ChatGPT is like Google but more advanced. Don't get me wrong. I'm not saying Google is inferior. It's not. It's just that its chosen business model limits its capability to provide information.
Here's how Google works—When you search for information, say 'How to source products to sell on Amazon,' it doesn't provide you with a single answer like ChatGPT does, even though it has its own AI that can do it. Instead, it shows you links to relevant sources, and you'll be the one to choose which sources to trust.
Google doesn't remove you from the information selection process because it capitalizes on your decision. Whichever source you choose has a better chance of getting ad placements, and that's where Google gets some of its profits.
ChatGPT is different because it doesn't show you links to sources when you search. Instead, it shows you its version of the answer, leveraging AI to scour the Internet and other databases for the most accurate answer to your inquiry.
It doesn't only summarize available data, but it also analyzes, cleans, and organizes it using its own language and logic to provide you with digestible and reliable information.
In other words, you can ask ChatGPT anything, and it can quickly give you an accurate answer based on what's available on its mainframes. You don't have to compare multiple sources and risk coming up with the wrong conclusions.
So, how do you use ChatGPT to source products to sell on Amazon?
From 3.5 to 4.0
Before we discuss ChatGPT's applications in Amazon product sourcing, let's first examine its growth. This is crucial because you need to choose between these two versions depending on your budget and the information you're searching for.
When OpenAI released GPT 3.5 in 2022, we were all shocked by how excellent it was at solving complex problems and producing authentic text. It was scary good, as Elon Musk put it. And just when we thought it couldn't have been any better, it released GPT 4.0 shortly after, which is at least five times more powerful than the last version.
Right now, ChatGPT 3.5 is free. You can create an account with OpenAI and access the AI as much as you want. ChatGPT 4.0, on the other hand, requires a $20 monthly subscription. If you want more diverse, comprehensive, and accurate information from your AI for sourcing Amazon products, consider investing in the latest version.
How to Use ChatGPT to Source Amazon Products
Using ChatGPT is like having a business partner with whom you can brainstorm ideas, except this partner has a hundred times your brain power. Here's how you can integrate this powerful technology into your processes, mainly when sourcing products to sell on Amazon.
Step 1: Set up an OpenAI account.
Like any online app or program, you must set up an OpenAI account to access ChatGPT. Sign up here. However, the default version you can access is GPT 3.5. If you want to upgrade to GPT 4.0, click the 'Upgrade plan' above your name on the lower left of your screen. This plan costs $20 a month.
You may think that GPT 3.5 cannot provide high-quality information because it's an older version. But this couldn't be further from the truth. This older version is powerful enough to make substantial, detailed, and reliable suggestions, as proven by its many incredible feats since its release. And it's not like OpenAI nerfed it when they released GPT 4.0. They kept its capabilities intact.
You may also consider upgrading to GPT 4.0, but before you do, organize your listing and promotion process. Are you planning to use A+ Content or Amazon Storefront? Are you planning to run ad campaigns outside Amazon that involve content creation or email marketing? If not, an upgrade may not be worth it.
Remember that you'll only use it a few times—when searching for products to source and creating descriptions. Once you have your list of products to source, you won't need it for a while unless your business model requires you to source multiple products all the time. But it will come in handy once you scale your Amazon business down the road.
Step 2: Search for a profitable niche.
The secret to obtaining accurate information from ChatGPT lies in prompt construction. Unlike Google, which relies on keywords or phrases to run searches, ChatGPT depends upon the comprehensiveness of your prompts. Here's an example of a prompt that you can use to start your search for Amazon products to source.
I want to start a new brand on Amazon. I'm looking for niches that have only become popular in the last 12 months. I need a list of niches that have good demand but low competition. Give me a list of ideas that fit this criteria:
If ChatGPT's list doesn't satisfy you, you can ask for more ideas by typing "give me more ideas" in your next prompt. You don't have to re-enter the initial prompt, which can be counterintuitive because the AI might show the same results.
Here's a tip: Enter inquiries or prompts like you're talking to a human. This will make ChatGPT's suggestions more relevant and detailed. The idea is to not require more brainpower to analyze or interpret your instructions than necessary so it can focus on providing information.
Step 3: Research suitable products.
ChatGPT can only do so much to help you find profitable products to source. It cannot access some areas on the Internet to obtain the information you need.
For instance, it cannot show specific Amazon products that perform well in its suggested niches. You need product research tools like Jungle Scout, SellerApp, or Helium 10 for that. A product research tool gathers, cleans, and analyzes data from multiple marketplaces, particularly Amazon, to produce valuable market insights.
When using a product research tool, you can filter your search by a listing's monthly profit margin, price, review count, etc. Matching listings become the products you can explore and add to your inventory.
Here's a tip: Run a search on your product research tool for each niche ChatGPT recommends. Choose at least three products from each niche and rank them based on their profitability and the difficulty and cost of sourcing.
Step 4: Source the products.
Not all niches and products your AI tools recommend are ideal. Remember that no matter how specific and detailed your prompts are, ChatGPT can only provide you with information that applies to most people. Therefore, choose only the suggestions that closely match your specific preferences.
One indication that a particular niche or product may not be the best one for you is if it's difficult to source. The manufacturer may be based overseas, the product is too fragile and requires special packaging, or logistics costs a lot of money. In other words, when evaluating each niche suggestion, you must also consider other factors, such as logistics, shipping duration, and product quality.
Once you have your product list, search for potential suppliers. Depending on the suppliers you'll find, decide on your business model. If you discover that the supplier prefers wholesale, consider becoming a wholesaler. If the supplier is small but wants to sell to you exclusively, consider private-labeling their products.
Important: If you agree to use Amazon FBA in the future, your supplier must be willing to learn Amazon's processes. At first, you can decide to receive your inventory directly from them, but as your business scales, you'll need them to ship directly to Amazon for quicker fulfillment.
Other Applications of ChatGPT
You can use ChatGPT for applications other than product or niche research. For instance, it can help you write compelling product listings. Your listings need to be precise, concise, descriptive, and accurate. ChatGPT can't create listings that contain specific information about your products, but it can improve the structure of your product descriptions.
First, compose the description on your own, including all necessary information, such as specific dimensions, weight, volume, ingredients, or components. Then, input the description on ChatGPT using the prompt "I need a compelling product description using this information" or "Improve this product description by correcting grammatical and typographical errors and simplifying the sentence structure."
You can also use ChatGPT to search for influencers. Influencer marketing is a powerful marketing method for building an Amazon business. However, finding influences that match your needs can be difficult. You can search for them through ChatGPT in the same way you searched for profitable niches earlier.
Other applications include composing proposals for suppliers, writing compelling responses to feedback or inquiries, analyzing competitor reviews, and brainstorming brand names. Knowing how you can leverage ChatGPT's potential can help boost your product-sourcing capabilities.
Source Your Products with ChatGPT's Help!
Technology like ChatGPT is advancing fast and won't stop to wait for you. Failure to adapt could cost your Amazon business. If you don't integrate it into your processes now, you might not have a chance to do it in the future. Using ChatGPT to source products and enhance your listing content is a good start. Keep updated with tech trends, and don't hesitate to use any software that can automate, simplify, and expedite your processes.