In this episode, Sharon explains the five stages of a product's life cycle in the context of selling on Amazon FBA. She emphasises the importance of understanding the product life cycle and provides tips on how to extend the life cycle of a product.
Sharon starts by comparing the life cycle of a product to the life cycle of humans or animals. She explains that every product goes through a journey from its launch to its eventual decline or discontinuation. On Amazon FBA, the product life cycle typically consists of five stages: development, introduction, growth, maturity, and decline.
During the development stage, the product is being sourced, manufactured, and prepared for sale on Amazon. The introduction stage is when the product is launched in the marketplace, and Sharon advises focusing on differentiation and branding during this stage to ensure acceptance by the market.
The growth stage indicates that the product is gaining acceptance and experiencing faster sales growth. Sharon mentions the importance of organic ranking, profitability, and positive cash flow during this stage.
The maturity stage can vary in duration and is characterised by market saturation and the presence of copycats. Sharon highlights the need to focus on branding and differentiation to extend the product life cycle during this stage.
Sharon concludes by emphasising the significance of branding and building a brand around a specific niche or buyer avatar. She suggests dominating within a niche and using branding to extend both the product and brand life cycle.
