Is there a secret formula to profitability selling on Amazon?
Casey Gauss, owner of Viral Launch, says there is no one answer to fit all market niches. His coaches at Viral Launch helps brands to dissect the market you’re in, tell you what you need to do, and how to plan accordingly.
The biggest piece of advice for anyone looking to launch a product on Amazon is “don’t cut corners, and be willing to be aggressive”.
Identifying small untapped niches
There are still plenty of markets which are small niches and are untapped. There’s still so much opportunity for brands selling on Amazon.
When you’re trying to find them, put in the work and time to identify what options you have and don’t cut corners.
Casey recommends looking at sales to reviews ratios. In smaller markets, there generally aren’t many reviews which makes it easier for new products to launch there. There are always new trends and cycles, so the opportunity will always be there.
When you’ve hit 80% of your goal for one product, start launching more. Move fast to maximize your sales potential.
Predictions on the future of Amazon
Amazon has recently acquired Wholefoods and changed their algorithm, what’s next?
Casey thinks Amazon is getting more difficult to dominate as people come in with more money to invest in their product launches. But, if you understand the space then you’re ahead of everyone else.
He also thinks it’ll become more difficult to launch new products, and that brand registry will be pushed harder as the favor will swing their way.
With competition increasing, it’s likely there will also be a more sophisticated sales process.
Interesting products with lower competition on Amazon
With small markets, you don’t need to rely on hacks to win the game. Casey likes to look at the pockets with a low sales volume of 500 units or less a month.
The probability of a bigger seller coming in is low, meaning you don’t have to put in more effort to make it a success.
By flying under the radar, you can launch more products into these markets which amount to a high sales number combined.
With more expensive products which are pricey or difficult to ship, it doesn’t make sense to run a promotion. Casey says that these need to have a killer listing, run some sponsored ads to pick up traction, send to a list and try Facebook ads.
The beauty of these items is that a lot of people won’t break through the barriers to sell them, meaning low competition.
Reaching the pivot point of growing from a six to a seven-figure a month business
Once your business hits six figures a month, you reach a pivot point. You need to start building a team so you can operate at a higher level and not stretch yourself thin. Launch more products.
Casey is still in his 20s, but his company Viral Launch already has a team of 30. He calls the journey a “huge learning opportunity”.
He focuses on protecting the company culture and planning ahead for success. Hire people who are good at managing themselves, put in a structure for them reporting to you, and hire on skill and wait for the leader to emerge.