The shortcut is having a great product.
That was easy.
No need to read the rest, right?
While it might seem too simple and obvious, let me explain why this is the shortcut.
I feel it is my duty to explain this to anyone who will listen because I have seen too much money and time spent missing this point.
Also, if you stick with it, I’ll tell you what makes a great product.
So read on, or a small hole may develop in your wallet that will eventually eat through everything you’ve got.
Reason #1 – Better Reviews
When people review great products, they will write glowing statements and cause further sales, which will get you more positive reviews. This creates an upward spiral for your product.
Conversely, when you get negative reviews, it can have a downward spiral effect on your sales that is hard to overcome.
Reason #2 – Momentum
Successful products aren’t slightly better that duds, they are orders of magnitude better and the reason is momentum.
On Amazon, sales momentum helps your search ranking, sales ranking, and your possibility of earning an Amazon badge like “best seller” or “amazon’s choice”. All of this means success brings more success.
It’s the difference between running with a parachute strapped to your back and windsurfing with a tailwind.
You know this intuitively, just think about it. Do you think you would have trouble selling the iPhone on Amazon if you were suddenly the only worldwide source for iPhones?
You could create a brand new listing and have one of the top listings in the phone category in no time because of momentum rising you to the top.
Reason #3 – Cheaper to Sell
Revenue is for show and profit is for dough. If you want to actually profit online, not just sell a bunch of stuff, then you will need a winning product. It makes everything easier.
You will spend less or nothing on Advertising.
You’ll have fewer returns.
You’ll have more click throughs.
You’ll have more conversions.
You’ll have more word of mouth referrals, cutting down or eliminating the need to do marketing.
So what makes a great product to sell online?
There are three components of online product greatness.
If you are looking for a t-shirt that looks like overalls, chances are you are going to search online first.
Why would you bother going into every store in your city looking for this when you know it’s an easy find on Amazon? You wouldn’t, and nobody else would either.
Also, when you are looking for a specific item online, price doesn’t matter much to you. So novel products bring in higher profits and typically have better conversion rates.
SECOND: Cheap to ship.
Great online products are small and light, which makes them easy to ship and much cheaper to store in FBA warehouses and therefore higher margin for you.
The above example is a pen that is very small and light, which is cheap to ship. It’s also expensive for a pen, which brings us to the next point…
THIRD: Premium Pricing
Typically, the shipping costs and handling costs for two items of equal size and weight is the same (might be different pending weird dimensions). So if that’s the case, wouldn’t you want to be selling the $30 item that costs $3 to handle instead of the $5 item that costs $3 to handle?
To compensate for the high handling/shipping costs of online retail, you will always do best to focus on items that have higher price points that other items in their category. That’s not to say you can’t make money at lower price points and higher volume, but it’s a tougher game.
That’s it! Easy.
Now you know all there is to know about how to win on Amazon. There are two sides to the equation, product and optimization. The product part is the part to get right. You do not want to optimize a bad product.
So how do you find a good product?
Well, if you’re interested in beta testing our attempt at it, check out www.openfortunecookie.com to try your hand at finding a good product.