[ BDSN ] 🪦 The death of traditional Amazon product research

🪦 THE DECLINE of TRADITIONAL PRODUCT RESEARCH

Sarah stared at her Jungle Scout dashboard, watching another "high opportunity" product she'd launched six months ago continue its slow descent into mediocrity.

Despite perfect keyword research, competitive pricing, and solid PPC campaigns, sales were flat. Sound familiar?

Meanwhile, across the e-commerce world, BDSS Dream 100 member Josh Hadley, an 8-figure Amazon seller on his way to 9 figures, was having a very different experience.

His secret? He'd completely abandoned traditional Amazon research tools.

The Old Way Is Broken

"We no longer are looking at Datadive, Helium 10, or Jungle Scout for opportunities," Josh revealed in a presentation last week in the Billion Dollar Sellers Club. "We're just looking at TikTok Shop."

Think about it: Traditional tools show you what's already working on Amazon, meaning you're entering a crowded battlefield where everyone has the same data. You're fighting for scraps in an oversaturated market.

The New Playbook: TikTok-First Product Research

Here's Josh's exact process for finding his next million-dollar products:

Step 1: Use Kalo Data Instead of Amazon keyword tools, Josh uses Kalo Data to analyze TikTok Shop performance. This tool reveals:

• Which products are generating the most GMV (Gross Merchandise Value)

• Top-performing creators for specific product categories

• Real-time viral product trends

• Competitor analysis showing exactly who's selling what

Step 2: Identify Viral Patterns Josh asks one simple question: "What's going viral on TikTok shop right now?"

If a product can generate massive organic reach through creators, he knows it will crush on Amazon too without needing to rely on expensive PPC campaigns.

Step 3: Skip the Amazon Validation Here's the paradigm shift: "I don't even have to look at the PPC data. I don't have to look at the competition. I don't have to look at the reviews because frankly, it does not matter."

Why? Because he's bringing his own demand through creator networks, making traditional competitive analysis irrelevant.

The Results Speak for Themselves

Using this approach, Josh:

• Turned a struggling business (down 25% year-over-year) into 100%+ growth

• Achieved break-even on TikTok Shop while 5X-ing Amazon sales for viral products

• Regained Amazon bestseller badges lost to overseas competition

• Maintained prices double his competitors while outselling them

Your Action Plan

1. Get Kalo Data access - This is your new product research engine

2. Monitor TikTok Shop trends - Look for products generating consistent GMV

3. Test first on TikTok Shop - Validate demand before heavy Amazon investment

4. Scale to Amazon - Once proven viral, launch on Amazon with confidence

Don’t miss Wednesday’s Live Expert Panel with 3 top TIKTOK Shop experts inside the Billion Dollar Sellers Club.

🕹️ AMAZON LAUNCHES REVOLUTIONARY CUSTOM ANALYTICS

Amazon just dropped Custom Analytics. It’s about to revolutionize how sellers analyze their business data.

What Is Custom Analytics?

Amazon's new Custom Analytics feature is essentially a full-scale business intelligence platform built directly into Seller Central.

Think Tableau or Power BI, but designed specifically for Amazon sellers and packed with every metric that matters to your business.

For years, sellers have juggled multiple third-party analytics tools, each offering fragments of the data puzzle. Amazon's Custom Analytics eliminates that complexity by centralizing everything in one powerful dashboard.

Here's what makes it remarkable:

Comprehensive Data Access: Choose from hundreds of metrics spanning every corner of Seller Central: inventory performance, coupon effectiveness, search query data, advertising metrics, and much more.

Ultimate Flexibility: Create completely customized dashboards tailored to your specific business needs, or start with Amazon's pre-built templates and modify as needed.

Professional-Grade Visualization: The interface rivals enterprise-level BI tools, making complex data analysis accessible to sellers of all technical backgrounds.

Amazon has essentially handed sellers a professional-grade business intelligence tool for free. If you're not already exploring Custom Analytics, you're missing out on insights that could significantly impact your bottom line.

Ready to dive in? Head to your Seller Central dashboard and look for the Custom Analytics option in your reports section, or check it out here.

✍🏽 STRUGGLING to GET PRODUCT REVIEWS?

GetReviews has helped 100's of Amazon sellers worldwide collect real and honest reviews by designing review funnels and generating unique QR codes for package inserts.

Add these inserts to your packaging to get customers to leave genuine reviews. Also offer giveaways such as warranties, promo codes, e-gift cards or digital products.

What's the win for you here?

• compatible with Shopify, TikTok Shop, Walmart and more!

• set up to be compliant with Amazon TOS

Schedule a call today to learn more.

Don't wait - improve your review strategy today.

Use code BDS15 to get 15% off your first 3 months.

🚀 TIKTOK + AMAZON INTEGRATION: BIG NEWS for SELLERS

Amazon just made their smartest strategic move in years. Instead of trying to beat TikTok at social discovery, they're partnering with them.

TikTok ads now support Buy with Prime checkout. Users can see a product on TikTok, buy it with Prime, and never leave the app.

Social Discovery vs. Keyword Intent: Amazon excels at capturing customers with purchase intent (they search "wireless headphones"), but struggles with discovery.

TikTok excels at viral product discovery but lacks trusted checkout. This partnership combines TikTok's viral discovery engine with Amazon's trusted fulfillment – the best of both worlds.

Amazon tried social commerce for years:

• Amazon Inspire was a disaster

• Amazon Live remains underutilized

• They kept forcing entertainment onto a utility-first platform

Meanwhile, TikTok Shop is exploding with brands generating $40K-$50K per livestream. Amazon's solution? Become TikTok's backend infrastructure.

This changes the traditional launch strategy:

• Old approach: "Amazon first, then expand"

• New approach: "TikTok first, Amazon fulfillment"

We're now in the "creator → checkout" era. If your product has viral potential, this is your new playbook.

Requirements:

• Active TikTok advertising account

• Amazon Buy with Prime service configured on your website

• Direct-to-consumer website URL

Technical TikTok Ads Setup:

• Delete auto-generated catalog video formats (not supported yet)

• Use catalog carousel formats with static images

• Select "Show now" as call-to-action

• Allow 24-48 hours for initial catalog synchronization

Campaign Strategy:

• Target products with viral potential

• Leverage TikTok's content discovery capabilities

• TikTok Buy with Prime → Shopify → Amazon MCF Fulfilled

• Focus on creator partnerships and influencer marketing

💰 GOVEE’s GLOW-UP: BORN at ANKER, BOOMING on AMAZON

Chinesesellers has an interesting story on how Govee is crushing it on Amazon, following in Anker’s famous footsteps.

Here’s how Govee got to $250M on Amazon by dominating a "Boring" niche.

When Wu Wenlong left his CTO position at Anker in 2017 to start a lighting company, most people probably thought he was crazy. After all, who gets excited about LED light strips?

But by 2020, Govee had generated over $200 million in sales, proving that sometimes the most overlooked niches hold the biggest opportunities.

Today, SmartScout estimates their total annual revenue on Amazon at $251 million, including a floor lamp doing over $1 million per month.

The Setup (2017-2018)

• Wu Wenlong departed Anker just 6 months after the company filed for IPO

• Leveraged his Anker equity (sold $34M worth over 3 years) to fund Govee

• Identified a massive gap: China produces 90% of the world's LEDs, but few companies were making IoT-enabled products

• Launched on Amazon US in 2018 with music-sync RGB light strips

Key Insight: Wu didn't just leave Anker, he maintained strategic relationships. Anker invested $5.6M in Govee in 2021, proving that burning bridges isn't always necessary.

What Govee Did Right: The Winning Formula

1. Niche Domination Over Category Spreading

While competitors chased crowded markets like smart speakers and robot vacuums, Govee focused laser-sharp on lighting. Their H601X music-sync RGB light strip became the #1 Alexa-compatible LED strip on Amazon within three years.

The Numbers:

• One LED strip alone generates $12 million in monthly sales

• Consistent 300% annual growth for three consecutive years

• Over 870 patents focused on lighting innovation

2. Amazon-First Strategy

Govee followed the Anker playbook: dominate Amazon before expanding elsewhere.

• Multiple products consistently top Amazon's Best Seller charts

• Website generates 1.6 million monthly visits (40% direct traffic)

• Strong organic search presence (33% of traffic)

3. Community Building Through Technology

The Govee Home App became their secret weapon:

• Over 30 million users by December 2024

• Acts as both control center and feedback forum

• Enables real-time customization and music sync features

• 16 million customizable colors created viral social media moments

4. Strategic Co-Branding

Smart partnerships amplified their reach:

• Dune: Part Two collaboration: 33,000 units sold, $3.58M in 6 months

• Aquaman and Pantone partnerships drove app engagement

• Positioned products as lifestyle accessories, not just lighting

What They Could Have Done Better

1. Profitability Lagged Behind Growth

Despite massive revenue growth (from $58.7M in 2019 to $200M+ in 2020), profitability remained a challenge.

2. Late Manufacturing Integration

Initially relying on contract manufacturers before building their own facilities may have limited early profit margins and quality control.

The Key Numbers:

• Market Size: Smart home sector was $31.2B in 2017, growing 25% annually

• Product Range: $20-$490 price points across two brand lines

• Revenue Growth: $58.7M in 2019 → $200M+ in 2020 → $250M+ in 2025

• Patent Portfolio: Over 870 patents protecting innovations

• App Users: 30 million by December 2024

• Top Product Monthly Sales: $12M from single SKU

Lessons for Amazon Sellers

1. Find the Unsexy Opportunities

The biggest opportunities often hide in "boring" categories. While everyone chases trending products, patient sellers can build empires in overlooked niches.

2. Dominate Before You Diversify

Govee became the lighting king before expanding to small appliances. Master one category completely before spreading thin.

3. Build Community, Not Just Products

Their app created a platform for user engagement beyond simple product control. Think ecosystem, not individual SKUs.

4. Leverage Strategic Relationships

Wu's maintained connection with Anker led to crucial funding and support. Your network remains your net worth.

5. Content Creates Categories

Govee didn't just sell light strips, they created a lifestyle around ambient lighting that resonated with Gen Z's desire for personalization and mood-setting.

6. Patent Protection Pays

With 870+ patents, Govee built genuine barriers to entry rather than relying on first-mover advantage alone.

Govee's rise from zero to $250M+ wasn't about finding the next hot trend, it was about deeply understanding an underserved market and executing flawlessly within it.

They proved that with the right strategy, even light strips can light up your bank account.

✌🏼 See you again Thursday …

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