You know… Researching could be really… really boring!
That’s a fact.
Myself and my students have gone through this process several times, and we hate it with our gut!
That’s another fact.
But… unless you do your research, you’ll wind up crying in the corner of your bedroom, with a crappy product nobody wants to buy.
It’s all you’ll keep asking yourself for days on end… Don’t be that guy!
Last time I researched for a product the “stone-age” way, it took me close to one week (putting 3-4 hours a day of work) to find a decent product to source and sell on Amazon.
This is how the process may look:
- You are browsing tens and even hundreds of listing,
- Pulling simple data like price, BSR ranking, weight and review count,
- And then plugging into a spreadsheet.
The end result will end up looking something like this:
And that’s just a small portion of the potential products (OMG!)
Then you need to sort it out, and magically estimate the amount of sales that product is making based on the BSR (According to the legend, BSR lower than 100 means 150 – 300 sales of any given product).
Oh, and in case you forgot BSR stands for Best Seller Ranking, that’s a ranking based on sales… the more sales the lower the BSR is.
I mean, the idea behind “the legend” is right on, you can estimate sales based on BSR, but different categories should and will have different results.
What I mean by that is that a 100 BSR on the baby category may mean only 70 – 90 sales a day, while a 100 BSR on home and kitchen may mean more than 200 sales a day.
The thing is that all in all, this time-consuming task of researching products to find a winner sucks! lol
But until a few months ago it was the only way to go about it.
Enter Jungle Scout
So, a very smart guy (or a bunch of guys maybe… I don’t really know for sure) had an idea…
What if you could create some sort of algorithm that estimates the sales of any given product…?
Better yet, what if you could get an estimate of sales of any product category with a simple click?
The posibilites are endless!
Just as an example, let’s say you’re interested in selling baby products, you go and type on Amazon’s search “baby” or you go for the best sellers and locate the “baby” category, and then with one click you get this data:
Let me zoom it in a little bit for you:
As you can see this amazing tool (a chrome extension basically) can give you a very accurate estimate of the revenue of each product.
This table says that the first product of the Amazon search is selling $1,614 per month…
Not that sexy, huh? It may happen because they’re charging $0.86.
But the second looks more promising, they’re selling $53,521 per month (around 100 units a day!)
What I like about jungle scout (aff. link) is that they also give you the review count (that you can use to estimate the level of competition of a niche, the more reviews, the harder it’ll be for you to get in and get your share).
They even give you the Amazon FBA fees!
So, you can easily estimate your profits, so let’s keep running this example with product number two:
The price of the product is $17.96, Amazon takes $7.49 in the form of fees, that leaves us with $10.47, so if you find a supplier that can produce the product for, say $5, then you will make a $5.47 profit.
$5.47 times 100 (units a day) = $547 per day; $16,410 of pure profit.
Pretty cool, huh?
And that’s basically how you do the research now.
But it doesn’t end there, now you know that a certain product is making money on Amazon, next step is to figure out what the segment or niche is, and see how are the other competitors doing.
For the case of this example the product is this one: http://www.amazon.com/dp/B000I4TLKI
So, let’s say that the keyword someone will use to find this product is “Bath time gift set”, so after we plug that key phrase into Amazon’s search bar we get some results (you can try it too, but your results may be different than mine).
Let’s see what jungle scout says about this niche:
After I sort these results out based on “estimated revenue” and I add up all the sales figures, we can estimate that this is a $160,000-a-month niche.
Would you get in?
Well, to figure that out we need more info, that I’ll talk about in the next post, for now this will be enough to keep you busy.
To get the Jungle scout extension (that’s the one I use…) you’ll pay $147 for the pro, and $87 for the basic.
They also sell a web app but I don’t get why I’d want to pay a monthly fee when I can have everything I need with the chrome extension… but that’s just me.
Now, if you don’t want to pay $147 for the pro extension, don’t purchase the basic, because there’s a free tool that can help you get pretty much the same data.
It’s called http://www.unicornsmasher.com/ and you don’t have to pay anything to get it.
So, there you go… it’s time to do some research in a very intelligent fashion and get a product that makes you $500 – $1,000 per day.
Wait… I know you’re in a rush to find those products, but before you go, please let me know what you think on the comments section, and if you have questions or suggestions write them there too.
Stay tuned for the next post… It’s getting exciting, right?