Advanced Product Criteria (9 Different Things To Look For)
in this video. Eric's gonna give you some more really great information about what to look for when choosing a product. I don't want you to feel overwhelmed while you're watching this video. We've included the most important things that you need to remember in this sheet called the advanced product criteria sheet. And we recommend that you download and take a look at the sheet before you start this video you can find it in your resource pack it or download it as an attachment to this video. In this video. We will cover advanced product criteria. Let's go through the physical product specifications. Is the product viable? The first one is the five X. Rule. If you know anything about venture capital they typically aim for a 10 X. Return on their money. But we are aiming for a five X. Five X. Rule You can purchase including shipping for less than 20% of the sales price. Amazon takes approximately a 50% sales commission Then an extra few dollars for handling packing fee. So let's just say ...
they take about 30% of the total sales price. This leaves you with a 50% profit margin. Not bad personally. I like to have at least a 40% margin on my products which is why the Five X. Rules so handy. Low minimum order quantity or M. O. Q. You've heard me talk about this little before but this is basically the least amount you can get of a quantity. And just remember when we go through alibaba this minimum order quantity is not the minimum at all. So make sure your initial purchase can be for less than 500 units. Too much inventory in the beginning can be a prophet killer. I usually recommend for a first order between and 300 units depending on the category and item. Even if you're convinced that your private label product is a winner, I would highly recommend that you start off with a small order as possible. So you can prove the concept and make sure it sells. It's a horrible feeling after 1000 units and you find that nobody's buying your item and now you have to worry about long term storage fees and you just have to try and minimize your losses. Even if your supplier charges more per item by game, 100 units is always a safer play because you can always come back and order 1000 or more than that. So let's go through the market conditions. Is the market viable first, does it have a high RPR RPR stands for revenue per review. High revenues. Okay, but high revenue and low review count is much better. Here's how you would calculate RPR first, you're going to find the market leaders monthly revenue or anybody for that matter. For example, the top seller makes $24,000. Just so you know, we're going to show you how to find the monthly revenue of these products later by using Google extensions number to divide the revenue by the number of views they have. For example, it has 45 reviews. Let's take $24,000 divided by 45 reviews. The RPR or revenue per review is $533. That is a great RPR. So what does it mean if you compete with a similarly optimized listing for every review, you earn about $533, if you eventually overtake that competitor, it's not really a perfect metric, but it does produce a clear yes or no decision when looking for items to private label in review. Low R. P. R. Is bad and high. R. P. R. Is good. Does the product have multiple keywords? Is the product search for found and purchased through various keywords. This is a great way to make sure there are enough searches and there will be enough buyers for your product. You can benefit from this when it comes time to optimize your listing and search for amazon paid ads. For example, check Do the top three keywords in your category combined to over 100,000 searches a month. We'll show you how to do this. But we're going to use Google adwords to do this. Does the design stand out? I can't emphasize the importance of great branding because there are so many sellers on amazon that are so sloppy with their marketing by design. I don't only mean product design, I mean copyrighting pictures, packaging and so on. Be honest with yourself. Can you really market this product properly? A great thing to look for is a product where the seller cannot market it properly. You can market so much better. Go there and dominate that category. Is it patented? Just like I talked about before, suppliers in china don't really care about patents in the U. S. You need to do your own due diligence but remember I'm not a lawyer and you have to contact legal counsel. You can check out google patents to see if this item is patent or not. We'll show you how to do this later. Is there an upswing of the trend? We're going to go show you how to check google trends to see if the product you're considering has a trend. Are they going up or down if they're sending because consumer preferences or current events and the trend will continue. That's great. Is it brand, herbal and customizable? Can you improve on its physical form without great expense. For example, can you throw a brand logo on it? Make a helpful modification, a handle or a foam codeine, fixed form factors will leave you less room for differentiation. The product you pick can start a cohesive product line. Your products shouldn't be a one off after you sell something different. Make sure it's part of a larger vision that you can cross solid customers who can buy initial product A with similar product. B Can you add any bonuses or free gifts? Think video handout bundling or e book. In this video, we talked about advanced product criteria. Congratulations. You've completed Meego One what you look for in a product. In the next video, we're going to get started with mini goal to where we will use our basic product criteria to find three products. And our first task in Me Eagle, too, is to choose a product category to start are searching.