Episode #22: Blue Ocean vs. Red Ocean Marketplace Strategy

blue ocean vs red ocean

 

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I’ve noticed in my Facebook groups and emails that people are worrying about the levels of competition. People say Amazon is saturated and there’s too many people in the marketplace. I want it be known that when I started selling three years ago, people were saying the exact same thing!

 

Market saturation and more sellers will always be a ‘problem.’ If it will always be a problem, then there will always be a solution. Instead of worrying over the competition on Amazon because some areas will always have high competition, you should be focusing on the areas on Amazon that are untouched.

 

I want to talk to you about the red ocean vs. blue ocean marketplaces. A red ocean is a very competitive marketplace that is over-saturated. A blue ocean is where there isn’t much competition. You should always look to anchor yourself within the blue ocean. No matter what product you’re selling whether it’s consulting, coffee, or online products there will always be a blue or red ocean.

 

 

I will be honest with you and tell you that the blue ocean almost never happens. Think about if you’re trying to sell fidget spinners or another computer, it will be a red ocean because the market is saturated. Just because the blue ocean is hard to find doesn’t mean it can’t be found.

 

You will want to see where there is at least some sort of blue ocean. Try to find products that are in demand but there aren’t a lot of sellers selling it just yet. The product you want will have under 400 reviews.

 

But ever better than finding a blue ocean, you are the one who creates a blue ocean! You’re probably wondering how you create a blue ocean while also creating a product that people want. Take something that’s in a red ocean marketplace and put an interesting tweak on it. This allows you to become the first person to sell it to the marketplace. This is the equivalent of offering someone a MacBook in the 1990’s.

 

When you’re creating your product, it doesn’t have to be too complicated. For an example, look at the dollar shave club, they created a blue ocean out of a red ocean. They didn’t offer another razor into the marketplace, they created a razor subscription service.

 

I want you to think about how you can take away from a red ocean and turn it into a blue ocean. This is how companies completely get rid of market saturation and levels of competition. This is how you can dominate Amazon and take your business to the next level!

 

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Oliver Denyer About Ollie


Ollie is an ecommerce and lifestyle business enthusiast.
He's sold tens of thousands of products he's never had to touch, pack or ship himself.
A persistent disdain towards feeling like he's in a "job" has inspired him to create businesses that are FUN to run.
This means leveraging big companies to ship products, outsourcing laborious tasks to a team of VA's and running everything from a laptop.
He's passionate about sharing his knowledge with the world and helping people find more freedom through business.

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