The Single Biggest Amazon FBA Mistake and How to Avoid It
Isaac Kuhlman delves into the intricacies of successfully selling on Amazon, challenging the notion of market saturation. He offers insights on analyzing product niches, budgeting strategies, and the importance of understanding product costs before launching. Kuhlman introduces his Launchalizer spreadsheet, a tool designed to assess product feasibility and clarify spending plans. By emphasizing strategic budget management and niche analysis, Kuhlman aims to enhance the success rate of sellers on Amazon FBA. Optimize your product research, understand market competition, and refine your selling strategy with Kuhlman's expert advice.
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Episode Summary:
Join Isaac Kuhlman as he demystifies the concept of Amazon FBA's allegedly saturated market. In this episode, Isaac dismantles common misconceptions regarding product saturation and competition, demonstrating that any seller, with the right tools and analysis, can thrive on Amazon.
Through a detailed walkthrough of his innovative "Launchalyzer" spreadsheet and AMZ Scout, Isaac offers listeners a peek into how data can drive informed product decisions, ultimately preventing financial missteps.
Discover the tools and strategies to accurately assess product feasibility in the notoriously competitive Amazon marketplace. Isaac discusses common mistakes made by new sellers and stresses that the perception of oversaturation is often a result of inadequate analysis.
Learn how to use the Launchalyzer spreadsheet and AMZ Scout to reveal the hidden potential in product niches, calculate costs, and craft a realistic budget that aligns with competitive landscapes.
Take control of your Amazon FBA journey by understanding your monetary thresholds and leveraging cutting-edge tools to inform your business decisions, ultimately boosting your potential for a successful product launch.
Resources:
Get AMZ Scout - https://amzscout.idevaffiliate.com/id...
Amazon FBA Strategies Playlist - https://www.youtube.com/playlist?list...
Learn more about working together here - https://originalamazoncoach.com/work-...
Key Takeaways:
* Thorough product and niche analysis on Amazon is crucial to avoid the misconception of market oversaturation.
* Isaac Kuhlman provides tools like the "Launchalyzer" spreadsheet to determine product feasibility and budgeting.
* Understanding the cost structure and potential profitability before investing is essential for Amazon FBA success.
* With the right data-driven approach, even competitive niches can be lucrative within a well-defined budget.
* Individualized budget assessments and realistic planning can transform your approach to Amazon product launches.
Notable Quotes:
* "The biggest complaint I've heard from Amazon sellers over the years is that they picked the wrong products and that's why they failed."
* "What if I told you that Amazon isn't oversaturated?"
* "The truth is, with enough money, you can be successful on Amazon with any product."
* "This sheet will help you determine whether or not you should even order the product in the first place."
* "With this tool, you should be able to find, analyze, and develop products that will give you a much better success rate on Amazon FBA."
Timeline:
0:00 Analyzing Product Niches for Amazon Success
1:54 Analyzing Hammock Sales Using AMZ Scout and Launchalyzer
4:36 Calculating Average Daily Sales From Monthly Estimates
5:50 Strategies for Profitable Product Placement on Amazon
7:36 Using Launchalyzer to Optimize Amazon FBA Product Launches
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Amazon, FBA, product, niche, budget, Amazon FBA, product research, competitive niche, launch product, profit margin, how to analyze product niche, determine product feasibility, calculate Amazon FBA costs, product launch budget planning, using AMZ Scout for research
0:00:00 - (Isaac Kuhlman): The biggest complaint I've heard from Amazon sellers over the years is that they picked the wrong products and that's why they failed. Now when I ask them what they mean by wrong product, they can't really give me a clear answer about why it was wrong. Though the go to response is usually that the product niche was too competitive or too saturated. But what if I told you that Amazon isn't oversaturated?
0:00:18 - (Isaac Kuhlman): Sure, it can be competitive. There are millions of products and sellers out there after all. But if you know what you're doing and you analyze the product properly up front, you you'll not be caught off guard by the niche's competitiveness. In this video, I'm going to show you how to analyze any product niche and determine whether or not you have enough money in your budget to launch a product or not. This will save you the time, effort and loss of investment for products that are too competitive for your budget.
0:00:39 - (Isaac Kuhlman): Because the truth is, with enough money, you can be successful on Amazon with any product. However, most of us don't want to spend $100,000 to turn a profit on a product. As a bonus for watching this whole video, I'm going to give you direct access to the spreadsheet I'll be demoing that. That will allow you to determine the feasibility of whether or not you'll be able to afford launching any product or if it's too expensive for your budget.
0:00:59 - (Isaac Kuhlman): This means you'll have the ability to get much more clarity around the actual cost of the products you're looking to sell before you ever even order them. You'll benefit from this as you'll no longer choose products that are way too competitive for your budget so you won't lose all your money before it makes you a profit. Of course, I can't guarantee that you'll make any money with any product on Amazon, but I can get you to understand what your cost might look like if you're selling a reasonable amount of units at each phase of the product launch.
0:01:23 - (Isaac Kuhlman): So if you're ready to finally see how to determine whether you can afford to launch a product or not, then watch this full video and get your absolutely free download at the end. Also, be sure to follow this channel with a subscribe like the video and comment any questions you have if you're interested in learning more tips and strategies for Amazon fba All right, so here I am on Amazon and the first thing you have to do when you're trying to analyze your niche for your product is essentially figure out what your main keyword is. If you do know what your main keyword is, this is not going to be too big of a problem for you. However, if you, if you don't know what your main keyword is, you need to figure that out.
0:01:54 - (Isaac Kuhlman): So I'm going to go to Amazon, I'm going to type in whatever product I want into the search bar. For this example, I'm going to use Hammock and then I'm going to hit Search. When I get to page one of that search result, I'm going to use a tool called AMZ Scout. And then I'm also going to use what I call my Launchalizer spreadsheet, which is right here. And I'm going to use that to determine the profitability, the feasibility of that product.
0:02:16 - (Isaac Kuhlman): So, so what I do is essentially I just click on this button here and it's going to bring up a table. That table is going to essentially populate out here in just a minute. And once it does, I'm going to get a lot of information about this page. It's going to tell me how many sales, how many, you know, revenue, how much revenue, price, everything. There's just going to be a lot of information that's filled out.
0:02:37 - (Isaac Kuhlman): Now what I'm going to do is I'm actually going to download this as a CSV file right here and, and export that data and then I'm going to go ahead and open that file as well. Now I'm going to go over to my Launcher spreadsheet which is going to be filled out using an example which is going to be a hammock. So I'll put in Hammock here and I'm going to start filling out this sheet based on my budget. Now I don't know if my budget is going to be $10,000 for the next three months, but let's just say it is. That seems like a pretty good number to go with. So I'm going to put in $10,000 for my three month budget. You can put whatever you think in there, 5,000, 8,000, 30,000, whatever you want.
0:03:12 - (Isaac Kuhlman): It's probably not going to be a hundred thousand dollars though. So now what I want to do is I want to get that data from AMZ Scout and what I do is I look at the top competitor, daily units sold. Now again, this is in the middle of summer, this is in June. So these are going to be quite, you know, these hammocks are going to be selling quite well because it's in the middle of summer. Now what I Also want to do is I want to make sure that the products on this page are not other products.
0:03:38 - (Isaac Kuhlman): So, for example, are these all hammocks? They look like they are. I'm not really sure. Yep. So those are all hammocks. Hammocks. Hammocks. Hammocks. And as you can see, everything looks pretty much like a hammock. Now, if I go back over here to my CSV file, I want to make sure that this is kind of in order. So you can see that these first three, that was that ad up top. So I'm just going to kind of delete these because they're not naturally at the top of that page. So. So it will skew my data if they're there. So I'm going to remove those because I know that they're an ad.
0:04:07 - (Isaac Kuhlman): Now you can see it coming up here again. That's fine. But what I want to do is I want to find the average daily sales of all these products. So where is that? You can see here the estimated sales. It says estimated number of items sold in a month. But we want to do it by day. So all we got to do is take these numbers and divide it by 30. So that number, that 13, 5, 9, 7 right there that I'm going to pull from my actual CSV download is actually my top competitor. Now, I just divide that by 30.
0:04:36 - (Isaac Kuhlman): So pull up a calculator, and then 13, 5, 9, 7 divided by 30, that's about 453 units a day. Now, this is a summer seasonal product, but let's. Let's put that number in there. So 453. And then let's get the average top 15 daily units sold. So that is going to also be through this spreadsheet. So what I'm going to do is I'm going to highlight 15 counts of this. So you can see there it says 15 count. It's going to have an average.
0:05:05 - (Isaac Kuhlman): Now, that number is monthly units sold. So 3342.4. And I know it's probably small on your screen, but that's what that number is. I'm going to divide that by 30, so that way I get the daily unit sold. So 3342.4 divided by 30 equals 111. So that's what I'm going to put here. Now, what does this tell you right now? This tells you this is how competitive page one is for this product. What do I mean by page one? In reality, I'm talking about the top 15 of any product niche, page one is essentially 48 organic spots deep. But you really want to be in the top half of that or the top third of that. So that way you can get profitable sales. So that's why you kind of want to be and know how competitive your top 15 is. So that way you can sell a product profitably.
0:05:50 - (Isaac Kuhlman): If you're not in the top 15, you might be spending more on ads than you need to and you're not really getting as many organic sales as you should. So now what I'm going to do is I'm also going to look at my top competitor price. That price of that product here is 1499. So 1499 is the price of my main competitor. Now I got to go look on Alibaba. For estimated cost of goods. There's many different ways that you can go about this, there's different qualities, all that stuff.
0:06:17 - (Isaac Kuhlman): But for the most part you can see here that, you know, a hammock might cost between two and a half to $5,176 it says. And we obviously want to look at these kind of sport looking ones. So let's say they're about two and a half dollars. Now estimated freight cost maybe we say it's about 80 cents. And that can be achieved if you're using partner carrier services and also shipping directly to awd. That saves you a lot of money. You might even get better than 80 cents per unit.
0:06:43 - (Isaac Kuhlman): So we'll just put that for now and then we got to look up the pick and pack fee. Obviously you can see there that the Amazon 15 commission was already kind of calculated based on 15 of that. In order to figure out the pick and pack fee though, you actually need to copy the asin. So you need to open that listing, go up to the top and where it says this B0B or whatever that number is. You copy that, you highlight it and copy it and then you go and type in FBA fee calculator into Google and then you're going to open it up, continue as guest or sign in.
0:07:15 - (Isaac Kuhlman): You're going to paste that into the product search bar there and then down here, right here it's going to tell you the fulfillment cost 542. So you're going to put that into the pick and pack fee542. Now you can see some things here. First of all it's going to tell you how many dollars in profit you are going to get per unit sold. It's also going to tell you how much profit margin you're going to get.
0:07:36 - (Isaac Kuhlman): Then it's going to give you your estimated 30 days revenue and your estimated profit before ads. That's going to work out how many dollars in ad spend you'll have. If you have a 20% tacos, meaning 20% of your revenue is spent on ads, then it will tell you how much profit per month you will have on that product at that price. And with those ads, that's going to tell you how much it costs to launch that product in the first three months and then it's going to tell you whether or not you can actually afford to launch that product.
0:08:02 - (Isaac Kuhlman): If not, then it's going to tell you how much you actually need in order to launch that product. So in this case, if you have a $10,000 budget, you're going to need 65, almost $66,000 more to launch this product. So if you realize that it's going to cost you about $76,000, would you launch that product? Probably not. So this sheet will help you determine whether or not you should even order the product in the first place.
0:08:25 - (Isaac Kuhlman): Now obviously I can't go over every granular detail in one video, so if you have any other questions, make sure to post them in the comments below. And remember that free bonus I told you about at the beginning of this video. Well, I want you to grab this Launchalizer spreadsheet for yourself. Just click the link below this video so you can get your free copy. In order to start doing product research the right way, with this tool you should be able to find, analyze and develop products that will give you a much better success rate on Amazon FBA than you would have without it.
0:08:50 - (Isaac Kuhlman): Also, make sure to check out the rest of the videos on this channel to learn more about the ins and outs on Amazon fba. Until next time, watch your metrics. Take smart actions and keep growing your business.
