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Speaker 1: Before starting this lesson make sure you have at least five products on your list of
potential products you'd like to sell. This is very important because we're going to be
diving in how to narrow down your list and first you got to have a list.

First thing you're going to want to do is to instal your plug-ins. So for the purpose of
showing you can example we're going to be using Helium 10 as our go to Chrome
extension. Essentially just go to Helium 10.com, instal your plugin and you're well on
your way. You can use other plugins like Jungle Scout for example or Viral Launch, they
essentially do very much the same thing. Helium 10 is just the preferred seller tool for
professionals like myself. I use it on a regular basis, pretty much almost every day in my
life and a lot of other professional sellers I know also use Helium 10 just because it's just
that much more accurate from my experience.

Now that you have your plugin installed I'm going to show you exactly how I use Helium
10 to validate my products. So let's jump right into it. So let's jump right into product
validation. Now you should have a list of your 10 to 20 or even more products that you
want to validate. Now we're just going to use an example that we found from our
product research demonstration, which was the hair foils. And I thought this was an
interesting product itself so I figured it would be fun to validate it with you guys. You're
going to be given a product validation checklist. So obviously we're going to use the
overall PRIME product method and just quickly go the P-R-I-M and E and then this will
help us determine if we want to move into the more in depth product validation
checklist.

So in terms of product positioning and the potential for doing so for the hair foils
product, is this something that has the potential to be positioned for the main keywords
that we're targeting. So obviously you want to know what the main keyword is that
you're targeting for this product. We kind of went through and found that hair foils had
some of the higher volume and it was one of the relevant keywords, but if you want to
see if there's any other related keywords that might be more suitable you can go to
related keywords on the x-ray tool and it'll actually show you some other relatively
related product terms or keyword terms that you could go after. So hair foils has 3000
searches a month. You have hair foils for bleach, only has 179. Hair foils for highlighting
has 1700. Hair foils for highlighting long hair, that's another keyword, but not many
searches a month. And these ones for whatever reason aren't showing up, like there's
no data showing, but it just might be a glitch right now. But there's other ways that we
can go about finding other relevant keywords, but for now we're going to use this as our
main keyword just to help us with the validation process.

So if we're using hair foils as our main keyword we want to take a look on the first page
and, you know, see if there are opportunities for us to position our product. Is there a
way that we can make our product better, obviously? And just first thing that I notice,
you know you have this product here has only 176 review, still on page one and hardly
rated on Amazon. This one has over 200 reviews but still less than thousands and
thousands of reviews, so still a chance to catch up here. This product has only 18 review,
right? So there is opportunity for you to get on page one of desktop that's for sure. This
only has six reviews and it's on page one. You know this one has 124 reviews, is on page

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one. So you know, quite a few of these products have less than 200 reviews so we're
just going to say yes for now that it satisfies the P in PRIME.

Researching reviews, are there ways for you differentiate your product or improve
them. So we might want to go into one of the top sellers, and obviously again the top
four are always going to be your sponsored products so we're just going to pass by
those. But this one looks like it's Amazon's Choice, it's the top selling product. So what
we're going to do is look at their reviews and you might want to look at their more
critical views, like their one star and two star. So open product, foils missing, maybe
there's a better way you can package your product. People are saying here they bleed a
lot. So if there's a way that you can improve on the seal so that it doesn't bleed. Yeah, a
lot of people are complaining that product was opened.

One thing that you can do to mitigate customers receiving open products is to have a
safety seal on it and to for that safety seal to say do not use if seal has been tampered
with et cetera. And then also if you can maybe have you know your email or some way
or customer service email on your product, on the packaging, so that people can reach
out to you if they received foils that were open. But it seems like they have a lot of
complaints of people receiving open boxes.

Another thing that we can do is go into Helium 10's Chrome extension again and you
can check out review insights. So if we just extract all of the reviews here we can see,
okay, what are the top phrases being used. We might want to set the filter so that it's
only two star, one star and three star reviews. Actually let's just do the one and two
stars. So we want those really critical reviews. Box came... So there's six people that say
box came probably opened. Open product, not new. These are the top helpful reviews
that are critical, meaning a lot of people have found these specific reviews helpful. Let's
see here. If we go into review analysis these foils, these foils reduced in price, they
ripped too easily. Maybe we put packaged arrived partially open, opened, opened, came
open. You know, three other people said they came open. So it seems like for whatever
reason this product keeps on being sent as opened, so maybe have different packaging
and also implement some sort of safety seel.

So we're just going to say yes. This was just a quick deep dive obviously. When we go
into the 10 step product validation checklist we're going to do an even deeper dive into
specific things that we look for.

The I is in demand items. Is this a product that's in demand with relevant high search
volume keywords? So the main keyword has over 3000 searches a month which we
learned was hair foils. And then again we had a couple other. So we had hair foils for
highlighting. What about just hair foil, you know like that can make a difference. Just
dropping the S could also bring up a specific keyword. Hair foil has 1700 searches a
month. Again, like this product is Amazon's Choice, it's the number one product for hair
foils. So what you might want to do is pull up Magnet real quick on Helium 10 and get
the keywords for that main top seller.

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So here, you know that sellers doing $39,000 a month. They're selling 3200 units a
month, which is pretty good. That means they're averaging over... Yes, they're doing
over 3200 sales a month. You know that means that they're averaging over 100 units a
day. What we're going to do is we're going to jump into Cerebro not Magnet and we're
going to put in the ASIN for the product. And this is the reverse lookup tool on Helium
10 that will allow you to pull all the relevant keywords that this product is in indexed for
currently.

So what we might want to do is check out and see if there's any other keywords that are
potentially relevant that we can rank for. So foils for hair colour, another good one with
2500 searches a month. Foil sheets might be a good one with 7000 searches a month.
Pop up foils for hair colour, that only has 300. Yeah, so what we might want to do is
even look for keywords with a minimum search volume of 1000 searches a month so we
can kind of narrow down the filtered keywords here. Yeah, so hair foils, hair foil for
highlighting, foils for hair colour, hair foil, foil sheets, hair salon supplies, foil sheets for
food. That wouldn't be relevant because it's not for food. But yeah, so there is a handful
of keywords that we can target. And collectively even these top five keywords that we
would target have over 10,000 searches a month so that means it is a fairly searched
product and that will satisfy is the product in demand. And clearly if your competitors
are selling 30, $40,000 worth of that product it clearly is something that is in demand.

And then margins and profits. Is this a product that you can make a profit with? Because
at the end of the day you're running a business, you want to make sure that you're
profitable so that way you can continue operating your business. So what we might
want to do is find suppliers on Alibaba. So again directly through Helium 10 x-ray you
can actually click the find suppliers on Alibaba here or you can go directly to
Alibaba.com to try and pull, you know. Hair foils suppliers. This one has pre-cut sheets.
It looks like they also manufacturer for L'Oreal. You might want to validate whether or
not they actually manufacture for them, but they sell sheets for $2. I don't know if that's
for a roll.

Obviously you want to contact these suppliers directly to see how much it would
actually cost to include a box and everything else. But I mainly want to see if this is a
product to find to be manufactured and it looks like it is and it's fairly, fairly cheep. 50
cents, not sure how many that would include, maybe it's per foil. But you can do pre-cut
foil rolls. So looks like it is a product that you can get easily manufactured in China.

You might want to also search on Google and just type in hair foil private label and see if
anything comes up in the states even so you can even put in US. So foil rolls, private
label hair colour products, Greenway Lab. Looks like they sell a bunch of salon products.
I don't see any foils though so not sure why they're coming up here. Foil rolls, hair
colour foil manufacturers in the U.S.

Again, Thomasnet is another good way to find U.S suppliers. This one's in New York,
right. So you can view the supplier, you can go to their website, you can contact them
try to get some pricing, but for the sake of time we're just going to look on Alibaba and
just get an idea of what the average price point is for a product like this. So it looks like

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these are by the boxes. These ones might not be pre-cut though so depending on if
people are looking for foil that's pre-cut versus not pre-cut you might want to look into
that, but this has a low minimum order quantity, these are a verified supplier selling for
over 18 years. So I might want to check them out and contact them, but it looks like they
sell anywhere from 1.50 to 5.90 per box. And you can also get different colours which is
nice.

So obviously it depends on how many units you order, but if we look at the ceiling price
of 5.90 and we go back into Helium 10. Say you want to sell a competing product. So
let's see, how many foils are in this product? So it looks like the sheets here you can get
25 to 500 sheets per box. So I'm assuming that the 500 sheet box is going to be on the
higher end of the spectrum. So if we use the 5.90 as our price point just as a base line,
what we'll do is we'll use this product here as our baseline and use the profitability
calculator built in to Helium 10's extension tool. So say we sell for a similar price, which
is 15.99, you might want to launch at a lower price point though keep that in mind
because this competitor does have a lot of reviews.

So when you're first launching and you want to compete your price point might want to
be a little bit more competitive. So even if we wanted to launch at say $15 or $14, and
then your estimated manufacturing cost, we're going to say 5.90, or even 6.00 right just
to round it up just so we have that buffer space. And then freight cost, obviously with
increasing, you know freight cost you might end up getting pricing that's like $300 per
cubic metre, but obviously you can adjust this, or even 500. But if we were selling at $14
and our manufacturing cost is $6 and we have expensive shipping our margins are going
to be only 37 cents. So obviously it's not that great, but if we were to be able to sell at
the same price point which was 15.99 we would have a higher margin. But for me that's
not big enough of a margin for me to go after a product like this. So it looks like we'd
only be making about 13 percent and that's the margin that we're working with, and
you know we're trying to get over 30 percent.

But say if we were able to get a better price point because we were able to negotiate
with our supplier. So if you were able to get each box for $4 then that would look a little
bit more obtainable. You'd have to get closer to like a $3.50 or even $3 price point for it
to be worthwhile. So if you end up reaching out to different suppliers and try to
compare pricing you might be able to land on a $3 cost and at that point it would be
something that's worth looking into. So let's just say we were able to negotiate and get
a $3 price point for a 500 foil sheet box then we would move on and we would, validate
would say yes that we could make a profit with that. Technically we could make a profit
even if it was a higher price point, but we weren't meeting that 30 percent and that's
more in the in depth validation checklist, but for the sake of this example we're just
going to go through.

Is it easy to make and easy to ship? Is it something that we can manufacture, it's
lightweight? Yes. Yes and yes. So if your product does satisfy the PRIME product
checklist you want to move in to the in depth checklist. So high search volume. Basically
what we're looking for is your search volume is over 2000 searches a month for your
main keywords. So yes because hair foil had I believe over 3000 searches a month.

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Collectively you want to find at least three to five relevant keywords that total over
5000 searches. Like I showed you we do have over 10,000. So this is 10,000, 12,000,
basically almost 15,000 searches a month just for these keywords alone. And now
obviously there are other keywords that we can also tackle, like hair salon supplies, even
aluminium foil sheets. But it looks like it does satisfy that checklist item.

And then potential monthly sales of over 200 units, and that would be a yes because if
we take a look at our competitors and we go back and look at all the other hair foils
products. So again we're pulling up the x-ray tool here to then look at the potential sales
that we can do. And of course there are products that are selling over 200 units a
month, so yes.

Now reviews, we're going to look at the top 15 products on Amazon, so that's basically
the top 15 mobile products. So if you're searching on your phone and you look at your
hair foils products, here we're obviously going to ignore the top because those are your
sponsored products, but what we mean is the top four non-sponsored products. So if
we look, you know the third product it only has 253 reviews so that is one product that
has less than a thousand reviews. This also has less than a thousand, this has only 18,
176, 6. So there are products that are showing up with less than a thousand reviews. We
want to make sure that not all of them have over a thousand reviews because at that
point that means that that product is probably overly saturated and probably not a
product that you want to try and compete for.

And then the next one is, are there at least two sellers on page one or top 15 mobile, or
at least 5 or more on desktop which is your top 30, with less than 200 reviews. So this is
more of a filter. So if we go back and we kind of just count our top 30 and see how many
of them have less than 200 reviews. So we have one here, two here, three, four, five,
six, seven, about seven of them, right. So we do have quite a few sellers with less than
200 reviews that are on page one for that given keyword. So it might be a good product
to go after in a sense that you're able to position yourself with less reviews.

And then are there any products on page one with less than ideal star ratings, 3.5 stars
or less? So if we go and look back at it, this product only had a four star rating, but for
the most part most of them are five stars and 4.5 stars. So keep in mind these are all
highly rated products so obviously there is going to be a bit of competition so unless you
can do something drastically different... Well this one here has a four star rating. This
one here is still on page one desktop technically with a 3.3 star rating. So there is
opportunity to improve on your product and the listing itself. So I'll go ahead and mark
that a yes.

Is the product profitable? So we already went through the profitability calculator. If we

were to get that $3 price point then yes it's something that has over 30 percent profit
margin, so that's something that we would be able that it's yes. And again, making sure
that the product is over $12 on Amazon because after Amazon fees and everything else
you want to make sure that you're at least making a profit. So yes and yes.

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Your competitors sales velocity is equal to or greater than $5,000 a month, but 80
percent of sales are not dominated by the top three sellers. So what we mean by that is
when you go back onto page one again open Helium 10 x-ray tool. You want to sort this
by revenue and take a look at your top three sellers and make sure that they are not
dominating and they're not taking 80 percent of all of the sales because that means that
these are the top three sellers that you're really competing with. But as you can see
here there's other sellers that are still selling a significant amount like 10 to $15,000 a
month.

But one thing that I have noticed is that there's a lot of repetition in the brands. So
there's Reynolds, RAYMAR, ForPro Professionals, those are the top three that I'm seeing
here, and there are a couple of other ones, Just Home, Foilman. So it leads me to
believe that there's not a lot of other sellers or brands that are selling these products it's
really just three or four brands that are dominating the first page with variation
products so that's really interesting to me. That's something to make a note of because
maybe there's a reason for that. Maybe it's a patented product, so that might something
that's also on the checklist. So we want to make sure that we're going through this
checklist diligently. But yeah, so for this one here it's tough to say. Obviously yes the
competitors sales velocity is equal to $5,000 a month, but a lot of those sales are
dominated by the top three brands. So that ones going to be a maybe for me.

And then we're going to look at your competitors listings and make sure are they fully
optimised. So this one clearly is very, very well optimised product in a sense where it's
just highly rated, it's just a great product overall. You know the first image is a lifestyle
image showing someone using the product, she has beautiful pink hair, goes to show
she works in a salon. And I mean the products are good because they show them in use.
There's no infographic photos, so that's one thing that I see might be lacking is maybe
you can show an infographic that shows the main benefits of your product and why
yours is superior to other peoples products. They're using their full five bullet points, but
there is still opportunity to not only add more keywords throughout, but it looks like
they haven't fully taken advantage of the bullet points here.

And if we scroll down they have enhanced brand content and it's cute, but it can be
improved upon. I like that they did include all the other products that they have under
their brand, so this is just more product visibility. So yeah there is definitely room for
improvement here. Hair foil, that's the main keyword. Clearly aluminium foil sheet, hair
foils for highlighting. So it looks like those are their top three keywords that they're
trying to rank for. So there might be opportunity to add a few other keywords in the
title and really focus on those longer tail keywords that still have potential to rank for.
Like for example, so hair foils for highlighting they do have in there, hair foils, foils for
hair colour. You know, we don't have foils for hair colour in here so that's something
that they might be lacking is targeting that specific keyword which has over 2500
searches a month. So yeah, and there's room for improvement.

And then even just looking at some of the other listings, your top maybe three, four, five
competitors. This one here is not fully optimised, they only have four images here. Their
bullet points aren't too bad, it's not consistent though because it's not capitalised here

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but then it's capitalised here and then capitalised here. And they don't even have
enhanced brand content either, so that's something that you can actually potentially
take advantage of. But it looks like they sell a couple different variation products. So yes,
we're going to say that the competitors listing is not fully optimised, especially if you
looked at that second example that we showed you, for this low number or poor quality
photos. They only took advantage of the four photos out of the seven to nine that you
can normally utilise. Not using all characters in the listing, yes. They could input some
more keywords in the title or even some of the bullet points.

And then listing's poorly written, I'm going to say yes there were some that were written
really, really well however there were some inconsistencies in the capital letters at the
beginning of a bullet point whereas some of them had not all caps for the first feature
highlight. So I'm going to say yes listing is poorly written. And obviously there is room for
improvement, right and that's what you're looking for. You're looking at analysing the
listings that aren't done very well because then that gives you an opportunity to come in
with a fully optimised listing, with a really great listing with images and enhanced brand
content and therefor you will, as a byproduct, get a percentage of their sales because
your product just is positioned and looks a lot better than your competitors.

So with that being said, moving on to the next checklist item which is validating if it's not
a seasonal or restricted item or an Amazon Basic's product. So one way that you can
check if it's seasonal is simply going to check out the search volumes for that specific
product. So if we're looking at hair foils on Cerebro we can check out the search volume
history here for the last year even, which has remained pretty consistent. And then if
you're looking at all time there has been peaks and valleys and it looks like it is on an
upward trajectory which is great.

One way that you can tell if a product is seasonal is if for example you're searching
Christmas decorations, a keyword like this would definitely be seasonal. Even if you take
a look at Mariah Carey's All I Want for Christmas is You Google search results and search
history you can see that there's always going to be peaks and valleys around Christmas
time. So you'll just see this huge, huge peak if you're looking at all time, which only polls
the last two years of data basically, or three years. And basically you can see that there's
these peaks, right? And that's how you can tell if it's a seasonal product, if the main
keyword is searched for seasonally. So what we're aiming for is obviously products that
are evergreen, and what that means is they sell all year round and there's a demand for
it all year round because then you can sell this product pretty much throughout the
whole year and have consistent sales doing so.

So we're going to go back to our checklist, and yes it is a seasonal product. To check if
it's restricted obviously check out the Amazon's restricted products list and then if it's an
Amazon Basic's product, I didn't see any Amazon brands for hair foils on page one.
There is actually a list. If you Google Amazon's list of private label brands they have
quite a few of them now, but I don't see anything on the first page and obviously
Amazon's products typically pushed to the first page of any given keyword, it's just, you
know, it's their brand they can do whatever they want I guess. But I don't see anything

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here so this is going to be a yes for not seasonal, not restricted, not an Amazon Basic's
product.

And then number eight. Can we improve the product? Obviously we talked about this a
little bit before. We're looking for ways that we can make this product better. So for the
hair foils whether its better packaging and we have a safety seel on to ensure that it's
tamper proof. That's something that you can implement. Or maybe you want to add
additional clips, like hair clips to help make the hair stylists life a little bit easier.
Typically, I know a hair stylist have their own clips, but it's just an added bonus if it
included them or if you had like hair ties or anything that can really add value. Or maybe
you have more foils than the leading competitor. So there's different ways that you can
improve on the product so I'm going to say that yes, we can improve it.

And then product is relatively easy to ship. Ideally less than five pounds and it's less than
18 inches all around. So we're going to say yes because it is a very small and lightweight
box so it is going to be something that's fairly simple and easy for us to ship.

And then we're going to check if this product is patented. So one way you can do this is
by going to patents.google.com and doing a preliminary search on the product itself. So
maybe I type in hair foil and see if anything comes up. So it looks like there is a couple
different things. There is the hair foil package dispenser I might want to look into.
There's this here, its says system, method and appliances for applying hair treatments.
So this, you know we want to check to see if its active. So the status does say active and
it was published in 2007. This looks like it more about patenting the application and use
case for the hair foil so that's where you want to read the claims and make sure that
your product isn't covered by all the claims that they're listing.

I'm personally not a IP lawyer or an intellectual property lawyer or professional so it's

important that you get a professionals opinion on this because the last thing you want is
to sell a product and then find out you can't sell it because it's covered by a patent. So
I'm not going to speak on this, but I'm probably going to text my lawyer George and see
what he has to say and I can give you guys an update. But for now we're just going to
leave that blank until we are able to confirm that this is a patent that we can actually go
around or sell because the patent doesn't cover the exact product that we're trying to
sell.

So just because something does exist like a patent doesn't mean that you can't
necessarily sell the product, you can go about getting licencing or you know there's
creative ways to make your product a little bit different so that it's not covered by the
patent. So obviously that's something that you'd have to talk to a professional about,
but at the end of the day this is just a good preliminary checklist that we're providing
you to validate your products. And by no means is this the Holy Bible where you have to
follow it to a T and you can't sell a product unless it satisfies every single checklist item.
We do obviously want to sell products that can satisfy all, if not most, of these checklist
items and number one obviously being is it going to be profitable for you. Other than
that it might still be something I would consider even if it did have a patent, if I can
validate that I can somehow make this different so that way it's not covered by a patent.

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And if I even had my own hair salon it would be definitely something that I would
consider selling because then I can purchase this product at cost and use it in my salon,
whereas instead of buying from another brand you can create your own brand and not
only are you using it and getting the best possibly pricing, but you can also then create a
brand around it and eventually if you want to retire, you want to sell the salon, you can
also sell the assets that you've created within the salon and arguably that could be even
more valuable than the salon business itself. So really, really interesting product guys,
something I would definitely consider especially if you are in the industry and it's
something that you would have more foresight and insight on because you would
understand, okay what are the nuances of using foils for hair colouring. Is there anything
that you can make better, improve, or combat by just simply changing a small design or
feature in the product?

So now that you validated the demand for your product what we want to do is validate
profitability. Can you make a profit selling this product? This is super important because
like I said you're operating a business and we want to make profits. One way that you
can calculate the fulfilment fees and the Amazon fees and overall profitability of your
product is by using the FBA calculator either directly through Amazon or there's also one
that you can use with Helium 10.

By now, you should be feeling a lot more confident about your product selection. Make
sure you check out some of the tools that we've provided for you below.

In this next lesson I'm going to be showing you a checklist that you can use against all of
the products that you've selected and shortlisted to determine if it's going to be a
winning product for you to sell.

I want you finishing this module feeling great about the product that you're going to sell.
So we'll see you in the next lesson.

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