Amazon Product Research: See How Our Fiverr Gig Went
Kris Gramlich and Dustin Kane discuss amazon product research and a test they did with ordering a gig off Fiverr.
How did it go? What products did they recommend for them to sell? Will they order from Fiverr again? Would this product be profitable?
We go into details about these 2 product research files we were sent after ordered our Fiverr gig.
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Amazon Product Research: We Ordered A Fiverr Gig
– Hello everyone. And welcome to episode 84 of two Amazon sellers and a microphone brought to you by Sellozo. Today I’m joined as always with Kris Gramlich. What’s up man, how are you?
– Good I’m glad it’s Friday. I’m looking forward to the weekend.
– It is and it’s also, the Royals are back in action.
– We had a little clarity yesterday. I got the win. So it’s fun to have baseball back in action as always blast. But yeah so today we’re gonna have a little fun here. You and I did a little experiment. We went and we ordered a gig of a Fiverr. We wanted to see if there’s something that you and I haven’t done in a long time. Just sort of reaching out for gigs where you’re or looking for product research ideas. So we just decided to test it out order a couple of gigs off Fiverr for product research and see what we got back. And we got something back.
– Yeah, I mean, that was about all we got back is something. Yeah so what we do, we went to Fiverr, we took the, we typed in product research for Amazon. We hired a gig on here to do product research for us to find, to find us a product, right. It didn’t take long. We ordered it on the 30th of March and we didn’t give any stipulation. We didn’t give any like criteria or anything. We just wanted them to find something that’d be resourcing. So this is the danger of doing that. Like you get back like if you don’t know what you’re looking for especially new sellers you could get something that you think is good and it’ll just be a bad experience. So the bad product that is. So we got something back on the second today and kind of wanted to go over what we got back. So we got two products back.
– Yeah before you go into all that Kris, I think this is the reason why we wanted to do this test. We wanted to see sort of what we would get back. So someone who’s just starting today if they’re going through this process right now where they’re trying to get help on the product research they might be getting something like this back and they might think it is an attractive option. And I think we’re going to go through all the reasons why these are two products you probably would not want to launch.
– Well this cost us $40 to get, took a couple of days to get something back. But this is just to show like, this is super important step. Like product research is something you really want to make sure you focus on have criteria to do a lot of it. Like make sure it’s something you really want to go after. If you just did this product. I mean, yeah, you get your feet wet and you’d get used, you’d learn the process, you know, but by the time you source this product and get it on Amazon and that’ll be six months from now, it’ll be completely saturated. And it is already saturated.
– These two are definitely already saturated.
– For sure
– There’s no telling how many people have ordered this gig. And if he’s sending the same products to them or not, I mean, danger is this could be done. So this is just sort of a cautionary tale. You definitely we’ve talked about this in past episodes of the criteria we do when we do product research and how we’re looking for these. But let’s, let’s talk about what we got back. So we got back two spreadsheets with two products. Why don’t you talk about the first one, Kris?
– First one we got back, it’s a CSV file. And first one we got back the search term is pop it, p-o-p i-t, for anybody who doesn’t know what that is. It’s simply just a piece of rubber that has little pop bubbles that you can just pop it, moved back and forth. It’s like a fidget fidgety tool, right? Is that right Dustin?
– That’s exactly right. And they’re, they’re wildly popular. I mean, it’s basically a never ending bubble wrap thing. I mean, you can, you can keep popping up over and over and over again. But if you take one look and if you type that in on Amazon and you take a look at the competitiveness of that product and the price of that product, I mean this goes against almost every single criteria that we would ever ever say. I mean, some of these are six dollars, seven dollars,
– Let’s look at it here. I’ll pull up the screen and let’s just kind of talk about why we wouldn’t do this, like things to look for. So pop it. First of all, it was very, very generic. Just you know pop it. I mean, that’s, that’s the term. So the competition, it was like, oh, let me share my screen. And for those of you watch or listening to the podcast it’d be worth going over to YouTube and checking out this video. So let’s just break it down a little bit, a little bit more. We got some time. Okay so pop it again it’s these little tools or these little plastic things that rubber things you just pop these little bubbles and they come in different shapes, different colors, but they’re popular right now. And so first thing I see, Dustin is the low price point. Like these things are super cheap.
– 10 bucks, 15 bucks.
– There’s a whole lot more that are cheaper than that too. I mean, you guys are, you’ve got, I saw some that were, five dollars, six dollars, seven dollars. And there’s a seven dollar one right there. The higher priced ones are like bigger multi-packs and you can see that. Yeah there’s a bunch of different shapes and colors but you can see as you scroll you see the same ones over and over and over again. And there’s–
– I can see why this guy picked it already because there is a lot of low reviews on here. 14, one, the 175, 95. I mean the, the top seller on the word pop it, has 67, but they’re selling a three-pack.
– Right now you do have one that’s a little further over that’s got 653 reviews.
– They’re good. They’re probably super cheap to source probably less than a couple bucks. So I mean, if you got the capital, I don’t know if I’d still get into it. It would still be something I would be cautioned on but–
– Yeah, there is one way that this potentially would work. Interestingly, this is a, I’m not in this product, but this is a niche that I am in with these kinds of like sensory type toys. And I have a brand name that’s established. That would be one way you could potentially launch into a competitive category. Like this is if you already have some traction and some brand awareness in there in ways to drive traffic like from other product listings in here. But if this is your first product it’s going to be so difficult for you to really succeed on this type of product for your first one. I mean, it’s low price point. So you’ve definitely got direct Chinese factories selling direct on Amazon who are you’re never going to be able to beat their price. Right. If it’s price is low, the danger when you have a category like this also where there’s so many sellers competing just on price, because there’s no other way to compete with a commoditized product like this, that you just see price wars all the time. There’s always going to be somebody with a huge coupon a huge discount, a huge price reduction that, your price is never going to be the normal price. There’s going to be a ton of people liquidating and doing all kinds of things. So it’s, this is–
– You’ve gotta figure out a way to be different. And besides this making different shapes and different colors, I was just sitting here thinking, what if you made like a massive one, like so massive, where you jumped from one step to the other. Like it was so big. It was so big, like took up your whole, like a square footage of your driveway and you just have a bunch of neighbor kids jumping around on it or something.
– That would be different.
– That would be very different
– That would put you at price point that would get you away from all the people that are that are trying to buy low priced items. You’re right. That is ways that you can take this kind of information and turn it into a unique product. I can see you Kris out in your driveway with a giant bubble pop it.
– Just a giant like to keep it separate, you know, you could charge 200 bucks or 250 bucks for one and be six feet by four feet or whatever it is with the dimensions. And you just have a giant thing out there really your kids jump on it or something. I don’t know just a different idea but you would be in that price point, you could charge a premium price, because I’m not seeing anything that massive. They’re all pretty handheld on this one.
– You’re right now there’s a couple other things. Cautionary tales about something like this is these are kind of trendy right now. I mean these are kind of like fun little toys that people are playing with at the moment they’re popular. The popularity could die overnight. And it’s really difficult to jump on trendy products like this. I’m not sure what made this popular, but something, somebody’s out there talking about these that are making them very popular and that’s dangerous. I mean I’ve talked about this before on this podcast as well. I’ve personally made this mistake. I sold fidget spinners and well I should say I tried to sell fidget spinners and it’s not that many because of these same issues. It was a hot product. And when I jumped in it basically had died by the time I was ready to go. So cautionary tale this product is, is that the best seller?
– Yeah bestseller in nesting dolls. So something a little tricky there. Yeah, something a little tricky there. The seller sourced it around the middle of January sold a few, started out at $17, had to lower their price to 12.99 and then they lowered the price to 7.99 and they just raised it to 9.49. So it’s–
– Here’s just go to a different product on there. I guarantee you are going to see the exact same trend. You’re going to see, this is what happens in these markets. This is what happens every time is people come in they think theirs is the best of the bunch. They get the best pictures. They’re trying to set a higher price and sure enough they have to keep lowering it and lowering it and lowering it over time to compete. Well, they tried to raise theirs. They were–
– Same deal.
– Yep same deal. They were up high. They had to drop it way down. Looks like they’ve played around with trying to raise their prices over time. But they were nowhere near that starting price. And you know that starting price that they launched with was what were they’re making all their calculations on profitability and all of that with, and now they’re, I mean, it almost looks like they’re trying to liquidate now.
– I mean, this is eight dollars for one. Let’s see what the profitability calculator has to say. We’re using helium tens profitability calculator. So if you if you get it for a dollar 60 which that’s what Helium 10 is estimating you’re making a dollar 68 every time you sell one.
– What are the chances of your PPC spend stays under a dollar?
– Yeah, yeah. And your advertising. So other costs let’s say you spend 500 bucks a month on advertising. Now you’re losing money pretty quick.
– Yeah, so cautionary tale, product one that we got from this Fiverr gig is a total bust. I mean, that is just straight up picking a popular product. That’s all they did. They said this popular product and they did it, now product two, is of the same vein. Another trendy hot product right now that we got. So what he sent us for the second product that he would recommend sourcing is the spurtle. If anybody’s watched TV in the last month you’ve seen 400 commercials as seen on TV commercials for this spurtle which is a wooden spatula that supposedly is magic because it fits perfectly on the edges of pans shows you how well their commercials are working. I mean the fact that I even know that is it’s they’re working, but here it is, this is the spurtle. So almost the same thing. Some of these are a little bit higher price, but you know the price wars coming on these suckers, I mean, there’s going to be $10 options really soon on the spurtle and it’s a set. If you look, they all look the same, very hard to differentiate. I mean, what are you going to do? They’re wooden spins and spatulas, you know some are trying to differentiate on the number and the quantity, but–
– I like what this guy did. So we’re looking at it, he’s got the, the original tools, but then he’s also thrown in like some tongs, some type of like noodle catcher thing brush but he’s added more tools than just the original four five that you’re seeing on TV.
– Yep well, again, I mean, how many months until there’s 12 listings that are those same products? I mean, this is, this is what happens. Everybody’s jumping in–
– There it is.
– Again they’re showing something, but okay, the almost entirety of this traffic I would assume right now, coming to Amazon, who even looking up the word spurtle right now is driven from those as seen on TV ads. What happens when that stops being advertised and they stopped selling that, I mean, is the traffic gonna drop a ton? Most likely, I would think. And so you could be setting yourself up in a super competitive niche and then ending up, you know, where traffic dies for this type of product.
– Yeah this is, these are two ultra competitive products. These are the this is exactly what we would say not to do on product launches is these types of products.
– I mean, I just, I can’t get excited about spurtle, whatever it is. I can’t get excited about it. I can’t feel like it’s all just wood utensils. Now, if you’ve got an existing brand, and you’re already getting the kitchen niche, then yeah, you should have definitely added this already to your to your brand. But the first time to start out, I would, I would stay clear, stay clear of this.
– So this, you know, we’re going to do, we’re going to do a series where Dustin and I are going to do some product research. Show you what we do and pick a product and test it out. We don’t know if it’s going to work or not. We’re just going to do it just to kind of do it. But this is, this was a good test, like going to Fiverr just ordering a gig for somebody else to do product research. And not, if you don’t know what you’re looking for you would think, oh these are great two products and go with it. But I think you know what we’re trying to harp on here is that product research is super important and you gotta make sure you do it right.
– I want, I want to talk about that a little bit more Kris, ’cause I want to talk about what the costs we would think would be to actually launch this type of a product. Well, let’s go through that in a second, but before we do, I’m glad that you teased our new project that we’re going to be working on here. Really excited about it. You mentioned it. We’re going to do a full YouTube series where we are filming the entire process. We’re fully transparent where we are going to go through everything from opening up an Amazon account to sourcing a product, to ordering it. It’s listings–
– Logistics, everything, and we’re going to film the whole part of it. So if anybody’s got a cool name for this project we haven’t named it yet, but we want to anybody out there, can give us a great name. Let us know. ‘Cause it be, we want to want to really make it pop, and we’re excited about it. But this was, we were like, well let’s just see what other people out there are doing with product research. Let’s see what a guy on Fiverr would say. So that being said why in number form would this be a bad product? Unless you’ve got deep pockets. So let’s just go with the basics. What do we think this would cost to source one of these? Right now we’re talking about the spurtle okay. So I mean, if they’re selling for 20 bucks, something on, on Amazon you can guess they’re probably sourcing it for like six bucks, or– typically that’s a good rule of thumb is 30% product cost 30% profit and 30% Amazon fees. That’s rough but you can typically guess what the sourcing is by taking a third of the price, a third of the retail price. But so let’s say it is six dollars. I mean you’re going to have to order a thousand of these suckers. So that’s six grand right there for the product to get a thousand of them now because of the competitiveness of this campaign or I mean of this product. I mean how many do you think you’d have to give away on certain keywords to even try to rank on page one?
– Oh, you’d have to give away a lot. Let’s just see let’s pull up a Helium 10 that’s what we like to use. We could just check it out. Like what are the, what’s their CPR method? And for that that’s like their estimation on how many you need to give away to rank to rank a product, to rank a product on there. So, you know, let’s see here, volume spurtle sets. Spurtle set gets 22,000 searches a month. You would have to give away 376 units over an eight day period. And that’s just an estimate. So, you know, let’s just say 500.
– Yeah so there goes half of your inventory right there for free. Okay now you’re out now you’ve got 500 units left. You’re ranked on page one. Now, you know, you’re going to have to, in order to keep that you’re going to have to be running ads a lot of ads because you got to maintain that ranking and you’re competing against a lot of other people that are as well. Here’s the other problem with getting in a niche like this is how many people at the same time are doing ranking campaigns. When you do a ranking campaign for your product you don’t really care about profitability. So you’re okay with expensive clicks. Well if 15 other people selling the same product are doing that at all times. There’s never cheap cost for clicks, it’s always going to be expensive. So to maintain that you’re, you’re talking about, I mean, a couple grand a month in ad spend for sure. Minimum. I mean, there’s it’s going to take a long, long, long, long time to make this profitable. Now, if you do, it could be sitting pretty, but that’s the, that’s the limitations. That’s when Kris and I are looking at products, popularity, that’s great. That’s one thing, but how easy it is to get into that niche, and sell and rank is a completely different one. I was looking at this one earlier that you’re looking at now, this might be the actual one that’s on as seen on TV which is another problem because this is the this is the product that everyone’s seeing on TV. And they’re typing in as seen on TV, et cetera. So it’s tricky. Now what Kris is doing right now is he’s taking a look at the negative reviews because maybe, maybe, there’s a way to make a product that addresses these issues. One, it looks like they stink.
– Yeah it looks like they stink when you get them. Smells like poo is what some says.
– Terrible odor. Okay that’s actually interesting, terrible odor. If that’s the case if you’re able to make the one spurtle that’s odor-free because for sure do you mean what are the chances that this person–
– I bet I know where it came from. I bet it’s from this handle being dipped or something because the handles dipped in some type of paint it looks like on these. So I bet they just smell like strong, like pesticides smells.
– Could be, could be the type of wood.
– Yeah. So that would be a big that would be a big turn off the smell.
– Yeah but what if you did launch one of these and you had the only one that said odor-free in the title. That could be a differentiator. I mean, if you, if we looked around at all of them, and if we saw something like that, similar, still tough to get in that niche, I would say it’s still tough to rank but that’s your way to do it if you’re out there and you’re just ordering another spurtle to throw up here. I think that’s you’re in for a long haul of not profiting for a long time on this kind of a product.
– Another one is the size too small.
– So, yeah, good. It’s always good to look at the reviews especially the negative ones when you do product research.
– And so this is the kind of stuff Kris and I are going to really dive into when we’re actually picking the product that we are going to launch. We’re going to spend a lot of time looking through different products, looking through, you know, how we can make them better, et cetera. So that’ll be a really, really fun project. We’re really excited to start that. This was just a fun little experiment. Let’s see what happens if we order a Fiverr gig apparently we’re not going to be able to skip this step.
– So we liked it so much we went and ordered another one, so we’ll do another episode where we’re talk about the other ones that we get back. I kind of hope we get the same products. That’d be great.
– I have a feeling there’s going to be a lot of that, but yeah. So cautionary tale, if you’re in product research mode right now, take it very seriously. It’s probably not the best idea to outsource that to someone who’s not going to be the one spending their own money on launching this product. You want to make sure that you really take your time. Don’t get into a super competitive niche. But that was interesting. That was really fun just to see what we would get. I’m not sure that was worth our $40.
– No, no chance. No chance that was worth $40. That was a $5 gig if anything.
– Yeah and that one had a ton of reviews. I mean, that was a, that was a pretty popular gig on there. So that’s surprising. I would have thought I’ve got a little something a little better, but hey, alright, well that is it for today. Everybody if you’re listening out there and you are excited about our new product launch that we’re going to that we’re going to video the entire process make sure that you are subscribed to our YouTube channel, the sellozo YouTube channel, that’s where we’re going to go live and actually walk through this whole process and document it. So you want to make sure that you’re subscribed to that so that you’re notified when we do go live we’re also going to go live on our Facebook on the sellozo Facebook page. So like the sellozo page and also turn on notifications on Facebook. You can turn on notifications so that when we do go live we’ll just pop up into the corner of your phone so that you can see us we’re at when we go live. So make sure you do that. If you’re listening on the podcast or if you’re not listening on the podcast either way make sure you go find our podcast on every podcast platform out there and subscribe to our podcast so that you can listen to us while you’re driving down the road to work. Anyway that’s it for today. That was a lot of fun, Kris. And we’ll be back at this again on Monday, have a great day, everybody.