Amazon FBA – Chapter One

Chapter 1

How to Find Your First Product

Welcome to Chapter 1. Finding the first product is always the hardest. Let's walk you through.


E-commerce is changing the lives of many individuals, opening endless possibilities to start a business and selling products. The question is: How do you choose what to sell? If you can quickly think of a product, it probably already exists and the market is likely oversaturated. There are many tools out there that will help you in the search for a new product. Look for items that you can become an expert about. You don’t have to be passionate about it, though, that helps. It just has to be something of value.

Question is, how do you choose the product to sell?

Many tools will gather data and run algorithmic filters to showcase a variety of potential products. We found that these tools sometimes provide too much information and can cause analysis paralysis. Too many product choices will overwhelm lots of beginners.

After hours of video tutorials, countless conversations with other sellers, and studying numerous e-books, we’ve found the best, easiest method to finding a product is the ABCs. If you ever noticed when you type a product into Amazon’s search bar, it auto populates suggestions of what you’re searching. Our methods use the Amazon search bar to explore every letter of the alphabet and search every word that comes to mind. This method can be done 10 minutes a day or two hours a day; it all depends on the time you want to allocate to product research. We’ve included other methods used by professional sellers. You’ll get a better idea with the pictures below.

Below are Validation Factors and Product Criteria to take into consideration when searching for products.

VALIDATION FACTORS:

Look for products that are between $15-$60. Items in this price range fall in what people call an Impulse Buying range. This range is where consumers are willing to spend their money without a second thought. Try to keep your item small and under 2 lbs. FBA fees will increase as weight and size increase. Think about if your item is seasonal. Do people tend to purchase this for a specific season or holiday? The best products are those that can be used year-round. Use the factors and criteria to filter through products when you use the methods below.


PRODUCT CRITERIA:
BSR: Best Sellers Rank - Amazon’s algorithm ranks products based on their sales volume, so as products move up and down, you get a good idea of how much they are selling within their category.

• Jungle Scout Opportunity Score from Chrome Extension 5 or higher
• Top 3 products of listing have BSR under 1500
• Top 10 products have 15 units sold per day, 100+ reviews, and revenue over $6000 per month
• Is this product Seasonal?
• Profit Margin of 30% or more
Merchantwords Estimated Monthly Search Volume greater than 80,000

You’ll be able to gather these figures in step 2 when you use Jungle Scout’s Chrome Extension.

Step 1: Find products

OPTION A — ABC’s
• Type in the first letter into the Amazon search bar and see what populates
• Type in the second letter into the Amazon search bar and see what populates
• Type in a third letter, maybe another vowel, or go
• Try every combination of the alphabet — a, b, c; ab, ac, ad; adc, add, ade

Amazon’s search algorithm is constantly updating its terms. The results on the drop-down indicate popular or trending searches.


OPTION B — Word Association

Look for words within words. Look at your desk for inspiration and we mean really look at it. Not just the fact that you have a keyboard or mouse on the table, but look at the items and all the words associated around it.

Example: Let’s assume you have a Logitech keyboard. Don’t type in keyboard, type in the first two to three letters of the brand. LOG(itech). Now let’s see what populates. We can pass on Logitech associated products, but the Log Rack looks interesting, let’s explore further in Step 2.


OPTION C — The Scribble Method

The Scribble Method is a third option that is similar to using the Jungle Scout tool. Type in any scribble in your search bar. When you add a “-” in front of a bunch of letters, the search bar looks for products on Amazon’s database that exclude these words. This will allow you to find popular items selling right now. You’ll have to play with the filters on the left side.


Amazon will produce the most popular products. You can find products by looking at the highest indexed items by department in addition to playing with the filters

Go to the left side and filter through departments you want to research.

With the price, you can set a range between the impulse purchase — example $9.99-$50 — or choose the price range between $25-$50 to fall under the impulse purchase price.

Choose different “Sort By” methods on the top right such as “newest arrivals”.

Amazon’s algorithm is always updating its results so you can find what is selling and which products are considered best sellers. Take a product that you’ve found and begin to dive deeper by doing a search on the popular keyword for that item and pull the scoring opportunity under Jungle Scout Chrome extension. This is another method to give you ideas for products to sell.

This method is best used once every few days or once a week.


Tip

The biggest difference between you and the next person is how much time you spend on searching for a product. It took us a few weeks to find items in the five to six range on with Jungle Scout’s method. With ours, only hours. It can take you weeks if you don’t know what you’re looking for. These methods will help accelerate that process.


Generate a score

You can use any of the methods above. Now it’s time to generate an Opportunity Score provided by Jungle Scout’s Chrome Extension. This data is pulled by the product’s rank which closely associates the product’s monthly sales volume. Opportunity Scores give you a range of data from the amount of competition to the product’s demand. Don’t always rely on this score, but use it as an important factor for validating your product during your research phase.

In the Amazon search bar, always make sure it is set to all departments. Type in the keyword that you’re looking for. If you are considering a log rack for fireplaces, search for that. This will populate first page results for products that rank highest in that category. Go to the top right and click on your JS Chrome Extension to pull an opportunity score. We go more in-depth below.

Our intern sat down for one hour and calculated a search rate for a product. If you have a basic understanding of computer skills, you can do it too.

You can continue researching products with a score of five and above. That’s seven high-ranking potential products to research. That is a 38 percent search rate of five and above products. We found this method was the most effective.


Step 2: Understanding your opportunity score

Use your Jungle Scout plugin to generate the opportunity score.


This item scored a five in JS opportunity score — Medium Demand, High Competition (MD/HC). Although five is usually OK, it isn’t great in MD/HC. In addition, considering most people only need this log rack during the holidays, this is a seasonal item. This is also considered an oversized item, so you would want to pass, but this gives you a perfect example of how to randomly find a product through inspiration based on your surroundings. Just don’t forget to evaluate your decision factors and product criteria.

Because the iPhone X went live for pre-ordering at the same time as this guide, we decided to dig deeper. We looked at iPhone X cases on JS Chrome Extension which produced a score of eight (8) — High Demand, Low Competition which is really good. We guarantee you by the time you’re reading this, the score will have been dropped below a five.


Step 3: Keep a list, track it twice

There are many ways to keep organized during your product search. Keep a list of what you found so you know what you’ve searched. Move five and above into another tab to continue research and go through your validation factors. Even if you found a high score, you still need to figure out if it’s a viable product to sell. Below is an example of how we keep track of our items.


You’ll notice that a few of our letters are clumped together. That’s because we went through the ABC method. We had typed in “W” resulting in waist trainer and weighted blankets. You can always go back to this list to check JS opportunity scores and expand the search through the Word Association Method. As we continued with our product research, we repopulated the opportunity score for Enema which in one month’s time, dropped from a seven to a six. People in this industry move fast. Click here to see Enema, go ahead and see what the JS opportunity score is today.

Tools Mentioned in This Chapter

 
merchantwords
junglesoutlogo