Hi, it's Neil Waterhouse.
In this video, I want to show you want to show you how to find a
profitable product to sell on Amazon.
The first question that normally comes up is
exactly where to start with product selection
and there are several strategies for doing that.
The most popular strategy for Amazon beginners
is to sell low-cost Amazon best-selling items.
This is not my preferred strategy as
every man and his is dog does this strategy
but I'll show you in this video how to do it anyway
and then I'll also show you what my preferred strategy.
The problem with selling the cheapest best selling items is
this is where the majority of the beginners all gravitate to.
In almost every live presentation I do,
somebody will come up to me at the end of the presentation
and they'll me "I just started" and then
and they are reporting all the mobile phone cases,
USB cables or something similar
and something that's cheap, popular, small
and of course that's the problem.
It's not just for Amazon but for eBay as well.
What we found out as a general rule
is the bigger the product and that a little more expensive the product,
the less the competition is.
And of course the bigger the profit,
the bigger the profit margins.
Of course one of the major reasons begins to gravitate to the cheaper items
is the lower buying cost of each item.
However, the downside of the cheap best selling items
is the low margins to the massive amount of competition.
Of course the reason most people stay away from larger and the more
expensive items is the higher cost to pre-purchase them.
However, these days great thing is you don't have to pre-purchase these items upfront.
These days you can have your local suppliers
and the local suppliers dropship the items for you
which means you don't need to invest tens of thousands of dollars
pre-purchasing any upfront inventory.
These days, you can create a multi-million dollar dropship business
without the need to pre-purchase any upfront inventory. However,
if you do wish to import items
buyer strategy is to import your top-selling dropship items.
By doing this strategy
you're always only importing your only proven items.
And you can also product label your top-selling items.
By split-testing your top-selling dropship items in your country
this eliminates the guess work of product labelling.
What has work for us the best over the years is to always
be a little bit different to what the rest of the masses is doing.
And I'll show you how to do this now.
Whether importing or dropshipping,
the first step is to come up with 5 or 10 unique product keywords
instead of just doing what the masses are doing
of just researching the Amazon best selling items.
All you need to do to be unique is to spend 10 minutes or so
coming up with your own product power keywords.
To do this, just spend 10 minutes or so looking around your environments
of any item that would sell in Amazon
or eBay for between $250 or $2,000.
If your at home, in the bathroom you might have a shower screen,
a bath tub, a vanity unit, etc
And if you're at a hardware store
there's a gazillion items there.
Now if you go to work, there's more stuff there,
stuff at the gym.
So just look around the environment
for 10 minutes and collect 5 or 10 power keywords.
And these keywords become unique to you.
Then take those keywords to Amazon
and Amazon will show you top searched for keyword phrases
As an example,
in my backyard, there's trampoline so let's use that power keyword as an example.
Simply type trampoline in the Amazon search box
and as you can see Amazon is already suggesting
trampoline with enclosure
Now these order suggestiions
are the most search for things
in Amazon.
Now you can search Amazon for trampoline with enclosure
as per the screenshot.
Then click on any trampolines with enclosure
in the search results and then scroll down to the bottom of each listing to see its Amazon best sellers rank.
The Amazon best seller rank
determines how popular an item is.
Any product with a ranking of 50,000 or less is good.
Less than 10,000 is fantastic.
And depending on the country
you can be selling multiples per day, even multiples per hour.
Once you found a product with a ranking of 50,000 or less
the next step is to find the supplier.
To do this, just go to www.alibaba.com
and find the same item.
With Alibaba, you can quickly find suppliers all over the world
for the vast majority of items.
For those who don't know, Alibaba is an enormous company
which is bigger than eBay and Amazon combined.
Although Alibaba is a Chinese owned company,
you can quickly find suppliers from not just in China
but from all over the world.
We're not gonna get in-depth with Alibaba
here in this video because that's for another video
but let's use this trampoline as an example
which is currently selling on Amazon for $329.99
with a dunking hoop.
Just by taking a very quick search on Alibaba
for a 15 foot trampoline
shows you can buy this for between $100 - $150.
And this is before any kind of negotiation.
Always make sure you budget the shipping cost from the supplier
to country taxes and Amazon fees.
Notice that the seller's been smart, they've added a dunking hoop
This is a classic case of bundling
These dunking hoops can be purchased for less than $10 through Alibaba
and in this case, it makes you different to other trampoline sellers.
Bundling like-profit bundling works very very well with Amazon.
In the beginning, I mentioned that you can just search Amazon best sellers
To find Amazon best sellers for your country,
simply google the keywords "amazon best sellers"
as per the screenshot
and Google will show the URL for the Amazon best sellers in your country.
In the screenshot, amazon best sellers
and it's showing me by default the amazon best sellers URL for the USA.
From here, you can drill down all the categories in the left hand side to find popular products.
Just like above though, always check the Amazon product ranking.
Now two other quick notes when doing product research on Amazon,
First, normally it's best to stay away from any provate brand names as they very often be copyrighted.
Be extremely aware of importing any brand name
The 2nd is stay away from products which have a lot of reviews
as it often it can take a long time
to make invites with Amazon
for another seller has already got thousands of reviews.
For these two reasons,
you're thinking making Amazon your long term strategy,
you should sometimes seriously consider
private labelling your own products
so you own the label, you own the product.
And I also mentioned at the beginning,
consider doing this very strongly
A great worth doing is
start private labelling, importing your top selling dropship items.
That's all for this week, please scroll down and leave a comment for me below.
Until next week, list more sell more,
this is Neil Waterhouse.