The Puzzling Case of the Struggling Amazon Product
I recently encountered a fascinating scenario that left me scratching my head. An entrepreneur approached me, seeking help with a product that wasn't selling well on Amazon US. He believed the root cause lay in how the product was presented. Now, as someone who thrives on contributing meaningful solutions, I wasn't about to jump to conclusions. Before diving in, I needed to analyze the competition and understand the entrepreneur's perspective.
The entrepreneur was fixated on the product's visual presentation, having meticulously crafted a mood board showcasing professionally created, mainly 3D visuals. It was evident that he had a clear vision of the desired aesthetic.
The recipe for a bestseller on Amazon is a delicate blend of ingredients:
Addressing a genuine need (though sometimes, the need itself can be created)
Competitive Pricing
Compelling product visuals
Persuasive copywriting
Positive reviews
Advantageous comparisons to competing products
While visuals and copy are crucial elements that customers encounter on the product page, there are other behind-the-scenes factors that can make or break a product's success. Aspects like fast delivery, after-sales support, and the ability to deliver on promised functions often surface in reviews, shaping the overall customer experience.
As for the pricing dilemma, I observed a wide range within the category, with some expensive models raking in an impressive 10,000 units per month at $59 each. That's a staggering $590,000 in revenue! Now, while a portion of that would go towards Amazon fees, production costs, and shipping, even a conservative estimate of 20% net profit would yield a respectable $118,000 in net income. Of course, such sales figures aren't attainable overnight, but they serve as a tantalizing glimpse of the potential.
With a clear understanding of the landscape, I meticulously analyzed the best-selling competition, dissecting their strategies and identifying areas for improvement. Armed with these insights, I crafted a comprehensive presentation outlining a roadmap to success. The entrepreneur was elated, brimming with excitement at the prospect of implementing these ideas.
However, the euphoria was short-lived. When it came time to discuss budgeting and timing, the entrepreneur balked at the proposed investment. Despite aspiring to compete with the best-selling products in the category, he insisted on cutting corners, opting for mediocre imagery by retouching photos taken by a photographer in China. It was as if he expected to outshine the competition's polished visuals with a shoestring budget.
I found myself perplexed by this mindset. How could someone meticulously design and manufacture a product, only to skimp on the showcase that could make or break its success in the online marketplace? It was a puzzling dichotomy—while others thrived, this entrepreneur seemed content to settle for mediocrity, unwilling to invest in the critical elements that could propel their product to new heights.
This experience left me pondering the paradoxical nature of entrepreneurship. While some embrace the challenges head-on, others seem content to sabotage their own potential by cutting corners in the areas that matter most. Perhaps this is a lesson in the importance of recognizing the value of investment, not just in product development but also in effectively showcasing and selling that product to the world.
