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What Are the BEST PRODUCTS to Sell on Amazon 2020? Learn How to Make Money on Amazon 2020

February 13, 2020


so you’re an Amazon seller. Well, how can
you ensure the next product you design, manufacture, and launch on Amazon is
going to be a winner? Well, in this session we’re discussing two very
important topics: One, why it’s so important to sell for a higher price
this year and, two, how to choose between equally matched products. A link to part
1 will be in the description. Remember to Like and Subscribe. So, let me ask you
this, Dan, you see here I have my market but I’m still not convinced on the
higher price strategy so could you just explain a little more why a higher
priced item is really profitable? Sure, so I think the the best way to explain this…
Let’s say we sold spy cameras ok or hidden cameras or nanny cameras as
they’re also known. (Right) And let’s say they’re exactly the same size, they’re
packaged in the same exact box, they’re the same weight but they have different
features and one is a $50 option and one over here is a $20 option. (Got it) Now
there are certain costs in our business model which are in fact fixed, they do
not correlate with that actual price level, so imagine this: $50 $20 and now if
we take off the logistics cost of getting that from say China to the US or
China to the UK (yes) they’re the same size so let’s say it’s $2 coming off
each price. So the shipping is still the same? (the International shIpping). I always assume a
higher cost product is going to cost more to ship. No! That doesn’t make sense. No!
Because if it’s the same size and weight it’s gonna be the same shipping cost.
Yeah! So we take $2 off each price. Okay. Then you’ve also got for example Amazon
FBA for Fulfillment fees. Right. Now FBA fulfilment fees again are based on size
not price so they are gonna come off the product and this might be for example $6
per product FBA fees coming off that price. And
lastly remember we’re doing spy cameras. Right. So
these whether it’s a $50 or $20 product they’re aiming to convert on the same
keywords. Okay. And so they’re going to bid they’re gonna advertise on the same
exact keywords meaning the cost per click is probably still the same for
them right? If they’re both bidding on nanny-cam yeah because the keyword has
nothing to do with the price of the product it just has to do with how
competitive or how many people are trying to bid on it. Exactly, so let’s say
a one dollar cost per click comes off that as well. Now remember we had a fifty
dollar and twenty dollar price point and we’re deducting nine dollars of fixed
cost from each and you can see instantly on our twenty dollar lower
price item which would also be more competitive on that one those fixed
costs represent almost 50% of our total revenue our total sell price. On the $50
option that represents a fifth, 20%, of the entire sell price and revenue. The same
fixed costs so you can see. Our margins are so much fatter. Yeah! That’s so
interesting. You don’t even think about it. You never hear people talking about this but
that makes total sense. Yeah, over here you’re left with eleven dollars. Right. and
over here you’re left with $41. Okay, I like this but here’s the thing I’m down to
these two products both match all the criteria for potential product both have
the same differentiation potential and the same profit potential but I feel
like I’m hitting a brick wall like I’m okay so they’re so even how do I know
what to…do you ever feel like your your brain becomes constipated
and you just like how do I make a decision? If everything feels equal which
is unlikely but if you still you’ve gone through everything we’ve spoken about to
this point and you’re still stuck another thing I would consider looking
at these products I can see here you’re comparing a tourniquets. Right. also called a tourniquet, like a medical device and also a spy camera – our nanny
camera – so another thing I would look at which stands out to me here is customer
search terms so the tourniquets this product has very
very limited keywords. How many ways would you be able to search for a
tourniquet? let’s say you needed a tourniquet today. What keywords
would you go type into Amazon? “handy tourniquet” – you wouldn’t! I’m being creative here! So you can see it’s very
very limited maybe tourniquet or tourniquets, brand
and then tourniquets but there’s like very very few options. Even when you ask
me I’m sitting here I’m scraping what would I what else would I search? yeah,
very very limited now on the nanny-cam side I’ve even used multiple words to
describe for today but you have nanny cam.. Thinking about it you did! Yeah..
hidden camera, spy camera, security exactly and then you have all
different versions like spy pen or spy plug or spike clock or… the camera could be embedded in a different kind of product. yeah so there are many
different keywords there and often when you have a lot of key word variation all
those different key words you also have product variation like we just spoke
about plugs clocks pens it’s all this product variation. Now the best way I can
explain why that is important and why you want to have more keywords rather
than less with the tourniquet it’s like this when you run ads which you will do
on Amazon at some point PPC ads it’s like a auction and Amazon is like your
auctioneer auctioning off spots exactly and the man in the blue coat is the
seller amongst a whole lot of other sellers they are bidding for keyword
placement so Amazon says hey we’ve got this keyword “tourniquet”
and all these sellers are selling tourniquets right what are
you gonna do let’s say you’re selling a tourniquet for the first time and you
know that customers mainly only type in “tourniquet” to find that product. I can only bid on that
keyword. Yeah so when it comes time to bid for that remember the higher you bid,
the higher your ad goes. If there’s a thousand people bidding the price is going up big time. Yeah so the cost per click is
massive in that market but when we look at the hidden camera or nanny camera or spy
camera what happens is because we’ve got so many different keywords and also a
bit of product variation, what ends up happening is sellers move their bids
around, they spread out their bids and bid on different keywords. So it drops
the price. So maybe I could focus on a medium cost or lower cost and get my sales
through there cause my advertising cost of sale goes down as a result. Yeah! it makes
sense. Yeah and and so you might let’s say you did a spy pen that you can
clip on your shirt etc yeah then what you would do is focus very heavily on
those types of keywords and other sellers would focus more on their types
of keywords but also because you’ve got standardized different keywords there
you’ve got nanny-cam hidden can spy camera sellers bid a little bit less on
all of them because it’s not so important to show up on that one that has all the
traffic. And it gives me all these different niches I can focus on the Nanny version or I can focus
on the hidden version, like it gives me more niches where I can carve out my own… the
riches are in the niches. Yeah and you’ve got you’ve got enough customer traffic
on all these different keywords to justify spreading the bids out a bit,
it’s not all on one. Yeah this is really good this is so freaking motivating
because you’re giving me specific things I can do I can immediately apply I can
make money and that money can create freedom

6 Comments

  • Reply M T February 10, 2020 at 3:56 am

    Hi Dan, I have a question about inserts. I want to use them to generate user-content on Instagram by offering a giveaway each month. For e.g it will say something like "Win a £50 voucher if you post a photo of yourself using this product on Instagram with the hashtag #……"

    Is this against Amazon's policy? I'm not trying to take customers away to another website to buy, I just want to use Instagram as a marketing tool, particularly user-generated content which is incredibly powerful in getting people to buy products they see others using. Any advice would be great, thanks!

  • Reply Hussein Hussein February 10, 2020 at 5:36 pm

    Hello Guys, we are following you so far and with intent, , my Question as follow please: I live and work in Germany, i sell on amazon also in Europe as Professional Seller, my question to sell on amazon US ,do we have to open A LLC in the US, also need EIN and Customs No. to import into amazon.com FBA ? thanks

  • Reply Hussein Hussein February 10, 2020 at 5:41 pm

    1 more question please, i was creating a Parent ASIN to merge 2 Actuel listing under that ASIN to create a Variation, and 1 hour later i noticed all my Bullets, Descriptions, Backend-keywords and EANs all disappeared, so now i a Variation listing but only with short tittles, all my hard work gone, and amazon told me nothing can be done… any idea how to restore these data ? thanks guys

  • Reply Endless February 10, 2020 at 6:35 pm

    Good video! Keep it up! Would you like to be YouTube friends? :]

  • Reply Amal Thissera February 10, 2020 at 10:23 pm

    Best video…

  • Reply Pennie Yang February 11, 2020 at 11:23 pm

    Hi Dan, you mentioned several times about introducing a new product to the Amazon Market. Can you explain more about introducing a new product? Is harder to rank? What is the suggest MOQ for brand a new product? Any other advice? Thank you in advance!

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