Previous session: Discussed introduction to product hunting on Amazon.
Importance: Right product selection is crucial to avoid losses.
Common issue: Most students mistake in product selection, leading to unsellable products.
Importance of Product Selection
Growth chances on Amazon are high if the right product is chosen.
Many potential products: Ensuring the right product requires thorough research.
Wrong product selection can lead to significant financial losses.
A good startup on Amazon requires thorough product vetting.
Navigating Amazon's Extensive Product Categories
Amazon offers billions of products across numerous categories.
Subcategories also have a vast number of products. For example, groceries alone have several subcategories with thousands of products.
Beginners often get confused about which product to select and sell.
It’s imperative to find and list only a handful of products; not all products sell well.
Success on Amazon relies on identifying products with good demand and low competition.
Criteria for Selecting Good Products
Ensure the product has the following features:
BSR (Best Seller Rank) between 1 and 40,000 is ideal.
Ratings and reviews: Minimum rating of 3.5 and at least 50 reviews.
Minimum of 5 FBA (Fulfillment by Amazon) sellers to indicate market competition.
Price consistency: Should not fluctuate drastically to avoid losses.
Detailed Criteria Breakdown
BSR: The lower the BSR number, the better. A product with BSR under 40,000 is considered good. BSR further helps in understanding the sales velocity of a product.
Updates from Amazon show monthly sales directly under reviews, which is a reliable indicator of product performance.
**Rating and Reviews: **Important to differentiate ratings from reviews.
Reviews are written feedback from customers, while ratings are the star classifications.
Good ratings indicate customer satisfaction.
Price Range: Ideally between $12 and $30 for easier entry and risk management.
FBA Sellers: The presence of multiple FBA sellers is a positive indicator. Avoid products with less than five FBA sellers unless verified through other metrics.
Detailed Tools & Techniques for Product Analysis
Utilize KEEPA or other comprehensive tools to analyze historical data and sales rank trends.
Focus on Buy Box statistics: Understanding Buy Box rotation and price consistency is critical.
Sellers with FBA and competitive pricing often secure the Buy Box.
Offers & Stock Status: Analyze stock status to gauge sales competition.
Tools like 'Count Stock' provide current stock levels of competing sellers.
Differences Between Markets: US vs. UAE
Criteria adjustments based on market size and product demand.
In UAE, aim for a BSR of 1 to 500 to identify strong-selling products due to a smaller market size compared to the US market.
Verify product market performance specific to the geography.
Practical Steps
Product Hunting: Applying filters and selecting potential products using categories and subcategories on Amazon.
Analyzing Demand: Using BSR, rating, and review metrics to gauge product viability.
Utilizing Tools: Leveraging KEEPA, Helium 10, and other tools for in-depth analysis.
Ensuring Supplier Reliability: Matching product details and supplier products to maintain consistency and avoid returns.
Q&A Highlights
Common issues are often related to mismatches between expected and actual product performance based on preliminary metrics and actual sales performance.
Understanding the importance of market-specific criteria and using techniques like price consistency and stock analysis to secure better profit margins.
Importance of checking product sourcing accuracy, especially for beginner-level market entries.
Final Remarks
Emphasis on starting with well-vetted, low-risk products to build account momentum and capital without significant losses.
Follow detailed procedural steps as discussed in the session to minimize risk and maximize product success on Amazon.