At 25, I made $6 million selling on Amazon FBA for 6 months.
However, my road to success has not been easy and has not been smooth sailing. My first 7 Amazon product launches failed.
My 8th product grossed over $6 million in just 6 months, forever changing my life in the process.
In other words, I had 7 failures and therefore 7 lessons before my 8th product went on to make me a multi-millionaire at age 25.
That's because I didn't give up, I learned from every experience and stuck with it.
Failure is not only part of the Amazon journey, entrepreneurs from all walks of life can resonate to some extent.
Unfortunately for most people, you can only see their successes, not their failures and lessons before they succeeded.
I believe that if we are willing to reflect and learn from these experiences, the most important lessons often come from failure.
In this post, I'll show you every product failure and the valuable lessons I've learned from each experience.
I hope that by sharing my failures and lessons learned, I can encourage you not to be afraid to fail while pursuing product opportunities.
If you've already started your journey and are facing obstacles, stay the course despite the fear of failure.
The expected value method of chance
Although the examples below are my failed products, I always approach opportunities with the expected value framework in mind, including the 7 outlined in this article. In each case, I always pursued opportunities where the potential reward far outweighed the cost or risk of loss.
This basically allows me to always minimize risk and loss as much as possible. Because I take this into account when approaching an opportunity, all my losses or failures can be made up for with just one idea of success.
Getting close to a product with an expected value framework also always forces me to have a backup plan in every situation. Also, I always know what the potential gains are, what the downsides or risks are, and how I can liquidate to get back my initial investment.
Let's start by looking at the products I failed, why they failed, and the lessons I learned from each experience.
7 Lessons From Amazon's Products That Failed
LED strip
My first product on Amazon was this individually programmable LED strip.
Why am I launching this product?
When I launched these LED strips, I was personally in a "hack space" and inventing products, especially those related to lights.
I also have a business where I outfit party buses with LED lights. As you know, I am very interested in lighting.
Since these LED strips are individually programmable and waterproof, I thought it would be a great product idea to launch on Amazon.
What is my backup plan?
If it doesn't work out, I know I can use these lights for myself. I also think I might sell them to inventors like me in the next few years.
With that in mind, I pulled the trigger and launched my first product.
I bought 50 units at about $10 per unit for a total investment of $500.
Why did this product fail?
This product is a great idea for someone like me who is passionate about programming or invention. However, that's not the case for most people who shop on Amazon.
Learn a lesson
Ultimately, sales of the product were very low, which meant there wasn't enough demand for individually programmable LED strips. I understand that you must verify sufficient demand for a product before releasing it. You can't invent a new product and be successful on Amazon. Your goal should be to capture demand that already exists on Amazon's platform by offering what customers are already searching for. You have to make sure that the market you are entering is large enough. Make sure that sales are also distributed across the marketplace and that it's not just one seller or brand that gets all the sales. This means you will be able to enter the market and compete.
80/20 Principle Coffee Mug
Why am I launching this product?
A lot of entrepreneurs like me know the 80/20 principle and many of them drink coffee too. This leads me to believe it could become a hit on Amazon.
Since this is a product that I personally want, I logically assume that others will want it too, either for themselves or as a gift.
What is my backup plan?
As a backup plan, I figured if the coffee mugs didn't sell, I could always try to sell them directly to the business.
I also think they would make a great gift at a startup party and I could use them as part of a branding strategy.
how much is the cost?
Why did this product fail?
I can't rank for keywords around the 80/20 rule because Amazon categorizes these keywords primarily for books. I also can't rank for the keyword "gift for entrepreneurs" If you don't know what the 80/20 principle is, you won't end up buying this product.
Learn a lesson
You can't make an innovative niche product and try to launch it on Amazon, it's not going to work. No matter what product you launch, it must make logical sense to the keywords you're targeting. If your goal is to innovate a product on Amazon, you must innovate within the scope of demand that already exists on the platform. To completely innovate from scratch, you have to use platforms like Shopify and facebook, where you can introduce products to your target audience and drive external traffic.
80/20 Principle Wristband
Around the same time I launched my coffee mug, I also launched these 80/20 wristbands
Why am I launching this product?
I think the 80/20 principle is also a good idea on wristbands. I added the phrase "think smarter, not harder" and marketed it.
Like I did with the coffee mug, I think it's logical for entrepreneurs, or as a gift to entrepreneurs.
What is my backup plan?
I use wristbands the same way I use coffee mugs, and I think I can always sell them to businesses that can use them as gifts or as part of their branding strategy.
how much is the cost?
I ordered 1000 of these wristbands for $0.35 each for a total initial investment of $350.
Why did this product fail?
While there are people looking for motivational wristbands and gifts for entrepreneurs, the concept of the 80/20 principle doesn't match Amazon's search volume.
Like a coffee mug, I can't rank for the keywords people search for startup gifts.
Unlike coffee mugs, however, wristbands have high profit margins.
Learn a lesson
You need to make sure that your product launch has search volume. More importantly, search volume must match shopper intent and make sense when they see it. Like a coffee mug, the biggest lesson here is to innovate in the search demand that already exists on Amazon's platform. One positive takeaway from this failure was that I realized that high-margin products were more likely to compete on Amazon.
Serenity Prayer Wristband
Inspired by the 80/20 wristband profit margin, my next product launches are these Serenity bracelets.
Why am I launching this product?
From the last two products before, I finally learned the lesson that you need to go to search where the demand is to be successful on Amazon.
I looked at the data and saw a lot of searches for the keyword Serenity bracelets. Since people are buying bracelets with prayers of serenity, I decided to enter the market with my own design.
What is my backup plan?
I didn't really have a backup plan for these wristbands, I was mostly inspired and acted upon by the demand for the Serenity bracelet.
I also figured that if things didn't go according to plan, I could at least sell them wholesale to churches at cost or a small profit.
how much is the cost?
I ordered 1000 of these wristbands for $0.35 each for a total initial investment of $350
Why did this product fail?
This product isn't great in the end, it's okay, not very impressive, or doesn't stand out from the competition. The quality of the wristband is also not very good.
Learn a lesson
Quality on Amazon is non-negotiable. You won't succeed with just a good product because the competition will overwhelm you. Customers come to Amazon ready to buy and they will always choose the product with the best quality and reviews.
hippie kaleidoscope glasses
My next product failure was these crazy EDM inspired hippie glasses.
Why am I launching this product?
When I launched these glasses, I initially thought there would be demand at venues like music festivals.
When I also looked at Jungle Scout's sales figures, it showed that these glasses were selling around 2,000 a month, which led me to believe this was a killer opportunity.
What is my backup plan?
Given that I go to music festivals a lot, I figured that if the glasses didn't sell on Amazon, I could always sell them at the festival in person and at least get my money back.
how much is the cost?
I bought these glasses for around $4 each, I ordered 150 for a total investment of $600
Why did this product fail?
I don't think the volume of these glasses is there. The data shows about 2000 units per month, when in reality there are only about 100 units sold per month.
The bulk of these sales also went to just one major seller, which I later discovered was a recognized brand in the marketplace.
Learn a lesson
Before releasing a product, you must ensure that the estimated demand is actually accurate. Don't rely solely on Jungle Scout's sales data, use the 999 method or other sales estimator to validate demand. Make sure that sales of a given product are evenly distributed in the market. This means you have to make sure that all sales are not going to just one seller, who may be selling a lot of products because they have brand awareness or are driving external traffic to their products. Stand out from the competition and give sellers a reason to choose your product over the competition. You can't compete on Amazon on price alone, you'll always lose out to dropshippers in China who can afford very low product prices. You have to make sure that your product is not only unique and distinctive, but that it actually works as intended. While my metal frame glasses are unique, if you jump up and down with them – as people do at raves and parties, the glasses can easily fall off your face.
Hippie Kaleidoscope Goggles
My next product launch is this kaleidoscope hippie goggles.
Why am I launching this product?
I really feel like I'm getting closer to my last product release – hippie glasses. I repurposed metal frame glasses and decided to market them as goggles.
I figured if I could fix the problem of glasses falling off customers' faces, then I might gain something
What is my backup plan?
My backup plan is the same as the previous product, I figured if the goggles didn't sell on Amazon, I could always sell them in person for the holidays to recoup my investment.
how much is the cost?
I was able to get these goggles for $2.50 and I ordered 150 for a total investment of $375.
Why did this product fail?
Goggles work much better than metal frame glasses and I'm proud of the overall quality of the product.
However, the problem with the goggles is that I don't have any kind of differentiation in the market
This means that I can't compete on price alone because Chinese sellers are able to drive down prices and cannot survive in this market.
Learn a lesson
If you want to be successful, you not only need to have a quality product on Amazon, but you must also stand out from the competition. Stand out from the competition and give sellers a reason to choose your product over the competition. You can't compete on Amazon on price alone, you'll always lose out to dropshippers in China who can afford very low product prices.
furry kaleidoscope goggles
My next and last failed product was these fluffy kaleidoscope goggles.
Why am I launching this product?
I know there is a demand for kaleidoscope goggles, but with the last version my problem was that I wasn't differentiated from the market and therefore couldn't compete on price alone.
I knew if I could find a way to stand out and get ranked, I might be successful in the hippie/rave goggles market.
What is my backup plan?
Given how often I go to music festivals, I figured that if these weren't for sale on Amazon, I could always sell them in person at the festival to get back my initial investment.
how much is the cost?
I was able to get these goggles for $2.50 and I ordered 150 for a total investment of about $375.
Why did this product fail?
Now that I'm different from the rest of the competition and the only one wearing the furry kaleidoscope goggles, I think I have a good chance of success.
However, I solved the differentiation problem and forgot about the quality. The problem with furry goggles is that the fur sheds easily, which is bound to get negative reviews on Amazon.
Goggles are great in theory, but not in practice.
Learn a lesson
You have to find a product with enough search volume and demand to compete with it. Once you have identified your needs, you also need to find a way to differentiate the best players in the market. After ensuring there is demand, you can differentiate yourself from the competition, another important factor – if not the most important, is quality. Quality is simply not negotiable on Amazon. Without a quality product, you will get bad reviews and lose out to your competitors.
After failure after failure, part of me feels like giving up and moving on. Thankfully, I didn't, instead I asked myself what could I learn from it?
From 7 failures, I now know:
To be successful on Amazon, you need to go where there is demand or high search volume. Millions of shoppers come to Amazon every day, not to browse, but to buy a product. As Amazon sellers, our job is to provide these customers with the best possible option.
You have to enter a market where you can innovate within existing needs. Amazon is not a platform where you can invent a product from scratch, your goal should be to capture a portion of the available search volume by making something unique where you can add value and differentiate yourself from the competition.
Quality on Amazon is non-negotiable. Customers come to Amazon knowing what they want and they will always choose the highest quality product they can find for a given search term. This is why Amazon reviews are so important to long-term success.
You can't compete on Amazon on price alone unless you have enough money to make a small profit in order to sell a lot of products. In any given market, you must have a competitive advantage over your competitors. After all, why would a customer choose your product over a lower-priced, more-reviewed listing?
I took all these lessons and applied them to the next product opportunity for Eclipse glasses.
I confirm that there will be a need for a solar eclipse. Data shows that more than 10 million people in the United States will likely see a solar eclipse. I intend to capture only 1% of the requirements.
I decided to source the best quality glasses and safest lenses to watch the eclipse. I know that positive reviews on Amazon can snowball. A good product leads to positive reviews, which in turn leads to more sales.
I innovated in the market and created a new product that didn't exist yet. This means I won't risk a price war with sellers who can afford to lower my prices.
I create different variations to meet each client's needs, which allows me to capture most of the market share. Not only did the goggles sell, but I later created different designs and quantities, and ended up with over 100 listing variations.
These goggles and glasses are the end result of lessons I've learned from 7 different Amazon product launches.
Implementing the lessons I've learned from previous experiences has resulted in the best business results of my life.
More importantly, I'm very proud of myself for not giving up. I could have stopped after the first failure, or even failed the third or fourth, but instead, I moved on and it paid off in the end.
I am a living proof that if you never give up and keep learning from your experience – sooner or later you will achieve your goals.
Watching the eclipse wearing the exact same goggles I brought to the market was one of the best experiences of my life
So how did I achieve $6 million in sales on Amazon FBA in just 6 months?
My journey to success didn't happen overnight, I failed the first seven Amazon product launches to learn how to succeed on Amazon FBA.
Why am I failing? In short, I don't have the information and tools I have now. Through trial and error, I learned from each failure and ultimately succeeded.
Why These 7 Products Failed
Ensuring that the market is big enough with distributed sales I don't know how to verify the demand and what tools to use to provide it.Not inventing but capturing already available demand differentiates itself from the competition, adding value and quality is the key to Amazon's long-term success
I finally learned how important these factors are to Amazon's success; I approached my 8th product with this mindset and changed my life forever!
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