We’re excited that you choose to take time out of your day to chit-chat with Nils about Amazon and today, the starting point when you first begin sourcing with a product. We discussed the six-phase sourcing approach in Episode 9 (EasyPeasySourcing.com/esp9) but today, we’ll unpack the very first step: product selection.
To review, the second step is supplier choice. The third step is product development, the fourth is placing the order, the fifth is quality control, and number six is shipping.
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(02:50) When researching wholesalers or retailers in the Amazon space, people are looking for shortcuts. People ask about cheap forwarders and cheap but good items, such as a ten dollar item for two dollars. If you want to succeed, do things yourself.
No one else will spoil their success for you. If someone has a great agent, they’re not likely to share that for free on Facebook, because that 20 or 30 people will contact that agent. Do the legwork on Upwork and Fiverr to run interviews.
(05:00) Asking for a ten dollar item you can buy for two dollars is a very flawed question. Everyone has their own criteria. There might be additional baggage such as huge risks, competition, or expensive licensing. Forget those questions and do it yourself. There’s no shortcut. No one will tell you about a product that sells really well on Amazon. They would create their own competition by doing that.
(06:10) Get a software that extracts data from Amazon. Narrow that down based on your personal criteria. CashCowPro is useful to scan the Amazon market and choose what you want.
(07:00) Most people search for the same criteria, which is dangerous. Everyone is only looking for a ten dollar profit (light and small product to save money with shipping), less than 200 reviews (to easily enter the market), easy to optimize (every competitor has bad images/keywords), shouldn’t be breakable (no glass items), no electronics, and not in a gated category.
(08:00) Don’t go for the same things as everyone else. What if you were different? There still needs to be some demand, and you should still launch a product that people want. Switch your criteria. If everyone is looking for a ten dollar profit, maybe you could be happy with a two dollar profit.
Everyone is looking for a ten dollar profit, but you could look for a fifty dollar profit. This requires more capital, but it’s an option. Everyone else wants a light and small product, but what if you don’t air ship it? It’s only one more barrier or step to place that larger item in a larger container. That could differentiate yourself when everyone else is looking for smaller items.
(09:40) Why not look for competitors with more reviews? In that case, it would take you longer to get into the market, but not everyone will attempt it, and it could pay off better in the long run. It just takes more time.
You could source a glass product and put in the work to find packaging that protects it. Find a packaging manufacturer in China who can suggest options to you. Develop better packaging than your competition.
(11:00) As soon as you do something different, you stand alone and have far fewer competitors. Change your criteria and do something slightly different. This takes more time and effort, but everyone else is lazy. More work doesn’t always mean more time, just be smarter.
(12:00) Go to Alibaba and send messages to ten factories for 100 products and sift through those 1,000 messages. You could also use CashCowPro and use a feature that does that for you. The software looks at the cost of the average product, shipping costs for that product, and profit.
Nils will have the creator of CashCowPro on the show soon, so sign up to that email list for that interview.
(13:15) Find something that has demand and is proven but do something different compared to everyone else. Everyone is looking for the same thing, and you’ll win in this crowded market by differentiating.
(14:15) If you’re thinking about the product you’re selling, consider the risk and your own personal knowledge. If you’re interested in sports, don’t limit yourself only to the gym or sporting goods space. Extend your horizon, go the harder way, look further than your house, and look outside of what you know.
Check out the Fair Reports for new ideas, or speak with friends. Those friends might have pets or office jobs. See what products they use every day to get fresh ideas to stand out.
If you have questions or feedback, go to EasyPeasySorucing.com/ask to send a quick message to ask your question. Have an awesome day and we’ll talk soon.