Searching for products to sell on Amazon is akin to an Easter egg hunt.
On Easter all these little kids are out searching for tiny plastic eggs with candy inside of them. They run around, searching for eggs, looking everywhere. Kids are pretty smart: they can tell where parents will hide them. They all run to this big oak tree, finding tons of eggs.
But you're the smart kid. You don't search by the oak tree.
"There are so many people over there, so I'm going to look somewhere else."
You head over to a large rock nobody's noticed. There's a hundred kids at the tree, but only fifty eggs. The rock can't hide as many. It can only hold ten. But there's only one of you.
This is what finding a niche product is like. Don't look where everyone else is looking. Be smart. Think different.
You’ve seen the products on Amazon that start to explode. Everyone talks about them and everyone’s selling them. There could be 4,500 sellers all selling the same thing. Nobody is a top seller. Only the two or three sellers who started first and got the biggest share of the market at the beginning are doing well.
Why is that?
Because everyone wants a piece of the pie. When everyone wants a piece, the majority of people will get nothing. A small percentage of people will get just a bite, and very few get the nice big piece on their plate.
I'd rather fish in a pond with only 20 fish in it, by myself, than in the ocean, where there are 10 million fish, but everyone and their uncle are out fishing. My chances of finding a catch there are much less.
Don’t go with what the masses are saying. Find something different.
I was blown away by this product I came across on Amazon. It is not a top 10% seller, but it’s doing pretty freaking well.
This is a five pound replica of human body fat.
This thing is disgusting. It almost looks like something you're supposed to eat. It's made for medical students studying anatomy, and people also use it to help motivate them to lose weight.
The first time I started making good money online was on eBay. I was searching for products to sell and went to the "Other" category. Then, almost for fun but also out of desperation, I clicked on "Cemetery".
Something deep inside me said I needed to stop looking where everyone else was. Stop fishing in the ocean. Find a pond out in the middle of the nowhere that may have fewer fish, but has no competition.
I found a product in the Cemetery category that sold really well. For over a year, that single product brought in several thousand a month for me.
Be smart. Don’t get attached to what everyone else is doing. Stop and think. You don’t want to compete with everyone in the world. If everyone is running in the same direction, there may be something they’re missing. It's up to you to find out what.
Build where your customers are
During New York Fashion week this year, I spent 10 hours interacting with dozens of fashion designers behind the scenes, as my clothing company’s looks prepared to travel the runway.
I was shocked at how few of these exotic and eye-catching designs were not selling on Amazon. In fact, I did not find a single fashion designer whose product is on Amazon—I was the only one!
If you have a product, no matter how hard you market it, there's a strong chance your product will never been seen by millions unless you get it on Amazon. Launch on Amazon, then build your brand on your own platform!
Is there something to be said for fashions that are heavy, or unable to be mass produced staying off of Amazon? Yes! Bespoke fur coats don't suit the platform.
But if your designs are made in bulk, not made of heavy platinum thread, or otherwise easier to stock and ship?
There's no reason not to get in front of the millions of people using Amazon every day.
Always factor in perception
Imagine you’re in the market for a pen.
Between the pack of 24 for $5 and the single $50 unit, which do you think is the higher quality product?
Sure, you may not need an expensive quill, but without even mentioning anything about what these pens are made of, what brand they are, or even the color of ink—you formed an opinion in an instant!
Of course every person has a different budget, and there’s nothing wrong with capturing a certain market at a certain price point!
But making moves based on price-point alone is never the right strategy.
Case in point?
United UK, announced on Friday that Forever 21 is going bankrupt. First it was a just a rumor. Now it's hitting big headlines.
Steve Miley, senior market analyst at asktraders.com, nailed the heart of the issue: "They were built on the supermarket concept of increasing footfall in large stores."
If your business depends on foot traffic, beware of all competitors who depend on shoppers on a website.
The only chance of Forever 21 surviving this Dorian-sized disruption of the retail market according to Miley, includes 3 steps:
Close all the unprofitable stores
Increase footfall in profitable retail stores
Expand their online presence
Brilliant strategy. But there is a critical piece missing here: pricing. Just a few months ago, our team did a study on Forever 21's offerings.
After a vast survey of their clothing prices, we found the average price was $18.63.
That's a problem. Fashion buyers' perception of Forever 21 is that it’s a low-cost brand.
When your profit margins are thinner than spider silk, shifting your strategy to an all out affront to win the online marketplace means bleeding more money before seeing profits.
Put another way, when cash is what you need, spending more cash could the architecture of your company's coffin.
So what you need isn’t just a shift in tactics. You need a shift in perception.
Is changing price the only way to change perception?
Married a pearl. Fathered 4 miracles. Fired his boss. Turned a single dime into $104,857. Today, a self-made millionaire, Seth and his team of 8 badass coaches teach entrepreneurs how to build passive income on Amazon.
Dead serious about building income on Amazon with eight successful coaches in a community of badass Amazon sellers? We created something we've never done before: the AmazonGrowth Bundle full year coaching course.