#1 Way To Find WINNING Products | New Ecommerce Strategy REVEALED!

What I’ve learned for $17 is number one, people are searching for this product. Number two, people are searching with intent to buy this product. And number three, there’s not a lot of competition for this product as shown by the low cost per click. In this video, I’ll be sharing my number one tip for starting and scaling an e-commerce business. And this is something that I believe is the most important thing you should do when you’re looking to start or scale an e-commerce business. And it’s something that I’ve never seen anyone else talk about or something I’ve never seen anyone else do, which is insane when you realize how important this strategy is. For anyone who doesn’t know me, my name is Connor Marriott, we own an e-commerce business that does about 2 million a year. And this is a strategy I used when I started that business.

And it’s the same strategy I’m using now, as we go to scale the business, and I’m recording this on a Sunday morning, because I’m doing this live, so I want to get this out, but this video is going to be a bit raw and unedited, so hopefully that’s okay. So when you think of an e-commerce business, I like to break it down into three phases or three steps. Step number one is finding a good product. That is the most important thing. If you don’t know have a product people want, you are never going to be able to sell anything. And so what most people suggest you do is as a first step, think of what product you want, then go out and order the samples, get branding done, do a massive stock order of thousands of units. Then get people to come in and do the marketing and the design, and then hopefully people buy it.

But that is the opposite way of doing things. The first step should not be the source of product. The first step should be to test whether or not people actually want this product before you order it. Because if you do it this way, you won’t waste money and time ordering a product people want, you can validate that people want what you are offering before you do anything. And if people don’t want it, then you can and find a new product. Within e-commerce business the product is the most important thing. So getting this right really is the key to success. And if you’re starting out, you probably don’t have the capital to go through trial and error of testing new products, buying new products, getting them in, getting them sourced, getting them manufactured only to find out that no one wants it.

So what you want to do is find a way to test whether or not people want what you’re offering first. And then once you get that validation, then you can go out and get the product. And so how do we do that? Well, there’s a very, very simple way that you can set up in about 10 or 20 minutes for 10 or $20 to know with certainty, whether or not people want what your idea is and the way we do that is with Google Ads. So to give you an example, let’s say you had an idea for a product, or let’s say you were tossing up between a few different products and let’s say it was dog food and cat food, right? Hypothetically.

So instead of going out and sourcing dog food and doing orders, and then seeing if people want it, what we can do is set up a Google Ad to see number one are people searching for this dog food? How many people are searching for it? What the competition is like for it? And we can even figure out what our average cost per sale would be. So if you’ve never run Google Ads, the way it works is you set up an ad based on a search term. So in this example, it would be the search term, dog food. Every time someone searches for that search term, dog food, your ad will show what we can do is see how many people are searching for it each day? How many people seeing an ad that says by dog food are interested in that? And the cost of the whole thing to gauge whether or not there’s high or low competition.

If we can find a product that people are searching for meaning something people want with low competition, the entire e-commerce process is going to be infinitely time simpler. So the way we do this is again, we set up an ad on Google, targeting the search term of our idea. We then direct that ad to our website and we see how many people are for it? How many people clicking on it and the costs. So to show you exactly what I mean, yesterday I set up 17 ads for 17 products that we’re testing. We haven’t ordered these products these are just ideas. But the first thing I want to do is see whether or not people are searching for this product. Again, we’re doing this now to scale with 17 products, but this is the exact same process I used when we first launched business about two years ago.

So just going through the data here, what we can see without showing you the product names that we’re testing. The first thing I want to look at is number one, which of these ads are actually spending? So every single ad set or every single product idea, I set a budget of $20 per day. So you could set $5, you can set $10, that doesn’t really matter. The first thing I want to do is see what products are spending their budget. So we can see here, this ad set, or this product has spent $17. I set this up roughly 24 hours ago. So this is spending the majority of its budget. These two products here haven’t spent anything. And so what that tells me right away is that these two products, people aren’t searching for. So that for me is a red flag. It means people aren’t actively searching for this product. It might mean people don’t want it.

Now that doesn’t mean we couldn’t potentially sell this product because we can still set up things like Facebook ads or YouTube ads or TikTok ads to let people know that they want it. But I can tell you from experience, a product that people are actively searching for and want is 100 times easy to sell than a product people don’t know about.

So the first thing I’m looking for is of these products, which one are people searching for? And I’ve only been running this for 24 hours. So I will let this run for probably another two or three days to get more data. But I just wanted to show you the type of data we’ve got so far. So we can see this product has spent $17. This product has spent $17. This product has spent $15. So that’s telling me that those three have high search volume. The next thing I want to look at is what is the cost per click or are we even getting clicks? So we can see here, this product has had 13 clicks for around $17. And we can also see that the click through rate 6%. So what that means is that if everyone that’s seen this ad, 6% of people have clicked on it.

So this is giving me the data, that number one, people are searching for this product. Number two of the people that search for the product, people are clicking on an ad that says buy this product, which is also very important to know because people might be searching for, let’s say dog food, but maybe their intention is not to buy dog food. Maybe they’re just searching for the top brands of dog food. So knowing that people are clicking on an ad that says, buy this product is a good sign. From there the other thing I want to look at is the cost per click. So the way Google Ads work is it’s a competition. If there are a lot of people competing for a specific search term, meaning if there are a lot of people who are targeting the search term, as the example of dog food, then the cost per click will be high.

Sometimes it can be $3. Sometimes it can be $5. Sometimes it could be as high as $10. That’s coming from high competition. So for this, we see the cost per click is $1.36 that tells me that the competition is low, which is a very promising sign. So what I’ve learned for $17 is number one, people are searching for this product. Number two, people are searching with intent to buy this product as shown by the fact that they’re clicking on the ad. And number three, there’s not a lot of competition for this product as shown by the low cost per click. So this is all very, very promising. This tells me that if we were to launch this product, people are searching for it and it’s getting clicks and there’s not a lot of competition. These are all very good signs.

The other thing we could do to take this even further is then multiply this by our website conversion. So we know roughly our website convert at 6%. So if we were round that down to 5%, just for the sake of simple math, if we’re spending $1.30 per click and our website converts at 5%, we could assume that we would be paying $26 for a sale if we were converting at 5% of those clicks. So from there, we can work out the economics of the product. How much are we potentially going to sell this for? And we can even figure out profit margins. Let’s say we were selling this product for $100 and we were getting sales for $26. Well, that leaves us with quite a lot of profit. Obviously we need to take out the manufacturing costs, which would be the next step of this process, figuring out how much we could source this product for, but already that’s very promising.

On hand if we look at some of these other products here, this one it’s only spent $1.67. So it is getting clicks, but there’s not a lot of people searching for it. So again, that’s not necessarily a bad thing because people that search for it aren’t clicking on it. But depending on your goal, if we’re looking to scale, that might not be the best sign because the search volume isn’t extremely high. The other thing I’ll mention is that it’s currently Sunday. I launched this on Saturday and search terms over the weekend do vary from search terms during the week we find, so I will let this run a bit longer. So I get at least some weekdays worth of data as well. But this is another thing I would consider. So basically what we can see here is there’s three or four products that have high search volume, if we look at… Where was the other one? This one also spent $17. It’s got a 7% click through rate and we’re getting clicks for $1.35.

So again, this is a very promising sign. This tells me that this product is something people want, they’re searching for it. And from there I can then go and do the rest of the process of actually sourcing the product, designing the product, manufacturing the product, because I know people want this. And again, just because people aren’t searching for certain things doesn’t mean you can’t sell them. However, from experience, I would tell you that if people are searching for it and there isn’t a lot of competition that is going to be a far easier or a much easier place to start with an e-commerce business, or if you’re looking to scale a much easier product to sell then a product that no one’s searching for.

So again, this is basically the process. You have several ideas for products, maybe make a list of three or five ideas, create very basic Google Ad, send people to your website, and again, with these ads, the goal is not to make a sale because we don’t have the products available. So no one’s going to buy, obviously because they can’t, the product doesn’t exist. All we’re doing is measuring how popular this is? Are people searching for it? What volume of people searching for it? What is the competition like? And then from there we can extrapolate out and figure out what our on average cost per sale I would be. And then from there we can work out the profit margins and all those things without actually ordering the product.

So hopefully you understand how much of a time saver and money saver this is because I can confidently now say before I even order this product, if we were to do this one, we would likely get sales for $26. And we would likely get a good volume of sales based on the search volume. This is very promising. So again, hopefully this is useful. If you’ve enjoyed this different type of video, be sure to subscribe. If you have any questions about this, leave them in the comments. I check all the comments and I’ll reply personally.

But this is basically the process I use whenever I’m thinking of launching a new product. And it’s the process I invite you to use if you have an idea, because the worst thing or the last thing you want to do, when you’re trying to launch an e-commerce business or scale an e-commerce business is spend all the time, all the money, all the capital, all the resources, getting a product, having it ready to sell, and then finding out that no one wants it. By doing this, we can find out right away do people want this? How many people want this? What is going to be our average cost of sale? And now we can make a very good factual decision as to whether or not this makes sense to pursue.

And just to tie this back around to the three steps of an e-commerce business which I mentioned at the start step one is finding a product people want. Step two is then scaling that business, selling the one product. So you don’t need dozens of products at the start. You just need one good one that people want, and you can grow that to 20,000, 50,000, even $100,000 a month, just on one product. From there step three is then adding in additional products. And the purpose of this is to number one, get more people to your store because you are able to target different people, looking for different things. And two is increase your average order the size because now people can add additional products to their cart, which is going to make your overall economics of your e-commerce business more sustainable.

So they’re the three phases. Again, use this strategy in phase one when you’re testing and finding new products, and we are using this now in stage three, as we’re scaling, we’re adding additional products. That’s why we’re testing this now, but hopefully this is useful. If you’ve enjoyed this subscribe, give us the thumbs up and be sure to stay tuned for more videos like this coming soon.