How many times have you seen headlines or emails saying that “Amazon FBA is Dead!”
Or heck, maybe you even thought that yourself.
Even though most of these headlines on YouTube videos or emails are just to get your attention…
There is something to take away from that question of “Is Amazon FBA dead or still worth it?”
With the short answer being – yes, the old way of doing Amazon FBA is dying…
But just like every business on the planet, it’s just evolving, not dying.
And when things evolve, the old guard or people who don’t evolve with it, die.
The people who change with it though, or come into the space with fresh eyes, have a wide-open opportunity to take advantage of the people who have been ‘sleeping’.
And that’s exactly what’s happening right now with Amazon FBA.
You see, while everyone else is fighting over scraps in oversaturated markets, selling the same old products…
A new wave of opportunity has emerged called Microbrands…
What is a Microbrand?
Well, thanks to social media and the internet, we’re seeing hundreds of new trends, interests, and communities popping up daily.
Each of these creates brand new niches and emerging markets that never existed before.
We want to find these small new niches and build a highly targeted brand in this space.
Why?
- There are thousands of passionate buyers waiting for someone to sell them the products they want
- Competition is minimal, giving you a chance to dominate your own “blue ocean” market
- You can build a loyal customer base that keeps coming back for more
Let me give you a real-world example:
One of my clients discovered a very niched-down category in arts and crafts.
They started with a premium end product in that category, and in a couple of months, they were the top seller doing around 42% margins.
Once they realized that it was working and the reviews were showing this was exactly what the customers were looking for the whole time…
They launched over 20 variations of this product to expand their brand and dominate the category even more.
They were then able to start a Shopify store around this product, and get influencers in the arts and crafts space to affiliate this product because it was something they all used and were proud to share with their audiences.
The best part?
They’re not constantly fighting against copycats or racing to the bottom on price.
They’ve built a brand that their customers love and trust.
This is the power of the Microbrand approach.
Now, you might be thinking, “Sounds great, but how do I actually find these micro niches and winning products?”
Great question!
Here’s a quick overview of the process we use:
- Use product research tools and Google trends to identify niches that are growing in popularity (big difference between a trendy product and a product niche that is trending upwards!)
- Dive deep into niche market research to understand what customers really want on social media, reviews, long tail keyword searches, and a massive bonus if you are passionate about the niche and know what is missing (you can not be lazy on this step!)
- Use inventory tracking to actually see what sales are on the market and how deep the sales are throughout the space
Now this is a simplified version of this strategy, but with this data, you can create products that truly stand out and quickly become the go-to brand in your chosen micro niche.
But here’s the real secret sauce:
Once you have your first winning product, you don’t need to scale it to the moon.
We are not looking for those types of product niches.
We want to find fields that can do $10,000 – $20,000 give or take per month with a single product.
Then we use what I call the “Horizontal Scaling” method.
This means:
- Launching additional products and variations in the same micro-niche
- Building a catalog that serves your niche market and creates a brand that goes hand in hand with that type of customer
- Creating a website and social media around your brand (easier than you think when done right)
This approach allows you to build a stable, diversified business that’s far more valuable (and less stressful) than trying to hit home runs with individual products.
If this is something you want help with or is exactly what you are trying to do, this is what we do in our AWA mentorship.
Where we will:
- Teach you step by step how to find a product niche like talked about above
- Check the product ideas before you invest in your first order
- Help you create a personalized launch plan for that specific niche
Sound interesting? You can book a call with our team here.
Otherwise, I hope this email helps you understand how you should think about Amazon businesses in 2024.