TAS 117 The 3 Product Selection Mistakes and How To Avoid Them (#2 is HUGE)

One of the most difficult and time consuming parts of setting up a private label Amazon sales business is product selection. What are things you should do when picking a product to private label? More importantly, what are the things you should NOT do? On this episode of the Amazing Seller Scott’s going to walk you through 3 of the most commonly made mistakes when it comes to product selection. With each of those points he’s going to give you the details of what the mistake is, why it’s a mistake, and how to avoid it. Can you see how valuable this episode is going to be? Make sure you set aside some time to listen.

Depth of a product market is huge. What is it and how do you figure it?

If you are considering a product in a certain area you need to assess what Scott calls the “depth of market.” What is that? It’s a way of gauging the demand for a product to see if there is enough room for you to insert another variation of that product into the mix and have a chance of making enough profit. Figuring the depth of market has to do with analyzing the top 10 selling versions of that product and getting the average sales volume of each, from 1 to 10. Then you want to assess if the volume being sold is enough to leave room for your product. Sound confusing? It’s not that hard, but Scott explains it a lot better on this episode, so be sure to listen.

You also need to look at the volume and placement of reviews for the product you’re considering.

Why are reviews important? Because the amount of reviews a product gets, throughout all the variations and sellers, is going to tell you which of those products is a better seller and which are not doing so well. If you have 10 sellers of the same product and the top two have a ton of reviews, but none of the others have many at all, you might want to reconsider selling a similar product. Why? Because you’ll be fighting an uphill battle to make any headway in that niche – the top sellers already have the market on that product kind of buttoned down. Hear Scott’s explanation and tips on this issue by listening.

Considering price when you select a new product.

If you aren’t careful to look at the issue of pricing when you select a new product to private label, you could get yourself into a world of hurt. Let’s take an example. If you see 6 different products for sale in the niche you’re considering and one of them is priced at $14.99 but all the others are much lower, you’re going to have a hard time introducing a new product into that market. Why? Because it’s pretty clear that the main competition for that product is based on price, so it’s always going to come down to which seller is willing to make the smallest margin, which means you have to sell tons more products in order to really make a profit that’s worth all the effort. So be careful when it comes to price. Make sure you’re getting into a product niche that has plenty of room for you to fit in and take some of the sales. Hear more of Scott’s explanation of pricing and how it impacts product selection on this episode of The Amazing Seller.

Would you like a discounted copy of Jungle Scout?

What is Jungle Scout? The Jungle Scout Web App allows you to find more products, faster. Once you find the hundreds of profitable product opportunities, all you have to do from there is apply Scott's strategies for growth and scale and become a private label megastar. It’s an easy way to assess your competition, understand sales numbers on a product niche, and do product research that is based on the facts, not just speculation. If you want a discounted version of Jungle Scout, use the link below to get the discount offered to The Amazing Seller community.  


  • [0:03] Scott’s welcome and introduction to this episode about product selection.
  • [1:14] Scott’s shout out to Troy Smith, TAS community member.
  • [3:00] Introduction to the top mistakes sellers make in product selection.
  • [3:27] The number 1 thing to understand when going into a market: DEPTH – and what it means.
  • [4:42] What is BSR (Best Seller Rank) and how do you use it?
  • [5:19] Something important to know about sales volume.
  • [9:54] The 999 trick to get sales volume on a product.
  • [10:45] Why depth of market is key.
  • [12:32] The importance of looking at reviews.
  • [13:59] The importance of doing research on a listing that seems out of place in the reviews and product rankings.
  • [17:22] Pay attention to the price – why it’s important.
  • [19:16] Review of the 3 mistakes.
  • [21:39] Get a discount on Jungle Scout.


Each of the following are equivalent to 10 sales per day:

  • Baby: 3,400 (Sept.)
  • Beauty: 9,000
  • Cell Phone 7,000
  • Grocery 4,900
  • Health and Personal Care: 14,000
  • Home and Kitchen: 16,000
  • Home Improvement: 5,500
  • Kitchen and Dining: 6,800
  • Office Products: 4,500
  • Patio, Lawn and Garden: 2,200
  • Pet supplies: 3,500
  • Sports and Outdoors: 8,000
  • Toys and Games: 6,000


Get your discount on Jungle Scout: www.TheAmazingSeller.com/JungleScout (affiliate link)

Scott’s free workshop  – https://www.TheAmazingSeller.com/workshop

www.TheAmazingSeller.com/FB – the TAS Facebook Community

Greg Mercer’s interview – www.TheAmazingSeller.com/56




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Join the discussion

  • Wonderful episode as always, thank you Scott! Learning about these 3 mistakes will definitely change my approach in product research and selection and I can’t thank you enough for the incredibly helpful information! Time to TAKE MORE ACTION!

  • Hi Scott,
    Thanks for the episode and sharing valuable information!
    I listened to this episode but I am still confused about the manual way of finding the depth of the market. I am starting out right now so can’t afford Jungle scout at the moment. Is there a manual way to find out the daily sales of the sellers through camelcamelcamel.

  • Hi!

    Thanks for this episode!

    Great info indeed!

    I am based in Europe and I sell in USA using arbitrage.

    As the market is shrinking and there are more and more competitors I am currently thinking about getting into private labeling in the USA or maybe in Europe too.

    The numbers of the main amazon categories you have provided here are for US market.

    Can you please advise how I can get same figures for German market or any other market where Amazon is present?

    Many thanks in advance!


    • Hey Luka, the main source for that information is JungleScout, but their main focus is the US and UK markets so I’m not sure if there is a list of the numbers for the German Market anywhere. You may want to reach out to the main TAS facebook group and see if anyone there has a good idea!

      • Scott!

        Thanks for you answer!

        I will drop the question on the FB page.

        Best and keep going!

        Happy and successful 2016!


  • Scott,
    Another episode of SOLID GOLD! (You’ve been on a bit of a gold-roll lately!) Love this content – it’s hard to appreciate the detail of this aspect until you’ve really crunched some numbers yourself a few times. I can see a simple way to combine JungleScout and Excel to actually statistically analyse the data and automate the process you outline – I’ll give it a go and publish the finished product to the community. (Just like you do, the sharing and caring works both ways, right!!).
    Cheers from Brisbane, Australia.

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