Niche Scout: The Basics
Niche Scout gives you an at-a-glance of the most important factors to consider when private labeling:
- Avg Sales Rank – The lower the Best Seller Rank the better, because it means that this niche overall is selling a lot of units, which means there is a market for it.
- Avg Price Point – I (and many gurus) suggest between $15-50 price point. Otherwise it’s too easy to go into a price war to the bottom. (Not always, but as a general rule)
- Avg Monthly Revenue – The more the merrier. If a lot of them are sustaining 5k+ you know there is a decent amount of demand.
- Avg Review Count – Reviews are telling you a lot about the competition and what it will take for you to get to the top. If you wanted to overtake the top spot, as general rule of thumb, you would want to give away 1.3x as many units as the top listings reviews. So be ready to spend that much up front in unit cost + shipping. However, don’t be afraid to start small and aim for that over time.
Shark Score
Moreover, as part of the Niche Scout tool, we’ve built in a proprietary algorithm called the Shark Score which uses hundreds of thousands of data points to determine how competitive a Scout Analysis is. For each report, you’ll see the Shark Score at the top. As you can see in the image below, the bottle capper has a score of 17. This is on a scale from 0 to 100, where 100 would be super competitive and zero would be not at all competitive.
Generally, you want to seek a lower score, but there are several factors to consider. Imagine you found a Shark Score of 5. Well, perhaps that means there is no market for that keyword or product. So you’ve got to aim for a sweet spot in the middle, where you can see a market demand, but where you could still feel confident competing there.Overall, you’ve got to compare all the indicators together to make an informed decision. We just offer you a unique Shark Score to help you make the best decision possible, because we love you!