There’s a lot of different ways to do product research with Amazon FBA. I’m going to show you one of the methods that I use, where I can find products that have the potential to earn me over $3000 a month in profit. I’m Ryan Morse with Amazing Profits, and if you’re in Amazon FBA or you’re thinking of getting started, this is the channel for you. Don’t forget to subscribe and tick that bell icon, so you can be notified of new videos when I release them. Without further ado, let’s get started.
All right, so let’s get right into it. The first thing that I want to do is go to MerchantWords. Now, I’ll put the links in the description of all the tools that I use. I’m going to use MerchantWords. I’m going to use Jungle Scout, and then I’m going to use Amazon and Alibaba. That’s what I’m going to use to figure out how I can find products. This is one of my product research techniques that I use.
The first thing that I do is I go to MerchantWords, and I type in a general search term. It could be baby, bedroom, kitchen, bathroom, furniture, closet. It could just be anything. All I’m trying to do is get some ideas here. In this one, I typed in closet. Then, I’m just looking for ideas. I’m just scrolling down, just seeing, okay, what would be a good, ideal product. When I say “ideal product” for Amazon FBA, I mean, one, is it under a pound? Two, does it fit in a shoebox? Three, I want to make sure that it’s not dangerous or anything like that. It’s not a consumable.
When I scroll down, oh, I see this one that piques my interest, closet dividers. I’m like, all right, so what is closet dividers? Then, I do a search, and I say, okay, closet dividers. Now, I’m looking at closet dividers, and I’m looking at the different types of closet dividers here, and I’m seeing, okay, closet dividers gets a monthly search volume around 60,000, which is pretty good. I’m looking for anything in between 30,000 to 120,000. Then, I’m seeing, okay, closet dividers for kids, for babies, nursery. It seems like there is kids’ closet dividers, so there’s quite a bit here for kids.
The next thing I’m going to do is just go to Amazon and figure out what exactly is closet divider, because it could mean a few different things? Okay, so I did a search for closet dividers, and this is what I’m looking at. I see baby closet divider, and these look like little hanger dividers that you would put on, not a coat rack, but just on a closet hanging rod, to separate different clothes. Then, here’s some different closet dividers for a shelf.
I want to try to see, what’s the buyer intent here? If I’m using a search term that can mean several different things, I want to make sure that I’m focusing in on the right thing. When I look at this, it’s mostly these shelf dividers, and these hanging rod dividers that you use to separate clothes. Those are the two most common things that I see. The price points are all over the place. Here’s some for $7.99. Then you have $15. Then, oh, here’s a different type. It’s a different style. It’s $23, but a lot of these are fairly inexpensive at $8.99, $7.99. This one’s interesting. This one is a designer one for a nursery or for babies, and it’s $11.99.
Typically, when I do product research, I don’t want to focus on products that are less than $10. I just really don’t think there’s enough profit there. You have to get it for extremely cheap in order to do that, to make a profit on it. I want to focus on items that are over the $10 price point. Now, I do have items that I sell that are for $9.95, and I make a 43% margin on it, and I’m happy with that. I’m fine with that, so that’s not to say that I’ll never go under $10, but I want to stick to over $10. Here’s another one that looks like it’s a designer, and it’s for nurseries, and it’s $14.97.
Now I want to focus in on some of these designer ones, because it looks like they get a little bit more. They cost a little bit more, and there’s some pretty good reviews on here. It looks like people like them. Same with this one, here’s some baby closet dividers. It’s $9.90. It’s a little higher than the price point here.
Now, I want to take a look at some different keywords for closet dividers for babies. Here’s nursery closet dividers. Let’s see what else we have here, baby clothes closet dividers. Now, the search volume in here is a little low, so let’s just see if we can find something, another search term, that’s more relevant to what we want to look for, like baby clothes dividers.
Okay, so this is interesting. We have baby clothes dividers, and it’s 16,000 monthly search volume. Now, normally, I wouldn’t go for something that’s for that low. I’d want it to be at least 30,000, but this is interesting to me, because you look at these main keywords, baby clothes dividers. Now, there’s baby girl clothes dividers that gets 10,000, and baby boy clothes dividers that gets another 10,000. Then you have baby clothes divider, which is 6,000, so you have all these variations of this main keyword that adds up to a lot of search volume.
I’m going to go back on the Amazon and type in baby clothes, yep, and see, here’s another thing that I look for. If I just type in baby clothes, the one, two, three, four, five, the sixth type ahead feature is baby clothes dividers, so I know these are popular. Now, when I’m looking at them, I see a lot more designer ones. Here’s some inexpensive ones here, and here’s some inexpensive ones.
Let’s just take a look at the Jungle Scout, and what this looks like in Jungle Scout. I’m pulling up Jungle Scout here, and I want to make sure that the number of reviews is, on average, lower than 100, which this, I can tell you right now, this opportunity score is really good. Look at the average number of reviews, only 23 reviews, and the average monthly sales is 274. Average price is $11.57. If we just run a couple quick numbers on this, we can see that, just from the averages, right?
If we take $11.57 times 274 sales a month, we’re looking at around $3000 on average for all these … the average sales revenue. If we’re getting around 40% profit margin, and that’s what I estimate … If I look at all the products that I sell on Amazon, I average a little over 40% in profit, so if I just do times 40%, looks like this product could easily make around $1300 a month in profit. Now, that’s just based on the averages of all of them, so let’s narrow in and take a closer look at some of these ones that are doing really well.
Eight-piece closet divider, see, this is pretty plain. I’m really not interested in that. Here’s one that is really interesting. This is $9.90, and the sales are 994, and it’s doing $9841 in revenue, so that’s close to $3000 a month in profit just from the sales of this. Let’s just take that number. Let’s just say, if they’re doing roughly $984 times … They’re getting 40%. They’re doing close to actually $4000 in profit. That’s a good one to take a look at, is this one that does kind of like a designer one.
Let’s just take a look at some of these other ones. Here’s another one, so $11.99. Let’s just say … This one has estimated 505 sales times $11.99, whoop, let’s say 505 time 11.99 is 6000, times 40%, around $2400 in profit a months. That’s what I’m just estimating. I’m just trying to get some quick numbers here to see, is this product worth it or not?
Since I already have products up and selling on Amazon, I know that I’m not really going for anything that’s less than 40% profit, so I’m just going to assume that I can get around that amount of profit. I’ll go through some more steps to just make sure that I can get that 40%, so I’m going to take a look at the product. That’s what we’re going to do next here.
Let’s just take a look on Alibaba, and see if we can find any products that are similar to the ones that I like on here, the one for $11.99 and this one for $9.99. Let’s just see if they’re … These are interesting, too. See, these are designed. I like the ones with a design on them, because then, that way, I can make them unique. I can create my own design. I might be able to create a design for boys. Then I’ll create another design for girls, and I might even do a unisex design, where you could put animals on them, or something like that. That’s what really sets these apart here. Here’s another set. Geez, they must just be starting out. Only two reviews, and they’re for $4.59. What happens sometimes is, if you go too low in your price point, you’ll be considered an add-on item, which is what you don’t want, because then somebody can’t just purchase your item. They have to buy other items, and then yours is an add-on item.
Okay, so here we’re on Alibaba, and I just typed in clothes dividers, and I am seeing some information here. Here’s one, baby clothes divider. It looks like it’s anywhere from a dollar to $3 a set, which seems a little high to me. Okay, so here I found one that has a custom design, and it’s $1.50 a set, for a set of six. What I know, from just selling on Amazon, is for selling smaller items that I’m going to ship via air, is I’m going to be able to get around 38 cents per item to ship. That’s what my items average, around 38 cents per unit for shipping.
I’m just going to round up to 40 cents and say it’s going to cost 40 cents to ship this per unit. If it’s $1.50 per set, I’m looking at around $1.90 landed in the U.S., in Amazon’s warehouse. That’s going to be my cost of this product. Now, again, I’m going to contact this manufacturer, and I’m going to get an exact quote. I’m going to try to get an exact quote for the amount that I want, if I order 500 sets, 1000 sets, 300 sets, whatever it is. I will have the exact amount for the product and shipping before I would go ahead and purchase this, and I would also get a sample of this product, but this is just quick calculation. Will this product make sense, if I start selling this product? So, $1.50, 40 cents for shipping … We’re talking $1.90.
Next thing I’m doing is going to Amazon FBA Calculator. If you just type that into Google, and then I want to find the ASIN. I want to put the ASIN of a similar product in here, so let’s just find that product that was selling … Okay, here’s one for $11.99. All we need is the ASIN number to get an idea how much it costs to sell this product through Amazon. I’m going to paste that in there. I’m going to say my item price is $11.95, and then my cost of the product is $1.90, calculate, and it looks like I can make $5.25 for every item I sell. It’s an almost 44% margin, which is great, so this looks like a really good product.
Now, based on the average sales of some of those top products … We saw one that was 550. We saw another one that was almost 1000. If we could get somewhere in the middle there of those higher, those better selling products, say around 750 times, let’s just say, $5.25 per sale, we come out to almost $4000 a month in profit that we can make from selling this.
That’s one of the ways how I do product research, and it looks like this is a pretty good product, so I would create this for boys. I’d create this for girls. I’d have a unisex one. I’d definitely do a custom design on this and sell it, and try to separate myself from the competition by having a better design, a better product listing.
This is just one of the methods I use for product research. I hope you learned something. It gave you some insight into the process, and maybe you picked up a few tips along the way that’ll help you in your product research.