$22,000 MONTHLY REVENUE Unboxing an Amazon Best-Seller 🔎📦 #AmazonFBA

$22,000 MONTHLY REVENUE Unboxing an Amazon Best-Seller 🔎📦 #AmazonFBA

February 12, 2020 0 By Luis Garrison


– Welcome to ZonGuru’s unboxing videos. Now typically what we look at is sellers that do some things really, really well to put them ahead of the competition. In this week’s edition, though, we’re gonna be looking
at a product category that’s a little bit different, one that has some red flags, and what we’re gonna
specifically wanna know is can we learn from this type of category and can we determine if it’s still a good category even with those red flags. Join us this week as we
look at this dog door and understand how the seller makes $22,000 a month on Amazon in a category that’s a little shaky. All right let’s dive in. (upbeat music) This week we’re gonna be taking a look at the dog door category, whether it’s one that as a new seller you might want to jump into. We’re also gonna be taking a look at the actual product itself, as well as the listing. We’re gonna be unboxing it, really unpacking what the seller does well and not so well and areas that you as a new seller might be able to improve on the product. We’re also gonna be taking a look at how well optimized the product is and finally we’re gonna be showing how the ZonGuru tool set can help you reach these conclusions that are absolutely critical if you’re looking to invest in a product. All right let’s dive in for an episode of What’s In The Box. Okay so step number one
is you obviously need to look at the product category. You need to understand the competition and understand the demand. Now the ZonGuru Chrome extension is gonna basically tell you all of the important things that you need to know about the category. We’re gonna take a look
at that information in just a second. But where you probably wanna start before pulling up the data is just scrolling through
the listings on page one and understanding what the
competition looks like. This is gonna give you a
really good perspective of which products look identical to the other products on page one and if there are any that stand out. Now this is a really important concept because it allows you to
understand differentiation and it gives a clear
answer to the question, why would a consumer choose my product over the competition. So as we scroll through
the listings on page one, what I notice is I see a lot of these vertical dog doors that fit in a sliding glass door and I see a lot of these dog doors that fit on, you know, the more standard wooden doors. Now the product that we selected this week to really deep dive into was one that is different, is differentiated from the rest of the competition on page one and it’s this dog door that actually fits on a screen door. Now it’s a subtle
differentiation technique, but it certainly stands out when you look at the rest of the products and it opens you up to a
completely different marketplace which is a really key
concept of differentiation. So this is the product listing that we’re gonna be taking a look at and we’re gonna be unboxing as well, but before we do that let’s go ahead and look at the numbers. So what I’m doing right now is I’m pulling up the
ZonGuru Chrome extension and niche rater and what
this is gonna tell us is really all of the important metrics around this category as a whole. Now the keyword that I use is one that appears probably the most in a lot of the titles of these listings and it is the one that
has the most search volume so that’s a good place to start when you’re trying to gauge the competitiveness of a category. You wanna select a keyword that applies most broadly, the one that’s being
used the most by sellers, because it gives you the most honest, broad interpretation of the category. A few numbers I wanna
call out really quick is the niche score
obviously sitting at a 63%. That’s quite good. We like to tell people
if you’ve found a product that has over 55% you should probably look more deeply at the information. So the niche store takes into account four main categories and that is the buyer demand, the competition opportunity, the investment sweet spot,
and the revenue potential. Now these are the four key metrics that make up the niche score and let’s unpack that
information a little bit. So buyer demand is quite simple. It’s are people buying this product and we take a look at the search volume, which in this case just
the single key word for doggie door gets over 6,000 monthly searches on Amazon.com and then we also take a
look at the monthly sales. You wanna make sure that people are searching for the product and buying it and in this case the average seller does over 400 sales a
month which is quite good and that’s just off of that one keyword. Now the competition opportunity takes a look at two things. How many sales is the competition getting and how well reviewed are those products and then also how well
optimized are the products and so we’re taking a
look at the listing score, as well as their reviews. Now this is red flag number one. The average seller in this
category has 911 reviews. That’s a lot. So what we’re gonna look at in a second once we sort the products by reviews is is there an opportunity
for a new seller and we’ll get to that in a second. The next thing we’re gonna look at is the investment sweet spot. Now this is a key concept. Obviously if you’re a new seller, you need to make sure
that your first product doesn’t completely spend all of your money before you’ve even got off the ground. So you need to make sure that when you’re looking at
the investment sweet spot or the launch budget, which takes into account essentially how much it’s gonna cost you to stay in stock for those
first three months on Amazon, you know that you’re
comfortable with that number. Now a little over $28,000, that’s a pretty high launch budget for the average seller so that might be something to keep in mind and might potentially be another red flag. I do wanna point out that when we’re looking at the launch budget we’re taking a look at the average price of the products on page one. Now the product that I’ve selected is actually considerably cheaper than the average price so that is something that is actually playing in favor of this product. And then finally you wanna look at the revenue potential. You need to understand, you know, how many dollars are you
either putting in your pocket and then obviously the fourth key metric is revenue potential. How many dollars are you
putting into your pocket or investing back into your business and this plays into the price and the sales velocity. And this is a high price point so for every sale you can expect to make about a 30% margin, that’s what we see on average for private label sellers, and at $107 price point you’re probably putting about 30 bucks in your pocket for every sale so that’s a
very good number to understand, but is also gonna drive
that launch budget up. Okay so let’s take a quick look and better understand the
competition opportunity because like I said, this may be the first red flag with those average number of reviews. Now one of the first things I do whenever I pull up a listing and I wanna dive into the numbers is I sort by reviews because this is again gonna show us, you know, how strong the competition is, how long they’ve been around, and how much social proof they have. Now you can see up at the top here we have sellers with 4,000 reviews, 3,000, 2,000, and as we scroll the number begins to get
a little bit smaller, but a good rule of thumb is you don’t wanna see the majority
of listings on page one with over 500 reviews. Now this is not a one
size fits all equation, but you do wanna see, you know, around half of the product
listings on page one with around 100 reviews or less because these are the sellers that you’re gonna focus on in the very beginning. These are the ones that you’re gonna wanna try out sell, that you’re gonna want to try to defeat to begin to climb up page one and essentially begin to drive sales away from the sellers that already have that social proof. So as we look at this category, you know, I do feel that this is quite competitive, but it’s also worth
thinking about, you know, is this product different enough that we could get past that benchmark. Okay so recapping this
product opportunity. The revenue potential is good, the investment sweet spot
is a little bit high, might make some people uncomfortable. It is quite competitive, but perhaps if we’re able to differentiate and create a nice brand experience we can get past that, but the buyer demand is certainly there so definitely some things to think about in a category that could go either way. Okay so the second thing I’d like to do as we unbox this listing
is just take a look at the top three sellers, the ones that look the best and I would assume are gonna be our most direct competition and I wanna see how these
products sell year round. Now with a product like a doggie door, I would assume that the seasonality of this product is
around the summer months or maybe around springtime, when people are more comfortable letting their dogs out into the yard. So what we’re gonna do is we’re gonna look at sales spy and sales spy allows us to historically track the sales for as long as the product listing has been live. Now this is a really good concept because it allows us to
really inventory plan and understand at different
times of years, you know, if we’re under preparing or we’re over preparing our stock. So it looks like our product, as we look at the sales graph, and this is for the last year, certainly sells extremely well around May through October even
and then sales drop off. This is kind of what I was expecting based on the seasonality of the product. Now let’s look at two other products in the same category. Now this is an interesting sales graph and you might be thinking what the heck is with that big gap from
September to November. What this likely means is that this seller ran out of stock and Amazon hurt their best seller rank and that’s why we see a
complete flat line on sales and the BSR shooting up. Now it looks like they got back in stock around the middle of November and the BSR dropped and then they started making sales again. It’s good information to have when you understand sellers
that run out of stock because those are again, the ones that are potentially
a little bit weaker and that you might be
able to really defeat as you move through your
sales throughout the year. And then finally let’s look
at this other doggie door. Now this is a quite consistent seller and shows a little bit of
interesting seasonality. They actually pick up around
October, November, December. Maybe perhaps this is when pet owners don’t want to walk outside with their dog. It’s too cold outside so they’d prefer to just have a dog door and let their dog out
whenever they please. So again, this just gives you some really key ideas about buyer behaviors and how you should prepare your stock. All right so now what
I’d like to do real quick is just open this product up. We’re gonna take a look at a few things so that we can better understand the experience around buying this product and then we’re gonna unbox the listing and see how well the seller does at optimizing their listing
for the best keywords. Okay so this is how we
received the product. It’s just in a standard cardboard box, a little bit of branding, and some information about
the size and dimensions. Very simple and very
inexpensive for the seller. Now this might be an example of a product that you don’t need to create, you know, an exceptional experience
around the unboxing. I think the key for this product is making sure that it’s sturdy, that the dog is not gonna break it, and that it’s easy to assemble. So let’s see how well they do that. So as we unbox this product, simplicity is again key. We have just the product itself. It feels very sturdy. We have two inserts, one which actually talks about the warranty of this product and they do do something that’s a little bit gray hat, almost black hat, which is they’re actually trying to drive their customers with
questions or warranties to an external site outside of Amazon. That’s a bit of a no-no right now. And then also they have just some very simple instructions. Now I have taken a look
at the instructions and the videos on assembling this product and it looks like they did
everything very, very well. Pretty much across the
board people are saying that this is very simple
and easy to put together which is a little bit surprising because it does require you to pull your screen off your house, put it on a flat surface, cut the screen. But they are able to provide instructions that make it really easy. So if you’re gonna sell
a product like this, absolutely keep that in mind. Okay so you as an Amazon seller know that unboxing a product is not just unboxing the physical product itself, but unboxing the listing as well. So what we’re gonna do now is we’re gonna take a look at the seller’s listing and then we’re gonna take a look at listing optimizing and keywords on fire to see if they’re taking full advantage of all the keywords at their disposal. Let’s take a look. Okay so as you can see here, I have the listing pulled up and first thing I notice is
the photography is well done. This is clearly photoshopped but it’s actually some
pretty good photoshop so I like that it displays the product a couple of different times and it shows an actual animal
in the first hero image so really good work and better than the average images that you see on page one. They do a very good job of explaining the dimensions of the dog, as well, that’s gonna fit through the door because you wanna make sure that the customer makes the right purchase as far as size. And then they give some more information, they show more pets, they compare themselves and call out the benefits of their product compared to the competition. They call out the small key
features of this product, like the latches, the
materials that it’s made from that make it so sturdy, and then what I really like is they actually have this video
here which actually will just show you in 60 seconds how to assemble this product and it really does show
off just how easy it is. So from a branding perspective, you can see in those first images that they do a good job all around. I would give this probably
about an A for effort. Now as you scroll down we’re gonna be taking a look at the listing copy in a little bit more depth in a second, but you can see that this product takes advantage of A
plus branding on Amazon, previously EBC. Now this is a place where you can put extra information about
your product in the listing and it creates longer session times and increases conversion rates so that’s for brand registered sellers and they take full advantage, and again, just show off their product in a little bit more details, answer commonly asked questions, really try to do that last ditch effort at convincing somebody to buy the product. And then you can see here that out of almost 200 customer reviews, they have a four and a half star rating so they’re doing some
things really, really well. Now what I wanna do really quickly is take look at the listing copy because if you’re a new seller or you’re a seller that feels like you’re not driving enough
traffic to your listings, one absolutely key thing that you can do is just make sure that you’re using the right keywords in your listing. This is gonna drive more
relevant traffic to you which you can convert more sales on. So let’s see if this product does a good job at their listing copy. So you might be asking yourself why is keywords important? If I have a great product,
if I have good images, people are gonna buy my product, right? Well that’s not always true. You need to make sure that
your listing has relevant and smart search engine optimization so that you show up in as
many searches as possible. The more searches that you show up in, the more likely more
customers are going to be to buy your product. So what we have here is
ZonGuru’s keywords on fire tool. Now this is at a very high level an amazing tool that’s gonna show you exactly which keywords
to put into your listing to drive that traffic. So what I did was I ran a session for dog screen doors. Now this pulled up 25 of the
top sellers for that keyword and then it pulled all of the keywords that those sellers have driven sales on and then it creates a list with a bunch of key information that I’m gonna show you in a second that actually will tell us exactly which keywords we wanna
include in our listing copy. Now this is gonna help drive traffic and what we wanna see is how well this seller does at
inserting these keywords into their listing copy. Let’s take a look. Okay so we’re inside of keywords on fire and if this is your first
time seeing this tool I strongly recommend taking a look at our tutorial video. It’s gonna show you all of the nuts and bolts of this tool. Okay so you can see the
summary of the session here. We analyzed 25 competitors, we have a list of 300 plus keywords that generate about three
and a half million dollars in potential revenue and almost 200,000 total monthly searches. As we scroll through here
we can see the keywords that sellers have driven sales on. Things like dog door for sliding door, screen door, sliding screen door. These are the types of keywords that we would wanna consider
inserting into our listing. So what I’d like to do
here is I wanna just identify the ones that are highly relevant to this product. Okay so there’s a ton of different things that you can do with this list of keywords to hone in on either short tail or long tail keywords or keywords that have a
certain number of characters or a number of words in a phrase. These are all great ways to hone in on those long tail keywords that are gonna drive relevant traffic. For this exercise though I wanna see how well this listing is optimized for our entire list of keywords. So what we’re gonna do here is we’re gonna take this list of keywords and we’re gonna click
add to listing optimizer and this is gonna bring all 324 keywords over to our listing optimizer tool, you can see them here, and what we’re gonna do is we’re now gonna pull in the actual listing that we’ve been taking a look at, we’re gonna grab the ASIN, and we’re gonna pull the ASIN info. And this is gonna pull all of the relevant copy from the
title, the description, the bullet points, and
the backend keywords. Now this is exclusive to ZonGuru. Previously we had no way
to access backend keywords but we actually now have the ability to pull that information and it just gives you a little bit of extra information
about what sellers feel are important to driving
that last little bit of traffic to their listing and those are typically colloquial terms or misspellings that they feel is driving additional
traffic to their listing. So let’s pull the ASIN info and here you go. You can see the title,
description bullets, and the search terms. Now it looks like this seller takes advantage of almost none of their backend keywords so we’re gonna see that they are already not as optimized as they could be. Now what we can see here up at the top is the total number of potential revenue we could be driving and the total number of
potential search volume that this seller could be driving compared to our keyword list and what they have in their listing. It looks like they are optimized for less than a third
of what they could be. Now what I wanna do is click done editing and see exactly where these keywords and phrases show up in the listing. Okay so as you can see we’re gonna sort through this list and it looks like they have
identified some keywords and they’re really trying
to hit those keywords hard. We can see screen dog door, their broad matched everywhere
in their listing for this. Magnetic screen door,
they’re optimized everywhere expect for their backend keywords. Screen door and so on and so forth. So this seller does some of
their listing optimization and their keyword research quite well but as you can see here there’s a lot of blank spaces where they’re not optimized at all. Doggie door, for example. They show up on page one for doggie door but towards the bottom of the page and the reason why is because they don’t have that
anywhere in their listing. Doggie, spelled this
way, which drives 6,000 monthly searches doesn’t appear
even once in their listing. This is a really good exercise in better understanding that some sellers, even though they sell very well, they rank on page one for
the best search terms, still aren’t doing
everything that they could and should inspire you as a new seller to understand that with this information you can overtime begin to outperform them. Okay so what did we learn from this seller that does some things well and some things not so well. Well we learned that there’s no clear seasonality to this product. It sells pretty well year round depending on the variation. We also learned that the
actual unboxing experience wasn’t all that special. Maybe it doesn’t need
to be for this seller. But we also learned that this category is pretty competitive and unless you have a clear answer to differentiation, you might not be able to stand out as a new seller as easily
as in some other categories. And finally we understood
that this seller, although they sell really well and appear on page one, they’re not as optimized as they could be. They should be doing some
better keyword research and better optimizing their listing. And we used ZonGuru’s sales spy, Chrome extension, keywords on fire, and listing optimizer in
just a handful of minutes to come to this conclusion
about a product. Thank you for joining us for another edition of What’s In The Box. We have another one coming up shortly and I wanna just let you know if you enjoyed this information check out the ZonGuru resource center. We have videos for everyone. Experienced sellers, people looking for their
first product to sell, and anything in between. So make sure to check it out so that you get all of the new industry tips and strategies. Thank you so much guys for joining us and we’ll see you next time. (upbeat music)