- This is the first episode of our YouTube guide.
how to find winning e-commerce products.
- In this first episode
of our, how to series
I'm going to show you a hundred percent sure fire way
of finding products, which can scale to $1 million
in just 12 months
Products is the most important part of e-commerce.
You can be the best marketer in the world
and still not be able to make digital marketing profitable
with a crap product.
I'm not only going to help you find these products.
I'm also going to show you how to quickly see
if that product is viable with extremely little budget.
Then I'm going to teach you how to continue growing
that business and not let it fade out.
As the market gets saturated
with drop-shippers through branding and three PL's.
This video is for all businesses and levels of experience.
It doesn't matter if you're in retail.
If you're 14 years old and have no marketing experience
or you already have a hugely successful brand one
disclaimer is that my group of brands now
uses software to incorporate many of these principles,
in the video.
We do this to locate product trends
and suggest innovations we can make to such products.
This is allowed us to locate trends even
before they hit the drop shipping community.
We can then solve the designated problem way
more efficiently.
We also have an incredible product team consisting
of a creative director, product manager
fashion designers, product engineers.
The good news is I didn't have any of this when I started
and you don't need a dye there method one.
I'd like to teach you today.
I like to call the drop ship test method.
It is probably the most common
on YouTube guides for a reason.
It is the easiest
and requires practically no money to get started
for those who are still
in school and learning the ropes of digital marketing.
This is definitely the method you want to use to
ensure you waste like no money.
I actually suggest this
even if you're a well-known brand struggling
with rising customer acquisition costs
and product iterations, let's get into it.
One of your first steps is going
to any of these ads, buy sides.
There's a ton out there.
You've got power ad spot ads by AECOM hunt.
I'll put a list in the description in case you need it.
Basically, we're going to do a search for ads.
The key things are currently uploaded where
we really want to go into the date period.
That's very recent
probably the past three months that's you can come
into here and select creator between.
Then we want to go into a high amount of likes
which is over 500 for this, this video.
You've got multiple likes settings up here.
We're going to do a video ad just
because I'm trying to get rid of a lot of the junk photos.
Probably most importantly, to get rid of most
of the junk is we want to go
to Shopify because then we're getting to know
that it's an e-commerce store.
I've also made the country United Kingdom
but you can do United States or Australia or Canada.
So now we're just going to scroll down.
This is a great way
for you to actually start learning a lot about
the content that you need to produce to make it convert.
A lot of these ads are drop shippers
and you can get some really good idea about what
what products are selling.
The reason why we want lots of social proof is
because it means that people are spending money on the ad
unless they like burning money.
It's safe to say that that it's profitable for them.
So we're going to scroll
down and there's some great products here.
You know, that's great.
If, if you like that niche
I'll keep going until something just catches my eye.
This is an interesting one.
I think that this one would be a good example to go ahead
and look up simply because it's for Sadika, which is kind of
like a medical condition, which is obviously a huge problem
which is a good, good thing to try to solve.
Next steps is we're going to try to find
if this is a drop shipping product
which by the looks of it
it is I'll just play the video for you guys to watch.
A decent custom custom video there.
They've actually put some effort into it.
There's some good likes.
Good shares.
Good comments.
Next step is we're going to just
go investigate it a little bit further basically
to make sure a product is viable.
We just need to make sure that we can make profit on it.
Firstly,
I'm just going to make sure that there's real comments
on here and recent comments.
That means that it's still spending.
So we go into the newest comments.
There's a fair few comments happening frequently
and they all look pretty real.
So I think this is a good one.
Let's go across the alley express and try to find it.
I'm just going to search SIDA cushion.
Cause that's what the brand was called
but it seems like there's a lot here
but you can see right away that that's, there's
there's a lot of other versions
which probably means that it's converted before.
I'm pretty sure I've seen most of these scaling
but let's take this one.
Let's see if we can find another competitor about $10.
So this is a really good place to start
and see how viable it is.
This one's at $21.
Maybe it's around that mark.
You probably will be able to get them for $10.
The next step is to go to a margin calculator
and figure out if this product is viable, the drop ship is
are probably watching us now and saying
why have you got freight and courier here?
This is because
while we're testing the drop shipping method
this isn't a long-term solution that we're looking for.
We're wanting to import this product eventually
and figure out the costs involved in that.
So we can build a brand.
So I'm going to come into here.
And the cost per product was about 10 USD.
I'm going to calculate this
in AUD for all my Australians out there.
So the exchange rates are about 1.3 at the moment.
So I'm just going to put $13 as the cost per product in AUD.
The next step is trying to figure
out how much we can actually sell a product
for which is a great question.
Basically, the way that I do this is go
to Amazon or eBay to see if it's saturated.
By saturated I mean that it's selling
at a really cheap price with multiple versions.
If this is the case
this is probably what you're going to have to sell it
for because savvy shoppers will just go there instead
and buy it from them.
So we're just going to go to amazon.com
Then search sciatica cushion.
You can try it with the ears
because it had little ears on it.
It's not an Amazon, which is kind of a good sign.
It means that it might have not made it there yet.
Alternatively, where a little bit late.
There's a lot
of the other versions there that may be a viable as well
because you know that the problem is converting on Facebook.
You can see the really bad reviews on Alibaba.
I'm not too worried about that because we are going to end
up customizing this product and improving on that.
However, it is a good sign.
If you can find a product with good reviews, next episode
rather than shoot the sciatica cushion
I thought I'd give you a real life example
of one of our brands.
This is thiicky.
I'll show you how to shoot high converting Facebook ads
for it, with just your iPhone.
I'm just going to do a quick Google to see
if I can find the product.
So I've managed to find it on Google.
It's obviously there's a huge price variance around here.
A lot of these are old drop shipping there's wished as well
which is concerning.
We may be able to charge around 35, $40.
These people are charging about a hundred dollars.
I think for this example, video, what I'll do is I'll charge
about $70 considering this is where it's at.
However it is concerning.
That is on wish for 35.
So I'm going to come in here
and do a $79 price art, your discount code.
Now, what I've got to do is figure
out the freight per product and the courier per product.
This is going to vary wildly based
on where you currently are.
I'm going to continue to use Australia.
However, the U.S and Canada and the UK
will all have different courier rates,
pick pack rates based on
their three PL competitiveness to do this really accurately.
What you would do is reach out
to the supplier and get the exact volume metric
and actual weight of the product.
This is just basically the size of the box as well.
Then you can divide it by the cost
of a container to your country, which you can easily Google.
Furthermore, you can actually use a Australia
post calculator
or your local courier to figure
out your actual courier rates.
Again, the three PL out will probably charge differently
but it's most likely going to be cheaper
than these basic calculators.
For this example, I'm just really going to estimate things.
So for a 40 foot container
let's say we've got 3000 units in it.
A container is going to be $5,000.
So we just go like this and it's a dollar 66 to bring it in.
I'm just going to round that to a dollar 60.
Next is Korea per product.
It's a pretty small product
and probably vacuum seal it into a really small box.
I'm going to say that it's going to be volumetric.
It may be four kilos at a maximum.
Let's say that's about $7.
The pick and pack per product.
Let's just say it's a dollar 80, the payment fee.
I like to use the worst case situation
which is usually a buy now pay later payment fee
such as like after pay.
I'm going to use 4%, which is illustrated there.
That's just 4% times by the sale costs.
Finally, we've got the custom acquisition costs.
This is really just the finger in the air.
Guessing the customer acquisition cost is basically
what you're grabbing from Facebook.
It's the amount you spent to acquire a customer right now
you can say that we've got 52 44 to spend
on marketing each product you source.
You need to have at least $20 to spend on marketing
because Facebook is getting more and more competitive
every day.
I like to have 30 to $40 of margin at the minimum.
So this us a profit per customer
of $22 and about a margin on ad spend of 0.7, four, eight
a really important metric to learn based
on this information.
If this was achievable, I'd then go ahead
and either try to drop ship the product.
I'd get a sample from the competitor
shoot some content and run our validation framework.
I will a hundred percent show you exactly how
to do this in another video.
But before you sign off
let me get into some really important details
about why method one alone,
won't get you into the hundreds
of millions of dollars of sales.
Method one is not a secret.
Every kid that wants to a e-commerce is doing it.
You might think this is fine.
As there are tens of thousands of products out
there that you can sell and you'd be somewhat right.
There are so many new products that you can sell.
Have a basic economics of supply
and demand will eventually eat all of your profits.
Not only do more competitors come in
and start lowering the quality of your product.
But more importantly
Facebook ads will become more expensive.
This is because Facebook is actually an auction.
If someone starts selling similar products to you
it'll drive your costs up.
The way to solve this is by one, making your product unique.
And two building a brand
creating unique products may seem confronting
but you don't need to be Thomas Edison
and embed something completely new.
Almost every single product out there is an iteration
or an improvement of a previous product that has existed.
Entrepreneurship is amazing because if you think about it
it allows people to continuously improve
on products and give that value back to the customer
either with a better solution or a cheap price.
Look at Dyson, they didn't invent the vacuum
but they innovated and made people's lives easier
with a more effective design.
This one product development is what I hope all
entrepreneurs strive for
as this will create more value for the world.
So this brings us to a method two
the problem solving method.
This is a super fun and exciting method
to anyone that has over a thousand dollars to get started.
It involves negative review research
and working with suppliers.
I'm going to dive into this next week.
So subscribe and tune in then.