In this week’s episode, we’ll be
discussing product research. I’ll be going over two different approaches to
product research with the steps involved in each. So be sure to stay to the end to
catch everything. We’ve got a lot to cover in this video, so I don’t want to
take a lot of your time here. If you want to see more videos about product
research and Amazon FBA, be sure to hit the subscribe button and press
notification bell so you know when I post a new video every Tuesday. Alright,
let’s dive into my computer. Ok, so here we are inside Helium 10 and I’m
going to show you a couple ways to look up potentially profitable products using
their tools. So, what we’re going to do first is what I call the “conventional method”
So what we’re going to do is go up here and you can see all of their different tools.
There’s lots here. We won’t be going into all of them today, but right now we’re
going to focus on Black Box, which is their Amazon product research tool. So we go
into here the first thing you’re going to want to check is what marketplace you’re
searching. Now, we’re using the U.S. marketplace here, but
they have several here that you can choose from. So once you have that
selected you want to make sure you’re on the products tab because we’re going to try
and narrow this down to specific products in this part of the research. So
they have a bunch of different criteria here and the first one we want to look
at is categories. Now you can select as many categories here as you’d like to
search through but I’m going recommend you narrow it down to just one to start
and that will become more apparent as we move forward but for now we’ll just
select one and I’ll explain later why we did that. So Home and Kitchen is
what we’re going to go with for this search. The next category is the, sorry the next
criteria is the monthly revenue. Now we’re going to skip this one for now and
again I’ll explain this a little bit later but for now we’re gonna leave that
blank so we’re going to pick up products with any monthly revenue. But then we get
to price – we’re actually going to use this. So for the price range, we want to pick
products that are not too expensive because if you are a first-time seller
or don’t have a lot of capital, you don’t want to source a product that costs too
much money because you won’t be able to buy enough inventory to
last throughout your expected sales. So we’re going to put a cap on our price of
the product at $30 but at the same time you don’t want to source something
that’s too inexpensive like if you buy a product or if you source a product that
costs $8 to sell if you – sorry if your sale price is only $8 there’s very
little room for a profit. So what I recommend is to starting with at least
$15. So this is a decent range that will give you lots of products to to pick
from. Now when it comes to review count, so review count matters because when
you’re looking at the products on the front page, the review count can give you
an estimate of how competitive that market is. So if you’re looking at
products that have 300 reviews each and all the products have 300 to 500 reviews,
it will take you a long time to get that many reviews so you can compete against
these big sellers. So we’re going to look for a product that is within this price
range in Home and Kitchen that has a maximum number of reviews of 75. And now
it comes to Review Rating. So this is the star rating on the product and I have
some mixed feelings about using this criteria. So what you’ll find some
experts suggest is that you put a max rating of 3.5 stars and
what this means is that the products we’ll find will have some room for
improvement. So what your objective there is to go into those listings, go through
the reviews and find out what problems the customers are reporting and this
will allow you to improve on those shortcomings and therefore your product
will be better and ideally will sell better than theirs. The problem I have
with this is that a lot of times I’ve found that either the areas that can be
improved upon aren’t noticeable to the window shopper – so if you were to take
your product photo and put it up against this three-and-a-half star product, your
differentiation may not even be noticeable to the potential buyer, and
therefore your entire appeal – all the improvement you’ve made – will go
unnoticed. And the other option is if you need to make a change to how the product
functions, that can be quite costly because your manufacturer will need to
create a brand new mold and they may charge you a hefty fee to create that
mold and then you need to test it make sure it works to your specifications and
then if it does then obviously order your inventory, but if it doesn’t you’ve got to get
another mold made. And so there’s some risk and a lot of cost involved so I’m
not a huge fan of using the review rating as a criteria. So we’re going to get
rid of that and we’re going to leave that blank as well. Now the next one here is
the shipping size tier and this one I definitely do recommend you look into.
And when I do my product research, I use small standard size and large standard
size and the reason for this is when you ship items out of Amazon – so a customer
buys your product and then Amazon ships it for you, they charge you a fee to send
the product. And if it is a large item or a heavy item they will charge you a lot
more for that shipping fee. So if you keep it a standard sized item, your fees
will be a lot lower. So we filled out all the categories here and you might think
we’re done but not quite because now we’re going to go into the advanced filters.
Now I don’t you don’t want you to feel overwhelmed here because there is a lot
of information here. We’re not going to use all of it but I’ll walk you through the
ones that we are going to use. So we’re going to start with monthly sales. So this
is – we’re going to use this instead of the monthly revenue and the reason for that
is the goal I look to set is I want to sell a certain number of units per month
as opposed to how much revenue I want to make from my one product a month. So with
that, I’m going to say I want to sell approximately ten units a day, so on an
average 30-day month, that’s 300 units. So we’re going to say a minimum sales of 300
units per month. The next category, or criteria are going to use is the number
of sellers and we’re gonna set that at two. The reason for this is we want to
weed out all of the whole sellers so if if there’s a Nike shoe listing and
there’s a dozen sellers on it we’re not interested in selling that kind of
product. We’re looking for private label products where there’s only one or two
sellers and the reason there could be two sellers is one person could have
created this private label product and then another seller could have purchased
a bunch of their inventory and then have listed it on there – on that same listing.
This does happen – it’s happened to me. So just so that we don’t weed out any
potential opportunities we’re gonna put two so that we can capture those
scenarios as well. The next criteria we’re going to look at is Fulfillment. So I’m
going to suggest clicking off FBA which is the fulfilled by Amazon because that’s
the route we’re going to be taking so we want to look for products that we’re
going to be competing against as FBA products. Now you may want to include FBM
which is Fulfilled By Merchant. Now these products are actually shipped out
by the seller themselves so they are not part of the Amazon Prime eligibility.
That means it could potentially take longer for the product to arrive to the
customers and that could be your edge if you find a product that is sold by the
merchants and then you can offer one-day shipping through Amazon Prime. So that’s
definitely something you want to keep in mind. For variations, now we don’t want to
find things that have a lot of – like for instance clothing – that has a lot of
sizes you don’t want to deal with anything that – you want one variation. But
again, to weed out those variation categories but also we don’t want to
eliminate too many, we’re going put a maximum variation of two because
sometimes you’ll find products that you can still sell with one variation even
though that listing has two. And finally, we’re going to use the weight. Now we’re
going to put a maximum weight of two pounds because anything over that, your fees
could drastically go up – not only with your Amazon FBA fee but trying to get
your shipment from China to the Amazon warehouse. If you’re paying – you do pay by
weight so if it’s too heavy and you’re buying five hundred units, then that adds up
real quick and you’re fees can skyrocket. So try to keep your first product under
two pounds if you can. So then we’re going to hit search and Helium 10 will scan
all of the Amazon and find all their products that meet
our criteria and as you can see there’s a whole bunch of different products here.
So they’re all within our price range, they’re all at least 300 monthly
sales and then we can extrapolate the monthly revenue and the reviews so
that’s great. However when you do a search on Helium 10, it will only ever
show you up to 200 products, so if your criteria returns more than 200 products,
you will not see them and you could be missing out on potential opportunities
and that’s why you want to narrow your search. So this is why we went with only
Home and Kitchen, because I knew if I selected up to 2 categories, we would
get a lot of results. So how do we narrow this down to under 200? Well for the
categories and criteria we have chosen I’m going to change our price range. So I’m
going to start by changing this from fifteen to thirty dollars to fifteen to
sixteen dollars which is a very big change but let’s see what happens. We hit
search – okay we’re down to 25 products. That’s a lot more manageable and now we
know we’re capturing everything. Wo what we do now is we scan through these
listings and we look for a product that catches our eye. Let’s go with this one
for, just as an example. So it’s the 50 pack battery-operated flameless tea
lights. So we can first go look at the listing by clicking on the Actions button
over here and we go to the product page on Amazon. So it’s got a good listing, got nice photos. You can see here that Helium 10, if you have the Chrome extension installed, it will do an evaluation of the listing. So this image
is not on a white background, which is part of the Amazon Terms of Service, so
it’s failed that check but everything else seems to check out. They’ve got a
whole bunch of images they’ve got a reasonably length title, they’ve got five
bullets so that’s a nice little tool to keep in mind when you’re looking at
ways to improve the listing. So anyway what we want to do from here is we want
to see how the market looks. So it’s- we know this product in particular meets
our criteria but we need to see how the market for these lights are so I’m going to
guess that the main keyword here is “flameless tea light”. So we’re going to
Amazon – make sure you go to all departments – and we type in “flameless tea
lights” and search. Okay, so as you can see, all sorts of sellers are selling similar
lights so what we can do to check the market is we’re going to run the Helium
10 Chrome extension and we’re going to use the X-ray tool. Now if it’s a big
market this could take a minute or two to populate but this one went pretty
quickly. So right off the bat we can see that the
keyword flameless tea lights has a monthly search volume of 3,600 which
means this particular keyword every month is searched 3,600 times which is
not bad. We’re still going to wait for Helium 10 to load the data. Again, if
there’s a lot of products it can take a minute or two but it’s worth it when you
see the data that comes out. Okay so now we have a breakdown of the average. So
the average revenue on the first page here is $13,000 which is pretty
impressive. The average price is 16 which is a great
price point for what we’re looking for, however the average reviews of 766 pretty
high. Now when we’re analyzing the market the first thing we want to do, which I
haven’t done yet which I really should have, is you want to eliminate these
sponsored products. So you see the top three listings here have SP – that means
that it’s a sponsored product and the sellers are paying to have those
listings show up at the top. So if you hover over the number on the left here
you can delete all of them. Okay so those are gone – they’re removed from our
listing. From our listing of listings. So we’re now going to
analyze the rest of the products on this page. Now
first let’s look at the top sellers here and the revenue. The revenue is extremely
high. You want to make sure that there’s enough sales per month to make this
worthwhile and you can see like this one first listing here sells almost 12,000
units every month. 1,200 for this one 6500, 4500. There’s a lot of sales
happening in this market already and if we will look at the review counts – so
this is where it gets scary. Six thousand, six thousand, five thousand, eleven
hundred. So these are red flags right off the bat but you know you don’t want to
get into this product, at least in this keyword. As a first product it is
far too competitive to try and rank on the first page. But to continue with this
example, let’s just keep diving in just so we can look at all the metrics. You
also want to keep an eye on the FBA fee. Now this is going to vary based on size
weight and the sale price of the item but you can get an idea how much yours
is going to cost. So you can see here this first listing, it’s only ten bucks but
half of itm half of the money is going to the FBA fee. It only leaves them five
bucks to cover the cost of the product and any PPC they’re running. It seems
like a lot of them are about half. This one, I don’t know how they’re making any money on
this. Anyway, yeah so you’ve got to keep an eye on the FBA fee because it’s going to
give you an idea of how much money you have left over after you sell the
product through Amazon. Another thing you want to do is – this graph will show you
the sales trends. So I typically like to look at either 90 day or even better
yet a year. Wow that’s surprising that – okay better go off of the
year because it gives you a full year’s range but one thing you want to look at is
the trend line which is this black line right here. You definitely want a sales
trend in the upward direction which means that the sales are increasing over
time and it’s not a downward trend that is eventually going to wear out. But what
you also want to look at is the blue line here which is how many say
this product has made and if you can see over the span of a year that it only has
one spike that it means it may be a seasonal product and you may want to be
weary of buying it so what we can see here is a lot of
people have more, like more people are buying this from September through
February, but it seems like in the spring it’s not as popular and for some reason
July is super hot for this product. Anyway if you look at all time, does it have a
similar trend? No, it just has random spikes so this one is kind of hard to
read but at least the overall trend line is going up so that is one positive
aspect of this market. All right, I know we’ve covered a lot of material already
but I want to check in to make sure you’re still with me. Write “Amazon FBA” in
the comments to let me know you’re still here!
Alright let’s jump back in. Okay let’s just open this one then. Alright we’re
going to go down and take the ASIN. So if you go down to the product information
section you can copy their ASIN, and we’re going to go back up to Black Box.
Now we’re going to go into what is probably my favorite tool in Helium 10, and that’s
Cerebro. It’s their Reverse ASIN Lookup tool. What this means is you can
take any ASIN from Amazon, put it into this tool and it will give you all the
keywords that this listing is ranked for. This can be super powerful
when you analyze whether or not there is demand for your product. Now you may be
saying “well we already know there’s demand because this product has tons of
sales on Amazon – we just saw that”. It has lots of sales but what you need to know
is whether or not the product is being searched for on Amazon. So it’s possible
that this particular listing has their own website and they’re just using
Amazon to fulfill the orders. So they could have their own social media and
they just point all their customers to come to Amazon which in theory means
none of their customers are searching for this product on Amazon. You need to
find products that people are searching for because your objective is to list the product and get it ranked and then
people find it organically. So when we look up this product, they have 19,791 keywords that it’s ranked for. Now obviously there’s way too many and
there’s no way we can go through all of them, but we can filter them! So what we
want to do is we’re first we look at organic rank – this means where the
products is ranked on the Amazon search pages. So obviously if it’s ranked
number one we want to know but we want all the the keywords where this product
is ranked on the first page. Now, depending on what device you’re
searching on, the first page could contain 16 listings, it
could contain 30. So to be safe we’re going do 1 to 30. We’re going to keep the
word count at 2 because if you have a keyword of only one word like “candle” or
“light”, it’s too vague and you’re going to get a lot of keywords that you
just aren’t interested in. And just to make sure that, we have a decent
search volume, we’re going to have a minimum search volume per keyword of 300 per
month. So we had almost 20,000 and when we apply these filters we’re down
to 135, which is obviously a lot more manageable. Now this is currently sorted
by organic rank and so we can see the top ranking keywords for this product. So
“LED tea lights”, “tea lights flameless candles”, “flickering
tea lights”, so these are obviously very relevant keywords and rightfully so
these exactly describe the product that we’re looking at. So this can give you an
idea of what keywords you want to target and it’ll go down and down and
like this product’s obviously doing well because it’s ranked so high for all of
these search terms. Now what you can also do is you can search by search volume oh
sorry sort by search volume and when you do
that you’re going to find the most commonly searched keywords and apparently for
this product “rose petals for romantic night” is somehow
the number one keyword – number one search keyword for this product. But I’m going to
say tealights is probably the most relevant one with eighteen thousand,
which is definitely a good search volume. So this can help you identify how much a
search demand these products have which will tell you how much of a market
Amazon has for this particular product. So that’s the general overview of what I
call the “conventional method”. So what we did is we identified products that meet
our sales criteria, and then we also went to validate the market to see if there
was demand for that product, but now I’m going to show you a slightly different way
to do product research and I find it very neat. It’s also
using Black Box but instead of looking for a product, we’re going to search for a
validated market right off the bat. The way we’re going to do that is by using the
keywords tab. So what we’re going to do is we’re going to search Amazon for keywords
that meet our criteria instead of products that meet our criteria. So we’re
going to search for the demand before we even look for a product. So what this
does is it takes the keywords that we search for and it averages out the first
page listings and we’re going to search for those averages. It’s a little confusing
at first but let me explain. So we can hover over the question mark – so the
estimated number of searches for the previous 30 days, so let’s say we want a
search term with at least 3,000 searches a month because we want to find a
primary keyword to start. We’ll get into longtail keywords afterwards but
let’s start with 3,000. Monthly revenue – let’s leave that blank for a minute.
Let’s do our 15 to 16 again for the price point. Review count, let’s do a
hundred this time. I can leave review writing alone. Minimum words
in the keyword I’m going say 2. Let’s again go with Kitchen and Dining. Same standard sizes. Number of sellers – 2.
And let’s do FBA again and we only found three phrases and so this shows you how
narrowed down we got. So the three we found here are “plastic jars”, “popcorn
boxes”, “ice cream cups” and I just realized I had selected Kitchen and Dining instead
of Home and Kitchen. So let’s just switch that to for consistency sake and see what
we come up with. We got twelve, so these are all keywords that people are
searching for and we can see all of their average front first page stats
right next to them. So let’s see if we can find one that we like here. Pom-pom
garland. So this keyword is searched for 4,800 times a month. The average
price for products under that keyword are $15. The monthly sales are only 176,
so not great so maybe let’s keep looking. Flower garland. Okay so now we’ve got a
little more broad but we got a lot more searches, a lot more sales, a lot more
revenue so let’s investigate this a little more. So if we go to the actions
button here we can go to view on Amazon and instead of taking us to a product
page it’s now going to take us to the search page for that keyword and now we
can see what we’re working with. We can see the various products on the first page
so what’s great about this is we already know that this product is in demand and
meets some of our criteria so we don’t need to find a product first that then
validates the market we can just validate the market right off the bat. So
we can run the X-ray Helium 10 Chrome extension and we already know it had
9500 search volume and then we can analyze the first-page,
get rid of the sponsored listing and let’s just take a look here. Okay so the
reviews – they’re a little high but what you want to be a be weary of here is
look at this first seller here. They’re doing really well at 83,000 dollars but
they have 1100 reviews and the next highest, well there’s a thousand down
here which is also pretty high, but they are dominating the top ten and so you
want to be weary when there’s one seller that everyone’s flocking to. Sometimes it
could be a brand name but sometimes they may just have this the best social proof
because they have so many sales already, that people will just figure “Oh they all
look the same, I’m going to get that one.” So be weary – you want to have a good
distribution of sales among the first page. So we see everyone has a high
rating, reviews are pretty high but the sales are pretty good – like they’re
pretty well distributed other than the first guy. He’s got six thousand so it’s
not terrible but still it seems like a very competitive market. I would stay
away from this. The fee to price range is better than the last product we looked
at – it’s not all half so there is definitely room for profit margin and
also, say, look at the second guy here, you can see in a one-year trend
oh this was actually going down so yeah maybe this is a product you don’t want
to get into. One year. This person’s doing real well but you can see they
weren’t even selling for this whole time so you got to go into a bunch of
different products and do an analysis to make sure that it is a market that you
want to get into and it looks like a decent market. Just because this
one keyword was good, doesn’t mean the actual whole market for these products
are good, so you’ll have to look at all the keywords and make sure that there is
enough market demand for that product or for a product within that keyword. And so
that’s how I like to do my product research. I prefer looking for the
keywords first because you know that there is search volume for this keyword
and if you can identify a product that satisfies that keyword that
differentiates enough from the other products, then you’ve got a winner.
So just to go back to this page, you can see how these all – like look these two
are they the same one? Yeah they are the exact same one but they have similar looks. If you
can find a flower garland, for this example, that looks drastically different
but still meets the criteria of being flower garland, you could have a winning
product. So that’s just one way – if you can find a different product that
satisfies the keyword, that is one way to differentiate and I actually find that
might be one of the best ways and the least expensive ways because you aren’t
redesigning an existing product. You’re introducing a different product to the
keyword. It takes some creativity, it takes some thinking, it’s not something you
can just pick up and go – you have to do some real thinking and analysis but I think
it might be the best bet going forward in 2020. As you can see, Helium 10 can do
a lot to streamline your product research processes. If you want to give
them a shot, there’s a link in the description to get 50% off your first
month. Just use code SCOTT50 at checkout. If you got any value out of this video,
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Tuesday. Thanks for watching and I’ll see you next time!