🚩Red Flags to Watch for When Choosing an Amazon Product🚩

Here's what many new sellers overlook when choosing products:

1. Competing Outside Your Weight Class🥊

• It’s easy to get excited when you see competitors pulling in $1 million or even $10 million per month in revenue, but don't let that fool you! These big sellers are likely investing 1/3 of their revenue into manufacturing just to keep up with inventory. If you can’t maintain stock, you’ll run out, and restarting with PPC can be extremely costly, putting you back into the expensive "launch phase."

2. They Have More Money for Marketing💸

• Larger competitors can outspend you on advertising and marketing, driving way more traffic to their listings. Competing against their massive budgets can burn through your profits quickly.

3. Thousands of Reviews = Sales Velocity⭐

• Big sellers probably have thousands of reviews because their products have already been selling like crazy. Competing with that kind of social proof makes it hard to stand out, and building that level of trust takes time.

4. Brand Recognition & Social Media📱

• Many big sellers are well-known brands with strong social media followings, giving them an extra edge in customer loyalty and trust. If they’re active on social, their brand reach is way beyond what PPC alone can achieve.

5. Large Teams Behind the Brand👥

• These competitors often have entire teams of experts, from product managers to advertising specialists, working to keep them at the top. When you compete against them, it's like going 1 vs. many.

6. Established Supply Chain🚚

• Big players have streamlined supply chains and better supplier relationships, which means they can often get better prices and faster restocks than smaller sellers.

7. Dominance in Related Categories🎯

• They may not only dominate one product but also multiple related categories, giving them more opportunities to cross-sell and upsell.

 

Before you get excited about a product, make sure you're competing in your weight class! Look for opportunities where you can stand out without battling massive brands with deep pockets.