Dominating Your Niche via Product Selection

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Nick Young joins us on product selection in niche markets

Niche domination and strategy of product selection
Selling 8 figures a year thanks to this strategy
Go after a whole niche and dominate it
First 2yrs saw lots of growth with $2.5m in revenue off that first product
Went into Me Too products and did $7.5m in the 2nd year but profitability was dropping

How do you know you’ve hit the right momentum in the market?

The market can be too big and difficult to break into as it’s dominated by certain competition
The market is too small or narrow for you to expand sideways into it with more variations etc
How do you determine if the market is the right size to enter nad expand products into
Looking for $5k-15k monthly revenue
SIlicon baking mat has little differentiation so no good to add value to
Looking at doing multi-packs, bundling, etc
Evaluate the competition – is there an opportunity to be in the top 5 spot on keywords
Are the PPC results going into the 5th page still relevant?
If still relevant for the top 10 keywords it indicates lots of people going for this niche
Expecting Amazon to come after giveaways so we’re going for markets we can differentiate in

Depends how expensive the product is
If ROI is massive with a 300-400% ROI and a cheap product with a high payout
Then we will launch with 3 products to maximise AMS and have a competitive advantage
Three also helps with logistics with the supplier
We test a lot
If we find one is working well then we’ll go back to the Supplier and roll out more variations to dominate
We aim to cannibalise before someone does it to us
Moneyballing is their strategy

Scientific as a category
Industrial scientific has lower sales volume but is an opportunity
Sell where other people aren’t
Why don’t people want to do this product and how can I turn this to a competitive edge

Have some patents
Just entering some product design but more around customising with colours and patterns

All China or domestic?
Majority of OEM products are made in China
Domestic suppliers are not as quick as Chinese suppliers
US Supplements supplier has worked well
Domestic is a lot better cashflow-wise
Margin is less but return on cashflow is a lot faster
Did a BOM and got it a lot cheaper by getting everything shipped in to the manufacturer to get it put together
Negotiate 30-60 days with the manufacturer and getting paid every two weeks by Amazon

Find the right partner for product selection and it’s terrific in the US
They are willing to try new things and make it happen
China is focussed on volume but domestic suppliers are focussed on relationships

Based on search volume and keywords
Products with a broad amount of keywords
We want to go and rank for as many long tail keywords and synonyms as possible
Plug it into seller.tools with search volume
See sales volume before sourcing a product
Filter to exact searches and you’ll see how much opportunity you have to go after the keywords
Find only 3-4 competitors and call different with <100 reviews
And if no headline ads then they’re not tapping into the full marketing power that Amazon has

Merchandise it in a different way to add value
Difficult for others to compete against
They can drop price, increase PPC and Add Coupons but they can’t change their product
Arbitrage of FBA fees by changing the shape of a product to reduce the cost of Amazon Fees on your product and add to your margin
Shaved 2 inches on each size and dropped from small-oversize to large standard
This shaved $4 off the product and helped us destroy the competition
Optimising the carton size (63cm one-side and less than ~20lb to reduce costs
Work all this out even before we go to the factory
How many units can you get in a carton – used for 3PL but send in on a weekly loose cart based on sales velocity volume
Ask for a Bill of Materials from the factory