Day 3: How to Research A Profitable Product?
Table Of Contents
- Day 3: How to Research A Profitable Product?
- Amazon Product Search
- Product Research Tool
- Profitable Amazon Categories
- Jungle Scout Product Filter Criteria
- Evaluate Further
- Using Jungle Scout’s Paid Chrome Extension [Quick Way]
- Using Jungle Scout’s Free Sales Estimator [Manual Way]
- Reading Keepa
- Want to be an Expert at Using Keepa Charts in your Amazon Business?
- Related Resources
Reading Time: 10 Minutes
Timeline Goal: By the end of Week 1, the aim is for you to have chosen 10 potential winner products using the strategy outlined below
Notes: All resources and links mentioned will also be made available at the end.
Amazon Product Search
- There was not enough demand for the product
- The competition was too much
- There wasn’t enough wiggle room in your margins so things like shipping fees, FBA fees, and advertising fees were eliminating any profits and you were losing money on each sale
- The supplier was providing inferior product which hurt your brand and your sales
Product Research Tool
Profitable Amazon Categories
Jungle Scout Product Filter Criteria
- Product Tier: Standard ( we want to avoid oversize products if possible as bulkiness comes with its own complications)
- Seller: FBA (since we are looking to become an FBA seller, we want to know what other FBA sellers are selling profitably)
- Price: 15.65 to 34.83 ( you want some odd numbers that are not just rounded up or down to get more obscure results)
- Revenue: 12,201 to 38,209 (again odd not rounded numbers to get more edge cases)
- Reviews: I like to set it to up to 25 (if you get too small a result set in the niche, you can go up to 250 reviews without the product getting too competitive)
- Weight: I prefer to stay under 2 lbs so that we don’t pay more on shipping
- BSR: I like to look for products exhibiting high revenue with a BSR between 4,999 and 15,001
- Unique and exciting
- Don’t have too many reviews
- Good revenue
- Good “net” (This is the amount you stand to make off each sale after Amazon’s FBA fees. This is not your profit but your net – your actual profit will be the Net subtracted from your cost to manufacture and ship 1 unit to the warehouse. A good rule of thumb is to have your Net be equal to or more than 3 times your cost to manufacture – we’ll get into that more in the next lesson on sourcing)
- Not “breakable” (I typically stay away from product that uses glass. For example, glass bottles, cups, show pieces, etc., as you can bet that some of your product would break on reaching the customer no matter how good the manufacturer or the warehouse fulfillment crew. In the end, people are people and it doesn’t take much for a delivery guy to knock your box a little and break glass.)
- Chrome Browser (free to use)
- Jungle Scout Sales Estimator(Free, but manual) OR Jungle Scout’s Product Fact-Check Chrome Extension (Paid $97 one-time – so worth it!)
- Keepa Chrome Extension
Using Jungle Scout’s Paid Chrome Extension [Quick Way]
- With just 41 reviews “Jelacy” the brand is selling in the Toys & Games category with literally no competition (as other sellers are selling under the Kitchen & Dining category)
- That brand had an estimate sales of $14,999 last month with 938 sales and just 41 reviews!
- There are more than 1 seller under under 60 reviews making decent revenue – this means you are able to share the profits in this niche than have 1 seller dominate.
- “Opportunity Score” of 7 in Jungle Scout’s proprietary score that they use to determine demand and competition. You typically want your opportunity score to be 7 or above when choosing your product. Unfortunately you can’t get this info using the free sales estimator link.
- What is the trend of this product (we want to avoid seasonal products to keep our revenue predictable all year long)
- Can we source this product for 3 times lesser than what we could potentially net (i.e. the 3 times rule which I’ll go through in the next lesson on “Sourcing”)
Using Jungle Scout’s Free Sales Estimator [Manual Way]
Now, if you decided to use the free sales estimator, you’d need to do this manually once for each of the listings in the top page by entering the ASIN’s best seller rank (you can get this from the listing page by scrolling to the bottom to the product information info. Looks something like this:
For this example, the specific listing we chose has a 11,313 rank in the Kitchen & Dining category. There are sub-categories, but we don’t care about that. In the free sales estimator – choose the marketplace, the category (Kitchen & Dining), and the sales rank and hit enter to get the estimated sales. You can determine the estimated revenue by multiplying the sales number by its price and calculate the profit by subtracting the amazon fees (you can estimate around $5-$7 for this depending on how conservative you want to be without complicating the process too much). Save your numbers into an excel sheet and rinse-repeat for the next 9 listings on page 1 so that you effectively put together what the chrome extension did for us as illustrated above. Not 30 seconds but hey, still does the trick!
Want to be an Expert at Using Keepa Charts in your Amazon Business?
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