Why Every Amazon FBA Guru is Wrong About Product Selection
Isaac Kuhlman debunks the myth that successful Amazon products must be priced over $30. Drawing from over $12 million in sales, he reveals how low-priced products can be more profitable. By showcasing detailed data and practical spreadsheets, Isaac demonstrates how low-cost items often have higher sales volumes, lower return rates, and manageable budgets for new sellers. He shares strategies for product selection, leveraging subcategories, and competitor insights, helping sellers optimize their Amazon FBA ventures within realistic financial constraints while emphasizing consistent cash flow over per-unit profit.
Episode Summary:
In this episode, Isaac Kuhlman dives deep into the intricacies of Amazon FBA, debunking the myth that profitable Amazon sellers must price their products at $30 or more. With over $12 million in sales under his belt, Isaac shares his successful approach to selling affordable products.
Throughout the conversation, he unpacks the misconceptions about ad costs and profit margins associated with low-priced items, providing a compelling case for why these products can be incredibly lucrative.
Isaac stresses the importance of understanding cash flow and making data-driven decisions when selecting products for your Amazon FBA business. By showcasing real-world examples, such as comparing the economic advantages of a $9.99 product to a $34.99 product, he offers insights into maintaining profitability and sustaining business growth.
Beyond mere numbers, Isaac also explains how sellers can identify niche, high-demand, low-cost, everyday products that align with realistic budgeting strategies, ensuring steady revenue and market competitiveness.
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:
* Lower-priced products can provide significant profitability on Amazon and require less capital for initial investment.
* Understanding metrics like cash flow and competition within your niche is crucial for long-term success.
* Using tools like AMZscout or Jungle Scout can help accurately analyze the market and competition.
* The concept of "the thing that goes with the thing" emphasizes selling affordable accessory items rather than more expensive main products.
* Real-world lists and spreadsheets like Launchalyzer can guide entrepreneurs in budgeting and analyzing potential products effectively.
Notable Quotes:
* "I've reached over $12 million in sales with my brands, and not one single product ever sold for $30 or more on Amazon."
* "Get money in the bank, AKA runs on the board... this concept was adopted by the Boston Red Sox, and they won the World Series for the first time since trading Babe Ruth."
* "They say this because they think they're actually trying to help you... However, these experts are doing you a massive disservice."
* "Remember, profit per unit doesn't matter if you get very low sales volume. You only generate a decent income for yourself if you get a decent amount of sales every month."
* "You can either get busy losing money on cool products or you can hit your income goals by selling everyday products."
Timeline:
0:00 Profiting from Low-Priced Products on Amazon
7:23 Applying Moneyball Strategies to Amazon Product Sales
8:17 Balancing Budget and Competition in E-Commerce Ventures
10:43 Finding Profitable Products on Amazon Through Related Items
17:44 Analyzing Product Viability and Profitability on Amazon
22:18 Estimating Sales and Profit Margins for Amazon Products
26:37 Finding Profitable Amazon Products Through Strategic Analysis
Related Searches:
#amazonfba #amazonfbaforbeginners #amazonfbastepbystep #amazonfbatips #fba #amazon #amazonbusiness
Amazon FBA, product launch, low cost, profit margin, cash flow, Amazon product launch, low priced products, Amazon sales strategy, FBA profit analysis, budget-friendly products, how to sell low cost products on Amazon, benefits of low priced products on Amazon, analyzing Amazon product profitability, finding budget-friendly products for Amazon FBA, strategies for selling under $30 products on Amazon
0:00:00 - (Isaac Kuhlman): Have you launched a product on Amazon only to watch it crash and burn because it was expensive and you didn't have enough cash to compete with the top sellers? Or have you struggled to find products that you can even afford to launch in the first place because you actually have a realistic budget of like $10,000 or less for your products? Well, if that's the case, then I want you to watch this training video because I know that there are several Amazon experts that would tell you that you have to launch products that have a sales price of $30 or higher in order to make a reasonable profit on Amazon.
0:00:25 - (Isaac Kuhlman): They say this because they think they're actually trying to help you. The common idea is that ads take up too much of your profit margin if you sell lower priced products. However, these experts are doing you a massive disservice by not showing you what selling low priced products actually looks like and how the math works out. Here's a secret that I didn't even realize myself until recently. I have never sold a $30 product or more on Amazon.
0:00:47 - (Isaac Kuhlman): Now I've reached over $12 million in sales with my brands and brands I work directly on since 2013 and not one single product ever sold for $30 or more on Amazon. So when I say there are profitable products to be found and generate income on Amazon for less than $30, I definitely have a ton of experience with these products. Of course, some of my clients do sell products over $30 and you can do it.
0:01:08 - (Isaac Kuhlman): However, it takes a bigger initial investment than you might think and that's what I want to reveal for you today. Make sure to watch this video all the way through because I'm going to show you some very valuable spreadsheets that you're going to be able to get your hands on after this video is over. So make sure to watch until 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 about tips and strategies for Amazon fba.
0:01:33 - (Isaac Kuhlman): So if I take a look at just two products here. Now these are both an example of real products that I've actually seen and I'm going to use real data, but I want you to see something and just understand that these are kind of typical but not necessarily, you know, the only ways that this can go. So in product one you have a selling price of 999 and product two you have a selling price of 34.99. Immediately you're going to think product two you're going to probably make more money.
0:01:55 - (Isaac Kuhlman): Well, the Amazon commission, which is 15% for most categories, is going to take $1.50 away from the $10. So it seems like a lot obviously because it's a $10 product and then 525 off of the $34.99 product doesn't seem as much because you know it's got a higher price. However, you got higher price FBA pick and pack fee. If you didn't know there is a low price product FBA selling fee. So if you're under $10 you can actually get in. And especially if you're in a light and small, you know, know, small category, you can get as low as 229. And in this particular case, this product is the lowest and smallest. So it's 229.
0:02:29 - (Isaac Kuhlman): Product two is around $6. So it actually can be more than that, it can be less than that, but generally it's going to be around that six dollar price. And if we're talking about cost of goods, there's that product there, number one, which is a dollar, and then product two which is $5. So you can start to see, you know, just because something is, you know, four or five times more expensive to sell, you, you start to see it's about four or five times more expensive to actually purchase as well.
0:02:51 - (Isaac Kuhlman): The freight cost 20 cents to a dollar, sales per month. Now this is where it gets interesting because Generally speaking, a $10 product will sell pretty well. Obviously it's not guaranteed that you're going to sell 20 units a day, which is what this is at. But then if you look over here again, this is based on pretty real data. If you look at product number two here, it's only selling about five units a day, which is not bad.
0:03:12 - (Isaac Kuhlman): It's kind of expected. Five units a day, that's okay, but, but you're looking at, you know, four times sales volume for product one versus Product two. And then the advertising cost per unit. If you just take an 18% tacos and say that's what you're going to, you know, take away from each product, you're looking at A$80 for product one and $6.30 for product two. So that's an average advertising cost per unit.
0:03:35 - (Isaac Kuhlman): The total profit per unit after ads is 320 for product one, which is about 32% and, and about 1139, which is probably roughly about the same for about product number two, roughly about 32% or so. 30%. Now the thing that's going to make that Decision for you is whether or not you make more actual profit at the end of the month, not per unit, but overall put back into your bank account, you know, so that you can use it to either, you know, raise money for the business or to actually even help pay yourself, right? So you can make income. And if you look there, you're going to get $1920 from product one per month based based on these numbers. And you're only going to get $1708 from product two.
0:04:14 - (Isaac Kuhlman): So if I'm looking at these two products side by side and saying okay, they both do okay, but if I'm only going to have to spend, you know, X amount of dollars, you know, $2 basically to get this product in versus $10 to get this product into stock, which one I would I rather do? I'd probably rather sell product number one versus product number two. So that's what I would do. I'd rather sell product number one than product number two. And this is basic math.
0:04:37 - (Isaac Kuhlman): You can add those up, you can subtract them, you can do whatever you want, you can look at the screen, you can take a screenshot, you can do the math yourself. But this is telling you right there that you can actually make $1920 from product one versus product two. Now obviously if you got 600 sales from product two, that would be great, you'd make a lot more money. But again, products that are under $10 typically sell much higher than products over $30.
0:05:01 - (Isaac Kuhlman): And that's where the profitability for your income and your business revenue really kick in. If you can start to make actual everyday profit every month profit instead of kind of having these peaks and lulls from seasonality or from holiday selling. Michael Dell of the Dell Computer company once said we were always focused on our profit and loss statement. But cash flow was not a regularly discussed topic.
0:05:22 - (Isaac Kuhlman): It was as if we were driving along watching only the speedometer, when in fact we were running out of gas. The main thing you have to consider when launching a product is how much money you have available, AKA your cash flow or budget. So why are low priced products better for you to sell than a high priced product? Well, I'm going to first tell you about how. Well, I'm going to first tell you about a few benefits of low priced products.
0:05:43 - (Isaac Kuhlman): Then I'll show you how they actually produce income. So here are some benefits of low cost products. First, you actually get high conversion rates because people don't think too much about a 10 or $20 purchase. They're more willing to just go ahead and take that risk. Obviously they'll look at the reviews, they'll look at the sales price, they'll look at the quality, the listing and everything like that. But they're going to take a little bit more risk for a product that doesn't cost very much because it's not much out of their pocket. Right.
0:06:06 - (Isaac Kuhlman): Also, these products tend to get low return rates because people tend not to care to return a $10 or $20 product. It's not worth their time. They also have a high sales ceiling or volume because more people buy everyday good quality products on Amazon than high end or more expensive purchases that require more information or or even possibly touching the product. It's very easy to get good reviews on low price products because if you have a good quality product that does what it says it will do and you sell at a price under $20, then people will give you way higher star ratings and better reviews because they're not thinking this is too high of a price for the product.
0:06:41 - (Isaac Kuhlman): And also, most trained sellers don't know how to find these products because almost every training program says to avoid them because they're trying to focus on profit per unit instead of cash flow or income. And remember, profit per unit doesn't matter if you get very low sales volume. You only generate a decent income for yourself if you get a decent amount of sales every month. So why do most sellers look for high profit products?
0:07:03 - (Isaac Kuhlman): Well, because they're looking for a home run every time. But do you know any baseball players that hit a home run every time? I want to talk to you about Moneyball. If you aren't familiar with the movie or the book or even the real scenario, let me break it down in a nutshell. The general manager of the Oakland Athletics baseball team had a problem. He was the head of a small market team trying to win against teams with way more money.
0:07:23 - (Isaac Kuhlman): And instead of trying to hit home runs, steal bases and focus on individual players, he used metrics called saber metrics to find players who could get on base, which leads to more runs being scored and more runs on the board led to more wins. He stopped focusing on individual players and focused on the team as a whole and how they could get more runs for their money. Now, the Oakland A's never won the World Series, but this concept was adopted by the Boston Red Sox a few years later and, and they won the World Series for the first time since trading Babe Ruth.
0:07:51 - (Isaac Kuhlman): So how does this relate to your Amazon products? Well, simply put, don't try to hit home runs with products Instead, get money in the bank, AKA runs on the board. The best way to make an income on Amazon is to have less costly products, using less of your cash and getting quick sales. Now, let's do some quick math again, because everyone has to have a budget that is set for their business. And for each product, the budget I think that is reasonable for most sellers is between $5,000 to $15,000 per production.
0:08:17 - (Isaac Kuhlman): So let's say $10,000 is an average budget over the first three to six months. If you have $10,000 and need 1,000 or more units for four to five months of inventory, then here's what those costs look like. You can see again, same two products, right? The cost of goods. For product one would look like, you know, $1 for the cost of goods, 20 cents for freight. So if you need a thousand units, that's $1,200.
0:08:39 - (Isaac Kuhlman): If you need the same amount of inventory. Now, I'm not saying you would, but you might want to have to get. Maybe it's an MOQ or something like that. So you might need 1000 units and. And you take $5 for the cost of goods and a dollar for the freight cost. You might need $6,000, because that's 6,000. You know, $6 times 1,000 is $6,000. So I have to ask you, would you rather spend $6,000 on just inventory and freight? On a product that gets the same profit as a $1,200 product?
0:09:05 - (Isaac Kuhlman): Do you think you stand a chance in the niche if 60% of your budget is tied up on the first order? So which one are you going to choose? I know I would much rather spend $1200 to make $1900 than then 6000 to make the same or even slightly more. Inventory, freight and marketing will all eat into your budget. Inventory is dependent on how much each unit costs you to make. Freight will be determined by the size and weight of the units, and marketing will be determined by how competitive your niche is.
0:09:31 - (Isaac Kuhlman): This is something almost no one ever talks about. Well, I'm talking about it with you right now. Remember this quote? The competitiveness of your niche will determine how long and how much money it takes for for you to be profitable. Wait, what? All right, think of it this way. Some products on Amazon have 10 or more sellers selling a thousand units a month. Other products only have one or two sellers selling 1,000 or more units a month. Do you think it'll be easier or more difficult to compete against 10 sellers with over a thousand units a month or just two.
0:10:01 - (Isaac Kuhlman): So 10 doing a thousand units a month or two competitors doing a thousand units a month. Which one will be easier, do you think? Well, if you're not sure what easier means in this case, I'm going to ask you straight up. Do you think it will be cheaper or more expensive to compete with those 10 or those two? The more sellers with high volume will mean your niche is more competitive, AKA more expensive.
0:10:23 - (Isaac Kuhlman): Nobody else talks about the cost of competition, and they certainly don't help you determine if you have a big enough budget for a specific niche. But that's what I wanted to show you today. The first thing we need to do is, is find products that you can afford. So how do you find products that will sell well and fit in your budget? First you can look at customers who bought this, also bought that.
0:10:43 - (Isaac Kuhlman): On almost every product listing on Amazon. If you scroll down somewhere in the page, it's going to say customers who bought this also bought that. If you don't see that, you might see another one that says related products. So these are products related to the product that you're looking at. These are great ways to find products. And what you actually do is you go in there and you don't look for the same thing. So like you're looking at a hammock, you don't look for the other hammocks. You, you might look for hammock accessories or things that are related to being in a hammock or things that are just related to being outside.
0:11:11 - (Isaac Kuhlman): Look for those other products that might not be so expensive. A hammock might cost you $10 to make or $6 or whatever it is to ship in and manufacture. Whereas, you know, hammock straps might only cost $2 and you can sell those much faster. Also look at subcategory top 100 list. On every product listing there is a BSR or bestseller ranking. And usually it'll have a subcategory that says, you know you for hammocks. It might say, you know, sports and outdoors. And then below that it'll say hammocks and hammock accessories or something like that. Whatever the subcategory is, click on that and look around at the top 1/ hundreds for all the subcategories in that niche.
0:11:48 - (Isaac Kuhlman): Also think about this, the thing that goes with the thing. I know this is a weird thing that to actually say out loud, but this is something I've always told people and it's just kind of stuck and resonated. So what is the thing that goes with the thing? Simply put, These are accessories. So if you think about things that you're thinking to sell, you might think, well, is there something that goes with that that might be actually cheaper to sell or is there something else related to that product that is cheaper to sell?
0:12:13 - (Isaac Kuhlman): Other things you can do is you can go to competitor retail stores and you can go to competitor sites. So if you're selling outdoor products, maybe go to REI and go look around at their websites and see if there's anything on the site that is small, lightweight and not brand specific, like a shoe or, you know, jacket, maybe there's some accessories on there that you could sell as well. So I'm going to show you kind of just a quick product finding exercise. So if you're thinking about doing a hammock, for example, I just use this one a lot because I've been, you know, looking at hammocks recently. I'm not trying to sell them.
0:12:41 - (Isaac Kuhlman): It's just a summer seasonal product that's kind of coming to the end because it's now the end of summer. But if I just go look at some of the best sellers here and there's going to be some really, you know, high selling products here, usually the best seller is this wise owl one. So I would actually go to this product and I would say, okay, I'm going to look for other products related to hammocks. So I'm going to click on that product, I'm going to scroll down here and I'm going to start looking around. So you can see frequently bought together. So it's got a hammock, rain, fly or basically a tarp that goes over your hammock and it's also got a bug net right there. There's two ideas that I didn't think about when I was thinking to sell a hammock. But I bet you these ones, you know, they probably aren't as high priced as a hammock, even though it shows that they are. You probably could get them if they didn't have all these accessories, just the tarp or something, maybe for a lot less, you know. So you could look into those.
0:13:29 - (Isaac Kuhlman): Now you can also look and if you scroll down here, there's going to be probably a few different things here. So similar brands, brands you might like. But at the very bottom it's probably going to say related products or customers who bought this. So you can see right here, very bottom, customers who bought this item also bought that. So you can see the bug, the bug net, you can see the tarp. And then if you can look over here, you see a camping pillow, so maybe that's a little cheaper. And you can also see a camping blanket. Now that one's sponsored, but these is. This is just a way to get more ideas. Now I'm not saying you'd sell any of those either, but I'm saying just come over here and start looking around at other ideas. So you can see hammock straps. You can also see microfiber camping towels.
0:14:07 - (Isaac Kuhlman): You can see a power bank, a solar charge power bank. So that's pretty cool. I'm not saying you should sell any of these. I'm saying you should look at them and then also research them as well, which we'll talk about here in a second. There's also another compact sleeping bag and. And then there's solar camping string lights. Again, this one's a sponsored one, but that's a pretty cool thing. You can see it's currently selling for $21 roughly. But it does say a limited time deal list, normally at 35.
0:14:29 - (Isaac Kuhlman): I'm not sure if that's an accurate, you know, list price or if they've reduced it a little bit or if that's really what they sell at. But that's another product to keep in mind. You can also go through here. You can see more hammock straps. This one is a hammock sleeve, which is a pretty interesting product. Again, the thing that goes with the thing, I've never heard of a hammock sleeve. And until right now you can also see a portable lantern.
0:14:50 - (Isaac Kuhlman): So it clips on and hangs from trees and it looks like it can be set down and kind of rearranged. So that's a pretty cool one. Another string lights. You can see, you know, backpacking and camping. Looks like some sort of cooking thing, cooking utensil. I'm not sure exactly what that is, but again, if you're just looking for things that are under, you know, 15, 20, whatever, you can see other things here. So here's some clip on LED camping lanterns as well. So that's 1274 LifeStraw. That's a, that's a brand. They kind of done that. There are, you know, generic versions of that as well. So you could do a personal water filter like that.
0:15:27 - (Isaac Kuhlman): You've got, you know, LED flashlights. This one is a sleeping pad. Now that's obviously going to be very, you know, kind of big and bulky. So I'm not saying you would sell that necessarily. You got fire starter blocks, fire color, changing packets. And now some of this stuff might be flammable but again, you're just looking for ideas. You're not looking to necessarily to sell all these products, but you should be researching these to see what the, you know, the process, the competition, the, you know, the profits and margins and all that stuff look like.
0:15:55 - (Isaac Kuhlman): So if you're not doing stuff like this and you're only going to like software to find products, you're, you're definitely not going to get the right products and you're not going to find things that actually fit your budget. And you can see I've only gone through six or 14 pages now. I could go to other list, you know, other hammocks and listings and just see if there's, you know, products related to this and other things.
0:16:13 - (Isaac Kuhlman): Because then you'll find a lot more things, I believe. And you can also click on other things in this area, maybe, you know, the sleeping bag, go there and then see what else comes up for that. You go to the shovel, click on that and see what else comes up for that. And you have a never ending, basically way to dig for gold on Amazon. Now a couple other ways you can do that again is you can go to the top, you know, subcategories or whatever.
0:16:35 - (Isaac Kuhlman): So let's go up here and I'll show you what I mean by that. So under item details, it'll say bestsellers rank 658 in sports and outdoors. And it's got hammocks and camping hammocks. So if you actually click on hammocks, you can see what some of the other, you know, subcategories are. So you can see hammocks, hammock stands, hammock chairs, hammock stands and accessories. So you can click on that, just accessories. So it's under Patio furniture and Accessories. You can also just go to Patio furniture and accessories.
0:17:02 - (Isaac Kuhlman): You can look at all these other ones. If this is something that you're looking for, you can look at all these, you know, different subcategories to find things that you might, you know, want to sell. So for example, if I go back in there and I look at accessories and see what's there. Well, look at that. Hanging straps, you know, hammock straps. You've got just little green swing hangers. And these things are selling for a lot, even though it doesn't seem like they should be because that's pretty expensive for just those. But yeah, you could go through all these subcategories and find all these really good ideas. Now the next thing you will have to do is actually, actually analyze these products and that's where the Launchalizer comes in. And the Launchalizer is actually a spreadsheet that I've developed over years to kind of help you understand how much it costs to launch these products.
0:17:44 - (Isaac Kuhlman): So here I am over the Launch Lyzer. Now there is another tab on this that's called the Profit Lyzer, which you can actually download this spreadsheet right below in the, in the bonus material. So if you want to do that, you can, you can get both of these tools. The Profit Lyzer will help you actually understand the viability of your current products if you're selling on Amazon right now. And the Launchalizer will actually help you understand the feasibility of future products and whether or not you can actually afford them yourself.
0:18:06 - (Isaac Kuhlman): So how does this work? So the first thing we need to do is we will actually go over to Amazon.com to see, you know, what product we're going to look. So let's just say we're going to look up hammock straps because these are a little bit less expensive than, you know, the hammock themselves. So the first thing we would do is actually look at the, you know, top sellers and see what's actually selling really well. And, and you can see here, like, you know, Amazon is showing a thousand in the last month, 200 Baht in the past month, 700 Baht in the past month, 900 Baht in the past month. Now, I'd recommend using a tool like AMZ Scout or, you know, a Jungle Scout or something like that, whatever it is. I'm using AMZ Scout currently right here in this, in this example. But you can use something that helps you analyze the monthly sales volume.
0:18:48 - (Isaac Kuhlman): I specifically use AMZ Scout or Jungle Scout because they have really accurate data. Now I'm saying that the difference here is that they use data that's not always going to align with what Amazon has in there because this is a summer seasonal product. So right now Amazon's saying it's going to only have about a thousand bot in the past month. But based on the BSR of the category, it looks like, you know, amzscout showing 3,000 because essentially it's kind of on a downward swing, but it's got the same bsr. So that BSR is, you know, the sales volume is actually taken as an average over the whole year, not at any specific time.
0:19:25 - (Isaac Kuhlman): So yes, during slow months, the volume might be a little bit skewed and, you know, a little higher on amzscout, but that kind of helps you prepare for the, you know, big sales volume months anyway, so the seasonal days and all that stuff. So you're fine to use either one if you don't have a subscription. You can always just use these as an estimate right now and just kind of get guesses in there. But, but I would still suggest to get a tool like AMZscout or Jungle Scout because it will give you fairly accurate data and it'll help you analyze these products.
0:19:54 - (Isaac Kuhlman): So what I want to do is I want to go ahead and click the, you know, the Pro AI niche analyzer right here. So I'm going to click on that and it's the Chrome browser extension and it's going to pop up with this, you know, big, you know, graph, right, this big matrix. And it's going to start to, you know, look overwhelming. But really all you need to look at from this is the estimated sales column. And.
0:20:16 - (Isaac Kuhlman): And you also need to look at what ones are sponsored or not. So I know that the Mallow Me is actually the first one that's not sponsored because if I scroll up to the top of the page here, you'll say sponsored, Sponsored, Sponsored, sponsored, sponsored. Now, the reason why I'm getting rid of these is because they don't organically show up on page one. I need to analyze the top organic 15 competitors because that's the real estate that I want to get into on Amazon. So that way I can actually, you know, be profitable.
0:20:46 - (Isaac Kuhlman): Basically, if you're not in the top 15, you struggle to maintain profitability for most niches because you'd be spending so much money on ads and not just getting organic sales regularly. So what I want to do is I want to start to look at the top 15. So what I'm going to do is I'm going to download the CSV file and then I'm also going to make sure I remove any other sponsored ones that aren't organically showing up there.
0:21:09 - (Isaac Kuhlman): So now I've downloaded the search terms for the hammock straps and I'm going to pull that up. So you can see here that I've got my. There's a Microsoft Excel file and it's going to download. So hopefully you have Microsoft Excel. Now this column R is going to have the estimated sales. Again, like I said, I want to make sure that I don't have any sponsored products in here. So I'm going to go back over here and I'm just going to make sure that, you know, it says like the wise owl, eno and tree swing thing are Sponsored. So I want to go make sure that those ones actually are sponsored.
0:21:35 - (Isaac Kuhlman): So if I scroll down here, I want to see Wise Owl. You know, I see the tree swing one and then Szh Lux. So I'm going to actually remove those as well from my spreadsheet because they're not actually supposed to be there. So it's going to be these ones right here. And then I got to remove their sales. So then what I want to do is I want to take the estimated sales of the top 15. So I'm going to scroll down until I see a count of 15. Now, some of these, again, may or may not organically be there. You know, sometimes there might be a sponsored thing in here or whatever, but for this purpose, I just want to show you that it's going to be 15, and it's going to say 15 here at the bottom of the actual spreadsheet. And then it's going to give you a sum.
0:22:18 - (Isaac Kuhlman): That sum is 6,883. And then the average. So if you divide that by 15, it's 459. Now, what that is is it's the average sales for. For a month. So if you divide that by 30, you'll get what you want is the average sales per day. So we're going to put average sales per day of the top 15 right here. So if you take 458 divided by 30, that's about 15 units per day. So we'll put the average top seller. So the average of the top 15 daily units sold is 15 units.
0:22:52 - (Isaac Kuhlman): So the top seller is actually 3,000, which is about 100 units a day. So we're going to go 100 units here. Now, again, we know that this is in the downward part of the season, so maybe because I'm filming this in the end of September, so maybe that is probably more accurately, like Amazon is saying, around 30 units or 40 units a day. So I could adjust that if I want. But basically I'm going to go back over here. I'm going to look at the price point of that top seller. So the top seller is selling at 17.99.
0:23:21 - (Isaac Kuhlman): I'm going to go check the estimated cost of goods. So I'm going to go to Alibaba for this. So I'm on Alibaba.com. i've typed in hammock straps into the search bar. And I'm just going to kind of look so you can see this one here looks like one maybe. I don't know if that's one per one. So 50 cents to 90 cents. You got $5 and 30 cents. You've got 30 to 50 cents, $2.25. It's kind of an up and down amount. So $1.50 to 25120 to 2 90. These are kind of more. Maybe what I'm thinking would be a typical price, a dollar to $3. Somewhere in there you can see another one for $32 89.
0:23:55 - (Isaac Kuhlman): So if I just say, you know, maybe two, two dollars somewhere in there would be a decent, maybe 225 would be a decent estimation for that. It could be $3, but I'm just gonna put 225 in there. Estimated freight cost, it's actually not gonna be that high. It's not gonna be like $2 or anything like that. But what we can do is we can actually go to, we can go look up the FBA fee cost first and that'll give us an idea of kind of how heavy this thing is.
0:24:21 - (Isaac Kuhlman): So if we go to the FBA fee calculator and just type that into Google and we can actually click the top link there. What we'll do is we'll just continue as guess we'll take the top sellers asin. So we'll click on their product and you'll see this little number, you know, string of characters up here, B01, whatever that is. We'll take that, we'll pop it into the search bar here, hit search and you can see it doesn't actually show the product. I have no idea why that's never happened in the history of me using this tool.
0:24:48 - (Isaac Kuhlman): But I'm actually going to go ahead and look at another, you know, secondary seller or something like that to see if there's another one out there. So I can kind of see, you know, what the fees might be. So let's open this one here and just look at. Yeah, so this one looks pretty close to the same. So let's go look at this asin, search that and there you go. So this is the product we're looking for. So the fees, just the pick and pack fees is all I'm looking for. I'm not looking for the 15% and all that stuff because our sheet will actually calculate that all. So 338 are the pick and pack fees.
0:25:19 - (Isaac Kuhlman): Now based on that, I can make some assumptions. I can make an assumption that this is pretty light and pretty small. So I don't think if I ship this by sea, I don't think I'll even pay a dollar. I think I'll probably pay more like 35 to 50 cents. So if I put in even 50 cents, that's going to give me a pretty accurate, you know, data sense of data right there. So you can see now that it's already know calculated the 15 commission.
0:25:41 - (Isaac Kuhlman): It's already calculated your profit per unit. If you sell at 17.99 or if you know that's what the seller currently is selling at 50.93% is the profit margin. The estimated daily revenues is going to be at 7645 if you get to 15 units a day. And then you're going to see the profit per month before ads is right around 4,000. And if you get a tacos of about 20%, which is a little high, but that's kind of just estimating on the high side, your profit per month is actually going to be $2,364. And then it's going to show you the estimated cost to launch.
0:26:13 - (Isaac Kuhlman): So the first thing you probably should have put in here is what your budget is for the first three to six months of your business. If it's $10,000, put in $10,000. But let's go over here and look. So the product, this one particularly saying that it's going to cost you about $11,602. Now I'm not saying that that's an exact number. I'm just saying that's the forecast for this. So can you afford this product? It's currently saying no.
0:26:37 - (Isaac Kuhlman): But obviously if you can stretch it another $1,600, you would actually have a pretty good product here. So if you had the, you know, ability to get another $1,600 and spend $11,602 for this product, you might have just found a really, really good product. Again, I'm only talking about hammock straps here. And I'm not saying that this product doesn't flux, you know, in between the seasons and stuff like that. It's, it's very seasonal. So you probably need to find a product that's also going to sell in the winter, not just in the summer, for example.
0:27:04 - (Isaac Kuhlman): But what I'm saying is this product looks pretty good on paper right now. You can obviously do some research and look at it seasonally. So you can look at what the sales volume looks like in July versus the end of September. And that would also give you a pretty clear indication as whether or not this would be a good product. Now another thing I'd tell you is just because I'm doing this product as an example, probably don't go out and sell this product because there will be a whole bunch of other people that will sell this product as well thinking this is the gold standard on Amazon. They need to go out and sell this product. So don't make that mistake, go out and find your own product because that's going to be something that is gold that nobody else knows about.
0:27:39 - (Isaac Kuhlman): Just because I'm doing this as an example does not mean you should go out and do it. And again, these data points could be kind of inaccurate because I'm not showing the seasonality of July and I'm not showing the opposite side of the non seasonality of like maybe February where it's really cold or January where it's really cold. So keep those things in mind. So now you should be able to see how you can actually find and analyze products that you can fit in your budget instead of just going out and launching whatever and think, maybe, you know, fingers crossed, hope for the best.
0:28:06 - (Isaac Kuhlman): Finally, you have to make the decision on which product to choose out of the best looking opportunities. So once you have five to 10 products that look like they can work, how do you pick the best one? Well, usually I choose the one that cost me the least but can give me the best return on a monthly basis. So if it cost me $1,500 but can give me $2,000 back, that's a pretty good product to choose for me. If I have to spend 6,000 and it gives me 2,000 back every month, I usually don't tend to pick those types of products.
0:28:30 - (Isaac Kuhlman): So again, looking at these two products, which one would you choose? The one that cost you like $1,200 to start or the one that costs you $6,000 to start? Well, I know which one I'm picking. I'm taking option one in this scenario because it costs me much less and makes me more or close to the same. Now I also want to address one more thing that a lot of sellers tell me, which is I want to sell cool products, not everyday boring products. I want. I want to sell hammocks, not hammock straps.
0:28:52 - (Isaac Kuhlman): My response? You can either get busy losing money on cool products or you can hit your income goals by selling everyday products. So do you see how you can find low cost income generating products on Amazon? 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 don't forget to get your hands on the Launchalizer and profit laser spreadsheets that I previewed in this video as well, so you can actually start implementing these into your business right away. 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.
0:29:21 - (Isaac Kuhlman): Until next time, watch your metrics, take smart actions and keep growing your business.
