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GOLD! Ask me anything about eCommerce (Ongoing)

biophase

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This market is very competitive (North of $1 Million sales distributed among the top 30 products) this is for just one keyword. The are all solving the same problem but are bulky products. The product is around 1.5 - 4 lbs selling at $15 to $30.

My variation solves the same problem but is super light ( 5- 10 grams), and small (7x14 cm). The reason is that it fundamentally changes the way the product is made and functions. Because of the smaller size, this can address all the things which these products are doing, and more (as can be used for places where big and heavy items can't be used).

I'll be receiving the samples soon from the manufacturer, and will review the packaging but it doesn't look great from pictures. So, I might have to redesign it here to create higher perceived value.

This is my first private label product, so I'm fairly nervous and want to do this right. I have though about FB and IG as well, but not sure what would be the best path... I'll likely think about this once I have the product in hand and have tested it myself.

I'm also thinking if I should try reaching out to potential clients directly along with Amazon. The product overlaps with category of Kitchen, Household, Health, Beauty and Sports.... so the market is fairly big.
$1M over 30 products is kind of small, unless you mean $1M per month. That's $30,000 per product? At $30 per product, they are moving 1,000 a day? Did you get this data from Jungle Scout?

So if your variation solves the problem so dramatically, it will be only months before your competitors start selling the same thing.
 

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DeepScripted

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$1M over 30 products is kind of small, unless you mean $1M per month. That's $30,000 per product? At $30 per product, they are moving 1,000 a day? Did you get this data from Jungle Scout?
You're right, I did mean per month. More of the product is priced between $15- $20, so the quantity is even more. I used Jungle Scout and Helium 10.

So if your variation solves the problem so dramatically, it will be only months before your competitors start selling the same thing.
That's one of my concern... my manufacturer is saying that the product and quality is very unique but I did find a few people selling it. Not the same thing, but similar concept. Would you suggest I hold off Amazon, market in a different way?

Thank you for your response. I really appreciate your input :)
 

biophase

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That's one of my concern... my manufacturer is saying that the product and quality is very unique but I did find a few people selling it. Not the same thing, but similar concept. Would you suggest I hold off Amazon, market in a different way?
Are you sure that only a few people sell it. The last guy that said this on the forum only searched one keyword. When I looked it up, there were 5 pages of the same product he said was very "unique".
 

DeepScripted

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Are you sure that only a few people sell it. The last guy that said this on the forum only searched one keyword. When I looked it up, there were 5 pages of the same product he said was very "unique".
Absolutely positive. I have checked at least 10 different keywords. Most are high PPC, but was able to find a few niches where the PPC is low as it’s catered to specific audience. I will be getting the samples soon, they are on the way through EMS. But, I’m sure this is particular variation isn’t selling. There is a couple who are kinda close but nothing comparable. I’m planning to order from them and compare once I receive samples.


Sent from my iPhone using Tapatalk
 

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A lot of thanks Biophase for running this thread for such a long time, it provides a great value for all of us.

My question is I have found a product on Amazon, it's BSR is 14, avg sales per month are 1109, it has 39% 1-star reviews and 24% 5-star reviews it has total 2716 reviews and there are 3 sellers. What do you think about this product if I can modify it a little bit and solve the problem what customers are facing, but it will definitely increase its price, right now it is the cheapest and best-selling item in its category. Do you think such a high selling product does have any potential at an increased price?
 

ChrisGav

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Just so I can fully understand what this all about. From the sound of things, you find products and find a way to innovate them or design a product similar but does a better job, find a manufacturer in China have him make it and you sell them on Amazon?
 

ideasunlimited1

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I don't think it is that easy. The biggest issue with selling on platforms like Amazon and eBay recently has been the profit margin. Amazon for one has increased its' cut for third party sellers on the site, earlier this year in the effort of promoting its' own products/sellers. Second you need to have a large enough sales volume consistently (large production, investment, sales) to sustain interest in doing this. My take on this is that most of the current success stories on Amazon are those that either established themselves early on or have invested a lot of family effort into it (multiple family members working to reduce the OH cost).

Having said the above, if you can find your "niche", create a good plan and provide a consistent service, there is surely room for more sellers on Amazon.

Hope it helped - thank you

Just so I can fully understand what this all about. From the sound of things, you find products and find a way to innovate them or design a product similar but does a better job, find a manufacturer in China have him make it and you sell them on Amazon?
 

Blackman

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Just so I can fully understand what this all about. From the sound of things, you find products and find a way to innovate them or design a product similar but does a better job, find a manufacturer in China have him make it and you sell them on Amazon?
What you describe is essentially how any new business comes along...

Yes, you take a product or a service that already works, think of how you can improve it/make it better, establish your supply and then find a platform to sell, whether your own or someone else's.

Of course, all the difficulty is in the details and tons of small things that you come across when you start digging deeper.
 

GeorgeRichards

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I just wanted to touch on a few things regarding Amazon and the people doubting what they are about to sell or plan to sell in the future. I definitely came into this as blind as anyone and had no idea where to start, I had no idea what to sell and didn’t have a clue about anything to do with import/export (why are there so many different codes and numbers I need to remember).

I can definitely say there are a fair amount of helpful videos on YouTube which do actually help with the general process of messaging factories and how to list your product/how to prepare your product to be listed (taking photos and editing the photos etc).

As well as Youtube if you do actually read this whole thread you should get most of the information you need if you’re looking for a general idea of how to build a brand and what you should be looking for when it comes to scaling a product to be your ‘mantle piece’ or ‘go to product’ which really reflects what you want your brand to be.

Biophase is definitely right when he said that you need to be releasing more than one product If you want to be successful in really voicing your brand and standing out above the rest.

From my very little experience on Amazon (have only released one product) I can only say to be the people who are on the same boat as me and are looking to release a single product (wether it is down to funds or not wanting to take the risk). As long as you have done your research, seen that the product is profitable, found a reliable and trustworthy factory, can build a brand around your opening product and can see that it would stand out above the rest then definitely go for it.

I definitely had doubts before and after I placed my order but the risk is definitely worth taking as long as you haven’t dived into the pool ridiculously hastily. You definitely learn as you go along and I can honestly say I learned a hell of a lot more doing it rather than sitting back and waiting and waiting and waiting. You will fall into problems here and there but that is what the power of the internet is for and most problems can be sorted through information on websites or on this whole forum.

That’s just my general thought after reading a lot of questions from this thread, many apologies for the length.
 

Walter Hay

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I had no idea what to sell and didn’t have a clue about anything to do with import/export (why are there so many different codes and numbers I need to remember).
If you are trying to remember all the codes and numbers for importing, you are doing things the hard way.

For a small fee you can pay experts to handle all that for you. They don't always know those numbers but they do know how to find them easily.

If you think you that you can learn on the internet all you need to know about product sourcing and importing you are riding for a fall.

Misinformation is a wealth hazard, and the internet abounds in misinformation.

In my sourcing and importing specialty, "gurus" publish free blogs, and the information on many of them is so false, outdated, and misleading that I feel sorry for people who prefer free misinformation rather than pay a small $ cost for true, accurate, and up to date information that can save them a huge amount.
"If you think education is expensive - consider the cost of ignorance."

Walter
 

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GeorgeRichards

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If you are trying to remember all the codes and numbers for importing, you are doing things the hard way.

For a small fee you can pay experts to handle all that for you. They don't always know those numbers but they do know how to find them easily.

If you think you that you can learn on the internet all you need to know about product sourcing and importing you are riding for a fall.

Misinformation is a wealth hazard, and the internet abounds in misinformation.

In my sourcing and importing specialty, "gurus" publish free blogs, and the information on many of them is so false, outdated, and misleading that I feel sorry for people who prefer free misinformation rather than pay a small $ cost for true, accurate, and up to date information that can save them a huge amount.
"If you think education is expensive - consider the cost of ignorance."

Walter
Most definitely I agree that the cost of ignorance is by far the most expensive failure in business but again I wouldn’t advise anyone to dive into the pool unless they had 100% done their research and factored in all the additional costs on the way to setting up a listing or anything else along those lines.

The remembrance of numbers was meant to be a joke due to the amount of new acronyms you learn along the way

When talking about free information I am not referring to some ‘guru’ online telling you the exact product you should sell online to become a millionaire! I am referring more to the things you can learn online like, how to set up a listing, how to take photos and edit the photos you have taken for your listing, learning the differences between certain freight options etc.

I just want to reiterate this so my original post doesn’t get taken out of context, of course everything you read online you should take with a pinch of salt because there is copious amounts of articles/videos that misinform many people into buying some ‘gurus’ course that leads to failure 90% of the time.

There is most definitely enough information on this forum to help anyone aspiring to list a product, just don’t expect people to hold your hand (well at least for free anyway) a long the way.
 

Boo

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How do you feel about ecommerce websites selling only other brands? There's a heavy focus here on branding your own product, which makes sense for selling on Amazon/eBay, but for standalone ecommerce sites which are niche specific the retailer model can make sense.

I see opportunity in spaces where there are existing brand names or patented products, but no one 'go-to' ecommerce site for customers to purchase a bunch of products from different brands. Particularly, in categories which aren't allowed on Amazon, or for which consumers need more information or guidance prior to purchase.

Margins can still be solid in some cases, upwards of 60% gross before shipping. You can create a brand in this way the same that Michaels has in the art world, they are the go-to store although they sell other companies products. They have created a brand in and of itself, because they can differentiate on:

  1. Product selection (brands have exclusive retail agreements)
  2. Pricing (volume means they can sell at the same price as brands)
  3. Customer service
  4. Shipping and returns
  5. Website experience
  6. Informational content

For certain niches or products, Amazon or eBay makes a lot more sense. But I think there are circumstances where a retail approach selling other brands products can be a huge opportunity. I'm curious to hear others opinions. There are pros and cons both ways and keeping both options in your mind can open up more opportunity. You can also start with retail and then eventually bring in your own products once you have a huge free marketing channel and the ability to order volume for excellent margins.
 

Xeon

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Hi biophase, when trying to start a business, and trying to find a product to sell, would you advise to think of what product to sell based on profitablity and CENTS, then find a market for that, or do you go the other route and think about people's needs/wants instead, then coming up with a product to cater to that?
 

fmob007

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Would you launch a product that has good margins, high demand and is superior compared to competition's but, you can't find other relevant products to expand later on and build a brand around it?
 

JustWalkinAround

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@Xeon The way I’ve interpreted your 2 options:

Do I start a business based on CENTS or do I start a business based on N?

One option has 5 benefits whereas the other has 1... haha.

Anyway I think you generally start with a need. Then you see how well it naturally meets the other commandments.

If it doesn’t meet all the commandments, do you have an idea of how you could modify your product or service or leverage some other factor (e.g. your network, some secret family insight, some random skill you learned 5 years ago from an old job) so that it meets them?

Hope this helps.
 

AppMan

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  • Big box stores like Amazon, Walmart and Target now dominate the results whereas before smaller niche stores did.
  • Amazon is now the place to be in Ecommerce.
So go ahead and ask away!
It seem like a lot of people prefer to shop at Amazon and Ebay, in which case you think selling a product on your personal E-Commerce would be viable ?
I dont like selling on Amazon because they take a big chunk of the profit.
 

BookwormMitch

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It seem like a lot of people prefer to shop at Amazon and Ebay, in which case you think selling a product on your personal E-Commerce would be viable ?
I dont like selling on Amazon because they take a big chunk of the profit.
It’s possible, a lot of people do it including me, but instead of paying a large chunk of fees for amazon, a large chunk of your money will be spent on advertising. They are complementary, but totally different business models in my opinion.
 

Vitaly the Winne

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Recently I completed a course on dropshipping by Adrian Morrison called E-Com Success Academy. Since it's a 2016 course, is the information about FB Pixel, the FB marketing methods, and the tools talked about in the course still relevant in today's marketplace, or have a lot of things changed since then (I was realding about Facebooks algorithms having changed).

On a different note, what's a good amount of money to have on hand before starting dropshipping, and what's an honest monthly expected overhead for this particular business model?
 

AceVentures

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Where do data analytics companies like Junglescout and AMZinsights get their data from? I don't like the idea of sharing all aspects of my business with a company like Junglescout, or letting anybody else know how/what I'm doing.

I have good data management skills and can do a lot of analytical work myself. My question is, where can I get access to the underlying data and connect it to my own tools?
 

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