Emanuel Ruiz walks through the Ansoff Matrix applied to Amazon FBA, laying out the order to scale: first maximize sales to your current customer, then add product variations, expand to new markets like UK and EU, and finally launch new products for different customers.
Above is the Ansoff Matrix, and I'm making this video because a prominent figure in the Amazon FBA space gave his opinion as far as if you have a winning product, what is the next step? Is it to come out with another winning product? Is it to come out with variations? And the truth of the matter is that maybe he has a good sample size base to make a formulated opinion. The thing is, there are so many theories and frameworks that have been done by millions of brands already. And this is based just on history. What is the proper way to actually scale your business? You see, market penetration is when you go ahead and start coming out with a product and your number one job is to push as many sales as possible. This is going after one avatar and putting all the dollars behind that. The second phase is product development, which means you go out there and come out with different variations of the same product. That is what product development is. You offer new SKUs, new products to the same exact customer. Then and only then is it market development, meaning you still go after the same customer avatar, but now go to different channels. Maybe that is Amazon Europe. Maybe that's Amazon UK, because you are still going after the same avatar. You see, this is why there's an order to this, because you've already proven demand for your actual product. Meaning now it's trying to go ahead and capture more market share, because this is legitimately the safest way to scale. And then once you have done all 3, you market penetrated as far as putting more ads in there. You did product development. You come out with different SKUs already. You did market development that you came out with the UK, EU, uh, Del— uh, Australia, Brazil, then and only then is it diversification, meaning a brand new product going ahead and targeting a brand new avatar.
