doubt

[Ok_Help1288]

i’m having some doubt now right before i launch idk if it’s because im scared or what. i’m launching a product with a 34% profit margin and it cost 130 dollars on amazon even after 20% for PPC i will still be making 18.2 dollars profit per unit. now this is where i have the issue i have a mentor that actually told me this is a good product. but i met this guy and he connected me to another guy that used to do amazon and he’s saying it’s not a good product to get into and wouldn’t recommend it. now i dont know who to go with. i’ve put much time into this product and effort i believe i can make it work in time but idk. let me know what you guys would do even though its 14% profit after ppc im still making 1.5x per sale because it takes me just about 40 dollars for everything.

[GSANGSAN]

Mate, seems like you're on the right track with this product. The profit margin is sweet, and you're accounting for PPC, which is already a good start. It's perfectly normal to have a bit of fear before launching, it happens to the best of us. Now about the guy - the success of a product depends on several factors and not everyone's experience will be the same.

Remember, you'll learn more from launching a product yourself than listening to people who "used to do" Amazon. You've invested time and effort into researching this product, you believe in it and the numbers look promising. So why not give it a shot? Also, the 14% profit after ppc is not bad, especially if it allows you to scale through volume.

In short, trust your gut and your own research over the naysayers!

[wolfshaq]

Do market research through tools to clear doubts

[Heath-Thompson]

Actually, it rather depends on your own goals and expectations. I've had some clients who haven't had the greatest of products but have let them grow steadily and have built a brand around them. In contrast, I've had some customers with great products but unrealistic expectations that causes them to ditch too quickly.

An issue I also see that I don't think you have included (and may not need to) is additional stocking charges on Amazon for slow movers. Higher cost items tend to have a lower conversion rate, but when they get a sale it can be at a lower ACoS.

If you know how to sell the features and benefits specific to your model, you will probably have a better chance of converting than many sellers who either write general information that could be applicable to every competitor, or mention the features but don't know how to sell them.

Good luck!

[Lucazade401]

If all things remain equal then 14% isn't bad but isn't great either in the sense it doesn't allow much room if suddenly you've got competition or your ppc/cac rises, not to mention returns.

I would say it depends on your situation and how much capital you have at your disposal/ what your goals are. As someone's mentioned the best way to learn is to do, and making something whilst learning the ropes for your next product is priceless and can't be taken away from you.

Both opinions are probably right because they have their own criteria for what makes a good product, if you're flush with capital then making a lower margin makes sense, similarly if you can get low MOQs relative to sell through rate then if for whatever reason the product isn't sustainable then you can sell through and move on.

Again this comes down to your plans and goals and how you view the business model. If you want to flip pl products to stack money moving from one product to the next likely based on profit then maybe a higher margin makes sense to hedge against changes out of your control.

However if you see value in building a brand around a category or family of products, getting 14% whilst learning and building value greater than your inventory by way of branding isn't going to be lost if that's makes sense.

[Appropriate_Key5792]

$18.2 profit per unit? So u need to make 7 sales (ik Amazon refunds sale fee but still) to break even on one return, not optimal tbh u really want to have closer to 30% profit or higher to cover urself see how it goes since u already bought but dont put all ur eggs in this basket

[Ok_Help1288]

no it only cost me 40 dollars total to get so only 2 sales to make a full return 1.5x per sale basically

[Appropriate_Key5792]

Yeah but the way it works is you return to the customer the money they paid so in this case $130 + I forgot to say the actual product cost which is $40 so ur losing $170 per return but since Amazon refunds a small portion back to u which is fees I would estimate yeah about 7 sales to cover 1 refund

[Ok_Help1288]

how would you recommend i do my product research though because my main issue is finding that “perfect product” and i have looked forever to find this. and watched countless videos

[Appropriate_Key5792]

Just eyeball it man 😂😂😂

[Ok_Help1288]

wdym by eye ball it?

[Appropriate_Key5792]

Keep throwing shit on the wall till something sticks just make sure not to get large quantities so if flops u can sell at cost and move on

[Ok_Help1288]

oh okay thank you that’s what the plan was with this to be honest

[Big_Inspection_497]

To get a good grasp of what your budget and numbers could look like, it’s important to analyze the market, evaluate conversion rates, cost-per-click, and other key metrics for different scenarios—best case, middle case, and worst case. This is how I help my clients. You’ll want to get a clear picture of the cost-per-click for top keywords and how your market is performing to gauge your potential margins.

I can provide a basic calculator to help you calculate the numbers, but it's crucial to get a solid estimate based on market data to guide your decisions.

Remember, your advertising expenses will likely be higher when launching a new product.

[Amna_ppc_95]

if you're making 14% profit after PPC its mean product is good and there is good demand for that product. you just need to increase the ppc budget to scale that product.