This is by far the biggest Amazon business I’ve heard of.
Chaim Pikarski from C&A Marketing reportedly does 9 figures a year in revenue…that’s $100,000,000. Growing 30% per year. Impressive!
There’s some important lessons to learn from his business, here’s the core highlights:
- Chaim has a teams in each category (i.e. beach products, cellphone accessories, etc.) looking for all the features people wish a product had. It’s at the core of what he does. They read reviews, looking for reviews such as; “I wish this speaker was waterproof”. He then hires a manufacturer, often in China, and makes a product with those features. If the products sell well, he buys more, if not, it’s scrapped for the next one.
MOST MANUFACTURERS USE AMAZON AS A PLACE TO SELL, BUT THEY’RE ACTUALLY GIANT LABORATORIES.
- Once Pikarski’s buyers figure out what features consumers want in one category such as waterproof shower speakers, it’s easier to understand a related one such as waterproof speakers for you pool.
- In the past he says an audio company such as Sony would have to make many speakers in order to be taken seriously, but on Amazon the consumer doesn’t look at a brand’s full line of products; she looks at Amazon’s full line.
- This is an important distinction. If you’re a small manufacturer you can now compete with the bigger players, so long as your product is good.
ON AMAZON, THE CONSUMER DOESN’T LOOK AT A BRAND’S FULL LINE OF PRODUCTS; SHE LOOKS AT AMAZON’S FULL LINE
- His products sell alongside major brands such as Cuisinart. But the two company’s think very differently. Cuisinart gets its feedback through expensive market research, and the product managers responsibility is to stay on top of reviews but they are busy folks. Conversely, Pikarski gets his market research for free by looking at the Amazon reviews. Those reviewers have no idea they’re part of his R&D department.
- Pikarski sees Amazon as the launch pad to building recognizable brands. From there he sell the brands for a very handsome profit. In essence, Amazon is the incubator for his products.
The original article by Fast Company “The Amazon Whisperer” is here: http://www.fastcompany.com/3021229/chaim-pikarski-the-amazon-whisperer
Give shoppers only what they want. Remember you are serving a customer. Don’t let your own interests reflect what the product should have…listen to what the market is asking for. Then build a better product that matches what the market wants. Consistently strive to serve your market better. Your rewards are in direct proportion to the contribution you make to your market.