305 How to Choose an Amazon Product

In this episode, I talk with Sean Elias of Helium10 where he tells us how he got started with the company, what Helium10 is, the different tools offered for Amazon sellers, and how to choose an Amazon product.  

Background
Sean Elias moved from England to the United States eight years ago to learn and conquer the business world. He started his Amazon business, but the first product failed. Two years ago he began investing in mentorship and spending time talking with 7 and 8-figure sellers, most of which said they used Helium10 as a tool.  He attended a seller conference where he met the CEO of Helium10, and shortly after, got to work with the company.
Top Features of Helium10

Blackbox - Reduces the time spent trying to find your next hot product.

Also has a niche category search function

X-ray - Chrome extension tool used to research and help verify product

Do a search for that product, and that product’s keywords on Amazon and the chrome extension will give you graphs detailing monthly sales, how many reviews, etc

Cerebro Magnet - the largest database of amazon keywords and search data

You can use to find the keywords bringing traffic to your competitors

Cerebro Launch - How many products you need to sell/giveaway per day, for eight days, to get to page one

Tips for choosing your next product
You don’t want to get into a product with at least 3 competitors, but no more than 10, with over 1,000 reviews.

You want to also make sure that there are people on page one with over 10,000 sales and that they have 200-500 reviews, because they are easier to compete with
Process of finding a product

Use Blackbox and filter the products down to products that are making $10,000 or more per month with a maximum of 15 reviews.
Anything under 50 reviews is a new product launch that is doing well, meaning you’ll be able to do just as well selling this product also
You can go lower than that, but the lower you get, the broader your results, and the more likely you to find a product that you can invest in for less money. You might make a little bit of profit, about $300-500
From those smaller profit items, you can slowly climb to $10,000 or more of profit per month, which you can then compound and get into bigger items.

Breaking Into a Marketplace with a Small Budget
The number one thing is, you have to make sure your image is drawing attention as much as, if not more than, your top competitors. It catches the eye and is the best factor for conversions.

Amazon algorithm likes products that sell well over an eight-day period

Use Cerebro Magnet to find which keywords your competitors are using, and Cerebro Launch to help you get to page 1 within the first three days of your launch.

You can use PPC to drive sales. Even if you’re losing money per sale you are still getting lots of organic sales because you are on page one.
When Stock is Low
Because of the low amount of money invested, and therefore, inventory, you will probably sell out.

As you start to run out of inventory, slowly increase the price of your item by $1 per day, and track if the sales are dropping or increasing.
If you see the sales dropping, you can determine the limit that you can sell that item for.
Once you have so many reviews and you have the best images, you can then increase the price above your competitors.  
As soon as you run out of stock, close your listing.  

How to Get Good Value Traffic
You can contact influencers on YouTube and Instagram before your product launch who you can pay $500 to review your product on their platform. That’s a great way to get traffic from outside of Amazon without having to spend money on a Facebook ad.

It is important to create relationships with the influencers, and you can do that by:

Set up an Instagram and/or YouTube account
Create content so that they can get to know you
Message them, tag them in posts,