Amazon.com is the largest retail marketplace in the world, with over a million products and 3700 new Amazon Sellers signing up every day. So, it’s very clear that if you try to offer the same product that millions of other Amazon sellers are selling, you’re doomed to fail or make absolutely little money. If that’s the case, there’s no reason for you to be on Amazon or running a business.
When I encounter new sellers, one of the most common mistakes they make is pushing the same product as everyone else. This is the definition of hawking a “me-too” product, therefore, STAY AWAY from that pitfall! If you want to do well on Amazon, you must completely set your product apart or make it better. But what does it even mean to differentiate, and what are some of the best and simplest ways to do so?
What does product differentiation really mean?
What’s not product differentiation?
In the present day, new Amazon sellers have a faulty understanding of what it means to differentiate their products from the competition.
Simply because they,
- Change products merely to change products.
- Differentiate the product by its color, size, and design without considering to add value.
Does the Amazon buyer consider this kind of product differentiation to be worthwhile? Usually not, unfortunately. The question then becomes how you may differentiate your product on Amazon from the other same 3000 products that can offer actual value to clients beyond mere differences in color, style, and dimensions.
Actual Product differentiation.
Giving the customer something they don’t already have is one way to differentiate your product on Amazon from the competition. Simply put, change with the intention of adding value. This could be achieved through better performance, better quality, more convenience, or a better overall customer experience. Making changes for the sake of change won’t help your business differentiate products in a significant way.
We’ll use examples later in this blog to back up our claim. If you can’t wait, keep reading.
Why should you have a different product?
There is a lot of competition in the Amazon market. On the basis of just price and reviews, Amazon sellers compete. And each day, these two factors bring a greater intensity. If you’re a new seller, you can’t afford to charge more than the specified margin, and above all, you don’t have any reviews.
To put it another way, you’re going to increase your investment in Amazon’s PPC ads. higher than 10% in tacos. You’ve lost a great deal, and so forth. Starting this kind of cycle of stress is a surefire way to ensure that it will never end. As a result, you achieve absolutely nothing.
“Make your mark on Amazon with a product that is as exclusive as a crown prince and as useful as a Swiss Army knife. Then you’ll quickly become the center of attention. And after you’ve had the limelight, it’s time to start beating the competition with your unmatched prices and rave reviews. That’s the strategy to set your product apart.”
Let’s include real examples to help you understand.
Amazon FBA Product 1 Example
If you’re selling this enormous Snorlex on Amazon, better stuffing, sewing, and product quality are the only differences you can make. It’s not enough to stand out in the market, and you’ll still need to compete in the pricing and review stakes. This is because these factors may not be unique to your product, and other sellers may also be offering similar improvements.
The Amazon data also indicates that the sellers who are selling these products are making the same amount of revenue. It’s nearly tough to make improvements to product images and listings. 3 to 4 brands are dominating this market. Therefore, new sellers cannot proceed.
Amazon Product 2 Example
A foam glow stick is another example of how to differentiate your product on Amazon successfully. It seems that the majority of customers have issues with the on/off switches, and every new seller on Amazon is fixing this.
Among a market of one thousand products, foam glow sticks offer no opportunities for further meaningful differentiation. You can do bundling and packaging better but other competitors are already competing on these factors. Once more, the early competition focuses on price and reviews. It is quite challenging to differentiate based on image, listing, and bundling. A poor choice for take-out.
Differentiating your product doesn’t necessarily require inventing something new. Even if a product seems incredibly valuable, it won’t stand out in the Amazon marketplace if there is no demand. So, differentiate a product that is already in high demand and provides a superior solution.
How then should the Amazon seller differentiate their products?
Stay with me, and you’ll find out later in the blog.
How can you differentiate your product?
That’s a tough one to figure out. Because each product can be differentiated in its unique way. The internet provides a wealth of resources for learning how to set your product apart from the competition. Let’s explore those possibilities with some real-life examples.
1-Differentiate by origin country
Think about it, where a product comes from can say a lot about its quality, uniqueness, and authenticity. If your product is made in the USA, for example, it can indicate that it’s been manufactured with high standards and regulations. Or, if your product is sourced from a specific region in Italy, it can imply that it has a rich cultural heritage and is made with traditional techniques.
By highlighting the origin of your product, you can tap into the emotions and desires of your customers. They want to know the story behind what they’re buying, and they want to feel good about their purchases. So, make sure to play up the origin angle and give them what they want!
The data from Helium 10’s goods mentioned above demonstrates that the majority of the beauty products sold on Amazon are of American origin.
Let’s say you decide on a beauty product. Which manufacturing country will you pick? You can’t stand out from the competition if you’re from China on Amazon because people place more trust in American-made beauty products. America has tough regulations and requirements for safe, high-quality ingredients and testing. It guarantees customers access to high-quality, safe, and effective cosmetics.
2-Establish differences based on design and functionality
What do customers hate more than anything else? Getting lost in Amazon’s endless sea of sameness. They’re looking for something beyond uniformity, like a unique design or useful extra functionality.
A product that is functional, appealing, and offers a unique user experience will stand out from the competition. Consider the features and benefits that your product offers and how they can solve a specific problem for your customers. This will help you create a product that not only looks great but also offers real value to customers.
Consider an item like a coffee maker. The two coffee makers showed above, while similar in function, are strikingly different in appearance.
The coffee machine on the left has more features, including programmable controls, an automated shutoff, a built-in grinder, a selection between one and many servings, a self-cleaning function, and a full alert system. Customers will find this to be a game-changer.
The right-hand coffee maker has fewer options for customization, such as fewer timer settings, a simpler interface, and an automatic shutoff feature. It’s less functional, but it’s popular among people who don’t share a home with anyone else.
In short, both coffee makers are effective in resolving customers’ unresolved issues.
3-Differentiate by size
That’s correct; size differentiation can be an important factor for some products, but not all. For some products, such as teacups, size differentiation may not add significant value as the size of the teacup may not have a significant impact on its functionality. So, making them bigger or smaller won’t really add any excitement. But if you’re selling hair extensions, size is like the cherry on top!
Customers may want short hair pieces for a bob style, long hair extensions for a more dramatic look, or bangs for a fringe. By offering different sizes for these products, you are able to cater to a wider range of customers and meet their specific needs. This can help you differentiate your product on Amazon and increase customer satisfaction.
4-Differentiate based on competitive weaknesses
On Amazon, one of the best ways to set your product apart from the crowd and increase its perceived value to consumers is to focus on areas where competitors fall short. You can do the following for competitor product analysis:
- The best way to learn about a competitor’s product is to buy it and examine its flaws.
- See what problems clients are having and what they’re complaining about in negative reviews.
- Think about how you can improve upon your competitors’ offerings.
Check out these negative customer reviews to see where you might provide a better solution.
The best way to offer customers a better solution is by paying attention to negative customer reviews. In the above example of customer reviews for earbuds, you can improve your earbuds by:
- A longer-lasting battery
- A stronger Bluetooth connection
- A better fit for the ears
- An improved microphone
5-Differentiate by listing and emphasizing unique features.
Don’t be like those sellers who take their product listings for granted and miss out on tons of sales. Your product listings are like a superhero costume, revealing all of your product’s amazing powers to the world.
Don’t let your product’s uniqueness go unnoticed! Make sure your customers know what sets your product apart from the rest by highlighting its unique features in your listing. And don’t forget about the secret weapon of keyword optimization! Your product listing is like a portal to the top of the page, but without the right keywords, your efforts to reach the top will be like trying to fly without a cape.
So, go ahead and optimize your listings with the right keywords like a pro and watch your sales soar to new heights. In case you’re having trouble getting your product listing just right, our team of specialists is available to help you out! We will make sure that your listings are set up to attract customers and generate profit.
6-Differentiate based on bundling
Bundling can sometimes be a wonderful strategy to differentiate your offering. Bundling your products can help you stand out in a crowded marketplace by providing your clients with additional value, convenience, ease of purchasing, and an emphasis on quality and customization.
But keep in mind that the bundles you offer must be so beneficial that clients wonder, “Why buy one when I can get a bundle of joy?” Your product bundles should act as a one-stop shop, eliminating the hassle of customers having to go to multiple sellers for what they need.
7-Differentiate based on Packaging
Remember that first impressions are often lasting ones. People will buy what they see first, so make sure it looks appealing. That’s why draw customers to the products with unique and eye-catching packaging.
In the image above, customers are more likely to buy the product with such eye-catching packaging! With its bright colors, bold design, and larger-than-life size, it’s sure to catch your attention as well. The simple yet effective product description, complete with details on quantity, usage, and target audience, will make you feel like you hit the jackpot. And the cherry on top? It proudly boasts its “tested in the USA” origin, making it a true crowd-pleaser.
Now, let me give you a practical example of how Amazon sellers should differentiate their products and why it’s important in terms of revenue and profit.
Different = Profitable: A real-life example of winning on Amazon FBA Product.
Let’s take a look at a real-life example of a product that’s killing it on Amazon by standing out from the crowd. Get ready to take notes and see what makes this product so successful in terms of profit and revenue—it just might inspire you to elevate your own Amazon game to the next level!”
Take a look at this picture.
This picture shows different products that appear when searching for the keywords “large adult gun,” “orbeez gun,” and “gel blaster” on Amazon. One product, the green and silver guns, is performing exceptionally well and is the top-ranked product for the keyword “adult gel gun.”
The pink gun is ranked at the top for the keywords “orbeez gun” and “gel blaster,” but its 3.9 rating is lower than the 4.7 rating of the green gun, suggesting that the green gun will eventually take its place as the top-ranked product.
Data from Helium 10 also supports this, showing that the green gun and its gel blaster bucket generate the highest revenue.
Now. Let’s find out why this gel blaster gun stands out among the other 48 guns by considering the above points of product differentiation.
- Made in the USA, a country widely known for its manufacturing excellence.
- It has a unique shape that makes it easy and comfortable to hold, just like a gun shooter. While none of the other guns in the market have such holding spaces.
- It’s of higher quality and somewhat larger in size.
- It is winning because all of its competitors are weak in some way. Other competitors have received negative consumer reviews about issues with quality, nozzles, empty trigger shoots, and difficult-to-assemble parts. On the other hand, this gun meets all the requirements to win customers’ hearts.
- Compared to other guns, it has many features that make it stand out.
- The blaster has a 250-foot range and is very powerful.
- There are a total of three different firing modes that can be selected: single, triple, and completely automatic.
- Massive hopper capable of holding a thousand gallons
- Rapid battery recharge time
- Productivity toolkit with top-notch components.
- There is no need to bundle this product with anything else because it is performing so well on its own.
- The wonderful packaging includes a hard-cover box with compartments to keep everything organized and neat.
In short, this gel blaster gun has successfully fulfilled all the criteria for product differentiation and as a result, is making top-notch revenue on Amazon and is currently at the top. This demonstrates the importance of product differentiation in achieving profit.
This is why product differentiation is crucial for Amazon, as it allows a product to distinguish itself from the competition and increase its chances of success and profitability.
Final Thought: Product differentiation is a key
When selling on Amazon, you face tough competition from numerous other sellers. To succeed, you need to differentiate yourself. By following the steps mentioned and examining the real-life example of a gel blaster gun, you can learn how to stand out from the crowd. This will lead to more visibility for your Amazon FBA products and support your long-term strategy.
Remember, product research and hunting is critical. Take the time to think about how your product can differentiate itself from the rest. Don’t cut corners on this step. And if you need help, don’t hesitate to reach out to us.