Build the Warren Buffet style “Economic Moat” e-commerce Product to outperform the competition every single time.
Why you need a Unique high demand Economic Moat Product
What is economic Moat – Concept of “ Economic Moat ” Came from Warren Buffet which is the ability to maintain a competitive advantage in the market over its competitors and benefit from higher profitability and customer demands.
Why we need Economic Moat for E-commerce business
Your product is revenue-generating assets that are exposed to Market competition not only on Amazon but externally. Products can easily be redundant and less attractive to customers if you do not make them an “Economic Moat”. If you have a product which is an Economic Moat, then it will not only safeguard your Amazon e-commerce business but also be more desirable to your customers and outperform the competitor every single time.
You never have to reduce the price of your product to compete with the market as it is unique and stands in the product crowd.
Steps to build a for e-commerce business
There are two simple steps to build the product which is Economic Moat
Step 1 – Understand the Product Niche and Customer Demands
You will need to build your product offering based on what customer wants instead of what you think you want to sell.
How to figure out what customer wants – The best part of Amazon is the data it provides which is coming straight from customers via product reviews and also from competitor listing.
List down all the competitor products and compile customer reviews and photos. This gives you insights into what is working well (4-star and 5-star reviews) and what product is lacking (3 star or fewer product reviews).
Check the listing and images of the competitor and it will give you an idea of packaging and their unique offering.
Innovation is all about studying your market and customer needs and design the product which can potentially be high quality, unique offering and stand out from the competition.
- Understand the manufacturing process, types of materials
- Get insights from the customer reviews and customer posted pictures
- Go through the customer posted Questions and Answers
- Study the competitor product listing, bullet points, description and images
- Look out for Magazines relevant to product Niche
- Check which products are frequently bought together to come up with unique bundle offering
Step 2 – Design / Improve your product which is unique offering a customer-oriented benefit
Designing the product requires not only improvements in the product but also in an overall appeal to the customers. This includes the packaging, inserts, guides, service, patents, and quality of the product.
Here are you can take and implement in your product strategy
Idea # 1 – Find the Missing Link
This is the most common way to increase the usability of the product by adding something which is missing in other competitor products. Even a minor addition could lead to bigger improvements from the customer perspective.
Idea # 2 – Glamour
It’s all about presenting your product for the right customers which is appealing to them. First impressions, great design and look and feel are few of the best-selling points. For certain Niches and customer segments “Attractive Looks” become quite prime.
Idea # 3 – Group together/Bundle-up
Find Frequently Bought together products and bundle it up. You cannot simply rely only on this improvement as this needed to be bundle up with other Ideas.
Idea # 4 – Tech Connect
We are living in IoT (Internet of Things) where products are connected (Alexa, Bluetooth, Andriod/iPhone Apps). Is there anything you can do to connect with the phone?
Idea # 5 – Save the Planet
You will bring emotional attractiveness to your product if it is environment friendly and reduces the carbon footprints. Customers can simply get connected with your brand if you care about the environment. That could be one major Idea which can bring more green customers.
Idea # 6 – Super Simple
Remove the complexity of using or maintaining the product and make it super simple that even a 5-year-old can understand how to use the product.
Idea # 7 – Quality / Materials
Think of packaging materials – soft, silky, smooth or product materials that give appealing look to the product. It is easier said than done. You will need to understand the type of materials, pros and cons, environment factors, and cost & benefit to figure out.
Idea # 8 – Design your guide
Make your Instruction manual attractive and simple, easy to understand and of high quality that customer want to keep it forever instead of discarding it.
Idea # 9 – Discard what’s not important
Get rid of anything that extra unwanted stuff. Making it simple while keeping the core functionality superior could be a great way to building an outstanding product.
Idea # 10 – Make it for Hulk
Most of the competitor misses out by focusing on average sizes while you can stand out with your product catering for customer with super large size demand.