April 3, 2020
Amazon FBA: Product Research & Selection

Amazon FBA: Product Research & Selection

Ben: What’s up guys, how are you doing? It’s Ben Gothard here, and we are here with
Chris Jones. How are you doing, my man? Chris: I’m good Ben, thanks for having me
on, bro. Ben: Good, I’m glad to have you on. As always, Chris is a very experienced Amazon
FBA seller, entrepreneur, and part-time stand-up comedian by all the jokes he’s selling. Chris: I’m a coffee-lover. Ben: Yes, yes. Coffee lover too. Alright, my man. Today, I want to pick your brain on the product
selection process. We had a little talk before and truly picking
a good product is a massive job. There are a lot of different things that goes
into it and there’s a lot of research that you got to do. So Chris and I decided that we want to break
this into three parts. So this is part one of the product selection
process and there are going to be three total parts. So let’s jump right in. Let’s start with some product selection success
factors. I want to start with the first one. Product selection success factor number one:
always choose a product that is light in weight. Chris, why do we want this? Chris: This under the second one that we’ll
talk about which is small in size, these kind of fit into each other. You want to choose a product that is small
in size and light in weight, not just because of the shipping factor. If you’re shipping a fridge from China or
wherever, it’s going to cost a lot of money and shipping and delivery fees and also getting
through customs and all of that good stuff that I just don’t like to deal with. I like to go with small products, light—small
products which are tiny in size—not to tiny—light in weight just like a feather. Mainly because it’s going to save you money
in the short and long-term on shipping, like I just said, and also the storage, handling,
customer service, and all of that good stuff that comes along with storing your product
in the fulfillment centers, which is Amazon’s warehouse. The biggest criteria that you’re looking here
for is small in size, light in weight, and now we’re going to follow them with some more. A perfect example would be something exactly
like this—so as you can see, this is just a little espresso glass. I do love my espressos, I must say. The only reason why I wouldn’t go into something
like this is because it’s china and what we will go into soon, Ben, is as that’s where
it applies down here, this will be a risk factor. It would be a risk factor in terms of the
potential of this getting broken—so high refund rate—possibility getting broken in
shipping also. We’ll go into those factors. Look at me raise my head, I apologize for
that. Ben: The fact that you’re sharing your expertise
and showing us your love for coffee at the same time—it’s beautiful. Anyway, I do want to give a few examples real
quick because I do think it’s important to touch on these and make sure we really cover
them well. Light in weight. When you think light in weight, I want you
to think like little gadgets, like maybe a keyring, or like a cup, or like a pencil or
pen. Something that is really light. Again, this is so that our shipping fees are
much less and our storage fees within Amazon FBA is dramatically less because if you have
too heavy of a product, these fees will rise and that will leave you with less money in
your pocket than if you were to go with a lighter product. More examples are maybe a little health supplement,
maybe a pair of socks. Chris: A perfect example would be like a diary
or a notepad—so it’s the size of my hand. This is a small 2017 notepad—this with your
own custom label absolutely beautiful. This is exactly the perfect product that you
want to go with. Let’s go back. You talk Ben. Ben: Absolutely. Long story short, you don’t want to go buying
any dumbbells or barbells or squat racks just yet, because we want to go light in weight. In addition, we want to go small in size. I’d say a general rule—and Chris, correct
me if I’m wrong—but a general rule is that if it fits in a shoebox, you’re good to go. Chris: Yes. Ben: Any bigger than that is usually classed
as oversized and your storage, fulfillment, and shipping fees will rise. That actually rhymes within the means. It’s an important criteria that we really
have to pay attention to while selecting products from Amazon. Again, stick with the shoebox rule because
you want to keep your cost down. Keep your cost down, keep your shipping, your
storage, all those costs down and we’re good to go. Chris, any last thoughts on small in size
and light in weight? Chris: I would really just talk about one
of the biggest factors that we are going to talk about soon so I’ll save it for that one. Ben: Absolutely. Fantastic. So let’s move on to number three which is
low-risk. We want to keep our items at very low-risk. Chris, can you shed some insight on that? I didn’t mean to catch you right when you’re
taking a sip. Chris: No, it’s all good. So that was actually a perfect point because
again, I’m going to refer back to, for an example, this could be a coffee glass or it
could be a china glass which is very delicate. Again, the potential of this getting broken
in cargo is quite high. Now, you really don’t want to be—especially
if this is your first product and you are a beginner, even if this product is selling
well on Amazon, I still wouldn’t want to put myself in a position where I could have a
potential high refund rate for the first 500 units that I’m sending in. This wouldn’t be good for business, this wouldn’t
be good for your financials, and this wouldn’t be good for your good performance rating that
Amazon sets you—which you want to keep above and great performance rate. These factors come in. Also, another factor in the element of risk
is if you were to sell knives. Knives in terms of kitchenware are quite popular
on Amazon. You can get some nice knives these days and
the nice rubber handles—but obviously knives are sharp. So if someone is to cut themselves or if it
were to drop on their toes or drop on their children’s feet—now you may think that
this isn’t your fault as seller, but I guarantee you, there will be repercussions of that. One thing that you really do want to check
before—if, this is if—you were to go into a high-risk product, that your supplier is
covered themselves and you have got further cover with your product liability insurance. Now, that is one thing that I will always
request from a new supplier and a current supplier every six to twelve months to see
if it’s in date. Without question, they should send that first
away when you request that from an email. If they don’t send it and they lied, and they
fly to wait it out, then don’t waste your time. Move on to the next supplier who would provide
that to you straightaway. So again, the risk factor of someone getting
hurt. Consumables, Ben, they’re all high-risk factor. If you’re taking tablets, if you’re taking
groceries, if you’re selling branded nuts, branded sweets, coffee, supplements. All of that is high-risk because something
appears if it’s human consumption. The higher the risk, the higher the insurance. Then again, there’s the element of high refunds
which comes into a different factor. Ben: Absolutely. Just to recap, we want to keep it low-risk. The low risk factor, when choosing your Amazon
product is incredibly important—vitally important, I would even dare to say. Because we want to stay away from stuff like
knives—people can cut themselves, we don’t want that. Blenders—blenders are bad for two reasons. One, there’s a lot of sharp things on it and
two, it’s electronic, right? I would advise—and please, correct me if
I’m wrong here—but I would advise you stay away from electronics. You don’t want to sell electronics. They’re going to break, they’re going to hurt
someone, more bad things are going to happen and you know whose fault it is? It’s yours as the seller. Regardless of why, it’s going to come back
to you. As Chris said, there will be repercussions
to you. Do yourself a favor and just don’t go into
those kinds of products. Pick other kinds of products. You don’t want things that are easy to break,
that are delicate like glass—again, Chris has said many times, coffee glasses—nice
dinner plates. Some of these items might be tempting to sell
because they sell well, but I, and I think Chris would agree with me, we would probably
recommend—actually definitely recommend—taking a different route. Chris: You got to think, if you were to go
into these higher risk factors, usually what comes with these higher risk factor products
are higher cost prices. If you were to put your own brand, your own
private label, onto an actual blender, a coffee machine—I’m looking around my kitchen—privately
label microwaves, cheap phones, anything like that. The cost price of that product from your supplier—what
you’re going to buy it for—is going to be much, much higher than something of basic
standing such as your own customized notepad or diary. In which, again, is very positive as this
is a year-round product. This is not going to break. It’s a product where people aren’t going to
complain if it gets a bit scruffy after they’ve used it. It’s a basic product which the refund rate
would be next to nothing as they’re quite cheap and you can get this cost-wise for very,
very low and you can actually sell these for a good profit margin. So you have to think when you’re going into
high-risk factors, usually they come with higher cost price and if you were to get those
continued refunds, then think of the money you’re potentially losing up on. So always think ahead. A blender—oh yes, sell 75 units today, that
could be my 75 units to sell. But guys, take a step back. Think about the risk factors, the liability,
the excess and shortage that you might have to take up to cover yourself and your business. Just be patient with the process. Take your time. Ben: Absolutely. And again, by choosing a product that has
a lot more risk, you’re putting both yourself and your business in a position to take on
extra liability. You’re going to have more refunds, you’re
going to have a worse ranking, and to be fair, you’re probably not even going to have that
much more revenue. If you have to deal with all these things,
it’s an extra headache for a very low chance of extra reward. When you’re buying stocks, you know that if
it’s a high interest rate, high-risk, high reward. So that’s a little bit more of a give and
take. You know what you’re getting yourself into. But when you go with a product like this,
you don’t really know what you’re getting yourself into. It could just be an immense headache that
you don’t want to deal with. Again, like Chris said, you’re going to have
to get a lot of insurance. Product liability insurance is not always
cheap, but it’s imperative. You have to have it. You absolutely had to have it. Chris, how many months have you been doing
this? Chris: 18 months. Ben: 18 months. And how important would say that product liability
insurance is when you’re selling on Amazon? Chris: It’s crazy important even for the low-risk
products. So you can imagine for the high-risk products—it’s
crazy. You have to do diligence on all of this and
you have to speak of a lot of companies. It gets complicated when you start to talk
about electronics and you’re a brand new company and you’re a private label seller and you
go on to sell on Amazon and you’re doing it for a bit of fun but really, it’s not for
fun. I’m almost there and would swear there. It’s not for fun. You’re trying to make the financials to where
you want them to be and what you thought of in your head. Without that business and all of that liability
stuff, it could really go downhill if you don’t focus. You could avoid all of these—they’re not
pitfalls—but just by thinking ahead, thinking smart. Don’t go into the approach that I did at the
start and I was very like, “I’m gonna get this up and running, I’m gonna get a hundred
sales a day, go, go, go.” I tried to bypass all of the important strategies
that went along with it and almost my business failed and I could’ve gotten a lot of trouble
for the stuff that I didn’t do. So please guys, learn from some of the mistakes
that I could’ve made and apply it to your own business when you’re starting up. Ben: I do want to take a second, now that
we’re talking a little bit about your history, to add a little bit more credibility to this
video. So you say you’ve been doing this for 18 months. How much revenue have you brought in amongst
your various businesses? Chris: I run a health and personal care business
which is a supplement business and I run a grocery business which I sell coffee in. So I sell strictly in the UK. That’s where 12 products, only 8 of those
products actually sell well and made a few bad decisions like 8 months ago and brought
out too many products at once. Don’t do that guys, always do your research. As of two weeks ago, I surpassed a 300,000
pound mark in the UK Amazon platform alone which was a very, very, very nice feeling
but not so just because of the revenue I built up and done over a quarter million pound in
the first year. It was more so to show myself and show others
that something that you watch from YouTube—and you might think that it’s a get rich quick
scheme—if you watch it and believe it enough, it can come true. For everyone that knows me where I live in
Pemberton, Wales, they know exactly knows how it all goes and it’s just great to actually
motivate and inspire other who didn’t really believe in myself or themselves and now they’re
the ones looking to do it themselves. It’s just a great feeling. Ben: Absolutely. Just to recap a little bit, we’ve talked about
three crucial factors. One: small in size. Two: low-risk; and three: lightweight. So let’s move on to the fourth one—and again,
these are product-selection musts. You have got to know about these. You have got to think about these. If you do not think about these, it will come
back to bite you in the butt and we do not want that to happen to you because we care
about you. We want to give you some value. Number four, Chris, is easy to ship. Can you give us some insight, my man? Chris: Yes, this again—and this might seem
like I’m backtracking or I’m sounding like a big fat pirate—but this comes down to
being light in weight and small in size. This is really condensed in those two and
also condensed into point three as well. All we’re looking for here is for the project
to be small, be easy enough to tuck into these boxes and shipping containers, and just get
out to Amazon. And I’m talking for that to be as light as
possible, small as possible, as low-risk as possible, and all of those three main factors
come in to making that very easy to ship. You got two methods here: you can ship by
air or you could ship by sea freight. Now, notice these two completely different
methods obviously the air is going to be faster but a lot more expensive so you might have
to go without milk for a while. If you’re patient, go for sea freight the
first time around. Be patient, let it hit Amazon, analyze your
sales, and then communicate with your supplier to see the difference and see how fast and
costly the air stuff can be in the future. See if you can work out a price. Always ask the question—ask, ask, ask. If you don’t ask, you don’t get. Ben: Absolutely. Again, we’re telling you these things because
we don’t want you to go without milk. We do not want you to run out of milk. So just make sure your stuff is easy to ship. When you’re doing stuff by air—like Chris
said—it’s going to be more expensive. You still could be looking at as little as
a few days up to a few weeks but it is more expensive. When you get it sent by air, it takes a little
bit less time but it’s more expensive. If you go by sea, you could be looking at
up to—and correct me if I’m wrong—but up to ten weeks of shipping for this method. You got to understand all these stuff. You got to know how long it’s going to take
by air, how long it’s going to take by sea. Always work with the supplier because both
of these options are typically available and you want to make sure you’re just communicating,
right? So Chris, when you first start out with a
product, do you like to order by sea to begin with or do you like to start with—how do
you like to begin? Chris: Depending on how capital is looking,
I would evaluate both and see the price difference. Usually, and more cases than not, I would
start by sea because I know there’s so many processes that you could really take action
on in-between that shipping of eight to twelve weeks by sea. Usually, I like to take the time and work
on other elements of that launch while waiting because to me that’s quite an exciting factor—waiting
for it to hit. Obviously, you won’t be able to make the sales
in that ten weeks where it won’t be in Amazon, of which you could’ve made through air, but
let me give you guys an example with air. So I’m working with someone on the twelve-week
coaching program and we have had—and this is crazy—we’ve had a quote from our air
freight company, they answered the supplier which is $4,000. Four thousand dollars to ship 500 units and
all of our products selection criteria which we have hit perfect; $4,000 and the order
was only $2,200. So you can see the massive difference. So if we’ll just send that in, we wouldn’t
make any money, we’d actually be paying money and that would become more of a hobby for
us to do and we’d lose some big money on that. By shipping by air, it was $700. So you can see the difference. Obviously, it’s going to take ten weeks and
it was spot on for the shipment; it’s going to take ten weeks just in the UK from China
yesterday morning, actually. That was a ten week process but we did get
a lot done during that time. We set social media. We’ve done a lot of website stuff. We’ve tried to diverse into a few separate
sales channels. We’ve done the most we could with the time
we had so we don’t have to worry and stress in the near future. We used this time that we have free now to
use the process that could benefit us in the short and long-term. Always check with the supplier guys and I
would always recommend checking with your supplier, number one, and also contacting
some freight forwarding companies and cross-referencing the pricing from the both. That’s always a good idea. Make sure you don’t accept air freight without
getting some costs, that’s very important. Ben: And just to kind of touch back on what
you said, you always want to work with a supplier that has both of these options available so
that you can cross-check these prices. Like Chris said, sometimes you want to start
by sea and then see how the product sell and base your next order on that benchmark. But this is an important thing; you have to
be careful not to drop communication with your suppliers once you have received your
first shipment and it is on Amazon and selling. If you’re not communicating with your supplier
throughout the process, it will make it harder for you to sustain. You want to be communicating with them. You want them to know, alright you’re getting
low on inventory, get that next order ready. Get it ready to ship. Because when you hit zero products from your
first order, you want that second order to be there that day—the next day so you can
continuously sell. You do not want to lose that momentum. You absolutely do not want to lose that momentum. Chris: One thing the suppliers really, in
my opinion, don’t like is when you order and you go through the initial stages of ordering
products. You’re committed, you got all of that stuff
done, you leverage their time, you got a lot of samples out and you really do, in a way,
take advantage of the supplier’s time. You got a lot of samples; they add some different
factors in your product that you requested, so they ship everything in perfect standing
order—so perfect fashion. They get it to Amazon—and then you’re a
ghost. They don’t hear from you at all until you
are urgent and desperate for that next shipment. And what happens then, because you have some
slight kind of frustration in your body for yourself that you haven’t ordered early, that
betrays the supplier and they can see that. So you have to make sure that you’re on top
of it, communicating like they’re your best friend, like you’re having coffee with them
across the table, every single week. I’m not saying you have to do it every 24
hours guys, but send them a message. It doesn’t always have to be business-related. Send them a message, saying how are you? How’s your evening going? I hope the family’s well. If it’s a Christmas, if it’s a new year, send
them the message. I always try to see when the birthdays up
of suppliers. Send them a happy birthday message by email,
all of that good stuff. Always use their first name, guys. What I’m getting at is communication is key
with your suppliers moving forward. Take that onboard. Ben: I just want to go back and re-emphasize
that communication is absolutely key. When you have a good relationship with your
suppliers, they want to do business with you. They want to do business with the people that
are pleasant to be with or to talk to and that show them results. If you’re working with them and you’re showing
that you have good people skills, you could hold yourself well and you could get things
done with them, then they’re going to be more confident in spending time with you because
they have confidence in you to make sales, to run your business. If you’re coming at them and just barking
orders and expecting them to just be at your beck and call, it’s not going to work out
as well. And let’s be real—they’re your suppliers. You need them to succeed. You might not need that one specific company,
but you need a supplier. So if you’re going to have a supplier, you
don’t want to be jumping around from supplier to supplier. Pick one, develop a good relationship with
them—and not all of them are going to be good, you’re going to find some duds—it’s
just how it goes. It’s how business is. Some things work out, some things don’t. But you want to make sure that you test it
out, that you show them a lot of courtesy, that like Chris said, you’re in contact with
them so they know. They understand you’re being transparent. So what happens, Chris, if in that situation
where you’re desperate for the products and you’ve waited way too late. What can happen to your best seller rank? What could happen to sales if you’re out of
stock for a while? Chris: This can really have a negative impact
in the future from a risk. One being the financials—the financial flow—the
actual cash flow of your business. That can take a massive effect, a negative
effect. You’re best seller ranking—let’s give an
example. I need as well the coffee cup. So let’s say you got your coffee glass to
a best seller ranking within the grocery category of 100 and you were selling 75 units a day
before you sold out. What happens then is your product, after it’s
got zero in stock and you were the best seller—biggest authority within your niche—fierce, top
page of the first page. Top spot of the first page. You go out of stock—you’re too popular—you
go out of stock. So you sell out guys, and your BSR goes from
a hundred, slowly down, down, down, every hour your BSR drops. And your best seller ranking the lower is,
the better. If you got a million, two million, three million,
and I’ve seen it—best seller ranking, you might as well call yourself Casper the ghost. Your product is invisible. So you really do want to pay attention to
your stock levels, and thank Amazon for helping us with that. They send out emails 30 days from out of stock,
20 days from out of stock, 14 days, 10 days, 5 days—so they give you enough time. They on their own give you notifications. If you can’t take your time into that guys,
what are you doing here? Get off Amazon. So really, it can have a really negative effect
and if you are and can only afford the sea freight method for the first six months of
your business and you ran out of stock and haven’t for some reason ordered stock back
in, you’re ten weeks away from inventory. And imagine you’re selling 75 units per day—and
remember, sales do not stop on weekends—this is seven days per week sales—imagine 75
units times 7 times 10 at $9.99. I’m not even going to do the math; you can
get the calculator out for that one. But that might seem like, oh Chris, that’s
never going to happen. Trust me, I’ve been there and I’ve been out
of stock guys—I do this a lot when I got like a big passion in my conversations. You won’t believe the stress and negative
impact it can have on you, as a person—because you’re the one managing the business—and
the actual business’ financial structure and cash flow. So that is something you really, really need
to tighten up on if you’re slacking on that area. And I’m not saying that I’m perfect in this
area. I’m going to tell you the longest I went out
of stock is 9 weeks. Nine weeks my best seller—my best-selling
product that was going 28, 30 units a day, sometimes 40 or 50 units a day—nine weeks. Don’t remind me; don’t let me get a calculator
out. You can see the importance guys. Again, I’ve made a lot of mistakes in Amazon
and that’s what pushed me to give people the knowledge and share my experiences to help
others succeed in this area. So please, please, please apply what I’m telling
you and don’t make the same mistakes as Chrissy boy did back in the UK over here. Ben: Absolutely. I’m sure you can attest to this but once you
did get that inventory back 9 weeks later, it probably took a lot more effort to get
back up in the rankings than it would have been to just keep coasting, right? It’s just a fundamental—if you’re already
moving at a certain speed, it’s easier to continue moving at that speed than to stop
and get back to that speed. Stay consistent, keep communicating with your
suppliers. We just knocked out number four. Done, done. Okay. Let’s go to number five. Chris, are you ready for number five? Chris: Yeah, I’m always ready. Let’s do this thing. Ben: Born ready, I didn’t even have to ask
that. Number five is you want to pick a product
that the competitors are under 250 reviews. Chris, give us some insight, my man. Chris: Ben, please stop me when I begin to
do my rambling phase which is all the time, you could stop me every second. Okay, so. I’m going to put it out there that some people
will agree with me on this one and some will not. Everyone has their own personal preferences
of how they might do this; mine, just as a disclaimer, this is the way I personally do
it and have had the success in doing so, especially after. This mainly does come down to the review change
in Amazon from October onwards last year, 2016. Let me just talk two minutes about that Ben,
just in case people don’t know. Before 2016 October last year, Amazon allowed
sellers just like me and you guys watching, to give away your product either for free
or at a heavy discount—or not a heavy discount—in exchange for an honest and unbiased review. To me, that seemed like a dream method because
I could give away my coffee glass for 80% off. Eighty percent off at Amazon which at $10
would be $2 to buy. Most of my cost would be covered. My cost price would be covered; all I would
end up paying would be maybe some fulfillment and storage fees on Amazon. So really, you’re buying reviews with that
method. Let’s all say probably people didn’t want
to hear that because maybe that’s out there a bit too much but guys, really, if you think
about it and apply the real factor of this, that’s exactly what we were doing. Amazon have changed that. Long story short, Amazon have pulled that
tactic and I think that was an incredibly good and smart move by Amazon. They don’t do things to undermine sellers,
guys. We as private label sellers, we push over
35% of their annual revenue to the company. They’re not going to annoy us and do things
that make us want to jump off selling products. So where am I? Ben: You’re saying about the review change,
why was it a good thing? Chris: I was annoyed at the change for honestly
about 20 seconds. I was like, no! But then after 20 seconds—I was also in
Portugal at the time—so when I walked outside it was like hot and I was on the beach itself
so it was all good. But I was thinking, imagine if a coffee company
came and they had a hundred thousand dollars to put into their new coffee products range. They were bringing five products out and most
of them were the coffee cups and my little baby was about to get crushed because I only
had £10,000 in the bank. What am I going to do against this competitor
with a lot of capital? They could come in, and they could put down
£25,000 worth of product giveaways to the likes of Softwise online that you could do
giveaways to or could’ve done giveaways to. And what happens to the little guys like me
who haven’t got much money? We sink and fall baby. So Amazon’s seen that and they applied that
kind of their new thinking strategy. So now, all I look for in categories is a
smaller amount of reviews to go into a category that allows me to play catch-up faster than
it would before with like thousands of reviews while that still stands. I’m not backing myself, but I don’t really
want to take so much time to clock up thousands of reviews when I could into a much easier
and more open market and class myself as the product authority in that marketplace much
sooner. My aim is 250 reviews and nice smart reviews,
10 to 15 sales a day, most of the products on the top of page one—that too me is a
much more attractive niche to enter into than go into some crazy market that has 500, 800
thousand plus reviews, especially with the review change—it’s a lot harder now. So I hope that’s cleared a few things up. Sorry about the rambling. Ben, take it away. Ben: Okay. Let’s just recap on this because Chris just
gave us a ton of great information. We’re saying to you is you want to pick a
category to go onto on Amazon with less than 250 reviews on their top item because it is
more difficult now to get reviews. That’s it. We want you to pick a product that you can
go into the market and you can establish yourself as the top product more quickly. Because you want to make money, we want you
to make money, so everybody’s happy, right? So do yourself a favor—pick a product with
fewer than 250 reviews. Now, that being said, there’s a caveat to
that. I’m going to play devil’s advocate for a second. If you pick a product or some category and
the main product has 500 reviews on it and you go and beat that—that’s really hard
to beat—then you’ve done a fantastic job and you’ve established yourself as a massive
authority. But what we’re trying to tell you is, in the
beginning, when you’re starting out, it is more difficult to get reviews. So we want you to pick a product that is easier
for you to get on top. Once you’re on top, it’s kind of a self-fulfilling
thing. More people are going to buy, people are going
to organically leave reviews, and it’s kind of going to take care of itself. But in order to establish yourself on top,
you need to pick a product category with less than 250 reviews on the top product. Chris, you got anything else to add on that,
my man? Chris: I actually have but I’ve been listening
to this conversation battling talk on the TED Talks and it said: when the thought comes
into your mind, just let it go. Just let it pass and let the person talking
to you do the talking and focus in. So at the moment, nothing. I’ve just let it pass as this conversation
has told me to. I’m pretty proud of myself. Ben: I’m proud of you too, my man. That was awesome. I’m going to start doing this too; this is
a really good way to get your thoughts out. Chris: It gets like
a power passing like that. It gets some sort of emotion. Ben: Absolutely. Let’s get it. So let’s move on to number six—and this
one is very important because it deals with your margins. At the end of the day, if your margins aren’t
on point, you’re not going to make any money. And if you don’t make any money, you’re unhappy. And if you’re unhappy, we’re unhappy. And none of us want to be unhappy. We want to be happy. So number six is you want to find and pick
a product that sells for three to five times the cost price. For example, buy for five, sell for fifteen
plus. Chris, you want to give us some insight? Chris: Yes, just before I do go into that,
that thought has gone from over there and just popped right back into this mind. I always, with the intention—and I do tell
my coaching class to do the same—I would rather go into a smaller category which—okay,
some categories on Amazon have best seller types. Those categories that don’t are smaller categories
than the categories that maintain those best seller types. I’m not saying that I wouldn’t want to get
into a best seller type; I would. I would want to go into that category. But if it was coming up to the saturation
point, I’d rather stay away and go into a smaller category. I’m going somewhere with this. I would prefer to go into that smaller and
less competition category and take just a couple of percent of that market—which gets
me my 10, maybe 15 sales a day—and I’d like to make myself a semi-authority within that
space taking my 3% or 3.5% of the market, not aiming to dominate and going in with a
mindset of totally saturating the whole market; take in every single sale here and there—taking
60% of the market. I would prefer to go in, take a small chunk,
move on to the next. Move on to the next, take another 3%, move
on to the next. I’ll take that ten sales, move on to the next. Fifteen sales. I would prefer to go over that mindset and
I always go and tell my clients that too because the overwhelming factor—if you’re thinking
in your head, I’m going to go in and take 15% of this market, it’s mine—that can become
very daunting and it can become a process that puts you off this whole business model
very fast. That to me is just a recommendation for new
sellers. Once you build your experience up in the market,
then you can go into more bigger niches or broader niches, let’s say. But for the time being, I would rather take
a smaller chunk of the market then go into a much more open one. Ben: Absolutely. So just to recap—and then I want to jump
us back on number six—but I think what Chris is trying to say is that—and again, correct
me if I’m wrong—but we want to be a big fish in a small pond. We want to pick the categories that they might
not be the best-selling categories, they might not be the yoga mats or the self-help but
it might be the category that you can come in, you take a small percentage of the market
share here, then you move on. You take a small percent here, small percent
here—you know what, those small percents add up. And they add up over time. Once you dominate that little category, you
can go on to the next one. You can keep moving up the ranks. So again, Chris is very wise, Chris is very
experienced and very successful. Take his words for what they are. We’re telling you exactly how to do this thing
and exactly how to pick a good product, so I really challenge you to listen to what we’re
saying, take it to heart, and instill it into your business. But let’s move back to number six; so selling
for three to five times your cost price. Buy for five, sell for fifteen plus. Chris, you want to take it away, my man? Chris: Yes. Some people again would say, no I’d like to
go with $10 profit per sale and that profit for £10. Personally, I started—this comes for my
own experience—I started selling supplements, and my profit was about $5.60 per each and
every sale after all costs, after all breakdowns on Amazon. And to me, that put a lot of money in the
business quite fast, and I used that money to then re-invest in a further ten or fifteen
products very, very quickly in the first eight to twelve months. So from my experience, that to me is a minimum. That $5 is a minimum and I’m talking about
$15 sale price on Amazon, $5 take home. Now, I did write something in my notes here
that made me open my eyes a bit in terms of how much that can make you. If you could see that Ben in the note, please
let me know. I say something like if you can make 15 sales
per day at $5 profit, that’s going to make you a clean income of over $23,000 per year,
something like that. And that’s just based off one product, so
you can see again, going into that smaller market, capturing that smaller audience sometimes
is more beneficial than the rest and just by producing the minimum—and I’m talking
about the minimum, I’m not saying to go in and get that and aim for that $5 net profit
take home sale into your pocket. I’m saying that’s the minimum you want to
shoot for. You could find a $10 profit or $20 or a $30
or a $50—great! Don’t dismiss that. But you can still earn a lot of money and
make a big success with smaller margins too. While that might be in disagreement with other
people, personally that’s worked very well for me. Ben: And I just want to jump in real quick
and say that like Chris said, you said one product here and you let that one product
make you some money. You put out another product here; make you
some money. If you’re at least breaking even where you’re
not losing any money and you’re getting experience—you’re learning how the market works, you’re learning
how the business works, you’re building your business, you’re getting your mind right and
doing everything right—eventually, you’re going to hit. And you’re going to keep doing this little
products, taking a little bit, a little bit and then you’re going to hit one and it’s
just going to blow your mind because you’re going to grab this massive amount of market
share. You’re going to be a best seller; you’re going
to be top of the Amazon rankings, and all that is a learning process. You keep doing that. You keep rinse and repeating until you have
a massive income like Chris here. And you keep doing it and you keep taking
what’s working and you keep doing it. You do not change the feed of a winning horse. Chris, I didn’t mean to cut you off, my man. Chris: Yeah, that’s great. That makes a lot of sense and that’s coming
out to a lot of people. What I was referring back to before my terrible
math kicked in—that was making 15 sales per day with a net profit of $5 per sale. If you continued that—remember, sales don’t
stop on Saturdays and Sundays people, they don’t start at 9 o’clock in the morning and
they don’t finish at 5 P.M. in the evening. If you were to do 15 sales per day at $5 profit
per—that’s $75 per day—and God I was like six grand off—that is the total income per
year of $27,000 plus. And that is based off one product at 15 sales
per day. Now, to me, that puts a big smile on my face. To me, that’s not overwhelming—15 sales
per day, especially if you do your product research right—fantastic, that is more than
achievable. So you should be looking at that and thinking:
wow, if I could make $75 per day potentially off one product, how many products would you
actually bring up? That’s probably the biggest question I ask
myself when I was starting up and one of the biggest questions I ask my clients. How many products would you bring up? Ben: A lot of products, Chris. A lot of products. Just to recap, we want to find products that
sell for three to five times cost price at minimum. If you’re finding a product that’s just a
needle in a haystack and you really have hit gold on this, and you could sell it for ten
times cost price, do it. Do it. Do not turn that away. Get it done. But at a minimum, three to five times cost
price. Chris, unless you have anything else to say
on this subject, I think we can move on to number seven. Chris: Yeah, I think we’re clear on that. Let’s move along. Ben: Absolutely. So next is you want to find a product that
you know can sell between 10 to 15 plus units per day. Chris, you want to comment on that? Chris: So, when Ben says that when I talk
about that—when we talk about that—that’s not a number that we’ve just said you have
to hit. That is your target. So every seller out there, if your first product
or whatever product released in the number you’re bringing out, you have to go and hit
10 to 15 sales per day before you even consider moving on to that second product. That is not what we’re saying. I’ve stated this because that is my own personal
aim. I would like to hit 10 or 15 sales per day
before I move on to releasing a second product. And really, I would like to hit that number
before even considering to do further product research. So that is a personal aim and I would recommend
putting some goals down in terms of unit sales per day, revenue per day that comes with those
unit sales, and being confident in the ability that you’re going to strike the win on those
daily sales. So again, my target, 10 to 15 sales per day
because I know if I’m going from very minimum of $5 per sale net profit, I got $75 cash
in that pocket. Not literally, because I put it up to re-invest
in more products but you know where I’m going. So choose a number, stick by that number,
don’t fluctuate and change it every day, every week. Keep it monitored, evaluate that number, set
it as a realistic goal according to the market and run with it and be confident in yourself—in
your business, in your mind, soul and heart—the ability within you that you are going to hit
that and you’re going to strike gold. It all comes with that. Ben: Absolutely. This has been part one of our three-part product
selection series that we’re going to do but I do want to talk about one more thing that
we don’t have scripted. I want to talk a little bit about mindset
because if you’re going to succeed and in order for you to succeed—because it is possible
for you to succeed in this business—you need to get your mind right. You can’t be thinking, oh I really hope this
works out, I want to just do a little bit of it and just barely dip my toe in the water
and hope it works out. No, if you’re going to start a business and
you’re going to do this Amazon FBA thing, then you need to go into it full in. You need to dive right in. Think of somebody who’s ridiculously successful. Think of Michael Jordan. Or think of Michael Phelps. That’s a basketball player and a swimmer,
and they’re probably two of the greatest athletes in history. Do you think that those guys did what they
did, did their sport halfway? Absolutely not. They went in 100% and they gave it everything
that they had in order to succeed. So that’s the exact same thing that you need
to do. Pardon my French, but you need to cut the
bullshit. You need to work your ass off and you need
to grind. Chris: It’s like [inaudible] on a much less
success factor than you just stated with Michael Jordan and Michael Phelps. Relating back to the Amazon world for people
who don’t really know who I am—damn you if you don’t—there’s actually a little story
that went behind kind of how I got started and I’m going to fast forward to the point
where I knew this is what I wanted to do. I actually quit my job as a personal trainer
and this is quite emotional sometimes for me. I moved home which is like two hours back
home in Wales, and I moved in with my granddad here, he found me a room and I gave him kind
of the business structure—not in terms of any support, just to let him know what I was
doing—and all I can remember, when my girlfriend at the time was in Switzerland, she moved
to be with her parents in Switzerland, I put my head down for seven months—for seven
months, 12 to 16 hours per day and I said to myself, I’m not going back to be a personal
trainer. I’m not working those hours; I’m not bringing
in £1,100 a month for doing so much work and putting so much time and effort. I’m not going back there. And then I knew the only path for me to really
succeed in this is to take some serious action and put some immense time, effort, and energy
into where I want it to go. I know it’s tough—no money if I didn’t have
family around me, I’m not really sure where I’d be at this point. So a support system around you is massive. I sat in my room—I’m not exaggerating, six,
sometimes seven days a week, 12 to 16 hours a day. I read blogs, I watched videos, I looked to
the higher-ups who I didn’t really know were higher-ups at the time in the Amazon FBA space
and I can remember there was this one video. I watched over 96 hours of it and it was on
repeat. I would lie down in my bed—this will be
in the morning—I lie down on my bed and I turn the screen over and I turn the lights
off and I will just listen to this video constantly. And by the end of this time, I was actually
saying exactly the words, word for word what the speaker is talking about. My intention was, I didn’t know that I was
going to make a quarter million that first year, I’m sorry if I’m boring you. But this is a story that’s very, very close
to my heart. I truly do believe if I can make this a success
and live and create the life I have thought this, anybody can. The first thing that come with that action
is you have to implement that action. It’s going to be tough, it’s going to be hard,
it’s going to be a lonely process. You might have to cut-off some friends and
even family but I promise you, if you do this right, it’s going to be worth it. You got to go through what you have to go
through to get to the other side. If you’re going through hell, keep going guys. Ben: You’re almost there. And I kind of just thought of a metaphor—maybe
not even a metaphor—but what you said, if you’re going through hell, just keep going
because in order to get to heaven, you got to go through hell. You absolutely have to. Just keep on working, keep on grinding. You can absolutely do this. Chris and I are here for you. At any time, you can reach out to us and we’ll
be here for you. We’ll be your support system but if you want
to know more and you want to really figure out—not figure out but you want us to share
with you the details of exactly what Chris does in his business, taking you from finding
an investor—so you don’t have to put up all that capital up front—finding an investor,
picking products, getting your product listing right, going through all these different steps
in order to build a massive, massive Amazon FBA business with the intent of in three to
five years retiring. From finding an investor to selling it, then
you need to check out Chris’ course. This course is called The Amazon Superstar
because that’s exactly what Chris is going to train you to be—an Amazon superstar. Chris, you want to maybe tell a little bit
about what is inside of the course? Chris: Yes. So I started the Amazon Superstar with the
intention of pretty much after the review—it was actually during that time, where the review
policy changed in Amazon. So I thought, okay. What is the next most important thing that
people really need to pay attention to if it’s tat hard to get reviews now? And the answer was, it was creating and perfecting
your product page listing—the listing that people see when they’re searching for your
product on Amazon. So I put together a course, The Amazon Superstar,
and it goes into—and this is an exaggeration, Ben you’ve seen the content—it goes into
massive, massive detail and information on every single section of how to create the
perfect product listing for your Amazon product. Now, with that launch on the 14th of November
last year 2016, it went great. Almost a hundred students enrolled. It went fantastic. But then I’m going to be talking real here,
the sales are starting to slow down and because of that, the result of that was because my
course was too specific into one area. I’m going to agree, it was specific, because
my intention at the time whilst creating that course was to be very specific in one area
to really blast sales—people clicking all of that to high heaven through the content
and information I provided the students with. The thing is, if I want to hit all kinds of
markets, every different person in their beginner stage, intermediate stage, advance stage,
to super advance stage at the end of the business, I have had to create a much broader and open
course to what was created before. At the moment, I’m very proud to announce
that the Amazon Superstar is in full expansion mode. I’m doing those 5 A.M. wakeups, 1 A.M. sleeps
and I’m getting through content like a madman plus the 8 coffees that’s driving that success. It’s going great, there’s going to be huge,
huge content additions added to the course and some of which are how to expand and sell
internationally. The biggest one—this is going to be the
biggest and best piece within the course and that’s the product selection phase. Exactly what this video talks about. Obviously, there’s going to be so much more
content within the course that people can learn. Big factors going to be how to differentiate
from the competition and a really, really important one is how to get verified product
reviews in 2017. Which I can at least 15 mentions a day asking
me about that. We’re re-launching the course on the 14th
of February 2017. It’s going to have all the additional content
included and it’s going to be good. I’m excited. Hearts racing, and work mode is fully on and
the curriculum is going to go from this stage to this stage where you won’t believe. So I’m really excited to launch that, Ben. Ben: Absolutely. And so just to re-emphasize—and correct
me if I’m wrong—but when you’re finished with this course and knowing you and working
with you and chatting with you on a very regular basis, I know that you’re not going to stop
until this course is the best Amazon course from the internet. Like I said before, you’re going to take your
students from Day 0 when you say, huh, I kind of what to start an Amazon FBA business to
bam, three to five years, you’ve retired. You sold your business and you have enough
money in the bank to where you don’t have to work a day in your life. Do yourself a favor, and get in on this early. Now, Chris graciously has allowed me to offer
a discount to you, so click the link below, grab your discount while it lasts. The price is only going to go up, so grab
your discount below and rest easy that you are joining a community of Amazon Superstars
just like yourself. So this has been the first installment of
the product selection process. Chris, I’d like to thank you very much for
joining on and to everybody else, we’ll see you in video two.

4 thoughts on “Amazon FBA: Product Research & Selection

  1. im not sure if you talked about this because sound quality is a little bad, but how do you get reviews for your products or boost your product in the searches?

  2. Hella good content man. All the recaps were spot on. Not sure how this hasn't gotten more traction. Where are the next two videos that follow up product research?

  3. Great video! New to FBA and been watching videos for about two months now, but most videos repeat the stuff. I found a lot of new things in this video.

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