Episode 100: How to Pick a Winning Product on Amazon: 11 Rules for Success

https://youtu.be/BvufZVUH-9I

Mastering Product Selection: Profitable Products on Amazon

Insights, Tips, and Strategies to Help You Stand Out and Succeed on AmazonIn this session, we'll explore the nuances of choosing a winning product on Amazon. Whether you're already exploring the platform or honing in on your options, let these 11 rules guide you in selecting a product set for triumph.Rule #1: The #1 seller on Amazon is selling at least $100,000/month minimumThis indicates a strong demand for the product and signifies potential opportunities for you to make an impact.Rule #2: The Number Ten Seller's PerformanceSimilarly, the number ten seller on Amazon should be selling at least thirty thousand dollars per month for your specific category. This shows that there is enough demand in the specific category that even the tenth seller has strong monthly sales. Rule #3: The #10 seller on Amazon has less than 500 reviewsIts standing is a result of a consistent commitment to delivering exceptional value and ensuring customer satisfaction. Rule #4: You can find at least 1 way to make your version of the product unique and significantly better than 99% of your competitors (longer battery life, durability, user-friendliness, etc..)Differentiation is the key. Your product should offer a unique and superior feature compared to 90-99% of your competitors. It could be a distinct design, improved functionality, or enhanced quality.Rule #5: The Price Point is at least $9.99 - $150This range allows for flexibility in promotions, advertising, and maintaining healthy profit margins.Rule #6: Repeat Purchase Product capability Consider products that have repeat purchase potential. Items like coffee, supplements, and vitamins can encourage customers to become repeat buyers, contributing to long-term revenue growth.Rule #7: You can clearly define and imagine who your ideal customer avatar is that would be proud to share your brand’s products on social media or at a party for exampleClearly define your ideal customer avatar. Understand their needs, preferences, and pain points. Your product should resonate with them, making them proud to share it with others.Rule #8: Smaller and Lighter (ping pong balls) is better than big and heavy (like a ping pong table) because of cheaper storage and shipping costs.When choosing a product, prioritize smaller and lighter options. Amazon fees can be significant, and reducing size and weight helps optimize profitability.Rule #9: You can think of at least 5 other products that compliment this product and would serve the same customer and fit under your brand.Choose a product that can be complemented by at least five other related items. By offering a range of products that cater to the same customer base, you can increase the lifetime value of each customer.Rule #10: Avoid Low-Price CommoditiesSteer clear of low-price commodities like paperclips or easily sourced items with narrow profit margins. Aim for products with at least 50% profit margins to ensure a sustainable business model.Rule #11: Low legal liability or infringement issues (patents/trademarks)Lastly, ensure your product selection has minimal legal liability, including issues related to patents and trademarks. Avoid products with potential infringement complications.Selecting the right product is crucial for the success of any business. By following these rules, you can increase your chances of choosing a profitable and sustainable product. Remember to focus on customer demand, product complementarity, and legal considerations, while avoiding low-price commodities. With thorough research and strategic decision-making, you can find a product that will not only attract customers but also bring in long-term profits. Keep these rules in mind as you continue your journey towards building a successful business.Remember, these rules serve as guidelines rather than strict mandates. Adjust them based on your specific situation and in...