Whatsup guys! My last product launch case study was very well received. So I have decided to do another one. Only this time I will cover the full process! So I will show you exactly how I:
- Find a new product.
- Manufacture & ship it.
- Launch & promote it.
Just like the last case study, I will not reveal my product, but I will show you everything else. Hopefully, this will be a great learning experience for both new and established sellers.
So let’s get started right away. What I have done so far:
Product Research
I have found a great product with the Jungle Scout Web App! I spent about a week doing product research, and I am very happy with the product I found. Here are the stats:
If you have never used Jungle Scout before, this might be a bit overwhelming. So, let me break it down for you. When I do my product research, I want a potential product to fulfill these requirements:
- Minimum price: minimum $15.
- High demand: minimum $3,000 per month.
- Low competition
- Healthy profit margin
- Easy to manufacture
- Not seasonal.
So right away, I can see on the Jungle Scout screen that this product fulfills the first three requirements:
1). Price
The average price is around $29,99.
2). Demand:
Very high. Most competitors have more than $10k in revenue per month. The average is around $20k per month.
3). Competition
About half of the competitors have less than 50 reviews! The #1 only has 25 reviews, and #2 only 14!So yeah, everything looks very good so far. Now let’s check out the other requirements:
4). Profit margin
I did a quick price check on Alibaba, and the product can be purchased for around $5. I roughly estimate that the shipping will be around $1. So, my landed cost will be around $6. I will then use the FBA fee calculator to see how much profit I can make on this product:
If I priced this product around my competitors’ prices ( $29,99 ), I would make a net profit of $12,79!!! So around a 200% ROI on my $6 investment. So far, everything is looking good!
Need Help with Product Research?
I have a Beginner Product Research Tutorial here. This tutorial will show you the basic checklist of what to look for when picking the right niche!
I also have an Advanced Tutorial in the form of an E-Book. Here I will show you 3 unique product research methods I use myself when doing product research!
You can grab a Free Sample of My E-Book if you drop your e-mail below!
5). Easy to manufacture
Not really. This might be the only problem with this product. It consists of two parts. One part is made from a material that is kind of hard to manufacture. I have never manufactured a product from this material, and I know nothing about it. I can imagine I can easily get scammed, paying for the premium quality material and receiving low-end material. This happened to me before.
So, I already did a bunch of research on this. I spent some time reading about the different types of materials I can use for this, what materials my competitors are using, checking the reviews, and finding out what customers have to say about the different types of material. I feel a little bit better prepared right now, but this is still an issue that I should focus on when I’m in the manufacturing phase.
6). Seasonality
This product is not seasonal. Of course, I still like to look at the statistics and find out if there is a trend in the market. So I pulled up the Historical Sales with Jungle Scout:
So, this is the history of sales for the #1 seller in this niche—the guy who makes $87k a month. As you can see, there is a clear upward trend here. It’s very good to see this!
7). Bonus!
All the competitors are selling the product in the same color: black. So, a very easy method I can use to differentiate myself is to start selling the product in a different color. This way, my product will definitely stand out in the search results. I will have to discuss with suppliers if this is possible and how much the extra cost will be. But this is definitely a nice little bonus!
So let’s sum it up:
| Requirement | My product | Fits requirement | |
|---|---|---|---|
| Price | + $15 | $29,99 | Yes! |
| Demand | + $3,000 | $20,000 | Yes! |
| Competition | Low | Low | Yes! |
| Profit Margin | + $5 | $12 | Yes! |
| Easy to manufacture | Yes | No | No! |
| Seasonal | No | No | Yes! |
I am very happy I found this product. Like I said, the major issue might be a quality control issue. Since it is not very easy to manufacture the product. And I don’t want to receive a low-quality product, as this will result in a low review rating. But yeah, I am willing to take the gamble on this product.
Next up, I will contact different suppliers, request samples, and negotiate with them.
Stumbled upon your blog yesterday and have been through most of the content already.
Loving it so far and I can’t wait to see how this new product pans out!
Good luck!
Hi, few questions:
1)Aren’t the first 2 listings sponsored? It may not reflect their real success. Maybe they spend a lot on PPC
2)How can you estimate shipping costs today, with all the trade war and Trump tarriffs which increases the cost of tax to pay? It affects the vast majority of products already.
1). First 2 are organic.
2). I have a couple of products that are similar size so I can roughly estimate the shipping cost based on that. I estimated it quite rough, most likely will the real shipping cost be lower ( somewhere near $0,8 – $0,9 ). You can lookup your HS code and check out if your product has been hit with a tariff increase. My last forwarder (Flexport) was kind enough to check all the products I had imported in the last 12 months and only 1 will be affected with the new 25% increase. Not sure if Im really lucky, were you hit by the last 25% increase?
Hi,
Is Junglescout still the best research practice?
If we don’t live in America,where do we pay the Trump taxes, when do we pay taxes?
I still use Jungle Scout as my main product research tool. Can’t give any advice on taxes as I am no expert on this and don’t want to get sued for giving wrong advice.
Hi mate and thanks for the time you spend showing us your progress.
Is it possible to get a bit more details on your search process:
1) you choose one category and stick to it until you have found the right product ?
2) do you go methodically through all the results provided by JS ?
3) when you say you found your product in 1 week was that full time ?
I’m in the search process and find it quite difficult, like searching a needle in a stack of hay…
Thanks again.
Hello,
It’s so beautifuly described :+1:
when will you publish the second part ? Can’t wait ..
Thanks in advance
Dear what personal skills you should have like when you want to do listing and editing photos so if i start this business what are those personal skills that i should have ??
thanks in advance
Did you not write the following parts?