Much like the fortune seekers that flocked West during the gold rush, a new generation of fortune seekers are rushing to a new destination to find their piece of wealth. This new breed of fortune seeker is mining for gold on Amazon by starting their own FBA business.
Recently Kale Abrahamson and Taylor Hiott, co-founders of Nine University, arguably the largest Amazon FBA training program in the World shot a video for their YouTube channel in which discussed what it takes to find profitable products to sell on Amazon.
Two years ago Kale Abrahamson and Taylor Hiott started their Amazon adventure by searching Amazon for random products they thought might sell. Kale and Taylor did what many people do after finding a potential product. They started ordering samples of products from suppliers so they could judge the quality of the products they wanted to sell.
They had a small closet in their Pittsburg office where they would store the samples as they came in. When they would launch their product, one of two things would happen. They would either sell, or they would bomb. The products that would bomb, would just be thrown back into the closet. In no time, the closet was overflowing with products that were losers. As time went on, they had to cram more losing products into their tiny closet.
And that brings us to today. The closet is still full, but they've upped their Amazon FBA game, and they aren't putting as many losers is the closet, because they've gotten a lot better on finding winners.
How have they done it?
It All Comes Down To Product Research
Product research is one of the key pillars of success with Amazon FBA, and it is a topic close to Kayle and Taylor's hearts. In fact, product research is at the foundation of every course put out by Nine University.
So, back to the early days of the infamous closet mentioned above. As they grew more and more tired of their overflowing closet, as well as their desire to stop wasting money on losing products, they started to analyze what the differences were between the winning products and the losing products. They studied the data. They looked at all of the factors and determined it came down to just two basic things.
First, the winning products had to have a high demand. In other words, for a product to be successful, they theorized there would have to be plenty of people on Amazon who want to buy the product. That means they couldn't just randomly start searching for random products on Amazon that they thought 'looked cool". They had to find a product that people wanted.
Second, they realized they wouldn't be able to compete with people who were dominating their market. As an example, if they were considering selling a wireless charger for a smartphone, they'd go to Amazon and search for the phrase "wireless charger" and they would see the first page was dominated by sellers who have products with thousands, or even tens of thousands of four and five-star customer reviews. There is just no way they could compete with them head-to-head. These companies could outspend them on every front. Think about how you shop. if you were looking for a new toaster and you saw one product from Hamilton Beach that had 12,000 five-star reviews from people who were very happy with their purchase, and one product from a brand you've never heard with zero reviews, who would trust?
So after analyzing the data, they come up with a basic formula they would follow. The product should be high demand and low competition.
After some tweaking and diving into the data head first, they fine-tuned the formula into something that is now considered by many to be the industry standard when it comes to product research on Amazon. They named it the 7/7 Score.
The 7/7 score is a formula that takes into consideration two things that when followed will greatly improve a seller's chance to find a winning product.
Breaking Down the 7/7 Score
When applying the 7/7 Score to an individual product one can see the product strengths and weaknesses in the marketplace. At least in terms of sales.
Your goal is to find products that are at least a 7/7. The higher the product ranks on the 7/7 meter, the better. The highest-ranking on the 7/7 scale is 10/10.
Let's breakdown the numbers so you have a better understanding.
The first number of the 7/7 score determines the demand for a product. It is looking for the number of products in the top ten found on the first page of Amazon's search results that make at least $5,000 in sales every month. If at least 7 of the top 10 are making $5000 or more in sales. That means there are obviously many people buying the product.
The second number of the 7/7 score determines the amount of competition for a product. It is looking for the number of products in the top ten found on the first page of Amazon's search results who have 75 or fewer reviews. That means there is very little competition for you to compete with.
If a product scores at least a 7/7, your chances of success greatly increase.
"There are 119 million products on Amazon," Kale said. "So you have to somehow narrow down from 119 million to those that could actually have success on Amazon. The 7/7 Score is one of the best ways to narrow them down."
The Birth of Boost Nine
However, the 7/7 Score was missing one critical piece of data. That missing ingredient is ROI.
That lead them to develop the Boost Nine software. This software would combine the power of the 7/7 Score along with metrics that would tell exactly the price you need to source your product from the supplier.
7/7 Concept Gains Popularity
At the end of 2019, mega FBA software company Helium 10 worked with Kale and Taylor to incorporate the 7/7 Score into one of the Helium 10's product research tools, Helium 10 Xray.
Taylor believes 100% in the strength of the 7/7 Score, and he has called their Boost Nine software a "supercar" as far as tools to assist with product research.
Kale and Taylor are just two guys who sell on Amazon and who have a teaching platform to teach others how to sell as well, One thing they are not, however, is software developers. Other than developing Boost Nine, they currently have no plans for more software. So when the 7/7 Score was incorporated into Helium 10 software, Taylor was ecstatic.
"I love Boost Nine. People use it every day to find 7/7's," Taylor said, "But after Helium 10 added it, it's like we drove our little supercar onto an aircraft carrier."
Improving on Boost Nine
When Boost Nine was introduced it had a neat feature called "related markets". It allows you to press a button and search for search phrases that may be related to your original search. this allows you to research even more products with the push of a button. When Helium 10 incorporated Boost Nine, they also added that feature. Helium 10 Xray searches for related markets at the same time you do your search.
Take a look at the image below to see it in action.
Let's say you searched for a specific type of kitchen faucet called a "pot filler faucet". As you can see currently the search term "pot filler faucet" is not quite a 7/7. It's currently a 6/7. It's close, but it doesn't pass the 7/7 score. However, if you click the "Related Markets" link next to the 7/7 score, you'll see Helium 10 provides you with a list of related search terms, and as you can see, it found 3 search phrases that all passed the 7/7 Score.
Can you imagine how this one feature helps you speed up the entire product research process? It's simply amazing.