Three-Part Profitability Filter (Volume, Price Floor, Margin Stack)

A product go/no-go screen applied before committing to a niche, combining a demand check with a profitability stack:

Volume: roughly 100–300 units/month estimated sales.
Price floor: minimum £20 sell price.
Margin stack (all three required, calculated excluding PPC spend): £7+ profit per unit, 80%+ ROI, 30%+ margin.

Excluding PPC from the margin calculation is deliberate — it's a pre-ad-spend profitability floor, meant to leave enough headroom that ad spend doesn't erase the margin once launch PPC starts.

Related to Minimum Daily Profit Benchmark (Product Go/No-Go Threshold) and Safe Niche Threshold Checklist, which apply similar go/no-go logic with different thresholds.

Apply: reject a candidate product immediately if it fails any one of the four numbers — don't proceed to sourcing quotes on a product that only clears three of the four.

PPC Cost Buffer

The £7-per-unit floor (alongside 80% ROI and 30%+ margin) is calculated excluding PPC costs, and is deliberately set wide specifically to leave room for ad spend that can't be sized until after launch — per-unit PPC cost is unknowable before the product is actually live and running campaigns. Reject any candidate that fails any of the three thresholds before ordering samples.

New-Seller Demand & Price Thresholds

When applying this filter to candidates surfaced through the Store Rate Method (Recursive Seller-Catalog Mining), the volume and price-floor checks are done first, in that order, ahead of deeper analysis like seasonality.

Price floor: sell above £20 — below that threshold it becomes difficult to make a profit on Amazon.
New-seller demand sweet spot: steady demand of roughly 100–200+ units/month that "runs deep" across many of a seller's products is treated as a healthier signal for a new seller than one product with very high demand.
High-demand risk: demand of 500+ units/month is flagged as risky for a new seller specifically, because matching it implies committing to a first production batch of 1,500–2,000 units — a large financial commitment for an unproven operator, independent of whether the demand itself is genuine.

Demand depth vs. price floor (Store Rate Method benchmarks)

One presenter's first-pass version of this filter uses two checks before moving to seasonality or other screens: (1) demand that is steady and "runs deep" across many listings in a niche, roughly 100–200+ units/month per listing being a workable zone for a new seller, and (2) a price-point floor around £20, since "below £20, it can be quite difficult to make a profit selling on Amazon." Demand that "runs deep" (spread across many listings) is treated as a distinct, preferable signal from a niche simply having high top-line demand concentrated in few listings, since the latter is described as "a huge financial risk" if that demand drops off.

Из тем: Product Research & Validation