The Surprisingly Successful $22 Million Amazon Business Idea You Wouldn't Expect

you know what this is probably the most boring business ideas I have ever had but it's actually the most surprising one it is worth at least 22 million if not more crazy right if this is the first time you're here my name is Eric I work in a number of innovative Partnerships with some of the biggest technology companies in the world the names that I cannot mention but you know them we build new business models worth millions of dollars of investments in this channel I'm going to share with you more than 200 of my own business ideas and my step bystep guide how I Vari that idea one by one if you like them feel free to copy and paste them most importantly remember to subscribe so that you're not going to miss out the next idea okay so what I know is this super boring idea that is worth at least 22 millionar in terms of Market size it is something I admit I use it myself as well but it's really old school it's something called a fade stand or a suit stand so basically it's a stand that holds your jacket your pair of Tru houses and maybe some accessories like C links you know what who's still wearing suits however you need to listen to the market and this is actually the Cornerstone of my structured approach on how to eval new business ideas listen to the market is one of the most important thing well you can check out the video in the link above on my last video so that you know what is the structural approach towards evaluating a new business idea and remember to share to your friends who wants to be an entrepreneur as well so before we go straight to the TR $2 million idea let's talk about the structure of the video very briefly first of all of course we'll talk about the idea itself what does it mean secondly we will talk about the pros or opportunities the third part we will talk about the cons slash challenges if you need to take up this idea last but not least the verdict I will give a score from 1 to 10 to see how recommendable is this particular idea okay so what is it about this $22 million idea I mean when I first came across it I was almost laughing at myself because this is just so boring how could it stand a chance but you never know that's the fun part about entrepreneurship wow Amazon is another world you look at the celles totally different from Etsy and it is a simple idea basically just a stand with a hanger on top so that you can hang your jacket on it and then with the arm so that you can hang a pair of chares on it or maybe multiple ches and maybe a space we can put accessories for example cuff links and that's it okay now we understand this very simple idea but what are the pros and cons if we want to Pursuit further with this business idea let's start with the pros first okay I look at two dimensions in terms of Pros the most important one of course is to look at the validation of demand I will go to Etsy Amazon and later to Google even though Google is more like a cons for me and then you will realize how big this Market is in Etsy not as impressive you search for valid stand you will see okay there's a lot of listings first clance you feel like okay there are quite a number of reviews maybe it's not that bad and then you realize okay they actually not really reviews of the particular product but they review for the whole shop and of course they sell more than just valet stands right until I saw one of the shops this particular shop is actually selling 95% of the goods with the fet stand so this shop is actually really focusing on a very small Niche so how much does this guy sell they sold 5,400 products I would say most of them are stands valid stands they sold on average I would say 280 guess how much they made €1.5 million but of course this is a lifetime value so I need to check when did they start opening the shop scroll down you see okay they started in 2015 do very rough calculation I would say they will make around €200,000 per year not astonishing enough for me to jump into this rush but still a decent amount wow Amazon is another world you look at the sales totally different from ety each of them each product has their own sales how do you estimate how much sales they do just look at the reviews roughly one in 100 people would give a review on Amazon if you see for example the first one 700 70 reviews well doesn't sound too high but if you times it by 100 times this would be a sales of around 770,000 of them times €20 each which is a decent amount of money you can imagine do the same thing for the top 10 sellers the total number is guess it22 million and this just only the top 10 sellers I can imagine the numbers would be much higher if you have the whole Market okay okay of course €22 million this is a lifetime value right not just for one month or one year so the top 10 shops on average would be 6 year old that means if you divided € 22 million of Revenue by 6 years plus the numbers in Etsy especially the shop I mentioned before would be roughly 4 million of Revenue per year which is still a sizable market and how much we get of course if you talk about 10% of the market then we will have 400,000 per year okay maybe a bit more modist 5% of market share still means €200,000 per year of Revenue not bad for sideart so even for full business especially this is such a boring Market there not so many innovators going into this market so what do you think about this opportunity do you think the market size is a surprise to you leave me in comments below well understood the pros seems pretty bright how about the cons the cons first of all is on Google search if you look at the volume of Google search on Google ad you will see the search volume would be ranging from 1,000 to 10,000 maybe some of them higher but those keywords are not exactly the same so I think to be conservative this would be more like 5,000 search per month around the world but still this is a pretty low search volume and the Second Challenge is to manufactured product as this is actually a physical product there are two ways you can do that the first way is like atsy which is my preferred way because they sell at a much higher price it's always better to go premium because you have the same number of customers same number of calls into your call center but you get a much higher value from each customer so it's worth it but the challenge of course is that you need to have certain artistic value a design and also very good skills in either root crafting or metal crafting whatever you prefer in order to build the stand and this is not something you can do within a few weeks time so it takes some time to build up those skills the second one is Drop Shipping you can see on alib Baba they are basically the same exactly the same as those in Amazon the price in Alibaba is actually more expensive than I thought roughly €20 each and you talk about you only sell for €0 on Amazon on average so the profit margin is pretty slim around 33% of grow margin we just talking about gross margin not even including marketing cost and the third challenge you have is you have a lot of competition because if you're doing Drop Shipping route many people would be doing the same and they would be buying from Alibaba and selling on Amazon this would be a challenge for you if you cannot distinguish yourself from aits either through branding marketing or tweak of the product last but not least infantry the minimum order volume is 500 on Alibaba €20 each cost you €10,000 so you would have €10,000 of infantry which is not small hopefully you can sell all of them of course but if not this will be a trouble okay so what is my verdict about this very boring idea pretty simple and Market size is pretty decent you can make a few hundred th000 per year which is pretty all right but there are a number of conss so what do you think about this idea leave me in the comments below remember to subscribe so that you're not going to miss out

Channel: Finance Panda

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Id: w9QuHD7swXg

Length: 8min 32sec (512 seconds)

Published: Mon May 20 2024