Many Amazon sellers may be worried after reading the target market mining method. Generally speaking, a category may only have 1~2 hit products, and a relatively niche category may not even have a hit product in the traditional sense. If you brainstorm according to the above method, most of the product categories selected are niche markets, such as pet categories and pest control categories. Will this go against the hit model pursued by the Amazon platform?
Sellers are advised not to blindly pursue so-called hits, especially novice sellers. A hit means thousands of orders a day, but don’t ignore that it may take a lot of time and money to create a hit product, which is unaffordable for many small sellers. This is why I didn’t consider the pursuit of hit products as our consideration criteria when I talked about the target market mining method earlier. Small categories can also make a lot of money and the competition is relatively small. Now I will introduce the “10x10x1 rule” to readers to understand the “alternative” profit model of blue ocean categories.
The “10x10x1 rule” is very easy to understand. In a blue ocean category or a vertical market segment, we do not pursue high profits and large sales of a single product. We only need to ensure that a product can sell 10 units a day, and each product can make a profit of about $10. In this way, a product can make about $100 a day. If there are 3 such products in this category, then the profit for one day is $300, which is already very considerable.
According to this standard, it is not difficult to find 3 to 5 such products in a vertical sub-category. It is much easier to promote the subsequent promotion than to create a hit product, and the failure rate will also be reduced. In addition, if you dig deep into a category, there are definitely more than 3 to 5 products that can be measured by the “10x10x1 rule”. With the expansion of new categories and the creation of new brands, after a period of accumulation, the overall long-tail effect will slowly emerge, and these products can also achieve a large sales scale, and the conversion rate will be higher.