Your success launching a business on Amazon depends on what product you choose to sell. Yes, it takes more than that (marketing is particularly important), but if you start with a bad product you are doomed from the get-go.
I have previously written a popular guide on how to find the best products to sell on Amazon, but now I want to delve a little bit deeper with a case study.
In the below presentation I look into one product and do an analysis of its strengths, weaknesses and give some advice. It is an example of service I offer some of my consulting clients and normally charge £200 for.
With the above example report, I have tried to cover a few of the easiest mistakes:
- Pricing – People often just look at the prices they are buying and selling for, but forget about all the costs in between. In the above case, the product is being bought for £20 and sold for £40 and the seller is still making a loss.
- Complexity – Electronics or items with lots of moving parts are very complex and have a lot that can go wrong with them. They also make it a lot harder for you to assess if your factory is creating good quality products. They can be hugely profitable but are also a very difficult initial product. But on the flip side if your product is too simple then it is very difficult to differentiate yourself from your competition and end up in a price war. You need a middle ground.
- Market Size – Although the seller in our example has chosen a large market, a lot of people don’t and instead choose a niche where there are only a few items sold each month. Even if you conquer the best-seller spot you might still not make any money because there just aren’t enough customers.
You can request your own product report here.