A Quick Update on Progress
Hey guys its Megan and this is week five of The Bootstrap Boutique. Thank you so much for coming back.
Today I just want to continue giving updates and being really transparent about the process Im going through about building an online amazon business, since now we know thats what I want to do. It’s exciting stuff, I know.
I got some samples in for a product I’m thinking about sourcing the good news is the samples are fine, they are exactly what I was expecting. The bad news is I only have samples from one supplier and everything I read online says you should really talk to multiple suppliers, so you are getting a good feel for the different products that are out there and different prices, but I’ve only so far been able to get this far down the road with one supplier and I’m just not sure…is that ok? should I do some more? On one hand its ok to take the time to do it but on the other time is money and I don’t want to loose steam and loose motivation. I want to keep moving forward. So i’m really just trying to weigh which one is more important right now.
Just so you guys know I”m not going to share the actual product that I am working on sourcing and hopefully selling on amazon. The reason for that is its really hard to find a good niche that doesn’t have a lot of competition in it and if you just blast it out there once you’ve found that area, you are really opening yourself up to other people swooping in and taking advantage of the work that you did. So its very common among people that have amazon businesses, virtually no one shares what it is that they are actually selling. There are two good places that you can go and that I have read and watched if you want to learn more about specific products, how people found them, how they sourced them and so on.
The first is Greg Mercer and Jungle Scout. He did a collaborative product launch which was really cool because what he did was he went through the whole process of finding a product, sourcing it, he was at the Canton Fair in China, and met with suppliers, did the marketing and launched a product called Jungle Stix. They are 3 foot long bamboo roasting sticks for marshmallows and stuff on the fire place. And he did that publicly and what they are doing is sending all the proceeds or the profit that they get from that product to charity. I think they are doing Doctors Without Borders which was a great idea and a great way to show people with an actual product how to go through the steps to selling on Amazon.
The other is a blog and youtube video series called Seller Labs and there is a guy there that did the same thing. He started with a retail arbitrage strategy where he was buying some kind of locally made peanut butter that was local to his area and he was selling in on Amazon. He moved into the private label space with soap molds, silicone soap molds, and that worked out really well for him too. So there are two places, there’s probably more if you really want to see a specific product where you can do that. It’s just because I don’t even really know what I am doing enough to invite that kind of competition in, I’m not going to share. Just so you know.
So like I said before, I did get a sample, I am trying to figure out if this is something that can truly be profitable for me. It is a lower dollar amount sell price on Amazon than what most people recommend that you target and thats because they have bigger margins. I can probably get a hundred percent margin on this, return on cost, depending on what I have to spend on advertising, it’s just of a smaller dollar amount right, so the net profit is lower. And I think that’s ok, I think that there are so many people out there talking about having to sell between fifteen and fifty dollars and you have to have a ten dollar profit margin and you need to sell ten a day and so on and so forth, that for people that are following those instructions and those guidelines, to me it seems like that area might be getting a little saturated. So I took the strategy of going to a lower priced product thats also selfishly less money up front, that I am fronting for these products.
So, we’ll see, it’s a gamble because there is less margin for error there, it could go bad if things go wrong. Luckily, this is money that I don’t necessarily want to lose, but I think its worth taking the risk. I recommend absolutely do not go into a product like this or a strategy like this if you don’t have any money that you can lose. This is going to be a pretty capital intensive project and that is something that you have to go into aware.