Want the formula used to identify countless six and seven-figure products to launch on Amazon? At TurnKey Product Management, we’ve facilitated numerous six-figure product launches on Amazon. Through our experience taking brands to the next level, we’ve refined our methodology for helping clients identify winning products positioned for exponential sales velocity. You can download our Product Research Template here. Below, we’ll walk through the rules we use to pick guaranteed successes, including new insights and critical backend processes to set your brand up for victory.
The Importance of Comprehensive Market Analysis
Before selecting a product, it’s crucial to clearly understand what’s possible on Amazon. At TurnKey Product Management, we focus on these key metrics:
- Website Revenue Per Month (if selling on your website before Amazon)
- Monthly Revenue on Amazon from #1 Seller
- Monthly Revenue on Amazon from #10 Seller
- Average Price of the Product
Our team at TurnKey has found that knowing your monthly revenue from your website provides a benchmark for your expectations on Amazon. The revenue from the #1 seller offers insights into the market’s maximum potential, helping set realistic goals. The 10th seller’s revenue gives an idea of the lower end of the competitive spectrum. Lastly, knowing the average price ensures your competitive pricing strategy aligns with customer expectations.
To gather this valuable information, we utilize powerful tools like Jungle Scout’s product database and Helium10.
Category Viability Analysis
At TurnKey Product Management, we conduct an in-depth category analysis across the platform. To select a category with room for new player growth, we ensure:
- Search Volume: High search volume indicates strong demand, with many potential customers looking for the product. A low search volume shows less demand meaning it might be harder to launch and scale the product.
- Number of Competing Products: A high number means the market is saturated, making it harder to stand out. A low number means there is lower competition meaning it could be easier to break into with a new product.
- Search Volume / Number of Products Ratio: A high ratio suggests a market with high demand but relatively low competition, offering a better opportunity for new brands.
- Average Number of Reviews: A high number means products have been on the market longer and have built customer trust, this could mean a specific category is harder to get into. On the flip side, if brands have less competition it will be easier to compete since you can get your reviews counts up to compete with them.
- Opportunity Score: A high score indicates a promising market with a good balance of demand and manageable competition.
How We Validate Category Potential
At TurnKey Product Management, we leverage powerful data tools like Jungle Scout and Helium10 to validate category opportunities. Jungle Scout supplies actionable intelligence across products and niches, while Helium10 offers unmatched intelligence for granular keyword tracking.
We also conduct manual assessments by searching for products, analyzing reviews, and exploring alternative competitor angles that no algorithm can provide. This layered approach of data analysis and manual verification gives us 360-degree confidence around niche viability before investing in product development and launch.
Rules for Assessing Product Viability
Once category green lights materialize, we at TurnKey progress to evaluating specific product opportunities. Key considerations include:
- Identifying Our Differentiator: Discovering one standout way to make our product fundamentally better is essential. We recommend heavily investing in R&D and consumer testing to uncover this difference-maker.
- Price Point: Based on our experience at TurnKey, products ranging from $9.99 to $150 convert best on Amazon. In our experience, this leaves room for promotions, and Amazon fees, and keeps you competitive on Amazon.
- Replenishment Models: Subscription consumable products provide built-in revenue continuation. With Amazon’s features like Subscribe and Save, Reorder Coupons, and Subscribe and Save Coupons there are built-in strategies to help you gain a customer for life with the right repeat purchase product.
- Size and Shipping Limitations: We aim for lighter, smaller goods to try to keep Amazon Fees as low as possible. Before launching on Amazon we highly suggest using the Amazon FBA calculator to ensure the Amazon fees work with your margins.
Building a Thriving Brand
At TurnKey Product Management, we believe building a thriving brand on Amazon encompasses crafting a vision around personality, expansion roadmap, and target consumer archetype. Key considerations include:
- Defining Your Brand Avatar: When selecting your next product you must consider your customer avatar throughout the entire process to make the product is a great fit for them.
- Expanding Your Catalog: We recommend mapping out 5+ complementary items for potential expansion under your brand’s umbrella. The more products you can offer the easier it is to scale your brand and continue to provide value to your customer.
- Avoiding Commodities: We encourage brands to identify value-added products easier to build community around.
Activating the Right Backend Processes
At TurnKey, we encourage every brand to have core components installed ahead of launch, including:
- External Audience Priming
- Refined Brand Assets
- Compelling Content
- Channel Readiness
- Margin Validation
By following these updated rules and leveraging the expertise of TurnKey Product Management, your brand can rapidly join the 7-figure club other sellers only dream of. You can download our Product Research Template here.
About TurnKey Product Management
Jeff and Jenna Lieber from TurnKey Product Management provided this article. TurnKey is an Amazon consulting company that sells over 8-figures in revenue for its clients each year. Whether you’re just starting or are an Amazon expert, TurnKey can help take your sales to the next level. Visit TurnKey’s website for free resources and training on how to scale to 8+ figures on Amazon. Plus, you can contact TurnKey there to help scale your business.
