How you beat your competition on Amazon FBA and in wholesale ASK NILS EPS10

August 2, 2017

  • How to differentiate your product

  • Why lots of competitors launch with you together

  • Why lots of suppliers offer the same identical item

  • How you can find products that your completion can’t

Resources:

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Fair Report

Today we’ll talk about how to stand out (differentiate yourself) and win over your competition on Amazon. First, please subscribe to iTunes below this episode, if you’re listening on a mobile phone. If you’re already listening via iTunes, Nils is glad for reviews if you got any value out of it.

(01:20) John sells on Amazon in the USA and notices that every time he launches a new project, he instantly has ten competitors that appear. John’s supplier claims that John is the only person selling that item in the USA. Why does everyone sell the same product, and how can different suppliers offer the identical item?

(To submit your own question, go to EasyPeasySourcing.com/ask to send a voice message or fill in the contact form like John did.)

(02:00) You might use a tool like JungleScout or CashCowPro to find a great product, but your competitors do the same thing and may locate the same product as you. The software can only grab a fraction of Amazon products. They don’t have Amazon’s entire catalog and only what’s in their database. When they add new products in their database, it shows up for all your competitors.

After you go through the process of sourcing and listing the pink basketball, everyone goes through that same process and launches their product around the same time. When everyone sells the same pink basketball, the only real differentiators are the price and reviews so it’s hard to compete. Usually, the software only has a fraction of the catalog and updates regularly.

(04:45) Why are all the products identical? How can people buy from different factories but they’re listing exactly the same item? When products have the same shape (i.e. iPhone cases), one company produces the mold and then rents it out. Ten factories might rent the mold from a product development company and then give it back.

They copy the listing, use the same picture and same mold. Hundreds or thousands of factories in China can produce it. The Chinese like competition (demand) and don’t mind identical products. The material, price, lead time, and factory terms are different. Side tip: contact 100-200 suppliers on Alibaba that offer the same item. It’s usually the same item but with different terms.

(07:40) Option one: once you see the item, hurry and get it listed without making it perfect. Get ranked on Amazon. Packaging and customizations don’t matter because you’re ranking first. During that time, fine-tune it the way you like with your packaging and logo.

You now have the advantage because you’re established, ranked, and you have reviews already. To save time during the sourcing process, get an agent who can tell you what changes to make in order to make things cheap and fast. To save more time, get an agent in China who looks at samples.

(09:50) Option two: get a product variation that no one else has. Go to the Hong Kong Fair or Canton Fair to find a production variation that is different. We’re talking about an existing proven product (such as an iPhone case) that is new and not yet on Alibaba.

Also, look into that niche. Instead of limiting yourself to iPhone cases, look at other products to add to your brand. It might be a new belt that goes around your wrist and holds the phone while running, or a cable storage case.

Let’s say you listed an iPhone case that’s not just a variation on color like everyone else, but it has a different function. You stand out as a different option while your competitors look identical. It takes months for those competitors to copy you and they’ll have difficulty locating a supplier.

(13:00) Imagine if you launched on Amazon with a product variation no one else can offer and no one else can find. Nils and his team went to the fair and compiled a Fair Report to provide a huge database of product variations. It might not be the exact product you want, but you’re winning because it fits into your niche.

(14:00) One more option is to find an agent and ask him to contact factories to find out if they have new variations or new products that aren’t listed on Alibaba. You might be surprised what the factory has to offer that you didn’t know about.

(15:00) To wrap up, be different to win the market. Visit fairs and get a product variation that is not on the market yet. Ask your supplier for new products that are about to launch. Look into the Fair Report. Your competition is lazy, so apply that extra step to sell more, win in the marketplace and outsell your competition.

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