For new or struggling Amazon sellers, building a diverse inventory with many products rather than going deep on a single "magic" product is crucial for stability and growth. This "inch deep, mile wide" strategy minimizes risk, provides data for predictability, and creates resilience against market changes, ultimately leading to a more robust and profitable Amazon business.
Key takeaways
Prioritize an 'inch deep, mile wide' product strategy by diversifying across many ASINs, even with small quantities per ASIN, to build a stable foundation.
Utilize the average performance across numerous ASINs to identify trends, predict outcomes, and make informed adjustments to your sourcing and operations.
Actively seek out and explore new product categories to build sourcing expertise and create diversity, even in categories with initial restrictions for new sellers.
Understand that diversity in product types, sizes, and categories helps mitigate risks from individual product issues or platform-wide changes (e.g., FBA fee adjustments).
Leverage Amazon Seller Central data and tools like SellerBoard to meticulously track ASIN-level expenses and identify opportunities for cost reduction and profit enhancement.
We've identified 10 reasons why especially new Amazon sellers (or sellers who are struggling) on Amazon should find as many ASINs (new products) to test as possible and they should do it as soon as possible in order to make their odds of success as great as possible. While this may seem obvious, we've observed that many sellers try to find a handful of magic products that will boost them into the business they desire. Rarely is that what happens however. On today's episode, we dive into the reasons you should find numerous products to test as well as some strategies for doing exactly that. Here are 10 Reasons you should build a strong foundation as quickly as possible 1. Hard to find averages when going ASIN by ASIN Book of biz leads to Averages leads to predictability. Increasing profits and decreasing expenses is much more impactful on a book of business than on a few ASINs. 2. Diversity A solid foundation allows for branching out while maintaining revenues. There are so many different categories and subs that we will never run out of new areas to source in. 3. IPI Score A foundational book of business helps you understand the metrics that make up the IPI Score Helps keep level inventory numbers. 4. Anything can happen to any ASIN When you have only a few ASINs, anything that happens to any ASIN can really hurt. When there are more ASINs, the overall impact is smaller. 5 Keeps risk low Spreading your risk over many different listings can make the risk of losing all much lower and the chances of profiting overall much higher. 6. Easier to outsource Putting together a foundational book of business makes it much easier to compile standard operating procedures and best practices. When you outsource, it is much easier to hand that off. 7. Economies of Scal
What does this episode say about amazon & marketplaces?
Prioritize an 'inch deep, mile wide' product strategy by diversifying across many ASINs, even with small quantities per ASIN, to build a stable foundation.
What does this episode say about supply chain & operations?
Utilize the average performance across numerous ASINs to identify trends, predict outcomes, and make informed adjustments to your sourcing and operations.
What does this episode say about analytics & attribution?
Actively seek out and explore new product categories to build sourcing expertise and create diversity, even in categories with initial restrictions for new sellers.
What does this episode say about founder & leadership?
Understand that diversity in product types, sizes, and categories helps mitigate risks from individual product issues or platform-wide changes (e.g., FBA fee adjustments).
What does this episode say about amazon & marketplaces?
Leverage Amazon Seller Central data and tools like SellerBoard to meticulously track ASIN-level expenses and identify opportunities for cost reduction and profit enhancement.
