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Amazon FBA Product Research - 
Why Search Volume Doesn’t Matter!

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Recently Kale Abrahamson and Taylor Hiott, co-founders of Nine University, the immensely popular Amazon FBA training program sat down to expose one of the biggest myths Amazon sellers must deal with while doing product selection.

Amazon product research is a topic they are very familiar with, in fact, it is one of the cornerstones they built Nine University on. Early on they created a formula that turned the FBA market on its ear and is now considered by many to be the industry standard when it comes to picking a product to sell on Amazon. The 7/7 Score.

The 7/7 score is a formula that takes into consideration three things vital to the success of any Amazon FBA seller. Demand, competition and guaranteeing an ROI that should be profitable after paying all of the fees and advertising costs associated with selling on Amazon.

After watching this discussion take place, I thought it would be a good idea to summarize what they talked about and to show why it is no secret Kale and Taylor are so good at making money on Amazon. So, let's begin and see why their advice is the opposite of all the other Amazon FBA gurus, as we dissect their recent presentation about how having a low search volume for specific keywords don't matter as much as many of the other gurus say.

How People Typically Do Product Research For Amazon FBA

Success with Amazon comes down primarily to be able to find the right product to sell. Typically, one of the main factors people tend to look for when coming up with a product is the search volume of a particular keyword. Let's say you would like to sell a Wireless Charger for a smartphone.

A common first step would be to type in a keyword in Amazon, like "Wireless Charger" and then open Helium 10's X-Ray tool, and see what the keyword volume is for that keyword. Currently, that term has a search volume of 234,000 searches per month. That means every single month approximately 230,000 people come to Amazon and search for that search phrase. Now, let's try another search phrase and we'll use both examples throughout this article.

Let's say the second product we're searching for is a Square Ottoman Tray. We again look at Helium10 and see the monthly search volume for Square Ottoman Tray is 277. That means every single month approximately 277 people come to Amazon and search for that search phrase.

Now, as someone who wants to make money with Amazon FBA, it's pretty obvious which product you would pick to sell, right? One has 234,000 people looking for it every month, and one has only 277 people looking for it every month. Most people would instantly say the Square Ottoman Tray is a terrible product, simply because there just aren't enough people looking to buy that product.

But, is that true? Will you really make money selling Wireless Chargers than you will by selling Square Ottoman Tray?

Enter the 7/7 Score

As mentioned earlier, the 7/7 score is one of the key points most successful Amazon FBA sellers use to determine if a product has the potential of being profitable. It helps you determine if there are high demand and low competition for a product. This formula was created by Taylor and Kale, the founders of Nine University.

When sellers combine the power of the 7/7 Score along with a knowledge of the sourcing price, their chances of success jump through the roof. I should note sourcing price for the purpose of this article means the cost of a single product to manufacture, package and ship to Amazon.

Taking a Closer Look at Wireless Chargers and Square Ottoman Trays

Now, let's take the 7/7 Score into consideration with our two examples.

The 7/7 score for Wireless Chargers is 10/0
The 7/7 score for Square Ottoman Tray is 8/8

Let's break this down so you understand what the data is saying based on the 7/7 Score.

The first number of the 7/7 score determines the demand for a product. It is specifically looking for the number of products in the top ten that make at least $5,000 every month on Amazon.

The second number for the 7/7 score determines the amount of competition for a product. Specifically, it is looking for the number of products in the top ten that have fewer than 75 reviews.

The Wireless Charger has 10 out of the top 10 sellers making at least $5,000 every month, whereas the Square Ottoman Tray has 8 out of 10. Those are both excellent numbers.

Let's check out the second number.
The Wireless Charger has 0 out of the top 10 sellers with less than 75 reviews, whereas the Square Ottoman Tray has 8 out of the top 10 sellers with less than 75 reviews.

That means, the likelihood of success based on the 7/7 Score, the Square Ottoman Tray has a FAR superior chance of being more profitable than the Wireless Charger.

Here's why.

When most people on Amazon shop, they tend to buy from the results on the first page after they search. very rarely do they scroll down to the second page. Almost nobody goes beyond page 3. Do you? When was the last time you searched for a product and scrolled down to the 15th page before you made your choice?

So, we know one major success factor with Amazon FBA is the higher you rare in the search results, the more you will sell.

Here's the problem. The higher the search volume a keyword has, like Wireless Charger, the harder it will be to get your listing on the first page.

Conversely, the lower the search volume a keyword has, the easier it will be to land on the first page.

So when we break things down to their most basic, which would you rather sell?

There is an almost zero chance you'll be able to launch a new wireless charger on Amazon and end up on the first page of search results. In fact, I would bet you would be lucky to end up anywhere on the first 50 pages.

However, it would be pretty easy to end up on page one for Square Ottoman Tray, and if you can get at least 10 reviews for your product, there is a very good chance that you can snag a portion of those 277 people who are searching for square ottoman trays. Even if you 4% of those people bought, you would still make about 11 sales every month. Compared zero sales of the wireless, charge, because remember, nobody is going to scroll down to page 50 to even find yours. So, 4% of zero, is still zero.

I'm Not Doing This to Make 11 Sales Each Month

At this point, people will almost always ask, "who cares if you are on page one if only 277 people are searching for your product"?

Well, that's the thing. only 277 people are searching for the phrase "Square Ottoman Tray". but what about those searching for "Ottoman Tray Square"? There are 230 more people searching for that phrase. Don't forget those searching for "ottoman tray square large". - there's another 170 per month. And don't forget the 1,546 people searching for "square ottoman" - I bet they might want a square ottoman tray, right? All of these smaller numbers add up.

But the 7/7 score takes all of this into consideration. Again, let's remember what those numbers mean...

The first number of the 7/7 score determines the demand for a product. It is specifically looking for the number of products in the top ten that make at least $5,000 every month on Amazon.

The second number for the 7/7 score determines the amount of competition for a product. Specifically, it is looking for the number of products in the top ten that have fewer than 75 reviews.

If a low volume search phrase like "square ottoman tray" has a 7/7 score or better, it means the sales are and revue is likely there. By definition, if it has a 7/7 score, it means the vast majority of the people on top of page one are making at least $500 on sales every month, and the vast majority of the people on top of page one have less than 75 reviews.

The Second Half of the Equation

The only part we haven't talked about that will play a major factor in determining the likelihood of success is your ROI.

You need to be able to get your sourcing price down to a number that will allow you to make a high ROI. I personally shoot for a minimum of 200%. That means for every dollar I spend on my product, I'll make $3 back.

That's it in a nutshell. By now you should be able to see that search volume doesn't matter. It's all about demand, competition, and ROI.

These simple concepts are at the core of every Nine University program.

Wherever you are in your Amazon FBA journey right now... from not even started, to deep into selling product, we can help you get to the next level.

Start by watching our FREE 20 Minute Amazon Training:

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