This is the Friday Ask Scott episode of The Amazing Seller podcast where you (and people like you) get to ask their particular questions about Amazon sales. On this episode Scott fields question about choosing a product when the market appears to be very crowded, how to differentiate products, and what to expect when having products shipped from China. You’ll get a great taste from the type of things Scott is able to answer and learn how you can submit your own questions regarding Amazon private label sales, on this episode.
I have found a product possibility that looks promising but the market is very crowded. What should I do?
One of the things that you need to research when it comes to finding a product that could be a good seller on Amazon is the market that product is within. You want a product that is already on Amazon and selling fairly well, but if the market is too crowded you’ll have a very hard time getting your product to become a contender in that niche. BUT – that’s not always the truth. If you find a crowded market but many of them are not optimized well or are not getting many sales, you might have a winner, especially if you can differentiate your product somehow. On this episode you’ll hear Scott go over a number of ways a product can be created that is unique and draws in buyers, so be sure to listen.
Creating a bundle may be your answer to entering a crowded market.
If you’ve found a potential product that has great sales numbers in the highest selling products but is in a very crowded market, you can break in by offering a product bundle that meets more specific needs of the market. How do you do that? On this episode Scott talks through many of the things you can do to find exactly how you can make your products unique, get them into the market in a powerful way, and begin taking some of that market by adding value that nobody else is adding. You’ll hear it all on this episode of The Amazing Seller.
I got a quote from my supplier for shipping of my products but now that my products are in production the shipping has doubled? Is that normal?
A listener called in to ask Scott about what’s normal or customary when it comes to working with overseas suppliers. She’s already found her product and negotiated a deal on cost and features and the products are being produced now. But just recently she received an email from her supplier saying that her shipping costs had more than doubled – from $1000 to over $2500! She wants to know if that’s normal or if she should be skeptical and ask more questions. In typical style Scott goes right to the heart of the issue and gives some clear and practical advice on what this listener can do to find out exactly what’s going on. You can hear it on this episode.
Do you have an issue with your private label product that you’d like answered?
There’s no reason you can’t ask and get an answer. The Ask Scott sessions of The Amazing Seller podcast publish every Friday and are a great way for you to submit specific questions about Amazon private label sales and get an answer from Scott Voelker, and experienced Amazon seller. He takes questions from the most fundamental to the most advanced so don’t be shy about asking. You can find out how to submit your question on this episode of the podcast.
OUTLINE OF THIS EPISODE OF THE AMAZING SELLER
- [0:04] Scott’s introduction to thIs Ask Scott episode!
- [1:03] The issue of moving in Scott’s life, and how good is coming from it.
- [3:15] iTunes reviews are coming in!
- [4:56] QUESTION ONE: Can you clarify about how much competition is too much?
- [13:30] QUESTION TWO: I’ve got a possible product with great signs that I can get into the market, but there are many people trying to sell the product. What should I do?
- [23:20] QUESTION THREE: Do shipping costs change without warning or is my supplier trying to gouge me.
TRANSCRIPT TAS 223
TAS 223 : Ask Scott Session #66 – Your Amazon FBA Questions
[00:00:03] Scott: Well hey hey what’s up everyone, welcome back to another episode of The Amazing Seller Podcast. This is episode number 223 and session number 66 of Ask Scott. This is where I answer your questions here on the podcast. You submit them via voicemail and…
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…I do my best to answer them, give you my advice, my thoughts whatever. But this is the highlight of my week you guys know that for all of you long time listeners. Now if you guys are brand new to the show let me welcome you and say, “Hey thanks for stopping by.” Hopefully you’re going to learn something here from listening to this episode or all of the other episodes. If you haven’t listened to all of those past episodes go through and check them out. I’m sure that you’ll find the answer to your question somewhere in the blog or in the archives on iTunes.
But just welcome and if you guys are long time listeners I want to say thanks for coming back and spending the well I guess 30 minutes with me, however long this episode will be. Yeah, I really do appreciate hanging out with you guys. You guys know that this is the highlight of my week. Now let me just say here right now it’s kind of hectic in my life. We’re getting ready to move to South Carolina and my wife is literally right now as I’m recording this in the garage with my kids. They’re going through the garage throwing stuff out and packing things up and getting ready. We are going to be out of here in about a week and a half. It’s kind of scary I got to be honest. For those of you guys that have ever moved or made a huge change in your life, well you know that it can be scary. Going back to my story, if you guys have listened to my story episode 125, you probably know that I had a lot of times in my life where I was a little scared, a little nervous.
Always, just about all the time that that’s happened just about every time, I guess I would say every time something good came out of it and it always came back to, “Wow why didn’t I do this sooner?” Or, “What was holding me back?” And all of those things. I just want to let you know if you guys are thinking to yourself like, “Man, I just can’t’ get myself to do it.”
[00:02:02] Scott: Well understand that you’re always going to have those fears. It’s normal, we’re trying to protect ourselves from failure or from having struggles or pain because pain is sometimes going out there and meeting new people. It’s painful for some of us or people that don’t like to meet people because their shy or whatever, I get it. There’s always going to be these fears. I just wanted to bring that to the surfaces that right now currently I’m going through one of those points in my life but it’s kind of exciting in the same time. I’m leaving behind a place that I grew up my entire life so a little scary but pretty exciting as well.
If you hear any commotion in the background, I apologize but that is my family getting ready to pack up the moving truck here in about a week and a half. Really excited about that. The other thing I want to say here real quick if you guys are new or maybe if you haven’t submitted a question yet, you have a question, you can always head over to theamazingseller.com/ask and you can do that. You can ask a question. Just leave your first name and then a brief question and I’ll do my best to air it on the show.
Now before I do jump into today’s question, questions I should say, I did want to go back to the iTunes directory real quick because I’ve received a ton of reviews and I haven’t read any of these in a really long time. I wanted to pull up one here because I do still read them all the time but I just want you guys to know that I really do appreciate it. Also, you can almost be inspired by reading some of these but I just wanted to read this one real quick and if you guys have not left me an iTunes review and if you guys would do so that would be awesome. iTunes loves reviews and the feedback and all that stuff.
If you could do that head over to iTunes and that would be awesome. This one here comes in from Shotgun Rider or actually that was the title it comes in from Matt Price. Matt thank you so much for this but the title is ‘Shotgun Rider’ and then a five star.
[00:04:00] Scott: ‘Scott I wanted to take the time to hop on here and give my thoughts. I started listening to your podcast one day on my way home from work and couldn’t stop. The whole Amazon FBA business has always intrigued me and the way you go step by step with the basics is priceless. Sometimes it just takes a kick in the pants to get people off the couch and start rather than always just talking about doing something. I am getting close to that point and to date I’m around episode 22. Still need to catch up (smiley face). Thanks for the great content you provide. Your audio quality is superb, you’re easy to listen and I’m always looking forward to hitting play when I hop in the jeep. A true shotgun rider,’ and smiley face, Matt P.’
Matt thank you so much for that I really do appreciate it. To let you guys know I do read each and every one of these and they mean a lot to me so I really do appreciate it. If you could do that, leave me a review over there, I will read it and maybe I might even give you a shout out on the podcast. So let’s go ahead now and let’s listen to a question from you the TAS listeners and I’ll go ahead and I’ll do my best to give my answer. Let’s go ahead and do that.
[00:05:07] Mike: “Hi Scott, Mike from Colorado here. Just wanted to let you know that I do also think you’re doing a great job and agree with all the people who’re leaving you messages and telling you how helpful you’ve been. It’s definitely made a big difference.
My question is I just want a little bit of clarification between an episode you had with Greg Mercer and the episode you did The Seven Pitfalls of a Product Listing. On that episode with Greg, Greg specifically had mentioned if it had more than three pages or four pages of results for the main keyword, he would skip that product. On the pitfall episode, you had mentioned that you didn’t care if there were a 1000 people who were trying to sell that product if the first page had your criteria you would move forward with it. I just wanted to get some clarification on that because I definitely found some products where the first five products on a page had less than a 100 reviews and looked like they were getting volume of sales. However, there’s six, seven, eight, nine, ten pages of results that are all there. I’m not sure if I should shy away from that or not. Anyway any clarification you can provide I’d appreciate keep up the great work and thanks a lot.
[00:06:27] Scott: Hey Mike from Colorado thanks so much for the question, great question too by the way. The thing is with criteria, criteria is just, it’s kind of a place to start. I get this a lot. I get a lot of people that say, “Scott you say to find something light, find something that can fit in a shoebox. Find something that costs between $19 and $45. Find something that can easily be air-shipped and all of that stuff. All of that stuff that’s correct. That’s like stuff that I’d go buy but it doesn’t mean that it’s set in stone. Anything that I say is definitely, definitely not something that you have to follow. Like right now if you can find a product that you can source that’s oversized and that costs more than $60 and you can swing it, like you can do it, then do it. Your competition’s going to be less as well.
I wouldn’t say don’t do that, I would just say that’s going to be harder for you. By finding something that follows those other pieces of criteria is just going to be an easier place to get started. To go back to what Greg and I had talked about in episode 56 and episode 161, again guys I’ll link up all this stuff in the show notes.
There’ll be transcripts to this as well so if you guys want to go over and check that out this episode that’s theamazingseller.com/223, 223 that is. Here’s the deal, the days of taking a product and slapping your logo on it and then selling it, those are kind of gone. Can you still do that? Yeah there’re some products that you can probably get away with that on. But for the most part you’re going to have to make your product different or you’re going to have to come up with a different bundle. You’re going to have to do things a little bit more creatively. It’s just the way it goes. It’s just the landscape has changed and you have to adapt to that. I get a lot of people that says, “Scott don’t you feel that Amazon is just over saturated?”
[00:08:26] Scott: Yeah with people taking a product and slapping a logo on it and taking everything verbatim that I’m saying or anyone else’s recommending you can’t do that. That’s a place to get started and test, validate verify. Those types of things is great but then you do have to do your packaging to be a little bit nicer.
This way you can create a different, I guess a different look, a different design. This way here you’re not just pages upon pages upon pages of that garlic press. If I was to look at a product and I seen that page one results looked really good but then I seen that there was like 15 or 20 pages deep of the exact same product. Then you go over to Alibaba and you seen that exact same picture that they’re using on that page, I would not go for that. That would not make me feel comfortable doing that. Now with that being said, could I take that same thing and make it better? Then sell up against everyone else that’s doing the 15 pages of the exact same garlic press? Absolutely because I know that there’s volume there. As long as I look at the first page and I go, “Okay the first page there’s 16 results here,” and out of the first ten they’re doing 3000 collectively in sales.
Now I’m seeing like everyone’s selling the exact same garlic press and I can come in and create a unique garlic press or with one of the things in there that everyone is saying that they want inside of the reviews and then I add that into my product. Or maybe I have a custom box or packaging made that makes mine stand out. Or maybe mine comes with a special extra device that makes it easier to use that tool. Whatever it is, those are the things if you’re going to go into that kind of a space where the first page results look really good but then there’s 10 to 15 pages of everyone else doing the exact same thing. You can’t do that. That I would steer away from.
[00:10:25] Scott: Hopefully that’s answered your question or anyone else out there that’s thinking about this. You have to go and look at yes, how many other competitors are in there? Now also understand this, even though that there’s 15 pages of the same exact thing, I can almost bet on it that there’s probably only a handful of those people that are still actively doing it. Guess what, they started, they got a product on the Amazon, they listed it, they might have did a promotion and then they just gave up on it. Now it just sits there in the Amazon warehouse and no one is seeing it because it’s buried. There is maybe a lot of people trying it but doesn’t mean that you’re going to be up against them for competition. The ones that you’re going to be up for competition is page one. Hopefully that’s answered your question.
Again I think as we move forward here guys, I mean anyone that is just starting, we are going to have to be more creative. We are going to probably want to have better packaging. We’re going to want to have our own unique spin on that product to make it better to make it our own but then also thinking a little bit longer term as far as okay now that I’ve picked this product do I also see other products being related to this that I could sell on the backend of this? Is this something that a community would want to be around or surrounded that they’re talking about? Is it a problem or a pain point that other people are going to be looking for and then there’s other pieces to that pain point that you’re also going to be able to solve. All these other things go into the mix. If we’re looking just on the surface the things that I just went over is what I would be looking at and then I’d want to do my research to look through those reviews and see what I could make better.
This is a perfect example of why we should be going through the negative reviews of the product to see exactly what people are complaining about of those 15 pages worth of results and then how I can make my product better. I know that was kind of long winded but you guys know that’s how I roll here. I wanted to just really elaborate on that and just understand that things that were done maybe 18 months ago are probably not going to be done exactly the same as they are today.
[00:12:34] Scott: You have to be smart about it. You have to use your own common sense to understand that you can’t just slap something up there that’s exactly the same thing of the next guy and expect to sell. Especially when you have pages upon pages of that exact same thing. I’ve seen people take the picture from Alibaba and use that as their product image, it’s crazy.
You got to be careful with that. The thing is if you go over to Alibaba and you see that there’s like ten pages there of different suppliers that are offering that same thing, that might be a red flag too. Actually it will be a red flag. Just understand that that’s the way that’s going to work. Now the other thing I should mention though is if let’s say you find that thing on Alibaba that it’s really easy to get but then there’s that other component that you put into the mix that is really hard to find. Then if you sister those two up, guess what? Now you have something that everyone else is going to struggle to find that other piece that’s going to help you sell. Again, that was long winded but that’s kind of how I roll. Let’s go ahead and listen to the next question and I’ll give you my answer.
[00:13:36] Christian: “Hi Scott, it’s Christian from the UK. Just want to say thank you so much for this podcast and all the information you give out for free. I’ve been totally engrossed in them for the last two months. I’ve gone all the way through them and I’m now in the point of product research. Say hi to Brody for me because I’m at home delving into this after I’ve been tracking some products for the last couple of weeks. My dog Bella says hi too. Bella is single but I think a bit too big for Brody. She’s a Belgian shepherd. Anyway, back to my question. It’s about the depth of market. Now I’ve found a product which wasn’t in my original category searching ideas but the project itself has potential.
It’s the top 16 sellers for my keywords are all selling over the 300 a month some five to 600 a month. The reviews are easily, easily challengeable with some only having nine or ten reviews and they’re spread out across the top 16 for that particular keyword. The price point is round about $15 to $25 somewhat $30. The actual listings of the top 16 are pretty poor to the point that some only have one photo, some have no bullet points, some have no product descriptions. Every one I’ve looked at I’ve thought I can improve on this, definitely can improve on this. The product itself is also lightweight, easily sourced and easily either bundled or personalized and brand-able with no big companies dominating the market.
[00:15:30] Christian: So my question, my problem is should I say is that for that keyword, there is several pages of products within that keyword and you can just keep going down page after page. Using Jungle Scouts people are just not selling further down but the top 16 is where I’ve been focusing on. My mind always goes back to there’s a lot of people trying to sell similar products all being pretty poorly. My question is would that be a concern for you? How would you look further, how would you look deeper? All the tick boxes are there except just this one little niggle. The question is would you look further or would you run away from that? The category is, the main category is more competitive than what I was looking at originally but the sub category itself there’s definitely room to get in there. Yes that’s my question. Your thoughts will be greatly appreciated. Have a great day, hope you’re well bye.
[00:16:43] Scott: Hey Christian from the UK what’s up. Thank you so much for the question. Thank you so much for the offer for Brody but yeah a little too big. I mean we just kind of talked about that in the last question but I did want to address yours as well because they’re related in a sense because first off if this is a completely different category so we’re talking about two different brands. Well, I always like to focus on the one thing that I’m focusing on and then shelf the other thing because it’s going to distract you. If we’re saying it’s just in another category but it does align with your first product then maybe, maybe it still works. Let’s just say for example you’re starting from scratch and let’s forget about your first thing that you’re working on. Let’s just talk about this for a minute because it sounds like people are not really doing a good job as far as marketing it or with your images or even the listings and all of that stuff.
They’re still making some pretty good sales and so what you’re saying is like page one the numbers look really good. The first thing that I would probably do is I would validate those numbers by going over to camelcamelcamel.com and I’d look at some of those ones that look really easy and I would say let me see and make sure that these aren’t ones that just popped up recently and they’re doing a promotion and that’s how they’re getting on page one. Now I recently, I say recently all the way back on episode 189 now, sounds weird saying all the way back to 189 because we’re at 223 now.
On episode 189 I did an episode called Product Research Validation Before Work Flow – How to Reduce the Risk. Really that’s all about finding those hot spots, let’s say and then being able to make sure you’re not being fooled by the numbers that are showing on Jungle Scout or any other tool that you’re using by using CamelCamelCamel or Google Trends or any of those.
[00:18:52] Scott: It might be worth it to check that out as well again that’s episode 189. I’ll link all this stuff up in the show notes for everyone as well. This episode is 223 so you can check that stuff out but that episode there again I think would be helpful because you do want to look at the page one numbers and I just recently did this as we’re talking about this. The numbers looked really, really good. I just wanted to validate it and I went straight to Camel Camel Camel and we just went through it. We were able to see that no the numbers are actually very accurate and it’s been selling for longer than just a month or two. Those are the things that you want to do. Here’s my other thought is like you said it’s more competitive than you were thinking. My thought would be and my question to you would be is there any other product that could be sold with this product so now you stand out amongst everyone else? Is there a product that’s been frequently bought together with this that you could make part of your package? Or maybe even a variation of that package. So you could sell this as its own thing.
Maybe make the packaging stand out a little bit better or maybe approve upon it in some way and then from there you can sell that as its own variation but then you can have another variation that you throw in another popular or another item that people are buying with this so now when they go to your one listing and they are drawn in from there you are able to also capitalize on that other product that people are looking for. That will be another and it’s going to separate yourself from everyone else because you offer it, making it a little bit harder for other people to kind of piggy back on that idea. The other thing I would do is go right through the reviews and I would look at the and see what people are saying that they wish it had or that they were complaining about and then improving upon yours. If it’s possible and then from there, marketing that improvement. Okay, I think that’s a good lesson for anyone, if you can market the improvement and kind of shine the light on the problem that people are complaining about from buying another one, one of your competitions then from there it’s going to allow people to see that.
[00:21:04] Scott: The other thing is too, I’m not looking at the stuff but you said the images are poorly done. Man oh man, I’ll tell you what, we have been seeing some really cool results from different images and we just did a hot seat session with Carl and that was episode 222 so that’s just the recent one that we just did, so if you didn’t listen to that one you definitely going to want to check that one out because that one there, we go through someone who is currently selling and has a similar problem here and that is, that he’s got a product, it’s up but he’s not getting any sales but he’s got enough demand there but his pictures weren’t that good. We talked about how to improve them.
Lifestyle pictures and how to have a better main image and then also your title, just different optimization stuff that you can do there, your pay-per-click. All of that stuff and I know am kind of running away a little bit from this question, from the direction that I was going but that episode was really solid so I would definitely check that out. That’s episode 222, the one just before this episode. Definitely check that out because we talk about going to Camel Camel Camel and making sure those front page results are accurate and to kind of see what we can expect. I’m not really sure if this was that helpful for you but kind of going through that process, that’s how I would be thinking about it if you and I were across that table and I was giving you this advice. I would be like your homework is to do this, this and this. Just what I just covered and that would be your homework.
Anyone else listening out there, it’s really important to look at the numbers that Jungle Scout or any other tool you are using is giving us but then it’s really important also to go back and make sure that you are doing the right research to dig a little bit deeper beyond those numbers and kind of go through the history and then going through the reviews. I think it’s really important to go through those reviews to start to see what other people are saying about the product. The other thing too is of all the things that people are saying negatively, yes you want to put them in there but also people when they are starting to talk positively about a product, you want to also recognize those because they may not be calling that stuff out and you may be able to use that in some of your sales copy. Just another little tip there for you.
[00:23:15] Scott: Hopefully this has helped you. I appreciate the question, I think we got time for one more quick question so why don’t we do that. I’ll go ahead and give you my answer and then we will wrap this baby up, what do you say
[00:23:28] Danielle: Hi Scott? My name is Danielle, I’m calling to ask a quick question about shipping. First of all, I’ve been listening to your show for probably about 4 months now and I love the content. I appreciate everything that you are doing for all the listeners, everyone trying to get started in this FBA business. My question is regarding shipping price changes. I already have a product that is in production through a supplier in China and I got an email from them yesterday saying that the price of air express had gone up and it’s actually increased by over double. Originally the quote was around $1000 and now it’s at around $2500. My question is, is this something that happens? Do shipping prices kind of change at random or is my supplier trying to just get more money out of me? I don’t want to think that but I just want to make sure before I go ahead and approve an additional cost to get the products to me. I really appreciate your time and answering our question, I look forward to hearing back from you soon. Thanks Scott, have a great day.
[00:24:34] Scott: Hey Danielle. Thank you so much for the question and this is a good question because the truth is we are very skeptical about people that we are dealing with especially in China because we don’t know if they are just trying to increase the shipping to make up on the discount; “We’ll give you the product for $1 but we are going to charge you an extra $2 for shipping,” just to try and make up that difference. We are going to give you the cost per unit less but we are just going to make up on the shipping.
It’s a good question. Here’s my answer. It might not be the best answer but it’s the best one I can give you right now. First off, yes, pricing for shipping… There’s different things that come into play. It could be gas prices, could be employment… Who knows? There’s different operating expenses but they can change. Usually they don’t go that up or down, it’s pretty close but with that being said, the best thing to do here, I would say is to number 1, reach out to more suppliers and see what they are going to charge per shipping and usually they are going to have a set fee of what they charge per pound or per kilogram and that stuff there you will be able to see as far as what that cost will be.
The other thing is if you reached out to a freight forwarder and then they could probably give you a good idea of what that’s going to cost but I would say, my first step would be to ask them for the breakdown and then from there I would ask another supplier for their breakdown and then you can compare them side by side. It’s kind of getting your three estimates if you are going to have something done on your home. You are going to do the same thing with the supplier, that’s what I would do. The other thing that I would recommend doing here is, I would ask them. I would say like, “Listen, if I ship a certain amount, are you able to give me a price break?” If they are, that might also be on the shipping price because the more that you ship it might cost less because of the way that they package it, or any of that stuff.
[00:26:38] Scott: You really have to ask them and see but if they gave you a price one day and it was let’s say $1000 to ship your order and then the next day it was $2000, I would be skeptical about that. I would skeptical about that. I would say, “Wait a minute. How does that double over night?” Then I would call them out on it and I would ask them to give me the pricing and how they are shipping it and the actual shipper that they are using, all of that stuff I would get and then the other thing is that’s why I would want to have that second supplier in line or third so I could ask them, “What do you charge to ship per kilogram to the States to door to door?” Whatever it is, so that’s what I would do there.
I know this wasn’t really clear answer but I don’t think there is a clear answer because the truth is that yes, they could try to scam you and try to make it up on the shipping as people in the States here can do the same thing too, “Oh, we’ll give you this for a $1 but we are going to charge you more on shipping,” which we know that it doesn’t cost that much on shipping but it’s just a way for them to try and get the money back. It’s not honest, it’s not ethical but I’ve seen it done so you want to be careful of that. I would say number one, if you can use a freight forwarder, if you are going by sea that’s going to be a must but if you are going to go by air you don’t necessarily have to use a freight forwarder but you could even if you just wanted to get a quote as far as what it would have cost and then they would be able to help you figure that cost out but I think first step would be finding another supplier, asking what their shipping fees are and then actually calling out your supplier and asking why it would go up from one day to the next.
Alright, hopefully this has helped you. Good luck to you Danielle and I appreciate the question and, she’s part of the process, it’s part of the process as far as moving through these obstacles and then figuring it out as you go and you are going to learn a ton through that process.
[00:28:37] Scott: Alright so that is pretty much going to wrap up this episode. Remember if you guys have a question that you want me to answer on the podcast head over to theamazingseller.com/ask and you can do that. You can ask a question, just leave your first name, where you are calling from, that will be cool too and then just a quick question and I’ll do my best to air it on an upcoming show. All the show notes to today’s episode will be linked up at theamazingseller.com/223 and then from there you will have show notes, transcripts, links, all of that good stuff will be on that page as well.
Alright guys, I’ve got to run, I’ve got to go out there and help the family. They are out there looking like dogs inside of that garage packaging everything up, so I’ve got to go out there and help them out and get ourselves ready for this big move. Wish me luck. Alright that’s its guys, that’s going to wrap it up, remember I’m here for you, I believe in you and am rooting for you but you have to, you have to… Come on say it with me, said it loud, say it proud, “Take action.” Have an awesome amazing day and I’ll see you right back here on the next episode, see you all.
LINKS MENTIONED IN THIS EPISODE
- www.TheAmazingSeller.com/ask – ask your questions
- www.TheAmazingSeller.com/156 OR www.TheAmazingSeller.com/161
- www.TheAmazingSeller.com/189 – about product research
- Google Trends
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