Welcome to the B2B (Back to Basics) series by SixLeaf. This is a 10 episode series that takes you back to the basics of getting started on Amazon. From product selection to listing and beyond, the B2B series walks you through the basic steps to success on the Amazon platform.
B2B Eps. 1 – How to Choose a Cash Flow Product
Whether you’ve only just decided to take advantage of the opportunity to sell products on Amazon, or you’ve been selling for awhile, you have still likely struggled with product selection. Most will agree that choosing the right product is the most essential step in the entire process. This can be an extremely daunting task.
Part of the problem, however, is not understanding a simple concept; that there are two types of products.
Cashflow products and Brand Building products.
Cashflow products are impermanent, and only serve to produce cash flow as quickly as possible. Brand building products become staples in a brand’s catalog of total solutions aimed at solving a market’s problems.
Today in Episode 1 of our Back to Basics program, we will discuss an effective process for identifying Cashflow products!
Step 1 – Look for inspiration. Look at trendy websites (Bustle.com does Amazon lists all the time). Look at manufacturer catalogs.
Step 2 – Make sure the products are not “complex” with no more than two primary key terms that get over 500,000 searches per month.
Step 3 – Identify at least four sellers on page one generating at least $100k per month. And at least half the page generating over $10k per month.
Step 4 – Check BSR history to identify any seasonal movement.
Step 5 – Get in during peak season (if there is one) and always keep your inventory lean. Never over-commit.
Step 6 – Ride the profit wave until it reaches the shore. Then go back to step 1 and find another one.
Stay tuned for the next episode of B2B where we go over how to identify good Brand Building products.