Now that you have a killer product with a well-defined niche, some external factors can still affect your business.
Let’s take a look at some of them.
Strong competition vs. weak competition
It’s all about timing.
Are you entering a niche too soon? Not enough traffic.
Too late? You will struggle to take your place.
Low competition can be an indicator of a low-demand niche. Hopefully, that’s not the case, but if you can’t find many competitors with similar products, it can mean you’re too early. It can also tell you’re at the right time to launch the production of your product.
High competition means you have to spend money to get the proper rank. You’ll have to start with an aggressive push strategy. This could be lowering your price and creating an unhealthy ad campaign. Be aware of that!
Macro-trends and how they affect your business
Being early is generally better than being late to the game. However, for this to be fruitful, it must be a lasting trend. Except no one can predict the future; taking the wrong bet will make you lose money.
Some products are just a fad; if you plan to build a sustainable business, you should avoid them. Products such as fidget spinners and Poppit, took the world by surprise and disappeared into oblivion months later. Don’t let anyone try to convince you that a trend is starting. If they do, they probably have something to win.
Suppose you want to create a sustainable business on Amazon. In that case, you probably should focus on creating high-quality products that will solve a real problem in your customers’ lives. Focus on value instead of bling.
Amazon owns the listings and is an ever-changing marketplace
That’s almost the most complex point to understand for new sellers. You don’t own your product listing on Amazon. Amazon does. It’s their playground, and you’re just kindly invited to participate.
This means you have to respect their process and rules, even if it’s nerve-wracking (and it will be, we know it very well here at Intellifox!).
Now I hope you know a little more about some difficulties you may encounter in your Amazon adventure. Next, we’ll see the customer path on Amazon – how they discover and order your products.