ship out every single order. And while the goal is to eventually quit
your day job and go full time of this, you still need to be realistic
about how much time you can actually dedicate right now
to running your business. It's honestly pretty incredible
how a single person with zero e-commerce experience can sell their own products
on the biggest marketplace in the world and have them deliver
to customers within just two days. But like I said, I'm
not saying you shouldn't sell on Shopify. In the end,
you want to use both platforms here. But also we didn't just make this video
to give you high level future advice. This video is meant to be a practical guide that you can use
to start your e-commerce business tonight. And currently the fastest and most proven
way to get started is with Amazon FBA. Okay. But if you're still interested in learning
more, we have an entire guide that breaks down
all the differences between Amazon FBA and Shopify. You can find this article with a link
in the pinned comment down below. Okay, so once you've decided
where you're going to sell the second step is to figure out
how you're going to sell. Now there are all different
kinds of ways to sell online, but here are the four most tried
and tested profitable business models. The first one is called Wholesale. So this is where you buy discounted
products in bulk, directly from larger known brands, and then use the current
Amazon listing to resell your inventory. And now the second one here is called
Arbitrage. This can be done either
in-store or online in 20 by discounted products through retailers
and just like wholesale. You're going to resell those on
the same and current Amazon listing. And the third
one here is called Dropshipping. So this is when you take orders
for a product on behalf of a supplier. Then when a customer makes a purchase,
you'd notify that supplier who then fulfills
and ships the order for you. However, a big downside to Dropshipping
is that it's almost impossible to do on Amazon now. So if you're low on cash,
I'd strongly recommend starting
with one of these other business models and then take those profits
to launch your own brand using this fourth business model
kind of private label. Put simply, this is when you source
a generic product from a supplier and then place your own brand on it. This means you don't have to reinvent
the wheel or develop a brand new concept. You essentially find high
selling existing products. Put your own twist on it and then brand it
with your own unique logo. In fact, some of the world's largest brands are built
on the private label method. For example, Costco is doing this
with their Kirkland signature brand, which offers all kinds of generic
products, but with their own logo on it. It's by far the most popular business
model because unlike the other three, you're actually building a real brand
that nobody can take away from you. And because you own 100% of it,
you could one day even sell the entire business
for thousands or even millions of dollars. This is exactly why we chose
this business model to launch our product. Okay. So if you want to keep learning about all
the different types of business models, you can check out our full guide
that breaks down all the pros and cons to each one
and how to get started again with all the resources
mentioned in this video. You can find those in the pinned
comment down below. Okay, so once you've identified
your business model, the next step is to look
for products to sell. And this is where things start
to get really fun. So I'm going to show you the process
that I use to find good products, which is really a combination of two separate approaches
the passion and the data driven approach with the passion approach. This is when you use your own hobbies and interest as a starting point
for coming up with good ideas. Whereas in the data driven approach,
this is when you rely more on sales and competition metrics to help guide
you towards the best products to sell. And while both approaches are great on their own, I actually think the best way
is to combine them together. This means you start with your hobbies or interest
and then use sales and competitor data to validate whether or not
those are actually good ideas. Remember, just because you like your particular
product idea doesn't mean others will too. That's why you always want to confirm
your ideas with data. Okay. So now with that said, let me show you five different ways
to find products to sell. And for this example, I'm going to use
my love for dogs as a starting point. So if I wanted to find good dog products
to sell, the first strategy I could use is by going directly to Amazon
and using the category tree method. Okay. So what I want to do here is just type
in dog supplies and on this next page, if you look over here under department,
these are the categories. So it starts at dog supplies and then it niche is down into these ones,
but this isn't even half of it. So I'm actually going to click into dog supplies
to see a much bigger category tree here. So so from here, what I'd recommend doing
is going through all these sub niches now and trying to find
an interesting product to sell. So I'm just going to do dog house
breaking supplies as an example and then keep niching down
to the lowest level. And so dog diapers and potty training
sounds interesting and let's just go dog diapers here. So now we're at the bottom
of the category tree and we can start to see what some of these products
are skipping over the sponsor product ads. So this first one here
looks like a three pack of dog diapers. And then you see a bunch of different
dog deckers here. So this is our product idea
that will eventually start looking at in more detail later on. But just to start to see how much
these sellers are making each month, actually want to click into the listing
and then scroll down here to the bottom. And we're trying to find this best sellers
rank at the top here, so about 3065. So to find out how much it's selling
each month, you can head over to the Jungle Scout
free sales estimate. So just go to Google, type in John Scott,
free Amazon sales estimate or copy in that best seller rank here,
the marketplace you're selling in and the category
which is for us pet supplies. And now in estimate sales, this product
is selling almost 3000 units each month. But that's just on this one product. You want to go back to the search results and do that for at least ten products
or even all the products on page one. Now, this could be a really cool idea,
but before you start analyzing the data, you do
want to have something to compare it to. So this is why I actually recommended creating a list of at least 5
to 10 product ideas. And if you want, feel free to follow along
with me as we find product number two. This time using another Amazon method. And we're going to use the new releases
pages here. So to keep this up
here, I'm just going to duplicate the page and head over to the new releases tab. So this is going to show a bunch
of products on Amazon in each category where new products are being added
and they're selling very well. So you have this category tree
over here as well, and I'm going to find our pet supplies
category. I'm going to go down
into the dog category. And so we have a bunch
of other different ones here. Let's go training and behavior AIDS. Let's go this agility equipment at the top
there. And I can keep going down more,
but I see there's just three categories. So let's look now at these top products. I see a dog step, a dog
step, a dog step, but a dog steps. Okay. A treadmill. Oh, my gosh. Okay. So dog steps, I want to look into
that idea a little bit more. So I'm just going to type it
into the search bar. So we see just dog steps in there. Now, I'm not going to go through the sales
estimate again on this product. We'll do that in a better
and more efficient way later. But one little trick I like to do
when you're thinking of product ideas and you're trying to stay organized,
is to use Google tabs. If you're using the Google browser,
of course. So I'm just double clicking up here. Added to a group I'll be calling this
dog steps and then green. And then this one was dog diapers. So I'm actually going to type
in dog diapers to see just dog diapers. They're added to a group dog
diapers, blue. And that way you can actually, like close these up and get all your ideas
really organized. Okay. So we have two ideas. Now, let me show you
another way of coming up with ideas. But this time we're new. Go outside of Amazon
and this one's really fun because we're going to use CBT
and ask you for some help. So you type that in here and paste
the prompt I already have. And this prompt essentially is asking chat
to give me a list of dog products that are usually above $25 are small
and lightweight, easy to manufacture, and we don't want to sell anything that's a food or electronic item
and nothing that's easily breakable here. So let's go through
what it's given us back now. Okay,
So we have ten ideas here that we can now start looking into,
but I'm actually going to ask it. I like dog beds as an example. What are some different types of dog beds? Okay, so it's given me a list
of the different types of dog beds. And I think this is really powerful because essentially
these are probably niches on Amazon. And I can see like obviously
if you have a standard dog bed, orthopedic, dog bed,
I would've never thought of that. I've seen elevated dog beds before heated
cooling cave or hooded dog beds. That's piquing my interest here. So I actually want to type
that into Amazon and see what comes up. So let's go type it in here. Do a space. You can sometimes use a search bar to see
what are some similar words here. So dog beds with a hooded blanket,
That's interesting. I actually want to type that in here
and okay, cool. There are products out there that are a dog bed
with a hooded blanket over top of it. And yeah,
so there's more than one product. This is definitely a niche on Amazon, so
not going to waste too much time on this. So let's get to product number four, but I'm going to go ahead
and save this to a group, what we call this dog beds with blanket. Okay. Okay. So we're three products in
and now we just need two more before we can start comparing. So for this next one,
I'm going to show you how to find the best selling products
using the data driven approach. First, again, this is when you rely on
data from advanced product research tools to help you find products
that meet your exact criteria. And remember, earlier, we talked
about these six factors of a good product. Well, with tools like Jungle Scout,
you can use advanced filters to sort through every product on Amazon
to easily discover just the best ideas. It really helps remove the guesswork
from product research by giving you access to every product's estimated sales
cost profits and much more. And don't worry,
you don't need to have access to a tool like this in order to learn the strategies
I'm now about to teach you. But if you are interested, we'll go ahead
and put a link for you down in the pinned comment below. So the tool I'm going to be using here
is called the Product Database. Essentially, every single product
that's on Amazon is loaded in here. We just need it now. Add some filters
to isolate the best ones to sell. So we'll start with the first and most
important factor, which is high demand. A Jungle Scout. We like to define high demand products
as those that maintain a consistent sales volume of over ten sales
per day or 300 sales per month. So in this tool we actually have a filter
for minimum and maximum sales, only one for our products that sell on average
of 300 units every single month. So I'll go ahead
and put that here as a minimum. And then we're selling
in the United States. But if you were selling
in other countries, you'd want to make sure
you select that marketplace so that you're looking at that specific
data. Now, the reason I say
this is the most important factor is because it's really
the only one on this list that you as a seller
can not directly influence. While it is possible to sell in a less
competitive niche, and it's even possible to lower your cost
and become more profitable, what's not possible is creating demand
where it doesn't already exist. So for each product idea
you're thinking about selling, you need to be able to constantly answer
this one question Are customers consistently searching for
and purchasing this type of product? And even if you're not going
to be selling your price on Amazon, you can still use this data to figure out
the level of demand for your product. Because if a product is selling
well on Amazon, it's probably selling
well in other marketplaces too. Okay. Now let's talk about factor number two,
brand agnostic. This is the type of customer
you want purchasing your product in a nutshell as opposed to brand loyal
consumers, brand agnostic consumers are less interested in buying from a brand
just because of their reputation and instead their purchases
are more motivated based on the objective factors related to the product itself,
like price features and innovation. Here's a really good example of this. They take my shoe off for it. If you're going to be buying
running shoes on Amazon, you're probably only looking at the major
brands like Nike or even Adidas, New Balances or some of those other major
brands. Right? But on the other hand,
quite literally the other hand, if you were just looking to buy
a protective case for your AirPods, you're probably just looking to find something
that's pretty cool. And yes, before you ask
and run to the comments, make fun of me. I love the Color Purple. So what this means for new sellers is that you want to try
to target categories where consumers are not solely purchasing
from the top established brands, but are instead open to buying products
from lesser known brands like yours. Now, in the past we actually used to call
this factor low competition. However, we feel it's really important
to evolve this strategy because in the past few years it's becoming almost impossible now
to find these low competition categories. They're also in high demand. This is primarily due to the fact
that more people are selling on Amazon, which has led to an increased competition
in almost every major category, even small ones. This means that even the niche categories
that were once considered low competition are now saturated
with really large brands, which makes it extremely difficult
for new sellers to gain any traction. This is why new sellers need to pivot and target categories
that are easier to break into. Now there's a whole bunch of different
data points that you want to look into, but when it comes to product research, here are a few ways to help
isolate those brand agnostic categories. So I'm actually going to use the review
filter here and set a review Max to 250. Now, the reasoning behind this is to help
you find products that are selling hundreds of units each month despite only having a relatively low
amounts of reviews, which most likely means
the product is sold by either unknown brand
or is pretty new to the market. And that's exactly what you want to see. New products sold by unknown brands
that are doing extremely well, especially in the first year or two,
Which actually brings us to the second filter
we can use here. And this is the date
first available filter. And what I like to do now is select either
the last 24 months or 12 months or the last two or one years. Sometimes I'll start at two years
and then narrowed down to 12. But I'm just going to save some time here
and pick the last 12 months. So now what we're basically trying to find is products
that were just launched in the past year that are selling 300 units each month
despite only having 250 reviews. So another way that we can do
this is to exclude top brands. Essentially, it's going to get rid of your brands like Nike, Adidas
and those really, really large brands. But then also what I like to do
is come up here, the seller type. So the three different types of sellers
there is Amazon. So you're competing directly with Amazon
or FBA or FPM, which are third party sellers
like yourself that are sending in products
to fulfillment center and they're essentially smaller sellers
most likely. So I like to weed out
Amazon, don't want to compete with Amazon and select FBA
and FBM only with filters in place. Now for high demand and brand agnostic,
let's move on to factor number three,
which is high profitability on Amazon. You will ensure that
after all your expenses that you're still taking home
a healthy net profit. A lot of people make the same mistake of
selling products with low profitability, and the minute Amazon
either increases their fees or your shipping costs
go up, their products end up feeling and we're going to make sure that you
don't make that same common mistake here. So as a general rule of thumb, you want to
aim to sell products between 25 and $75. And the reason behind that is because anything under $25,
the profit margins are usually very slim. And anything above $75, it's really hard
to convince shoppers to buy from a brand that they're not familiar
with and make an impulse buy. So we can actually set those filters here. Minimum price 25, maximum price 75, and go ahead
and feel free to play around with that. You can do $20, minimum, $3 minimum,
or even increase the max as well. All right. Now, factor
number four is improvement potential. So a few years ago,
you could basically just throw any random product on Amazon
and get sales. But today it's a little more complicated
than that because new sellers are joining every single day. It's more important than ever
to not just find a generic product and slap your logo on it,
but instead you want to do everything you can to stand out
and grab the customer's attention. And by far the best way of doing
that is truly creating a product that is better than your competition. Making just one small improvement
can really help increase your chances of breaking into a market,
even if the competition is fierce. So to help you find products that customers are just begging to be improved, you can actually utilize
this star rating filter. And this is the rating that every product
on Amazon has on a scale of 1 to 5. So for this, I suggest setting the maximum
rating to at least a four here. And basically that will help eliminate all the products with a four plus
or even a perfect five star rating. And so what this will do is just make it
easier to find products that are selling hundreds of units each month
despite having negative reviews and surely
if a product has a few negative reviews, then there must be some room
for improvement there. All right. Now factor number five is easy to sell,
especially if this is your first product. It's best to sell something that isn't
going to give you too many headaches. Ideally, you want to find a product
that is easy for a factory to make and for you to sell. Ideally,
these are products that aren't easily breakable, aren't a food, clothing or
electronic item, and are also products that are small and lightweight, just like
we did in the GB example earlier. And just a note on the product
being small and lightweight, this is really important because not only will shipping and storage
be less expensive for you, but Amazon will actually charge
you less in their FBA fees. So to avoid oversize products,
you can actually come up here to the product here
section and select standard products only. And a really good way of thinking about this is a standard product is a product
that can fit into a normal shoe box and oversize would be something above £20
or in a lot bigger box. All right. Now another quick thing that you can do
here is to help eliminate products that are either, you know, too hard
to make or or easily breakable. You can come over here to the categories
and select all of the categories except for the ones that I have unchecked
here. Now, I'm not saying that you can't sell
in these categories, but these are the ones that are typically causing
new sellers the most headaches. So factor number six
now is no legal or liability issues. Now, there's not a filter for this one,
but it is one of the most important factors you can't ignore
when analyzing any product idea. You need to double check that it doesn't infringe
on any existing patents or trademarks. For example, it is okay to sell a generic
travel mug like this, but it's not okay to sell the specific one that's designed
in patented by the company Yeti. Also, make sure to cross off any products that you can see
as being a potential liability. This means you could be sued
if something were to go tragically wrong with a product
like a child's car seat, for example. And hey, real quick, if you're getting any value
from this video so far, let us know by hitting the like
button down below. Okay. Now to recap, all of these filters here are set to help you discover
only products that are in high demand target brand agnostic customers are highly
profitable, can be improved, and are going to be
a lot easier to sell on. But keep in mind, you don't always need
to utilize these filters at once. In fact, I'd encourage you to play around and see what different results
you get by setting different parameters and you can even come up here and load filter sets from
the ones that we've created for you, or if you like, you can actually just save
the ones that you've created yourself. Now that you know
what makes a good product at this point, you can click search. And really the process from here
is to just go through these products. You can hover over the image
and try to find things that are interesting you wouldn't
want to sell in this case, some vitamins or anything, just can be really hard
to sell or any beauty products like that. But also so there's 412 products here. But what I like to do now is incorporate
my interest here so you can come up here to the included
keyword section and add in. I'm going to add in dog, of course, but you would add
in your own interest or hobby. And with all the parameters we sat here. So new products in the past year
that are selling really strongly in our price range
about 15 different products. And of course we see a bunch of different
dog products here that is hilarious. Not sure what that is. Food storage. Cool. And I'm just going to pick one here. We know that they all meet our criteria. So let's see here what would be
an interesting one, a recovery suit. Okay,
So I'm going to click this icon here, which will bring us to a search results
or I'm sorry, to that product. Exactly. And I'm going to go ahead and copy
and paste recovery suit for Dog into the search bar
and then add that as our fourth idea here. Okay. So our fifth and final product now I'm going to show you how to find it
Trending products. So capitalizing on growing
trends is a really smart way to make money selling products online, especially
if you can catch it at its onset. But how do you even find out
what's trending? Well, if you're active on social media, especially on apps like TikTok,
for example, you can get a really good idea
of what products people are talking about. What categories do people love,
what are some new items that consumers are raving about? This is a really helpful way to harvest
new ideas, but also you want to make sure that you're not selling something
that's just seasonal or that's a fad. So we'll go over this in more detail later
when we do market research. But first, let me show you
how to find really good products that are trending
by using the opportunity finder. So this is another tool
within Jungle Scout. And instead of showing you product ideas,
this time it's going to display individual product niches
or essentially keyword phrases. So from here
I'm just going to select dog supplies. I want to sell something in that category.
Average monthly units sold. We're going to do 300 again
for the demand. And now for our monthly price, 25 to 75. Then we'll come down here and bring
seasonality and competition to medium and then include the word dogs,
because we want to find a dog product and now to find trending products are almost going to exclude top brands,
of course, to find trending products. I won't put one as the minimum here
and the 90 day trend filter. So essentially what this is going to do
is show us products over the past three months
that are trending upwards by at least 1%. And now at this point,
go ahead and click search. Okay. We have 22 products here
that I can now expand and see a bunch of different metrics
for each of the niches. So for dog knee braces, you can see
the past few years of unit sales price
and search volume as well as seasonality. And then just like you would on Amazon,
you can actually see the top products here and their individual metrics
of revenue price. The data was first available,
so that's awesome. And then clicking this icon again
will bring it up on Amazon, but this time it will actually run
the search term for us. So I'm going to save this idea
as our fifth product idea. So you have five product ideas. However, right now
these are all just very broad categories. And remember,
competition is fierce at the top. So it's really important
to find sub niches that are way less competitive and are more targeted
towards a specific consumer. So the next step now
is to take each of your ideas and identify all the different sub niches. And the way I like to do this is by going
back over to our search results page. And for this example, I'm going to do this
with the hooded dog beds. So at this point,
what I could do is scroll down to the first organic products,
which is this one here. And if you have Jungle Scout,
you can actually click this keywords icon, which will run a reverse
Asian search on this product here. And we're doing this to find the top keywords
that consumers are typing in on Amazon to buy this type of product,
which we can see about 1500 keywords here. But these are just one product, and this tool can actually hold
ten different products at once. So make sure to go back to the search
results page here, copy the essence and then bring back up here and this fills
us up with ten different reasons. So now that I've got my ten
Asians in here, I'm just going to narrow this down to find the most relevant keywords
by selecting pet supplies as a category, because sometimes competitor two
will have keywords that are coming from outside categories
and we want to remove those. So the next thing to do is find
not just the most relevant. Q Is what the highest volume keywords, and we can do that in this exact match
minimum column. And what I would do
is just put a thousand, but feel free to play around this. Do 500, 200, 5000,
and this is going to help us isolate those high volume keywords
that are really relevant. So now that we come down
here, we'll see working with 70 keywords, which will be a lot easier
for us to really digest this information. So at this point here,
there's a lot of things you can do. You can click on a keyword
to get keyword insights and see the past two years of performance
here, which is really helpful. For example,
like this product squish smell beds, which if you're familiar
with Squishmallows, it's like a brand. They're exploding and I assume they just launched a new
product on Amazon because this is insane. So this is a good example of a keyword
that does it typically have more than like 20 or 30 searches each month. But in the last like two months, wow,
this thing is blowing up. So that's really helpful. But what I like to do at this point,
we're trying to find sub niches, right? I'm not going to select that one
because the search volume is insane, but I'm going to go through here now. Just find unique ideas. So an example of that is, so here's
dog beds for medium dogs for small dogs. Now I'm not going to select small
dog again because I already have the idea human dog, but that's unique orthopedic. I don't need a repeat squish melo here
puppy bed like I don't need to add that
because I understand dog puppy. So don't you do that? Did we have Medium before? Yeah,
we do have medium. So we're missing large
as he learned to edit cat. Okay, that could be interesting. I know we're looking for dog products,
but Cat Cave is interesting. Giant dog bed. We really have
that dog tent dog bed cover. So again, looking for unique ideas here. Essentially seven features Common Dog bed
a coolaroo I think is a brand. You can always again
search it on Amazon by clicking that icon. Just to confirm in this case, it looks
like yeah, coolaroo is the brand there. So again, just gonna keep going down here and round dog bed
and just finding unique subnet shoes now. Okay so now at this point
I got a lot of different subnets ideas. What I would do is save this
to a new key release and just call it sub niche list for dog beds and share my team and then create an ad. And then before I actually leave
this page, I want to save this search. So when I come back in the future,
save search, I can just easily revisit it. So dog beds with hooded blanket. Great. Now remember, do this exact same process
for your other product ideas as well. And in the end you should have a huge list of subnets
ideas that you can now start looking into and basically what you're trying to figure out at this
point is which of these ideas hit most or ideally all six
those factors of a good product. And once you have a big list, you can finally shift over
from product to market research. Okay, so we're doing market research now. And for this example, I'm going to use
the dog beds with hooded blanket products. But again, you want to do this for all
your sub niches that you're evaluating. What I like to do is now click this
icon to open up the Jungle Scout extension and this will do is populate all the products about 52
that are appearing on page one on Amazon. So you can actually load more here. And I'm going to do that
to go past page one. So I'm just trying to find
all the products that meet this criteria and sweet. So we're at 104 products now, but before I start analyzing
this data here, so at the top you can see the average for all these products here,
I actually want to remove the irrelevant products
because most likely some of these like this product, Amazon is displaying at the top,
but they don't have a blanket. So that one does not look like
it has a blanket attached to it. This one does not look like
it has a blanket attached to it. And the process now is really just going through here
and selecting these and then hiding them so that they remove from the data that
we're in now that we're looking at now. Okay. So I went ahead and removed all the irrelevant products
and we're now down to 68 products. And what I'm going to first
do is ensure that these top few products at the top here are not entirely
dominating the category. And if it was, I would just move on. So the way I'm going to look at
that is looking at the sales, which you can also
pull in the rank as well. So rank sales, which you can do monthly
or daily, the revenue as well. And this makes sure that there's products
down this list that are still hitting ten daily sales or 300 monthly sales. And as I scroll down, I'm seeing products, you know, in the 30 position here that are
still getting pretty strong sales. And if I even take a bigger scroll
11 sales 29 so it's not completely dominated
by those top products at the top here and now at that point,
I can now move on to filtering down. So this is very similar to our product
research filters. I'm going to enter the minimum price
range of $25 and the minimum sales of 300. I'm going to ignore all the other filters
for now just to keep it wide open. But clicking apply will show
that there's 26 products in this niche that are at a price point
and are getting 300 monthly sales or more. So high demand. And that's really good. So at this point
now I want to keep doing this more and filtering down more to find
how many of these are new sellers. Now we have this
first available column here which you can access a lot easier,
in my opinion, by coming over to the filters and selecting
either the last year or two years. Let's check out the last two years
out of those 26 products that are high demand and are hopefully
going be profitable for us. There's about 15 that were successfully
launched the past two years. That's awesome. And just if we did this for the past one
year, let's see what happens if I click apply about seven products
and that's awesome. One thing I want to point out here is there's oftentimes products like this
where it has 1300 reviews, which ratings is what Amazon is calling reviews for,
both written in non written reviews. So 30 interviews. This product was probably not launched
in the past year and you can verify that by heading over to the listing
and scrolling down. Or actually we have an up in here are extension up here but you can see that
this product was launched. It says it was launched not too long ago. However, that's probably
just a new variation, this one right here. And you can verify that
by opening up the extension on the product page
and seeing this column here. So this product was actually launched
in 2021, which makes a lot of sense to why
it has that many reviews. So if I go back now to that page here,
I can just remove that if I wanted to. But this is good. So this is helping us verify
that this is a category where new sellers are coming in
and making a lot of sales very, very fast. Okay. Now, at this point, we've verified
that this category is in high demand. There's tons of products
that are above $25 for us, and it's a category where new sellers
are coming in and competing. So at this point,
I actually want to remove the filters. So we can get back our list of the full
range of products in this category. And I'm going to add it to a product
tracker list. That way you can I can keep track of them
as a whole, the entire market. You can essentially
do the same thing in Excel, but this will help you
keep track of the sales over time. And so I'm just adding this to a product
tracker group now. So we're in product Tracker here and this is a tool that lets you easily
organize a group and compare all your product ideas to help you
constantly pick your next product. It's also great for keeping an eye
on your closest competitors. Now, of course,
you can also do this in Excel. Like I mentioned, however, the main
benefit of this tool is that once you add in the products, it automatically tracks
and updates the data each day, which will save you countless hours
having to come back and reenter all that data manually and even lets
you go back to the previous six months and view the trends over time,
which is really important because before you go
investing a ton of your money, you want to have a better idea
of how many units these products typically sell
over a longer period of time. So what I like to do now is from here
you can go into each group and download a CSV file. And I like to do this
because I want to visualize this a little bit different when I'm comparing
all my different product. That is, I like to organize it
by demand competition, profitability, improvements, easy sell, legal liability,
and then even my notes on the samples, which we'll get to in a little bit. But yeah,
I like having this structure here. And essentially what I did
was I downloaded this GSV and put everything in here and then just organized it
and do a little bit of color conditioning. Are color
formatting, color conditioning formatting? Well, you'll see how to do it. So what I did is once those numbers were entered in here,
you can select a whole column like this, come over here to format
and go to conditional formatting. And you see, I already added it here,
but so you can do it here,
just click on here and go to color scale. And what is it you go to preview? And then these two here. So red, two green or green, two red. So in all the rows,
except for the reviews, I wanted to have the lowest number red
and the highest number green. And that was reversed for the reviews because obviously
I want to see low amount of reviews. So I wanted to see green at the lowest,
like this 196. And that's super simple to do. Again, you come over here to color scale, you select either red to green,
green to red, and you got to do anything. You just click done.
It will do that for you. So that's super easy to set up. We did a video like this in the past
and we had a few questions about how this was set up,
so that's how you set it up. Hopefully that's easy to follow along. And now I just want to bring up
a few columns that I added, and this is one of my favorite parts
about a tool like Jungle Scout is you can download the data
and then play with it however you want to. So I added in keyword search volume,
which is essentially just the exact keywords
or volume of this search query over here. And that's just another demand factor
for me to see how many people are looking for that product. On Amazon, sales estimates are great,
but you need to see how people are actually typing
that into Amazon each month. And so I add in. Q Richard volume here. And what they had to mention is
we have an average below row here, so the average search bar
in each month is 21,000. And if I see a probability this car seat
for puppies is almost 100,000. So that's huge. So really helps you see which products are the strongest
and which ones are the weakest. So another column I added
here was the same level competitors. Essentially,
this is just showing how many new products were launched in the past year that are above $25 and are hitting
300 monthly sales each month or more. And this is just a really good way
of seeing quickly how much brand agnosticism
is going on in each category and so the other columns I added
here were mostly over here. So estimated cost and all. We'll get to that in a moment. We're able to estimate our cost
by using a feature within the Jungle Scout
for FBA calculator tool and I must show you how to do that
coming up here shortly. I believe these two for playing for now
and moving over to improvement. So this is where you can jot down
all your ideas, ways that you can innovate on the product
or add something to it. And what I like to do here is actually head back over to our key
release that we created earlier. If you remember, we created some sub
niche idea list here for the dog beds that were hooded and so raise
dog bed washable dog bed, dog tent. I can go over here
and copy and paste those into here. It would be hooded dog bed. And just so we have track of all that
in one easy to read sheet here. Now another way that I like
to think of product improvement ideas is actually using chat
bot to analyze my competitor reviews. So I show you exactly how to do that here. I'm going to go over to a product
in the niche and using the Jungle Scout extension,
want to download all the written reviews. So 228 in this case and then open that up into my Google sheets here
and looks just like this. So you'll see all the reviews and you get all these headers up here,
which I'm going to filter. Now the body of the reviews
is what we want to copy into chance CBT and ask it to analyze. But what I like to do first is come over here to this helpful
count column and sort by SDA. That way you'll see all the reviews
that people are agreeing on. Okay, Now at this point
I'm going to copy and paste about like it. It really depends. I'm going do 25
but change CBT can only handle so many. So you have to do this in batches. Now coming over to you at CBT,
I already have this pasted in here, but you can ask it to analyze
the Amazon reviews for this product and create a list summarizing
the top five things people like about it. Dislike
in the top five desired improvements and then go ahead and copy and paste
those reviews here. Okay, so it's generating top five things
that like about the product that's soft. It's got an attached blanket
of course is durable. Top five things
they dislike about the product. So it's become the poor packaging. It's too small, it's not suitable
for all pets suitable for diggers. Okay, So dogs that easily dig
through the bed and put out the stuffing and then the top five desired
improvements here. So they want them to come in larger sizes. Customers are saying they want more color
options, improved packaging, they want to be machine washable. That's an interesting one
and suitable for cats. So whether or not it is probably not
marketed well. So these are really good notes and we just did that
for a batch of reviews here for the top 25 reviews, and I would actually do that
for the rest of the reviews and for a ton of different products. We did it for just this one product here. So go through
a bunch of different products and niche and run this review analysis
using the Jungle Scout extension. Then download the reviews and chat
CBT to analyze them and then easy to sell. So just markdown any notes
about like the production or the quality or anything they can see going
wrong with the manufacturing or like shipping and storage. Just jot down those notes here. So for example, dog stairs are pretty big
and I can't like, I don't think you can fold them easily
into a package. So it's probably an oversize product, whereas a dog knee brace
would be super small and fit in a shoebox. So I can put those notes here and then legal liability,
hopefully this is all empty, but this is where you just note
some of the findings that you found. Like if there's any existing trademarks or patents out there
that you need to work around, you want to go in
and put those notes here. And then again, samples.
We'll get to that in just a moment. So now, with all of your notes
filled out here and obviously mine aren't filled out,
but once you do, you want to try to narrow this list
down to your top three products. And and the reason
you want to get this down to just three products is because,
you know, one, it's going to take you this amount of time
to reach out to suppliers and contact them and then also collect quotes and samples
from them. And to those samples are pretty expensive. So you want to be very selective
about which ones you're going to order. Now, if you don't like the quotes or even the samples that you received
from products one, two and three, then you can always come back to this list
here and request samples in quotes for products before five and six.
Does that sound good? Okay, great. So let's say I don't know,
your top three products are these ones right here in a highlight
them yellow to make them stand out So the process from here
if those are your three favorite products is to reach out to at least ten suppliers
per product idea and I'm going to show you
exactly how to do that. So there are two main ways to contact
suppliers. The first ways by using Alibaba.com, which is just like Amazon,
but for finding suppliers. And the second way is to use the Jungle
Scout Supplier database, a tool that helps you not just find, but also validate
the credibility of certain suppliers. So you can first start
by heading over to Alibaba.com and typing in the name of your product. And now, before scanning through this list, first,
go ahead and check these two boxes. So this will help eliminate any supplier
who isn't verified or offers trade assurance and or trade assurances. It's a program
that helps ensure that your product is produced to the quality you expect, is paid for securely
and is shipped out on time. And if there's any issues at all, Alibaba
will actually help you file a dispute and get reimbursed. Okay.
And then one more thing here. Come down here
to the previously exported to and select the country
that you plan on selling in. And the reason
why this is really important is because you don't want to work
with any supplier who has zero experience shipping products to the country.
You're selling it. This is all about
setting yourself up for success. So once you've done this, you can now
start scanning through this list here, however you want to try to find suppliers
who've been in business a long time so you can find the years
they've been selling over here. So nine years, seven years,
or you can actually click into the product or the listing and see that information
to the right over here. However, just know that this nine years
is of being in business, not of sending products to the country
that you're selling. So to better verify that information,
you actually use the Jungle Scout supplier database. Now what I'm going to do here
is go to the suppliers profile first and then copy their name here. So we're back
to Jungle Scout in the supplier section. I'm just going to paste it in here and I'm
going to try to find the supplier here. Okay? So it looks like
we found the supplier here and we can see how many total shipments
they've done, who their top customers are, their top manufactured products
and viewing more, you'll see their exact shipment history here. So if we scroll over to the first one,
you'll see February 2016 was their first shipment
into the United States. And this is a great way for you
to validate when they actually sent their first shipment into country,
you're selling them, which in this case is the United States. So back over on their profile,
they said nine years, which is how long
they've been selling the product. But over the supplier database,
they've only been sending to the U.S. for the past six or seven years,
which is great. But this is also just really helpful
for you to validate that information. And drilling down here
to the shipment information, you can see the exact shipments
that the supplier has sent into the U.S. in this time frame. But if you're wondering
how Joe Scout knows all this information, it's simply done by collecting free information on all the shipments
that are imported into the United States and the suppliers
who are doing them with this. You can see exactly how many shipments
the supplier has sent in to the U.S., which gives you a really great idea
of their experience shipping to the U.S. Now, with this tool,
you can actually find suppliers that are honestly much more beginner
friendly. So I'm going go back here
and type in the name of a company. And if you don't know
the name of a company, sometimes you can just come to
a listing here. I'm going to copy
it right here under the brand. Or if you don't have the extension,
you can click on the product and scroll down to the very bottom in this price detail section and copy
and paste the manufacturer here. And then coming back here,
I'm going to copy it in here and we can find exactly sometimes
who the supplier is that makes this product
so we can see the company here and all their top suppliers that
they've been using in the past few years, which it looks like
the last shipment was in November 2020 to buy this company here. Okay. Now, if you don't know the name of
a company, you can actually use an Asian. So I'm going to copy the Asian over here
of this product and search by Asian. And here we can see those exact same suppliers
for this product and we can even click into it
and get more information that way. Now, the last way to find products
just like Alibaba, you can search by product
and here I'm going to go dog beds for pets just to get more information
in there to find pet products. And now we can see a bunch of suppliers
who make pet products. You can see their top customers are so
chewy is their top customer. They make mostly plastic products,
animal food. And you start scrolling through here. I'll give you really good ideas
of suppliers to reach out to. Okay, So after you've created a list
of potential suppliers to reach out to you now, want to send them
the same list of detailed questions. That way you can judge
all the responses equally. And to do this, you first need to track
down each supplier's contact info. So on Alibaba,
it's actually really simple. You can just come over to the product
listing here and click contact supplier. Now just a little heads up here in Alibaba,
the messaging can get a little bit messy and that's why I recommend
contacting suppliers off of Alibaba. Let me show you an example of this. So I message this supplier asking
for a sample and what I message them. I'll actually give you a link
to download this. We have a free template for you, but I asked them all
these very specific questions. I even numbered it one through how many? Question six. Right. And then I get a
hello dear as my response. And then a few minutes later,
hello dear, as a second response. And so I asked them, Hi, can you please
answer my pricing questions? I even said Please. Hello dear. So I said hello back and you can see
how this scenario is just happening to me. But it's the case
for a lot of different suppliers. They're not as good as responding
as you would hope them to be. And I think it's just Alibaba. It's they're getting messages a lot. And so if you're sending them
a question on email in my opinion, I think that's a better way
of getting responses back. Now, you can also try to connect them
on Alibaba first and get their email or their WhatsApp, but I'd recommend doing that as opposed
to doing all your communications right here in Alibaba. Okay. Now, understandably,
this is where most people get stuck, and it's exactly where I got stuck
when I first started my business. What are you supposed to say
in the initial contact email? What I hope you here's the exact template
that we send out to all of our suppliers and it is pretty extensive. So if you want to check it out,
it's completely free. So I'll put a link to it in the pinned
comment down below. Okay. Now, after you've gotten your responses
from suppliers, you'll quickly start to understand
what the estimated per unit cost will be. So now with those numbers,
you can just copy those in this column here, but you still need to know
what the estimated ROI is going to be. So let me show you exactly how to do that. Go back over to your search results
and open up the extension here. Now, what you want to try to do is find a product
that's very similar to yours in size. And this is important because Amazon charges fees
based on the size of your product. So you can use the dimensions
and weight column to find products are exactly like yours. And let's pretend this is a product
that is just like ours. And I'm you're going to open up the profit
calculator here. This is where we can enter
our per unit product cost and see what our estimated profit in our
Y percentage is going to be. So I'm going to enter one in here now. But then also I like to add
in a few extra dollars for things like shipping, storage
and advertising cost. These are per unit cost, so you can't
really calculate until you start selling, but it's good to factor
it in as a worst case scenario. So I usually just do
like a couple of dollars. Let me just bring it up to
maybe 15 or one. So an extra $2 and I calculate the profit,
which is 129%. But now I'm sure you're wondering
what are why should you be shooting for? Ideally, the goal is to sell at at least
100% ROI, just like this example here, which basically means for every dollar
you spend, you get $2 back. And here's an important
tip to remember for this. For every product you're evaluating,
think, can I source and ship this to Amazon
for substantially less than selling for? And to help you answer that question,
consider the rule of thirds. One third goes towards Amazon fees,
one third goes towards your landing cost
and then one third goes back to you. So for example, here,
this product is selling for around $49. And if you split $14 into three,
that's about $16. Now, our total FBA fees is 1468, so we're
less than that third price, which means we actually get back like a dollar
and a half to our product cost. So even though we spend about $17
on a per unit product cost, we're still going to be right around
that 100% r y percentage. And again, this course should include
both the estimated cost to source and it ship the product into Amazon. Now, if the product would have cost above
$17 and I'd probably move on to another product as a profit
margin will start to get really low, especially once you start factoring things
like advertising spend. Now just sure you do this for the rest of the products
that you're considering and once you do that, you should now have all the data
you could possibly need to make a decision and then just make sure to go back
to your estimated r y column here and add in that percentage. Yeah. However, before you go
purchasing a whole bunch of inventory, you want to make sure to order samples
first. This is something that you cannot skip, and it's arguably the most important part
of the product research process. But just a quick note regarding this. It is typical to pay anywhere from $50
to $150 just for a single sample. So before you go ordering those, I strongly recommend
coming up with a sample budget. For example, if we're going to spend over
$500, you could probably afford to order samples for your top three products
and from your top two or three suppliers. This will let you not just compare
the three products, but also compare the quality difference
between the suppliers. However, if your budget is only $300,
you may only have two options here. Either pick your favorite product
in order samples from multiple suppliers, which will allow you to compare
the quality differences between them or pick your favorite suppliers for each
of your top three products in order. Just one sample each. This will allow you to compare the three products side by side
in terms of paying for these samples. The best way to pay
is usually with a wire transfer, although you can never go wrong
with good old PayPal. The other payment method to be familiar with here is trade
assurance through the Alibaba platform. Just like I mentioned earlier,
this is a really great option because it provides you with a little more protection
for payments that you can, in this case, paying through wire transfer on Alibaba
is the main option you'd most likely use. And it's also the same method
you're going to use to place your first order on Alibaba. Now, when you receive the samples, make sure you take the time
to truly compare them. Ask yourself
what's the quality of the sample like? And then use it in a way that the customer would
and see how it holds up in a stress test. Also, how quickly did arrive was
the communication with the supplier Easy. You can keep track of all these notes
back over in your spreadsheet here. And for this I just like to create
a sample column here and add all my notes like bad supplier, but good quality
product or whatever your notes are. Just add them in here. That way you can come back to all of your products
and look at your notes for everything. All right. Now, based on all the information
that you recorded in this sheet here, it's now time to finally narrow down
to your favorite product and your favorite supplier and to help you with this, Here's
my best piece of advice. Rarely will you ever find a product
that's perfect in all of these areas here. Usually you just have to weigh up the pros and cons and go with
the one that takes the most boxes. However, the two boxes
that should be weighted the most or the product's demand
and the profitability. If anything, your product
must excel at these two factors. So whatever you do,
do not budge on those two. When new sellers fail, it's usually
because of one of these two factors. They either can't sell enough
because demand just isn't there, or if they are selling then they just end up losing money
or not making enough to reorder inventory. So give yourself a fighting chance and pick a product that you know,
at least checks those two boxes. And once you finally feel confident
that you found that great product, it's now time to get real about the numbers
game. You need to know the ballpark number of how much it's going to cost for you
to launch and maintain the business. So before you go ordering inventory, it's really important to build
a financial plan for your online business. Having a budget is critical, but
no matter what anyone tries to tell you, trust me when I say this, you do not need
as much money as you think you do. In fact, based on our own research,
asking thousands of new sellers about their startup cost,
the majority of those sellers said that they started their business
with around at 25 to $5000. However, many Amazon sellers
also told us that they started with way less than that amount, which means they just took the approach
of starting slow in ordering small batches of inventory, which is way
better than not starting at all. So if you're in the exact same boat
with less than a few thousand dollars, it's better just to get started now
because in a year or two you'll be in a far better position than if you waited
to get just a little more funding. But let's go over what specific cost you
should consider in your financial plan, and we'll do that by breaking it down into required, recommended
and extra cost here. And to make this example make sense,
let's assume that you're selling a product
where the total landed cost is around $4, meaning that's the per unit price
for both manufacturing and shipping. So with required cost here,
these are the only required fees and other expenses that you must pay
to start selling on Amazon. And by far
the biggest one here is inventory. So I put a minimum and maximum here
so we can have different examples. So actually back it up, two samples here. If you were to just order one sample, it might cost you around $100
or at least it's good to budget. But if you were at around six,
you can budget around $600 here. So samples that's relatively small cost,
whereas inventory is going to eat up a majority of your startup costs. So for this example, I put 250 if we're selling at the $4 product cost
as the minimum here. So $1,000 if you're going to order
two for the units or $2,000 double date, if you order 500 and typically you'll find
that manufacturers want you to order at least 500 units. So that will be their minimum
order requirement. However, you can often negotiate with them
and say that, hey, you're going to buy more in the future,
but right now you want to test out the market
with 200 or 250 units. So don't be scared to ask suppliers
for a trial period. Essentially, you may have to sacrifice
a little bit of product cost. So it's instead of $4 might be $5,
but that's going to be very short term for you here. So just showing you what the minute
and Max would be, depending on how many units
you order at a very small scale here. And this third cost here is a UPC barcode. So every product on Amazon
needs one of these barcodes in order to create a listing
and to send it in. So it's about $30 when you buy it from the S1 one website,
which is where you need to go. We have an entire video on that
which we'll link down in the description below of how to buy these barcodes. So for one barcode it's going to be $30. And the next cost here
that you absolutely need is an Amazon seller, a central account. So I put zero in the minimum because
technically with an individual plan, you don't have any monthly cost,
but they do charge you $0.99 per sale. So if you're going to be making more
than 40 sales a month, that's when it's smart to switch over to professional plan
because it's going to cost you $40. This is charged monthly,
but also with the professional plan, you get a lot more selling features,
like you can have videos on your list and you can utilize certain advertising
campaigns. The professional plan is highly worth it. And so this is what your max looks like. So now let's go ahead and see what
the minimum and maximum start up costs would be in this required field. So if you're doing the bare bones minimum, it's going to cost
you around 1100 dollars. Or if you're doing the max
in between two and $3,000. So if you're going with this example
here of $4 per unit, you can expect to spend anywhere
from 1000 to $3000 here. Okay. So now let's
go down to the recommended cost. So these are costs that you don't
necessarily need to start a successful business. But if you have the funds, we highly
recommend that you make these investments. So the first recommended course
here is to set up an LLC, and this will cost you around 50 to $300
depending on the state you live in. And this can be helpful
if you're selling categories that inherently have more risk
like the baby or pet supplies categories. Okay. So the next cost here
is a registered trademark. Now this will range anywhere from $350
if you do it yourself or $2,000 if you go through the Amazon
IP accelerator program. And there's a lot of benefits to that. So you're going to get access to a service called Brand Registry,
and that will allow you to upload videos. You can have an A-plus module content
inside of your product description, and this is helps you sell a little bit
more and increase your conversion rate. It's not necessary at all,
but if you have the funds, I strongly recommend that
the next course down here is recommended. So this is product photography
and videography. Personally,
I believe this should be a required field. However, you can do it yourself for $0
and then eventually start to hire people to do it for you. But I've spent up in the past
to 1500 dollars to get really good images done
and a strongly recommend this. Your images can make or break
your listing. It's going to be why people click
into your listing and eventually buy. So if you have the funds, I strongly
recommend hiring someone to take photos. And then if you sign up for brand
registry, have them take a video of your product
as well. Okay. Now our fourth recommended cost
here is a PPC budget, so this can range from 300 to $900. And the math I did there was assuming you're spending either
$10 a day or $30 a day for entire month. And this is really helpful. When you first starting out,
you have to think about it. Your product is going to have zero reviews
and the only way to get it in front of customers
is probably through advertising. So I'd like to set that up as a budget
before I launch. That way I can assume that I'm probably
going to lose a little bit of that because it might not be profitable. So adding that as your recommended
budget here and keeping that in mind when you launch is really helpful. And then I added a Jungle Scout
membership here because I think it's vital to launching a business. You can start with the $29 plan
or use the professional $84 plan. This is charged monthly, but it's going to help you launch your product
like we've seen so far in this video, but is also going to help you
manage your business so you can actually manage your inventory,
look at your sales, optimize your listing
and use keyword research for that. So I definitely recommend adding it in
if you have the funds to do that. So now let's go to the last bucket here,
which I've called extra, and this is just general design work
that can range in cost from 100 to $700. Now this could be things like logos,
packaging, product inserts, touch ups on your photography. It could be anything
that you can think of. But general design
work is not needed at all. But if you know somebody on five or nine
nine designs or anyone else that can just touch up
certain aspects of your business, then this could be a cost
that is highly worth it, but you don't need it at all. But again, the only costs
you absolutely need are these ones highlighted in red here and really
is primarily your inventory cost. Eating up the majority of your budget. But also if you need a little bit of help
funding your startup, there are a bunch of options available. We actually have a full GUI
that breaks down all the different funding options
and how to get approved. So make sure check out that article with
the link in the pen comment down below. Now trust me, I've been there. An upfront investment of any amount
can feel like a huge risk. But as long as you thoroughly researched
your product idea in the long run it's all going to pay off. However, if you need a little more help
finding that winning product, we have an entire product
research playlist that will teach you everything
you could possibly need to know. So make sure check out this next playlist. And if you stuck around this far, I want to say thank you so much
for watching today's video and hopefully we'll
see you in the next one.
