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How to Find Winning Products and Gaps in the Market - Recording

There are millions of products you could sell in eCommerce, but what products should you sell to help you to achieve your goals?

Whether you’re looking for new product markets or to expand on an existing product line, this presentation dives deep into using data to increase the certainty of success in product selection, as well as how to uncover gaps in the market ripe for the taking.

Watch the replay right here or read the transcript below:

 

Transcript

Artur Rivilis:
All right. Hello everyone. Um, so today we're going to talk about how to find, uh, winning products and gaps in the market. Um,

Artur Rivilis:
Let's go next here.

Artur Rivilis:
So just to introduce everyone, uh, in this session today, uh, so have VP of SEO, Casey Gauss, uh, from Thrasio, uh, my name's Artur Rivilis, I'm VP of engineering at Deliverr. And, um, we also have Chad Rubin from, uh, Think Crucial.

Artur Rivilis:
All right.

Artur Rivilis:
So, um, you know, today sort of what we're talking about is, um, what are the sort of exciting market trends in 2020? Uh, COVID-19 interesting impact on, um, uh, you know, what's selling well, uh, you know, versus what was selling well before. And so one of the interesting things, uh, because you have all, uh, you know, all of these, um, you know, school aged kids that are at home and, uh, you know, are now, uh, you know, or, um, uh, you know, doing some homeschooling and digital learning, there are some certain category trends, for example, like arts crafts and sewing. That's, uh, you know, that's made a pretty big jump, uh, this year and, uh, has been definitely trending, uh, trending upwards. And so this is kind of an interesting category, uh, to watch out for, as you're thinking about what type of products do you want to sell?

Artur Rivilis:
Um, the, the other thing to think about outside of like, what are the categories to focus on is also the important, uh, the selection of what type of marketplaces you want to be on. Um, for example, when we looked at, um, when we looked at, uh, art supplies, uh, and, um, we looked at the different sort of, you know, we looked at the two different marketplaces, for example, Wish in Shopify. What we saw in Wish was that art supplies has been booming. Um, so if that's your category, then it's would be highly, um, you know, it would be a really good idea to expand onto wish. Um, and for Shopify it's been trending upwards, but you can see not as, um, not as strong as what the response on Wish was. So one of the things I want to talk about today is the, um, is a concept that we, uh, that we internally called category relativity, which is, uh, when your item does well on one marketplace, where else will it do well? Um, and what should your next steps be? So to, to look over, um, we, we looked at, uh, some of the top categories on Amazon. And, uh, the interesting thing about that is that, you know, if they're a top category on Amazon, likely you would be falling into one of these categories. Cause I know a lot of you do sell on Amazon and, uh, and we were looking at well, if it's, you know, if it's a comp, if it's a category that does well on Amazon, what's another marketplace where this particular category does really

Artur Rivilis:
Well. So if we took a personal care, um, this would be skincare or oral care, those types of products, um, it's, uh, relatively does better than health on, uh, on Amazon. And, uh, if you're looking for another place to sell it, you could consider Walmart and eBay. And, uh, the, the breakaway, uh, you know, the breakaway marketplace that we've identified for personal care has really been eBay. And, uh, Shopify, Shopify is an interesting one because for Shopify, we're looking at, you know, it's, you would have to be hosting your own store and, uh, you know, running ads, um, and pushing traffic to that store. But it's been, um, highly lucrative for, you know, the sellers within our marketplace, based on our analysis, you could see some there's some gaps for wish. Like for example, we don't really have a ranking for wish. And a part of it is that, uh, you know, wishes and you channel for us, and they overall have them have as many categories and don't have as rich of, uh, richer data.

Artur Rivilis:
So we're still collecting this information, we'll be able to surface it up. Um, if we look at, um, the health category, uh, Walmart's definitely is a breakaway winner. Um, so if you're, if that's a category that you're selling in, then you should definitely be looking at Walmart as a channel to expand into, um, interestingly enough, for patio and gardens. So if you're looking for what's a product that's gonna do really well on wish, uh, and, and, uh, and moderately well on, um, on Walmart, um, the patio and garden category is, um, currently trending, uh, very well. And you can imagine this is also kind of based on sort of this, this sort of seasonal impact, uh, you know, kind of the environment that we're in, where people are making larger investments in their homes. Um, no insights for batteries, but, uh, household essentials does really well on, uh, on eBay.

Artur Rivilis:
Alright, So, um, moving on to the next, uh, next slide here. So the next question is, well, we have really rich data around Walmart and what performs really well on Walmart. So looking a little bit deeper, um, into the here, we took a look at the top level categories, and here we look at these subcategories, um, you know, under that that's sort of a health category that does really, really well on Walmart. The interesting, uh, subcategory that we identified was keto. So this could be, um, uh, you know, keto, uh, keto diet pills. This could be, um, you know, keto, uh, foods, supplements, uh, food items, uh, things of that nature. So things that fall into Quito, um, are currently very, very popular on Walmart. So as you're thinking about what are other, uh, you know, maybe categories of this might be something that you're already selling, but not on Walmart, that would be a good opportunity, or it might not be a category that you've thought of at all. And that you, um, you know, are able to obtain these type of products and try them out. Um, this is one that would perform really well within a Walmart.

Artur Rivilis:
And as we looked at the top level categories, I think it's interesting to narrow that down into sort of these finer grain subcategory movements. And, um, there's really some interesting insights if we go a little bit deeper. And so again, here, uh, what we found is, um, let me sort of look at some of the questions here and I'll try to address these. Um, so, um, so one of the things that we found is that for oral care, uh, so oral care does better than skincare on Amazon. Um, and for eBay, we're looking at that being also a really, uh, really, uh, strong category for skincare, um, uh, you know, Shopify has performed really, really well. Um, of course you're talking about health healthcare as the sort of larger category in this case, a subcategory of vitamins and supplements. Um, Walmart is a, is a strong contender is a strong contender there, uh, for that, uh, for that category. Um, then we look at the bath and body, uh, kitchen and dining, uh, is a really popular category for Wish, uh, and bath and body, uh, for Shopify. Um, this just gives you some ideas of how you can diversify across marketplaces, uh, that we've found to be, um, uh, uh, really, uh, really hot opportunities right now. Um, all right. Um, cool. So now we're going to, um, shift gears and I'll give it over to Casey and he will talk about product sourcing techniques.

Casey Gauss:
Hi everyone. Yeah, just a quick background on myself. My name is Casey. Uh, almost six years ago, I started a software company in this space called Viral Launch and over the six years or so that I was there, uh, you know, we helped tens of thousands of Amazon sellers drive more than $12 billion in sales on Amazon. And we helped in every way from product research to keyword research, keyword tracking, and kind of monitoring your Amazon business, PPC management, PPC automation, software, and driving keyword ranking. I now work at a company called Thrasio. Uh, we just, uh, completed a $216 million round of funding at a billion dollar valuation. And essentially the company just buys Amazon businesses and then a is a best in class Amazon operator, essentially. So, uh, I I'm currently there. And, uh, yeah, so, so this is kind of where I'm coming to you from with these, uh, product sourcing techniques.

Casey Gauss:
We helped tens of thousands of people at viral launch in, in their product sourcing, um, and have seen lots of successes and lots of failures. And so my hope is that I can help you, um, uh, join the success side and avoid the failures that come with product sourcing, uh, just to kick things off, uh, to make things fun. Um, if, if you could post in the chat. So what is the product on Amazon that's currently live that has the most ratings, so a single product, how many reviews or ratings do you think it has? Um, if you don't mind posting in the chat might be a little bit of a delay, but, uh, I'd love to see what you guys think is a, the C or the under 50,000, under a hundred thousand or over 200 C D.

Casey Gauss:
Thanks guys.

Casey Gauss:
D D pretty pretty split between C and D. There's a, B

Casey Gauss:
Oh, here they go. Okay. Yeah. Just, was it just a little bit of a, the way, so I'll, I'll let you post your answers. It looks like it's pretty tied between C and D C and more Bs in there. Donna's thank you very much. I appreciate it. Thanks for joining. Can't answer the polls. All right. So, um, thank you everyone. I think maybe D one and the answer is D so, uh, the SanDisk, um, micro SD card, sort of 19,000 ratings, pretty impressive. There, there are products that have more ratings, but are not currently active. Um, last I saw there was like some Chuck Taylor's that had like 300,000 reviews. Um, but it's, it's no longer an active listing. So pretty, pretty incredible, uh, to see how many ratings I would not want to compete against these guys for so many reasons, uh, including to catch up to them and review quantity.

Casey Gauss:
I got a next question, which keyword has a greater barrier to entry. So when we look at a product to market, we look not only out, like, what is the opportunity for us to drive volume to, to sell, like, you know, are they making a thousand dollars, $10,000, our products in this market selling a hundred thousand dollars a month? Uh, so that's great, but that's only one part of the equation. We also want to understand how difficult is it going to be for me to enter this market and perform well. So, yeah, if you, if you, uh, don't mind posting in the chat, but we'll make this one shorter. Uh, but, um, which, which keyword has a greater barrier to entry? Is it, is it the sheets keyword really 70,000 searches a month? Is it speakers Bluetooth wireless with 211,000 searches a month iPhone screen protector, 5,000 searches a month, uh, charger 43,000 searches a month? What are you guys saying? Bluetooth speaker

Casey Gauss:
Bunch of it. Yeah.

Casey Gauss:
Two Bluetooth speakers right off the bat. You'll notice that three of these are, uh, in the kind of electronics category, which is just very, very difficult category, couple of iPhone people in here. Okay, cool. Uh, we'll just jump ahead to, don't take it up to assign the answer is iPhone screen protector. There's 22,000 reviews. The average review quantity for page one of the keyword iPhone screen protector is almost 23,000. Um, for if you go search this keyword and see the products ranking for this term, the average review quantity is 23,000. That's a pretty significant barrier to entry, and these other markets are, are significant as well. I mean, the average product for sheets has 17,000 reviews. So using mean not medium, um, which may change this a little bit, but the point is these are very competitive, uh, markets and, uh, which, which kind of brings me to the two key components of successful product research.

Casey Gauss:
Uh, number one is to start with the end in mind. And, uh, I'll talk more about this, but what I mean by starting with the end in mind is you probably have a goal, or hopefully you have a goal, you should have a goal. And that goal is for you to make X number of dollars a month, or, you know, to launch X, Y number of products. Um, so you, you have some goal in mind and that goal will dictate the path that you take, um, in your product research. So, um, actually excited, just stepping back real quick. So I'll, I'll talk kind of, um, two ways to product research. One, there are people thinking about joining the Amazon space or launching new products on the Amazon space. And then secondly, there are people that know how their product catalog, maybe you're selling on your own website or retail.

Casey Gauss:
What have you, and you're looking to now join, uh, the Amazon space. I'll be talking to product research for both of those scenarios. I mean, there's multiple scenarios, um, layered in there, but so starting with the end in mind is just very important. Whatever your goal is, if you want to hit some revenue threshold, if you want to launch a new product and hit a revenue threshold, you have to know where you want to go so that you can properly chart the path to get there. Um, and that is by far one of the most important components here, you have to understand, you know, if I want to sell $50,000 a month of this widget or a hundred thousand dollars a month of this widget, well, you need to understand what is the marketing budget going to be for that? Uh, what key words am I going to rank for?

Casey Gauss:
How, how am I actually going to get sales? And, uh, you, you need to understand this to, uh, you know, w understanding this will, uh, have a heavy influence in either of the products you select, uh, or your kind of go to market plan on Amazon. And then number two is follow the data. So the reason I did the, you know, kind of silly survey at the beginning, or, you know, trying to have fun is, uh, it's just so important to follow the data. And I wanted to show you, uh, you know, you really need to be paying attention to kind of every aspect of a market that you're looking to enter. And I'll talk more to that here. Um, so yeah, so, uh, again, kind of starting with the end in mind, you need to, yeah, I understand your SEO strategy. You need to understand the costs.

Casey Gauss:
What should your budget be? Because you can, uh, you, you may have expectations of, I want to do X in the next, in the first 30 days. Well, you really better understand your strategy and have that coming, uh, that you, you better have that in mind when you come to the market, it seems so many people come to Amazon. They, they launched a product. Yeah. Put it up on Amazon because so many people are jumping on it Amazon, and they do no, no volume. Right. And then they start panicking and saying, Oh, is it harder than I thought? Um, and they realized, well, they didn't have the budget at prepared for this. They didn't have the team or the resources prepared to give their products with a, what they needed. You need to know every step along the way before you even, you know, if you're watching your product, so that product, uh, or if you're bringing new products to the Amazon market, you, you need to understand the whole game plan before you even start.

Casey Gauss:
Um, so, uh, just a couple of, kind of

Casey Gauss:
Examples here is there, there's just so many competitors on Amazon. So just listening to product, just having a great product, having a great product at a great price point, just doesn't work. You know, the, the thing that Amazon one reason Amazon is so great is they've, they've changed this limited shelf space of you go to Walmart and you look at iPhone chargers. There's like, you know, just a handful of brands you looked at, uh, I don't know, laundry detergents, you look at oximetry, there's only a handful of brands. Uh, but on Amazon, you know, the, the brands are kind of unlimited our number of product opportunities or product selection. Um, opportunities for customers is so vast. And so if you look at iPhone charger, you may have a great iPhone charger, but there's 30,000 of them, right? Uh, these oximeters, there's 2000 different oximeters and they all look pretty much the same.

Casey Gauss:
You need to understand how you're going to drive those results, uh, follow the data. So there's so much data available on Amazon. Um, you know, I was just talking with some very smart people with a lot of money, basically looking to make a big Amazon play. And they were kind of just spouting off ideas. Like, yeah, I searched on Amazon and there wasn't any funny baby gifts. Like that seems like an opportunity, uh, for me, right? And it's like, well, shoot, let's go look at the data and we'll be able to see here's how many people are searching that keyword here's, who's selling, like which products are actually selling well, how much are they actually making and so forth? And you can get a very clear picture as to what the opportunity is, and a pretty clear picture as to what the costs and timeline is going to be in order for you to really start having success, um, in that product market.

Casey Gauss:
So, um, uh, through this, like if you take one thing away, two things away, ideally, uh it's is that you need to follow the data and start with the end in mind, the tactics you can, you can figure out beyond, you know, this, this presentation, there's all lots of discuss. Uh, but we, um, don't have enough time for all of that. Uh, so just, just to share kind of a case study. Um, so, uh, a friend of mine, he basically, uh, was looking to, he had a, uh, a successful Amazon business. It was doing seven figures a year. I think he built it up over like three, four years doing pretty well. And then he, uh, was like, you know, I really want to rash it this up. And so he came to me, he was like, Hey man, like any data that you can give me, I think there's a lot of hidden opportunities in here still.

Casey Gauss:
I would love to sit through this and I would love to be able to identify, um, you know, some of these opportunities essentially, and within just a, a handful of years. So he goes through like all of these categories on Amazon, just looking at the data, sifting through the data. I spent a lot of times, it's a very tedious process. It can be and ended up finding, you know, this, this opportunity for like plant supplements essentially. And he's built this over the last few years to this, you know, brand that I, I'm a, I'm a huge fan of their, they're absolutely killing it. Not only on Amazon, but just in retail. They're in thousands of retail stores and in whole foods. I mean, it's just incredible. And this all didn't come from, you know, some, some random ideas he's, you know, in the shower, uh, is, came from following the data to identify the product opportunity and then, you know, building out the game plan, going all in on it and scaling it from there, uh, Arturi you are running the poll?

Artur Rivilis:
Alright. So, uh, it's price time so that you should be able to go to the polls tab and, um, within that tab, uh, there will be some questions waiting for you and, um, yeah, you must, uh, fill in the poll in order to win this session's prize

Artur Rivilis:
All right.

Artur Rivilis:
So now I will pass it on to Chad, uh, who will talk about the importance of diversification.

Chad Rubin:
Awesome. Appreciate it. So, just quick background on myself, I've been in eCommerce for about a decade. Uh, I started selling D2C about 10 years ago, selling vacuum parts, and then started making our own vacuum parts. So this was actually an OJI website that we created. It was on Volusion. We started off with crucial vacuum. And if we go to the next slide, or I think I can go in the next slide, actually, this is what it is today. So the genesis was solving a problem, which was drawing direct consumer with home appliance, parts and accessories. Uh, just literally on Amazon, we were playing a little bit on eBay. We were on Volusion and we've repurposed the brand to be more wholesome around anything you can think of. That's crucial in the home.

Chad Rubin:
We manufacture and sell direct to consumer, but that was just like the first step. So I'm on 10 different channels. And really what we do is we create, we have 800 products and run roughly about 2000 listings across those channels. A big driver of that is Amazon, but a big driver of that is also Walmart, Overstock Wayfair. Uh, and by the way, we just got onto Deliverr, which is pretty awesome. So you gotta diversify and explode your SKU counts and do what other people aren't doing. And that's being creative and coming up with different kits and pack sizes to make that happen. So for example, I might take a low selling item that maybe we didn't make. We didn't intend for it to be low seller, but not a great seller and pair it with a high seller and create kits and bundles. And the way that we do that is we do that because I also started another software company called Skubana, which literally automates the bundle breakdown process for us automatically across those channels.

Chad Rubin:
So the idea behind diversification and go on many channels, but diversifying your product assortment is the idea is that you can get economies of scale. As you create bigger patch sizes, you're increasing your average order value, which essentially flows down to the bottom line for your profit margins. And so, as we create these different kits and bundles, the cost of shipping just goes up ever so slightly. And that profit flows to the bottom line on those kits and bundles. So before we even get into diversification, or even thinking about how we, you have 800 products across car filters and vacuum filters and coffee filters, and believe it or not, unfortunately, garlic presses the way that we've been able to actually scale so quickly is through some sourcing techniques. Some people may know this, some people may not, uh, but essentially we like to reverse engineer what our competitors are doing.

Chad Rubin:
And a lot of that is through exposed bill of ladings that are available to you, uh, through a few different softwares. I use Panjiva. I have no, no tie to them at all, but the idea is that you can get all this information of what suppliers, your competitors or categories that you want to invade in. You can get that pretty much with the touch of a fingertip. The next use those. If you're a big complex merchant that's on this webinar today, you might be thinking, well, wait a minute. Am I supposed well, there's a way that you can actually hide your sourcing data from Panjiva right? And so if you want to know that information and talk about it offline, feel free to email me at chad@skubana. I'm happy to discuss it. Now it's only available to you. If you're actually importing from China, sometimes you can get data from India, uh, but it's hard to get.

Chad Rubin:
So there's a lot of merchants out there. People have been doing this for a long time. There's a lot of softwares out there that scrape Amazon. But the idea is that if it's on Amazon or has its SKU, you can really extract that data. But there's a lot of brands that are selling D2C today that actually maybe are on Shopify, but they don't wanna embrace Amazon. Why? Because maybe Amazon is a frenemy. Maybe they don't want to. So I'm here to drop some nuggets that people can take action on. One of them is actually, if you actually take any Shopify URL and add in that, that additional piece of the URL, you can figure out what are the bestselling SKUs on a Shopify site? Why is that interesting? Well, again, a lot of these brands don't embrace Amazon and it gives you ideas and ways.

Chad Rubin:
Okay. How do I do things that are scalable and do things that other people aren't doing? And that's really where you find windows of opportunity to make more money. Because if you're using the same tools you're using this BSR rank, or you're using all the search demand volume that's out there, everybody and their grandmother right now is doing the same thing. So I think that's one really nice nugget is trying to find that diamond SKU on Shopify. Then you may want to actually add to your own site, but also maybe leverage across multiple marketplaces. Another really insightful thing that I wanted to share with everybody joining today is a software called Ahrefs. It's a software that's traditionally used for SEO. Um, and by the way, you can put in your Amazon listings into that to figure out if your listing is ranking really well, comparatively to others.

Chad Rubin:
But the other thing you can do is you can actually put in a website like a Shopify site, and you can actually see their most visited pages, which technically will show you. Maybe they have a strong blog they may want to learn from, or it could be the product pages and you'll get traffic volume, you'll get PPC data pretty much, again, all this information. It kind of feels like cheating, but it's at your fingertips for the taking and now the opportunity to make it happen. Now I'm a firm believer. This is all about diversification and diversifying your product mix, but also diversifying your channel mix as well. And as somebody who started really early on Amazon, and sure the marketplace has matured in a really big way. Um, I've always embraced being multichannel. And I think that's benefited us in a big way for my eCommerce operation, specifically around the pandemic. And COVID because if I had everything at FBA, I look at Amazon as a channel, not a business. And I'm looking at how we can diversify and try to make more revenue across other channels. So whether it's Instagram, whether it's Facebook, whether it's Wayfair, overstock, Groupon, we're everywhere. Essentially we look at selling an eCommerce like playing monopoly. You want to be on every piece of the board to win because where there's eyeballs, there's a market share. And there's certainly wallet share that for the taking.

Chad Rubin:
So,Uh, just to address this and I love collaboration, I see a question that came in. Can we get the extension for the Shopify search? Um, I think that there is an extension out, out there called calmer commerce inspector, uh, that you can take a look at again, no affiliation, just somebody you can check out. You can see what our best selling and SKUs and revenue profiles of Shopify businesses again, and try to leverage that data for your benefit. The other idea is that you naturally look at sales channel diversification, right? And this is what we're talking about. Essentially, even though green might be Amazon FBA, if you look at all the other contract contributing sales channels, right? It could be 30% of your revenue, 40% certainly for thrash, you'll probably get a higher multiple, or if you're selling your business, you'll get a higher multiple, but at the same time, like you never want to put your life savings into one business or into one channel.

Chad Rubin:
So I'm a firm believer in diversifying and splitting up where you're showing your products and diversifying your product mix. So of course, I gotta give a shout to Skubana because I wouldn't be where I am today without it, right. It's an operational software just like Shopify, but for the backend to run and automate your business, Think Crucial is a seven figure business with one employee. And we take all the low value, repetitive tasks, whether it's order orchestration or profitability or reporting, or even integrating with deliver it's in our app store, uh, pretty awesome stuff. So one of the bonuses here that I want to give away to people is we've been really thinking hard about, okay, people, the Amazon space is saturated in my opinion, right? And you got to find riches in the niches. And the way that we do that is we do, we developed our own spreadsheet criteria, which allows us to make better decisions.

Chad Rubin:
So we don't make mistakes. And so even though I have 800 products, right, babe Ruth, his home run rate rate was like 11% anywhere from eight to 11%. And I think it's very close for product, uh, for creating winners of as well. So you want to, I think to take a phrase from, from Casey is that you want the data to back you up, or you want to contextualize that data in ways that maybe softwares can't do right. And so like, is there somebody already making this proc right now? What are their listings look like? The reviews? What are the reviews looking like on those listings, the images on those listings, or even perhaps, you know, instead of investing money into a cell phone screen that may be replicable, try to figure out a way that you'd naturally create something that's innovative and unique where there's a tooling cost that protects your business and creates a mode, which becomes an opportunity. Alright. So where do you find the data to drive new product and market ideas? I think that's actually that back to Casey or Art.

Casey Gauss:
I think so. Yeah. Yeah. If you want to read my slides, you can those are busy slides and we'll take turns. Alright. Uh, so yeah, so the there's kind of two, uh, as you're looking for kind of new product ideas to, to source on Amazon, there's kind of two ways that I've always thought about this. Uh, there's the cashflow model, which essentially is like, you're just going to have this, this, uh, random array of products, this menagerie of products that don't necessarily kind of align. So you may have a, uh, a card trashcan with a dog cage with an umbrella, with, you know, a kitchen blender, for example. And this, the, the, the reason you end up with all these kinds of different, uh, products is essentially, you're just looking for products that have very high opportunity to have low risk. And they're probably low cost products or some combination of the three.

Casey Gauss:
And the focus with this kind of capital model is there are a lot of these like niches, uh, in, in product opportunities where you can make significant money. Investment is going to be very high. And so, you know, if I go into this product market, I can absolutely kill it, but it may be the kind of adjacent products market opportunities may not fit. So like, for example, let's just say that yoga blocks, uh, were a good product opportunity, but the yoga mat market is absolutely saturated. So a seller may go and this like much smaller market, the yoga plots and invest in that. And then during their bronc research, they, my may find another idea in a completely separate market doesn't fit at all. And they may go after that as well. And, you know, so I, and I've seen this work quite well, actually.

Casey Gauss:
So I, you know, I have, uh, a couple of friends selling eight figures a year on Amazon, literally just following this kind of random, uh, cashflow model with the will because there are so many of these opportunities. Um, and then the more traditional route, and this is the route that probably, uh, in a lot of cases will allow you to achieve a higher multiple when you sell the product, is this kind of cohesive line of products. So, you know, finding a brand, being able to double down on that particular niche and just kind of going wide within that, um, or going deep within that, that niche. So part of the troubles are you're going to be, you're, you're likely going to be investing in kind of the opportunity cost is going to be higher investing in these products. So you may find one great opportunity, which is, you know, uh, let's just say, um, essential oils, right?

Casey Gauss:
So you're like, okay, selling this essential oil pack, like there's significant opportunity there, there's kind of less opportunity. That's going to be more difficult to go into the kind of, uh, tangental products associated with Alec and essential oil diffuser, or like a little stand for essential oils. Um, I'm just making stuff up, but the point is, is that it going to be one product where the opportunity is significant and you can get through to return very quickly. And it's likely that the other products are going to be investing in are going to be a little more difficult. Um, but again, there's, there's a lot of positives to this brand builder model as well. Being able to really focus in on the customers to build a relationship with customers, to build a D2C, uh, play like there's a lot of opportunities. It's very easy to launch new products as you have this customer list, but again, there's, there's kind of tradeoffs, uh, between the two.

Casey Gauss:
Um, so let's talk about identifying new product opportunities. Uh, so some of the questions in the chat where, you know, where, where am I getting this data? How can I get this data? Uh, so, uh, there, there's kind of three main product research tools in the Amazon space. Um, I'm speaking specifically to Amazon as there's not, uh, very much in the way of product research tools for kind of outside of Amazon Walmart, Shopify. Uh, there are some good job by tools, uh, Google, and I'm speaking predominantly to the Amazon space. And those, those three softwares are viral launch, which, uh, you know, uh, is a company that I had created then as jungle scout in helium 10. And so, uh, in terms of product research, there's a ton of overlap, but, uh, so yeah, so if you're, if you're looking to find this data, uh, then you can go check out those websites.

Casey Gauss:
And that is a much deeper conversation if we were to walk through that, but I just wanted to talk high level here cause we don't have a ton of time and I wanted to help get you thinking about where to go. So, um, so far it makes a lot of this easy to, to kind of, um, find a good landing point and then to Chad's point doing deeper analysis to make sure you're not just sourcing what everybody else is sourcing, you know, w what you don't want is that fidget spinner where the data looks really good at, at fidget spinner, uh, you know, early in the year, and then everybody starts jumping into it and it very quickly is no longer a good idea. Um, uh, Maria is asking to repeat those websites, viral-launch.com, junglescout.com and heliumten.com. Those are the three sites. Uh, if you search one on Google, I'm sure you'll see ads for the other two.

Casey Gauss:
Um, so anyways, using software will allow you to basically, uh, find opportunities. I mean, but what you can't do is you can't look around your desk and say like, okay, I have a coaster, let me go look at coasters on Amazon. I have a desk or a standard standing desks like everybody else is doing that. There's there's software that allows you to look for, okay, show me product markets where, uh, there's only $25,000 a month in revenue on average for the product. And the review average review quantity is under a hundred, right? So now you're looking at these product markets, or you're having a software now start to for you, these opportunities where the review quantity is low, but the revenue opportunity is quite high. Um, well, sorry. That was that that's more like a niche. Um, but, but the point is there's tons of filters, um, in these product research tools that will allow you to find these very specific niches.

Casey Gauss:
And as you become more and more familiar with what looks interesting, what doesn't look interesting, you'll be able to go on these kind of rabbit trails, if you will, in a good way of finding these kind of undiscovered niches, if you will, or, or, um, much less competitive product markets. One thing that I really look at as kind of a short hand, is this broad market interesting or not is the sales review ratio. The way that I consider this is the, the number of reviews. So if you, the customer and Amazon shopper doesn't really have much of an indicator of, uh, what products are selling well on Amazon they're indicators are bestseller badge, the Amazon's choice badge, and, you know, some of the other sections that are now showing an organic search, like the editorial strip, but the point is, is that the customer's main indicator of what is most popular like what's selling well is the number of reviews of product tasks. So, um, so, so basically if, for example, let's say every, uh, you're going to buy a new ad phone charger. And, um, the majority of those iPhone charters have 50,000 interviews. And then there's one that has 2000 reviews kind of objective,

Casey Gauss:
Like standing to the side as a, as

Casey Gauss:
Like, you know, outside search, a viewer, you may say 2000 reviews on Amazon. That's kind of a lot, but when you compare it against the rest of the market, I mean, 2000 is a lot less than 50,000, which quote unquote, everybody else in that market has. And so you're probably going to be less inclined to, to make that purchase because not as many other people did and it's not as popular for some reason. Right? And so if you take this kind of logic and look at these product markets, as, as you're looking to, uh, go get into new ideas, review quantity is, is like a major barrier to entry. So there's app, uh, and then, and then there's sales. So it's kind of like risk reward, but it's, it's like opportunity versus investment is the way that I look at it. So the opportunity is going to be the sales volume in a market.

Casey Gauss:
And there's, there's, you know, the, those product research tools, which will help you estimate the sales volume of products on Amazon. So you can go to any market and say, yeah, you know, the average sales, uh, for this, this product that this, this product is selling, you know, approximately $200,000 a month. Um, so it's the opportunity versus the investment. If you, uh, if the average review quantity is 10,000, it's going to do very long time to get, get there. And if you're only going to make $5,000 a month, absolutely doesn't make sense. And you can kind of walk that down. So, um, yes, uh, kind of a lot to unpack their product research is kind of a deep title and so important if you haven't gotten started down in the Amazon space. Um, but your product selection is going to absolutely make or break your success on Amazon.

Casey Gauss:
Um, and another thing that you should be paying attention to when considering product markets is, is, is trends. So, um, there's some really cool opportunities to basically use this software to identify kind of trending product markets. Now, I wouldn't suggest going after the top 50, 80% of product market trends because everybody else probably is as well. Allah fidget spinners. I assume many people that lost so much money in the fidget spinner market because they got into it because they saw the opportunity, but they weren't paying attention to how many other people were getting in. Um, but with these tools, there's some great opportunity to identify growth trends. So this is like a search volume chart, and you can see an aggregate search volume is kind of up into the right, and that's 30 grand, 31% at the time of the screenshot. Uh, so you know, this is an opportunity.

Casey Gauss:
I've seen some people jump on this very early and have tons of success, like essential oil market. Um, they launched a diffuser on Amazon and one of the first diffusers and with essentially it kind of no work, they're doing six figures a month with this essential oil diffuser. So looking for product market trends can be good. You just have to be conscious of the fact that there's probably a bunch of competitors coming in as well. So one area that I, I really like to focus on yeah, because of it I've seen. So, I mean, I've seen the troubles of having topics ups in the market on Amazon. I mean, you're constantly having bad actors, uh, uh, flag you for just big stuff though. They'll write these fake reviews to get you shut down and they'll send, you know, these phony claims saying that you're violating X or Y to get you taken down.

Casey Gauss:
There's so many issues. Um, and so one kind of strategy is to fly under the radar on Amazon, to look for these product markets where you're, you're only going to be making about five to $30,000 a month, but there are new quantities are low. There's not a ton of people in there. The differentiation is not high within the product space, meaning there's like this clear gap for you to come in. We launched this lower volume product and, and to have success pretty easily, and to not worry about all these big guys that are going to come in and try to bully you, uh, in, in the market, especially if you're coming on to Amazon for the first time, whether from another channel, um, just being able to, to, you know, get into these opportunities where there's not a kind of competition is going to be very nice.

Casey Gauss:
Um, and, and again, I've seen plenty of people have a lot of success. Uh, they just have a much kind of a wider portfolio here. They don't want to talk about extending product line. So yeah, if you're already selling on Amazon, um, or yeah, if you're already selling on Amazon, then you may be like, you know, one of the fastest ways to grow your revenue, launch new products. If you're, if you're selling a million dollars a month with six products, uh, you want to get to $2 million a month, probably launch six more products and do the same thing. And now you doubled your business. And part of the question is, well, what should I add to it, to my product line? And you probably have some kind of ideas intuitively you probably are rather familiar with the product space or you know, that product markets.

Casey Gauss:
But, uh, again, I think following the data is just so important. And so Amazon recently in the last few years has rolled out a brand analytics. I think it's been about a year, year and a half. And, um, they have a couple cool things in here. So there's market basket analysis. If you, if you're a brand registered or you're selling as a 1P uh, as a 1P this is going to be in your advanced, uh, this is in the area program. Um, if you're a third party seller on Amazon, then this is going to be in Brand analytics. Uh, if you have brand registry. So anyways, uh, there's this market basket analysis, let me see, uh, there's, there's this market basket analysis and item comparison in alternative purchase behavior. So what these two tabs show you is in the market basket analysis, Amazon will show you what else was in a customer's cart when they checked out.

Casey Gauss:
So if you're selling a coffee grinder, you will be able to see the percentage of people that checked out with your coffee grinder that also, uh, purchased coffee beans, or they purchased a French press. At the same time. The point is, Amazon will show you what customers are also purchasing with your product. And this is, you know, you, you, can't kind of review the data that Amazon is showing you in terms of what customers are also buying. That's a great opportunity for you to, uh, you know, go and invest in that product line. And you'll have a lot more confidence when you do, because you know that, uh, you know, customers are also buying. This is, it's not just a hunch. Um, I always feel better when I have data to back me up. And then number two is I don't, I don't comparison and alternative purchase behavior.

Casey Gauss:
So this is a set somewhat full sometimes, but other comparison is essentially what other things are customers looking at when shopping for your product. So they may not purchase it, and they may not have even purchased your product at this time, but they were at least considering them. And again, sometimes you will find these ancillary products or these tangental product markets, which represent new kind of product line extension opportunities. Um, and then there's alternative purchase behavior, which is essentially looking at competitors, but this is by far one of the best ways to extend your product line using data directly from Amazon. Another kind of, this is probably rather intuitive and straightforward, but there's the frequently bought together section on Amazon. Um, and so this is, this can be a great way of kind of sourcing these new product ideas. So, uh, in this screenshot, the listing was a cutting board.

Casey Gauss:
Um, and at the same time, people are buying, uh, these knife sharpeners, as well as some other cutting boards, which is, which is interesting. Apparently you can never have too many cutting boards. Uh, but the point is that there's a ton of data out there for you to identify new product opportunities should also be paying attention to customer reviews, again, a tedious process, maybe have a VA do it. Uh, I like to become kind of intimately familiar with, um, my products or, or, uh, my competitors. And so, yeah, I, you know, I'll go read through reviews to understand like, Hey, I just bought this cutting board to use with my new chef knife set or something. Right. Um, and again, this will start to give you some indicators or some ideas of opportunity. You should still use the data to then go and validate those ideas.

Casey Gauss:
Uh, but this will at least, um, send you down a path. And, um, in, in a minute, I will talk about validating those product ideas. Uh, all right, well, I'll talk about them right now. So, uh, sorry. I thought we were going back to Chad. Okay. So validating product ideas, product markets. This is where you're kind of starting with the end in mind, uh, comes into play. And, uh, again, this is like a rather deep topic and we didn't have a ton of time today and don't want to, you know, too many people here, but, uh, basically validating these product ideas, like coming up with the idea, this is great. Uh, but then making sure it's actually going to work, uh, one is, is important, or, you know, let's say you're bringing that, that product line to the space. And so you don't have the opportunity to, to select, you know, just front of, you're stuck with you.

Casey Gauss:
You have what you have essentially knowing, um, what to expect is going to be so important. You probably, you know, some people will opt in, run pilot with prop you know, a handful of products before they bring the whole catalog. Um, and so picking the right products for the pilot is, uh, going to have a significant impact on how it goes overall. What, what, what you think of the Amazon space. So here are some common mistakes, uh, that I see or have seen sellers make. Um, and you know, in my, my experience at airlines or is it, you know, five years, uh, I saw a lot of product mistakes, um, unfortunately, and so, uh, there, there's so many, uh, minds to dodge in, in, in the minefield that is Amazon, but number one is because it's popular, you know, a couple of years ago I had these guys come to me and they're like, yeah, you know, we have a ton of money wanting to get into Amazon.

Casey Gauss:
And we're thinking of selling routers, uh, because you know, more people are getting on the internet now than ever. So we want to, you know, sell these routers. And, you know, while that, that statement is, is probably, you know, correct, uh, what they weren't looking at is, well, what does it look like to sell on Amazon, uh, in the router space? And if you go look at the router space on Amazon, what are people buying? People are buying brand names. Um, they, they, weren't going to have a brand name that was going to be a private label product. Their view quantities are high. Um, and it's just a very expensive space to enter. And, you know, I would have estimated the probability of success in becoming, you know, having like a cashflow positive router business on Amazon and in a year would be rather minimal without a significant team behind them.

Casey Gauss:
So it was just very important in another mistake, looking at a snapshot versus a complete historical picture. So, you know, there's tools to look at this data, oftentimes people will go and they'll look at let's, let's just say the, uh, let's just say the coaster market, like for your cups. So people will go, they'll look at coasters, or actually what's a, what's a better one. Um, they'll go look at some kind of like seasonal product and they don't know it's seasonal. So they go and they look out like clipboards in September. And let's just say that a bunch of teachers buy clipboard. So sales are higher in September. The point is they'll go in and they'll say, wow, clipboards are selling a hundred thousand dollars a month. On average on page one, our top 10 are, um, the opportunity is so great. And the review quantities, you know, low like price points, good, all these different things.

Casey Gauss:
And then, you know, they, they find a supplier, get the product into Amazon or deliver, and, you know, they're getting ready to go. And now it's January and no one buys clipboards, you know, and, uh, the winter, because they already bought them in September. And so they come in and the product opportunity, isn't what they expected or, you know, price point is at a significant decline as there's some consolidation in the market problem is is that if you want to understand where market is going, you have to look at where it's been. And the trajectory that it's on a very important ongoing, the premium route has definitely worked. Sometimes you just have to be very intentional about it, but I've just seen so many people that also, you know, fish oil. I can't tell you how many people I've met that, that have the best fish oil on Amazon that have the highest quality fish oil on Amazon. And I use fish oil as you know, this example of like, you know, probably pretty similar. Uh, and so they want to sell their fish oil for so much more. They have zero reviews on Amazon and they want to be able to sell at a good volume, this premium fish oil,

Casey Gauss:
Uh, want to be able to sell this premium, fish oil. And it's just like, I mean, everybody has the premium fish oil, and it's very difficult to convey this on Amazon. I mean, you are very constrained in how you can kind of present your product to the potential customer. And so if, if you're selling a official oil for $50 and had zero reviews, and these other quote, unquote premium fish oils are selling for $20 a bottle, um, you know, same, same pill count or whatever. Uh, it's just so difficult to help them to understand why your product is premium. You can, there may be markets where people are looking for premium products and that's where you can use it, follow it, you know, you can follow the data. Um, but I just see so many people make this mistake of premium. Amazon actually rewards you for a higher sales volume.

Casey Gauss:
So the more units you're moving, the better you're going to be ranking. Um, and so if you're selling a premium product, naturally, you're probably going to have lower sales volume. So it's going to be more difficult for you to compete in the organic results. You may have some more marketing, uh, margin play with, but I just see a lot of people make this mistake. They can work just gotta be intentional, uh, not budgeting for launch expense. People will come and they say, you know, I have a $20,000 budget to run a pilot here, whatever, um, they'll, they'll get a product going, product costs. All these things are, you know, $18,000. And they're like, alright, add a $2,000 marketing budget let's get started. And you know, it's not enough because they didn't start with the end in mind. They didn't put the budget in place and they weren't prepared to spend money in order to make money on Amazon, which Amazon has become more and more a pay to play space everyday.

Casey Gauss:
Uh, cool. I'll just, I'll just skip through the rest, uh, validating product ideas. You just really need to know your keywords. So this is a, uh, a screenshot, not from viral launch, but from helium 10. And so when you're looking at entering a space, how, how do, how do customers find products on Amazon and purchase largely through search? So if I'm looking to buy fish oil, I don't like, you know, search Amazon best sellers. And then just like click through all the browse street to find like the fish oil category. Um, and then, and then say, Oh, this is the number ones. This is the best seller, the best BSR official. And then I purchase no you're like fish oil or premium fish oil, or whatever, best fish oil, whatever you search. Um, and that's how customers are going to find your products. So it's so important that you know, the keywords in a product market, and you're able to say, well, where, where are the top selling fish oils, sell it ranking.

Casey Gauss:
Well, right. Where are they advertising? Get that data? Um, where are the top five competitors ranking and selling well, what are the keywords where only one or two of them are ranking. This is now an opportunity for me. Um, uh, so you, you should be doing exhaustive keyword research to identify that that market, the keyword market is where you're going to be getting your sales. I used to be looking for these hidden gems where not many of your competitors are paying attention to, um, or maybe they don't have these keywords in the title, but they're so good volume. Um, you really have to know your keywords to understand the market. You don't know your keywords, then I would say, you don't know your product well enough, and you should not be sourcing that product until you do again. I can't tell you how many people have come to me with like this weird mix up between like matcha tea and coffee, I guess.

Casey Gauss:
It's, I don't know. So I'm just making this up, but it's like some combination of the two and I'm like, Oh, okay. So like, what do people call it? Like, what's the keyword? What words should you be ranking for? Like, well, you know, I dunno, it's kind of like matcha, but it's not exactly. It's kind of like coffee, but it's not exactly. So I don't know. It's kind of like a new thing and, well, how are customers going to find your product? Because they're searching on Amazon, they're searching matcha, matcha, and the majority want matcha. And so they're probably not going to buy your product because they're looking for matcha. And if someone searches coffee, I'm not going to buy your, your, your, your thing because, you know, they want coffee. This just going to be very difficult. So you have to know your keyword market in order to really validate the product space, um, really need to know your customers.

Casey Gauss:
You should be spending a good amount of time early on going and reading through customer reviews, both positive and negative one. This will allow you to find some of these niche keywords, where customers are, you know, you really have to pay attention to the vernacular that they're using the very specific words that they're using to describe the product where their need, um, why they got the product. Um, but this is also great data to help you understand, um, you know, how you should be building a product or the product that you're sourcing, what it needs to have, which you need to focus on, Oh, this strap breaks on, you know, let's just say this art kit or something, right. That has a little handle. You need to make sure that your, your handle is sturdy enough that it's not going to break. Right. Um, or people are been like, yeah, I bought this thing.

Casey Gauss:
I just wished that it had X. Okay, well, maybe you should analyze whether or not adding X makes sense to you. Um, and then, yeah, I think this is my last slide. Uh, so I talked about kind of market trends, understanding where things have been to understand where they're going. It's so important to look at these kinds of market trends, to understand where the market has been and what should I expect once I entered that market. Um, so here's just a couple of examples. Here's a screenshot, uh, this, this top graph here is sales. And so as you can see, it's a rather seasonal product. There's this cycle here where, um, in the summer it looks like there's a significant jump, uh, drops down over the holiday Christmas, uh, you know, cold season in the US uh, and then, um, and then picks back up again, right?

Casey Gauss:
So like, you need to understand, cause if you're looking at sales potential in July, and you may not realize that, well, sales are gonna go down to pretty much nothing in the winter, but you were, you were expecting, you know, this peak season to sustain through the year. Um, another thing that's important is just looking at price trend. You know, if, if again, so so many people waste millions of dollars on, on, um, that just spinners, if they would have looked at the average price trend, they would have seen that the price of a fidget spinner started in, in January of whatever that year was 2017, 2018 at $27 per unit. That's how much they were selling on Amazon. They're doing significant volume. Um, but th th th the chart was like very steep down here. And the average price ended up like under a dollar on Amazon for these fidget spinners, because people were just trying to liquidate their inventory. And it had, you have looked at any point along this, you would have seen that this chart, uh, or the average price point was declining significantly. You probably wouldn't have entered this space.

Artur Rivilis:
Cool. All right. Uh, great. Right. There we go. Okay. I have myself muted. Um, awesome. Thanks so much for running, uh, running us through that, Casey. So, um, uh, thank thank you everyone for joining us today. So our next step is our Shopify fireside chat, and that starts in about 15 minutes and, uh, that will teach our director of sales, um, ad experts and successful Shopify sellers. Five minutes before we go live, you'll get a link to join in your inbox. And, uh, if you need help, please go ahead and email Rachel at Deliverr, uh, just the emails right here on the slide. And, uh, thank you everyone for joining.

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