Jacob

Jacob

Last updated on Aug 28, 2026

You have seven markets that survived scoring and fifteen hours of analysis. From here the question changes.

It is no longer "is this a good market?" — you have answered that. It is "what exactly will I sell, and what will it actually cost me?"

Worth being blunt about the mindset: you are unlikely to find better markets than the seven in front of you. The job now is to make one of them work.

Prefer to watch? One hundred and twenty-nine seconds on the three offer types and when each works, why a fee advantage is permanent, and where differentiation ideas actually come from.

What an offer is

Your offer is the whole package a customer gets for their money — material, size, weight, colour, quantity, design, function — measured against the price you charge.

It is not the product. It is the product relative to the alternatives on the same search results page.

There are three ways to construct one.

1. Better value for money — the default

Give more than competitors at a similar price. More quantity, a larger size, better materials, a bonus item.

If everyone sells a 10-pack at $8.99–$9.99, you sell a 12-pack at $9.99.

This is the recommended approach and the lowest risk, for a simple reason: you are not asking the customer to believe anything. The comparison is immediate and obvious on the results page.

The critical qualifier: more of what they actually want. A bigger pack of something people buy one of is not better value, it is dead stock.

And this is not "sell it cheaper." Undercutting starts a fight you will lose to whoever has better unit economics. Better value means a better deal at a healthy margin — 35%+.

2. Premium

A higher-quality version at a higher price.

Genuinely riskier, and the reason is structural: you cannot know in advance whether customers will pay more when cheaper alternatives sit inches away on the same page.

And there is a ranking problem. If your price is 50–100% above the category average, winning organic rank becomes much harder — conversion rate drives rank, and a premium price suppresses conversion rate until the brand is established enough to justify it.

Premium works. It works later, usually.

3. Differentiated

Something genuinely different: a bonus item, a design improvement, better packaging, a smarter bundle, added functionality.

The rule that governs all of it: only differentiate if you can do it while holding a 35%+ margin at a competitive price. A differentiator that destroys your margin is a hobby.

Examples of the shape this takes:

Packaging that becomes part of the product. Everyone ships product X in a box people throw away; you make the box its storage.

A different customer. Everyone in the category sells to men; you design for women.

Smaller dimensions. A more compact package means lower FBA fees, which means you can price more competitively at the same margin.

That last one deserves emphasis. Any structural advantage on referral or FBA fees is a permanent competitive advantage — it applies to every unit you will ever sell, and most sellers never think about it. If you can engineer size or weight down a band, that is worth more than most feature ideas.

Where offer ideas come from

Not from staring at the product.

Competitor reviews, specifically the 1–3 star ones. This is the richest source available. People describe exactly what disappointed them, in their own words. Every recurring complaint is a differentiation brief.

Ask an AI model. Describe the product and market and ask for differentiation angles — and feed it competitor reviews, which improves the answers substantially.

Short-form video platforms. What people love, hate, or wish existed. Comment sections are unusually honest about unmet needs.

Visual and design platforms. Colour, packaging and design trends the category has not adopted yet.

Handmade and craft marketplaces. Niche versions of mainstream products, often with creative angles or bundles that could work at scale.

Then get real numbers from suppliers

An offer is a hypothesis until a supplier quotes it.

1. Find 25–30 suppliers who make the exact product.

2. Contact all of them. Introduce yourself, explain you are adding to an existing line, and include your two best competitor listings — pick ones rated 4.5+, so you are anchoring on quality rather than price.

3. Ask for quotes on both their standard offer and yours, at several order quantities. You need three things: manufacturing cost, dimensions and weight (which set your FBA fee), and estimated freight.

4. Calculate the full landed cost, then add FBA and referral fees. Now you know your actual gross margin at a competitive price — which is the number this entire stage exists to produce.

5. Narrow to the best 5–10 on price, communication quality and responsiveness.

Do not order samples yet. This stage is only to learn the real margin. Samples come after you have chosen.

And talk to suppliers about differentiation. They have made this product for years and know what is cheap to change and what is not. They will frequently improve your idea more than further thinking on your own would.

Product performance, once it is live

Choosing your one to three

With offer, differentiation, pricing and real margin known for all seven, compare them directly:

Highest gross margin — it funds everything else, including the advertising you will need.

Strongest differentiation, especially one that solves a complaint you found in reviews. That drives conversion rate, which drives rank.

Most advantages stacked. The winner is rarely best at one thing; it is the one with a better offer and a price advantage and a fee advantage.

Then move forward with one to three products. Order samples from the leading suppliers, expect two or three rounds of feedback before it is right, and only then place a purchase order.

What comes next

Sourcing decided, the work becomes keyword research, listing construction and a launch plan — where your advertising decisions start again from the beginning. See Restructure Your Campaigns Before You Optimise for the campaign structure a new product needs, and Setting Target TACoS per Product for what a launch should be allowed to cost.

Common mistakes

Competing on price rather than value. You will lose to better unit economics.

Differentiating past your margin.

Going premium too early, before you have the brand or reviews to support it.

Skipping the 1–3 star reviews, which is where the answers already are.

Ordering samples before knowing your landed margin, and getting attached to a product that cannot make money.

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