3 SIMPLE keys to find winning Shopify products (not overcomplicated)

Hey, welcome back. In this critically important video, I want to cover the top three keys to finding winning products. And these are the top three most important things. Of course, there's different variables like the level of competition and stuff like that, but really, if you get these three right, you're 80, 90% there. Okay, so let's cover the theory high level pretty quickly. It's pretty simple. And then I'll walk you through five different examples and exactly how these three things apply to them. Okay, first thing is cost, or in the E comm space, it's often called cogs. Cost of goods sold. So essentially, how much you pay to get that product and to get it dropshipped. In the beginning, we're of course, drop shipping. If it works, you're profitable in the future. You can go to supplier and order it in bulk, right? You can put your brand on it, charge a lot less, or pay a lot less per unit. And so the math can work in your favor even more so in the future. But of course, right now we're starting with drop shipping. We also, you want to account for shipping, right? Because you're gonna have to pay the shipping unless you pass that cost onto the customer, although typically they enjoy free shipping. So you want to find something for really cheap that you can charge a lot of money for. So the math and the economics work in your favor. Think about it. You're gonna have to pay for ads, right? So if you spend 10 or $20 to acquire a customer it and you spend 5 or $10 for the product and shipping, well, you need to be able to charge at least double of that to get a 2x return, right? And ideally 2x would be the minimum goal. And ideally, you want to get a 3 to 4x to really be able to scale it and make a lot of money. So you can do the quick math in your head, like if this thing costs five bucks and say it'll be 15 to get a customer, so we're at 20, you should be able to charge at least 40 for it, ideally more. So the second variable is pricing, and it really comes down to perceived value. Because if you're selling a product that has some utility and or solves an important problem, such as a health issue, well, then you're able to charge a lot more for it. And then lastly, the VOW factor. It's a common name that we use in the industry. If you're looking for the more business term. It's called USP Unique. So selling propositions. So your product, including the ad, has gotta Be something new, different, so that you make the competition irrelevant. You gotta keep in mind that there's different options. People can search for the same product on Amazon and potentially find it for cheaper and faster shipping. So how can you really create a wow factor, something that makes them want to have either an impulse purchase or makes them want to buy your product without researching the competition? Now, sometimes the product alone has such a unique selling proposition that it gets the job done. In some cases, the product is not so unique, but the ad is so well done and it's so well demonstrated the result and the benefit the product gets them that it handles the wow factor for you. Okay, so to recap, it's very important. It's simple. You got to get something for really inexpensive. You got to be able to charge a lot of money for it, so the math works in your favor. And. And it's got to have some sort of a unique selling proposition so that people don't care about the competition and they just want to make an impulse purchase and directly buy from you. So now I'm going to walk you through five examples. So this is an actual product that we used to run. We made over 600k in 6 months. And I'll walk you through it. So this baby phone toy cost five bucks, including shipping. Of course. It's cheap plastic. When you press the button, it would make some noise. And. And that's it. Now, if you look at the pricing, the baby was often steal the parents, grandparents, phone, play with it, mess it up. So it was a problem. They wanted to pay to get that problem solved. So we were able to charge up to $29.99 for this cheap plastic. Initially, we started with $19.99. We got some good results, and then we split this to $24.99 up to $29.99. Now, when people bought it, to increase the average order value, we also had upsells. And I always recommend that now, upsells are something that's congruent and consistent with the product, not competitive. Right. So once they bought this toy, we simply showed them two other toys that they could add to cart with one click. And then some people would pick them up as well, thus making more money. Now, the reason why this worked, I believe, is because it looks like an iPhone. Right? So people subconsciously associate the value and how much an iPhone costs to this toy. So we could charge a lot more for this cheap and expensive product. Now, another key factor, I think, that made us successful is the fact that many parents Grandparents have multiple kids, grandkids. So we've noticed that very often instead of just buying one phone, they buy two, three, four or more, right? That increased our AOV average order value, thus our profits too. So think about it. If we paid five bucks per shipping and product, we paid around 10, 15 bucks per sale. If people bought say two of these for 60 bucks, then we had some really healthy margins there. And that's why we were able to do so much money in such little time. Here's another example. Hydrogen water generator bottle. So this one, there's various ones out there, but this one specifically costs 10 bucks. So quite inexpensive. Now, in terms of the benefits, it has major health benefits across her health stemming from molecular hydrogen. If you want to research it, you can look into it. There's hundreds of studies in terms of anti aging, reducing oxidative stress, cognitive benefits, enhanced recovery. It pretty much impacts each and every organ because the more hydrogen goes into it, the better it performs. So because it has these health benefits and because you look at the alternatives, you know, medicine, going to the doctor, going all sorts of therapies and different procedures, there's expensive thousands, tens of thousands of dollars. So when people are given this option, like, hey, you can pay 100 bucks or 200 bucks to get this bottle. It's reusable, you can make as much hydrogen water as you want. It seems like a steal. It seems like a really good option compared to everything else that's out there now, of course, when you're marketing, you want to also put the right disclaimers at the bottom of the page, like, hey, this is not a medical device, it's not FDA approved. The information on this page is educational purposes. And you link them to all the research like, it's important that you do this right and sustainable for the long run, right? And also the wow factor. Not only that, this is a new product, so it had little competition. It's a cool design, looks good, and again, it's reusable and a lot cheaper compared to buying like expensive oxygenated hydrogen water that you find in the stores, right? They can be like 10 bucks a pop or even if you wanted to install like a home water filtration system, reverse osmosis, whatever it might be, we're talking minimum hundreds, typically thousands of dollars, right? So this is one of the unique selling propositions that when you compare it to everything else that's out there, it's a steal to pay a hundred bucks or 200 bucks one time and you get this reusable water, hydrogen Water generator bottle versus buying all this other stuff. Another example. So this is an under eyes red light therapy device, right? So you put it on his glasses, it sits right under your eyes and it's super duper cheap because it's just some red lights in there. So you can buy this for one buck. This is a perfect example of what a winning product looks like. And it improves these under eyes, dark circles, bags and wrinkles that a lot of people have issues with, especially females, they pay more attention to these kind of products, but even men. So this client was able to charge up to $79. And one of the reason why is because the wow factor. It's a new product, it looks unique, it looks cool. In the video ad, people put it on their face and they've never seen this, right? So they kind of have to stop. It's almost like a pattern interrupt, like what the hell is this? And then a person explains, like, man, I've been paying all this money to get under eye fillers. Or I consider surgery, which are all thousands of dollars. Even makeup, which is obviously a recurring revenue stream for these companies. Companies a lot, a lot of money. When you compare it to that, like you can pay 79 bucks one time and then this thing is going to handle your under eye circles versus paying thousands of dollars for surgery or injectable procedures or even makeup, it seems like a steal. And then you can imagine the margins on this are insane and the client is making a ton of money. Another example, a lucid dreaming sleep mask. So this one in particular costs 850. And really what it is is just a regular sleep mask with some red lights installed into it. So when you fall asleep, there's a timer, it starts flashing these little six red lights into your eye. Now if you haven't heard of this, you can research lucid dreaming. Essentially it's a practice, so you don't need a mask for it. You can also do exercises, stuff like that, and you can lucid dream yourself. But I've used these myself because it does help a lot. Right in your dream, when this starts flashing, you're actually going to start seeing these little red lights within your dream. And then it acts as a mental clue for you to realize that you're actually dreaming. So with this lucid dreaming practice, you're literally able to kind of like awake within your dream and then control the dream and do whatever you want to do. It's pretty cool. You should look into it, try it. And because of that, you can take a little sleep mask that maybe costs a few bucks to manufacture. You, you could probably get this down a lot because this is really cheap to make and you can charge up to 50 bucks because of the utility. So that's the wow factor. It's new and there's literally entire communities forums dedicated to lucid dreaming. There's many people interested in this stuff and they're finding this valuable. If this tool helps them lucid dream every night, they're more than happy to pay 50 bucks for a little sleep mask with some red lights in it, making it a lot more valuable in their perception than just a regular sleep mask. Lastly, this is a portable video projector. So this one, there's various ones on the market you can buy for 15 and 38 bucks and helps you project up to 4k video on a wall or even the ceiling. So this client charged 1, 47 for it. And because of its unique shape, because typically they're rectangular or a box. And Also it is 180 degree projection angle so you can literally point it on the ceiling and just watch your from bed. And because it replaced the need for expensive TVs, you know, a lot of people don't have the 500 bucks or thousand 2K to get a 4K TV. So this becomes a perfect solution for them so that they can project their Netflix whatever they want to watch and pay a lot less in comparison. Again, you're probably starting to see the pattern is whenever I go through these products, essentially the way it's positioned that the value they're getting is insane. You know, pay 100, 200 bucks instead of paying thousands for a water system, right? Pay 79 bucks instead of 2000 for under eye fillers, right? Pay 100 bucks, 150 bucks instead of 2k for a TV. So this is why these products are so successful. Because of these three main keys. The cost is little for you to acquire it and ship it to the customer. The pricing, because it has utility, it solves a problem. You can charge a lot more. And then a lot of them have a wow factor. So they're new, they look different, they're unique. Either the video ad can really well demonstrate the benefit the before and after. Therefore, it gets a lot of clicks and it gets a lot of clicks for cheap. And you can imagine the cost per acquisition becomes a lot less. And then you just do the math. You know, you spend 38 bucks to get the product, maybe you spend 20 bucks for a sale, and then you make 150 in return. And then there's upsells and different things that you can do to optimize the average order value. Well, this is why they become so successful. So when you go through your product research, you need to understand that your product must meet three out of three of these criteria to have a chance at success. It's still not guaranteed, right? You still have to test 5, 10 different products to find a single winner. That's normal. That's a part of the game. Now the reverse is also true. If you get something generic, right, that's expensive and there's no perceived value utility benefits, so you can't really charge a lot more for it, it's not gonna work, right? If you get a generic, you know, back correcting vest. Or I could give you so many examples. There's plenty of bad products, right? Like just something generic, something they can find on Amazon for cheaper with faster shipping. There's nothing new. The margins, you know, you get it for 15 bucks and you can charge maybe up to 20 for it that people are willing to pay. Okay, like the math is just not going to work. You got to account for the ads, right? And then eventually when you have a VA or different softwares that you're paying for, it's still very inexpensive. Even VAs you can get from overseas and pay them, you know, very little in comparison to the US So there's not any other major expenses, but really the main one is the ads, right? You gotta think about the ads next to the cost of goods sold. And you just gotta do the quick math in your head and like, if I charge more for this, how much can I charge for it compared to the cost? And can you make plenty of profit? If the math doesn't make sense, there's no point in testing that product. So hopefully this helps. One final recap and keep it simple. Get something for very cheap that you can charge a lot of money for and has a wow factor so that you can market it well. It's unique, it's different, thus making the competition irrelevant. All right, hope this is helpful.