The best way to double or triple your sales and profits is to simply double the number of products you are selling. It is hard to keep ranking a product up – and some markets are simply too competitive.
Even if you review all the numbers carefully before launch and do everything right – some products will be successful and some will flop.
The more products you launch – the more likely you will be to succeed in the long term.
In this article we cover the top 7 tips for adding new products to your Amazon marketplace.
Tip 1 Constantly Searching
Block off at least one day a week to do product research and sourcing for new items.
Even if you don’t have the cash to expand right now, you might sell your existing stock in the next month or so. Instead of reinvesting into the original item it might make sense to try a new niche if your first product was a flop.
Either way you always want to have the next two products you’re going to launch ready in development so you can move ahead fast.
Don’t let it interfere with your existing Amazon products, but realistically you only need 2 to 3 days a week to monitor and optimize your existing products.
Tip 2 Flop
If you had a flop and you can’t get one of your products to sell after optimizing, doing extra marketing and spending more on pay per click, it might make more sense to move the money you invested in the first item across to a new item.
For every 10 products you launch maybe 2 do better than you expect, 3 to 5 do okay and the rest fall behind what you expected them to sell.
Tip 3 Success
You need to have new products ready in the pipeline because if your first product is a success it can spin off cash very quickly for you to reinvest in growth.
You might even have the money for a new product within a month of launching the first product. It’s always best to build up enough cash for around 1000 units including freight, packaging, promotion and initial pay per click before going into a new item.
Tip 4 10
Your goal should be to get to 10 products that each make you $3000 or more in net profit after all expenses.
Once you hit this level of $30,000 a month you can rapidly expand your Amazon and e-commerce business. It might take testing 20 to 40 products before you get to this magic number of 10 good sellers.
That’s why it’s essential you build a list of at least 50 potential products that have good metrics. Source and develop the next 3 products at a time. Any more than that and you can overwhelm yourself.
It’s better to do 3 products at a time rather than one because something may happen to make one non-viable, such as the landed cost might be just too high.
Tip 5 Cut Low Performers
Even if an item is selling okay on Amazon you may want to cut it and reinvest the funds into a high-growth product.
Check all your SKUs and optimize them. If after 3 to 6 months they are still not performing at 10 sales a day or more, it’s worth not buying more stock but funneling the cash into one of the products you’ve already prepared.
Tip 6 Cross Sell
When adding products you should focus on those that you can cross-sell to your existing customer base.
For example, if you are selling a kitchen spatula, consider adding a chopping board to your range. Marketing and getting sales is 60% of the work to make a product successful.
If you are already familiar with the niche it’s much easier to get the product selling. You could also use the same factory or agent to manufacture your second and third items.
At the beginning this saves a lot of time and effort and helps to rapidly expand and build a brand. When launching a first item, consider what extra 4 to 5 items you could add to your range.
Tip 7 Expand Off-Amazon
When you have hit five successful products on Amazon you can begin to use some of the money to expand into an off-Amazon e-commerce shop.
You may sell items in your own shop that you don’t sell on Amazon. Take a day to map out your plan for expansion of products on Amazon and off-Amazon once you have this level of success.