Product selection drives 90% of success in Amazon FBA because other metrics can be optimized later. A ladder can serve a homeowner, handyman, and contractor, each with different pain points. The deeper the pain point, the higher the margin.
Product selection is probably 90% of the work when it comes to Amazon FBA because everything else can be fixed, right? Impressions, click-through rate, conversion rate can essentially be fixed. Product selection though, let's say you are selling a ladder because I love the idea of people coming to me and saying, I'm selling this product, it's not selling, how can I improve sales? Well, think of this, a ladder has so many different options. A ladder can be targeting a brand new homeowner that will only be hanging up Christmas lights. Right. And the pain point is not that high. Well, let's say you are a handyman and you oftentimes you go to your mother-in-law and help her out and you need a ladder. Well, now you need a portable ladder that a regular ladder cannot go ahead and solve your pain point. Let's take it a step further and say you're a contractor, right? So now you have a bunch of different types of employees where you need ladders that are stable enough to go ahead and do different types of jobs. Well, the higher the pain point, the higher the margin, right? So next time you come out with a product, understand who's buying that product, and based on that, solve the biggest pain point, and you'll have the most amount of margin.
