Rank #1: Amazon Wholesale Business with Dylan Frost of The Wholesale Formula
How Dylan & Dan got to the money to start their Amazon wholesale business
You can start an Amazon wholesale business with $250-500 (Dylan and Dan started with a $600 credit card limit!)
In the early days, Amazon paid out daily (now it's every 2 weeks in the USA)
Within 4 months of starting their Amazon wholesale business, Dan got fired from his day job. They honestly started with 10 credit cards which were interest-free for the first year
They also got a $10,000 line of credit from the bank
They don't advise starting with debt now for their new students!
Capital required to replace day job income of say $50K/year with Amazon wholesale sourcing
If you can invest $2000 at 30% ROI month on month, for a "perfect" scenario, you'd end up with a $1M business after a couple of years.
That would be around $130K net profit every year.
So your personal income as a business owner could be $40-60K while still leaving decent profits left in the business to grow it.
Free Online Workshop
For a detailed free workshop on "Amazon Wholesale Business" model, from Dylan and Dan, CLICK HERE
(workshop ends Thursday 13 Feb 2020)
Protecting your Amazon seller account when sourcing wholesale
Amazon LIKES this business model. Amazon themselves do it!
Amazon makes more money when YOU Sell on Amazon than they do (15% referral fee plus FBA fees). So they like you doing this!
Amazon has actually been REDUCING their presence as reseller of brands. They prefer to let 3rd party sellers do the actual selling.
How to protect your profits as a reseller when sourcing wholesale
only work with brands who don't easily take on new sellers (retailers)
only work with brands who enforce MAP (Minimum Advertised Price) - this avoids the raise to the bottom
if a brand DOES allow too many sellers and it's damaging their sales price, that becomes an opportunity for you to be the solution to their problem!
if resellers are buying and not being honest about selling on Amazon, you can get them kicked off Amazon by the brand. Or the brand will usually refuse to sell to them again, if you inform the brand
Free online Workshop
For a detailed free workshop on "Amazon Wholesale Business" model, from Dylan and Dan, CLICK HERE
(workshop ends Thursday 13 Feb 2020)
More on Amazon wholesale business from Dylan Frost:
FBA Wholesale sourcing with Dylan Frost of The Wholesale Formula
From Dylan's business partner, Dan Meadors:
Amazon Wholesale Marketing with Dan Meadors
Wholesale Sourcing for Amazon by Dan Meadors
Amazon Wholesale with Dan Meadors from the Wholesale Formula
Feb 13 2020
Rank #2: Wholesale sourcing for Amazon by Dan Meadors
How can you use wholesale sourcing for Amazon?
Eg: give up day job quickly; build a scalable business; build a sellable business.
The Amazon wholesale model can create a reliable, consistent business.
It’s a very cashflow based business.
They have tried to make something as simple as possible.
Capital requirements for wholesale sourcing
With any physical product business, you do need to have the capital to invest.
Private Label is probably more capital intensive.
For wholesale sourcing for Amazon, you should be able to start with $2000.
Ideal brand partners have a MOQ (minimum order quantity) between $250-750.
With those, $2000 gives you enough bandwidth to access discount tiers and have a few SKUs.
Who can do this?
Dan has had a 17-year old start - now 19, selling millions.
Also, a couple in their 60s and 70s have also successfully adopted.
How quickly can you scale the model of Wholesale sourcing for Amazon?
The model does scale easily because of pace to market.
From seeing something on the screen to selling it is often 7 days!
If you’re running at 30% ROI - that’s 30% month over month growth.
Download their FREE Guide here!
How to work without capital
If you don’t have the budget for capital, but you have the skills, you. You can be a consultant.
Agency model for Amazon wholesale
Dan came across a product with 40 sellers on it. Competing with others
That company wanted to turn the business into a sellable asset.
They wanted to have a clean Amazon presence - large reach.
Wanted to run advertising- margins were not enough.
The manufacturer asked if Dan would help set up an account and manage the account for them and just take a commission.
Yesterday signed a deal - working directly with manufacturers
Sometimes exclusive with a product
In this case, they wanted massive growth and willing to spend serious advertising dollars.
Dan set them up on Seller Central and managed the account for a percentage of revenue
Agency type contract
Worth $250,000 dollars to their business - interest-free!
Can you start with NO experience of selling on Amazon?
Yes - they have a lot of students who do this.
They struggle with the confidence in making the pitch.
Of course, if you have the experience, you’ll do even better.
Selling your agency service to manufacturers
You have to be clear what you’re selling when you talk to the brand.
If you don’t have a lot of experience, you can’t sell that!
Base on logic rather than experience.
If it’s poor results, they can just stop!
Most decisions are based on understanding.
Dan doesn’t try to sell - he focuses on EDUCATION.
Where they’re at
Where they COULD be
Eg adding 5 quality pictures - it sounds legit because it IS!
You can show competitor listing or something optimises.
They are buying into the RESULT not the EXPERIENCE
You’re not the Guru
Dan says things like: “ I don’t promise I’m the solution. I’m more of a consultant.”
Eg: Dan has worked with 19 brands to create EBC - Enhanced Brand Content.
How does that work? Talk about things that work and invest them in the process.
We’re happy to make a connection with a contractor - they work to create it - and then it goes on Amazon.
Be good at figuring out what the problem is.
There is an outsourceable solution for anything.
The community of the wholesale formula provides this stuff.
The biggest block to wholesale sourcing for Amazon is your fear
Dan and Eric have one major virtue - charging into stuff!
Eg property - they decided 6-8 months ago to invest in properties.
First one was a storage unit - traditional analysis eg cap rates looked a...
Oct 24 2019
Rank #3: Amazon Product Research
Being product centred and focussed on numbers - using tools like Jungle Scout, Helium 10, etc. - on Amazon is what everyone does.
Hyper-competition = we HAVE to differentiate.
“Zig when they zag” (Andre Chaperon)
You need to have a differentiated business model to create a differentiated product.
If everyone starts on Amazon - get off Amazon.
Numbers vs. People
Keywords as the start vs. People as the start
“Grow where you’re planted” (Verne Harnish)
Start with jobs, hobbies; activities of spouses, friends, family
It has so many advantages:
You’re going to care more
As Seth Godin puts it “you care enough to get hit” (he was talking about ice hockey, not street violence!)
You already have a knowledge head start
You’ll understand the customer better
You can literally talk to your future customer
Start with your customer (PAP)
Don’t start with a product and search for the customer.
Decide on your ideal customer.
Talk to them! Find pain.
Pick a pain.
PAP - Person and Pain
Develop a product with and for your customer.
Ryan Schaffer’s episode of 10K Collective podcast
Of course, you should run the marketing numbers before ordering!
Don’t start selling to profit; develop to learn
First thing is to iterate product - or find other ones - until good enough for a private customer.
The second thing is the same with a pilot project until the market likes it.
Only then are you aiming to roll out on a big scale and go for profit.
Doing both is ideal (profit plus learning). But that’s a bonus.
“The only way to fail in business is to run out of money” (Anon)
Cashflow trumps “profit” as well.
Don’t worry about profit initially; instead, think of minimising risk and making sure you can afford the downside if it happens. (Risk-reward ratios)
Watch my discussion of Amazon Product Research: The Open Secret
Jun 14 2019
Rank #4: Private Label Launch – Private Label Strategy (step 7 of 10)
Revisit your Target Customer Avatar
Exactly who are you selling to?
As well as demographics (age, sex, location, income), try to define psychographics (values, drivers, etc.)
Precisely what Pain are you solving? Solving arthritis? Which kind? What location? Brought on by what activity? What is the “Ultimate Pain” you’re solving? Mobility? Thus freedom?
Revisit your Market Research
Keywords: Exactly which top 5 keywords are both winnable and worth winning (in terms of ranking ie where your listing appears in the search results)?
What are your 15-20 long-tail keywords? (lower search volume but very relevant - low-hanging fruit)
Differentiate: Exactly how is your product different from what is out there? Why is this important to your target customer?
Craft your listing
Craft your words: Tone of voice matters. On Amazon, so does energy (especially in the USA). Give your listing punch and personality.
Fantastic Photos: Engage an exceptional product photographer.
Collect product images you like into a virtual scrapbook (Pinterest is excellent)
Make a clear brief for your photographer based on your other work above.
Include “lifestyle” shots (product in context) and use models if you can.
Plan Your Launch Like a Pro
Revisit your Target Keywords
Exactly which top 5 keywords are both winnable and worth winning (in terms of ranking ie where your listing appears in the search results)?
What are your 15-20 long-tail keywords? (lower search volume but very relevant - low-hanging fruit)
Plan your Traffic channels
Amazon Ads? (this is the mainstay)
Launch Services (JumpSend, Viral Launch)? Facebook Ads to Chatbot?
Plan your Budget
If you’re selling below breakeven, how much will each sale cost you?
Plan your ad costs - assuming that most of your sales will come via Amazon ads to start with.
Set up your Keyword tracking
Use software (like CashCowPro, Zonguru, etc.) to track your ranking for
all keywords you think might be important.
DO THIS BEFORE YOU RUN TRAFFIC!!
Set your price REALLY low
Know your numbers - what is your breakeven price without ads?
Set your price to breakeven to start (below breakeven if you can bear it!)
Gradually raise your price to when you start to achieve your target keyword rankings (see below)
Set your Amazon sponsored ads
Set an auto campaign with an aggressive bid per click (say $2-5) and strong daily budget (say $20-100/day)
Set up a manual campaign with your top 5 keywords and 20 long-tail keywords. If in doubt: exact match only.
Monitor but Don’t Mess
Monitor the numbers every couple of days (see next step)
RESIST THE URGE TO FIDDLE. You will want to mess with your settings daily. Listing words, price, ad spend, etc.. RESIST. Change something only once every 4 days maximum. That way, you will have meaningful data.
Click here for our free Guide on Listing
Watch my full discussion of Private Label Launch - Private Label Strategy (step 7 of 10)
Sep 10 2019
Rank #5: Private Label Strategy (step 1 of 10) – Who do I learn Private Label from?
This mini-series is based on the Amazing FBA “Build” 10 Step PDF Guide, which is a Private Label Strategy guide.
It's NOT tactical and immediate.
It IS a framework you can hang your other Amazon business-building tactics on.
Click here to download the free PDF
The 10 steps to building an Amazon Private Label business
Step 1 - what we all know - but don’t do! (More in a second on this)
Step 2 - how to learn more from $600 than $6000 (launch in phases)
Step 3 - The NSL process (how the overall phase works)
Step 4 - Avoid wasting $5000+ (classic errors)
Step 5 - Why “Product Research” Fails (and what to do instead)
Step 6- The keys to great sourcing
Step 7 - The New “old-school” Launch method that works
Step 8 - Finding buried Treasure in your Amazon business (measuring & understanding)
Step 9 - When to scale up (and when not)
Step 10 - The 3 Cs to Success with Amazon Private Label (the framework you need to BUILD a business as a solopreneur)
Who should you Learn From?
NLP founders, Bandler and Grinder, weren’t experts in many areas - they were experts at modelling (the True meaning of NLP according to many).
“Those who can’t, do; those who can, teach”
…Well...yes and no.
Sure, you need to learn from someone who has learned how to do things themselves from real experience. However, simply following peak performers is not enough. Peak performers often have extreme talent and quite some luck too. The best football (soccer or American Football) coaches are not necessarily - or even often - those who were outstanding players. Coaching and training is a different art than performing, and the same is true in business.
Who NOT to follow for your Private Label Strategy
FaceBook groups are like bin-diving
There may be value in some groups - but be selective
Much of what you hear is from the “Amazon Echo Chamber” (Will Tjernlund’s phrase)[LINK to Goat Consulting]
Absorbing info in bits means you have to integrate it
But if you’re new, what are you integrating it INTO?
There are multiple ways to do anything
Following 10 people means having 10 views on how to do it all
Distilling your own model from scratch costs time - and time=opportunity cost
In the end, you need to have clear structure
Private Label Courses and “Gurus”
Basing things on reading/learning only is too abstract
Not doing it yourself you don’t know what it FEELS like
That means you can’t deal with the psychology of fear and greed - which is critical
It’s hard to get people to trust you if you haven’t done something yourself
Also it’s sometimes impossible to judge “Facebook warriors”
Based on 1 seller’s experience is too narrow
Each market (category on Amazon) is different
Some are more seasonal eg toys
Some are problematic because of low demand (eg UK)
Some are hyper-competitive (eg supplements; eg USA)
Success once or twice can be just luck - and luck is not a strategy!
Particular times had particular ease eg starting in 2013 - strategy needs to work now
Based on success from five years ago is out of date
Amazon changes rapidly
Whole strategies that worked 5 years ago are a disaster now
Tactics that were powerful to use 3 years ago would get your Amazon account permanently suspended now
Here’s what our work is based on:
Selling on Amazon personally for about 4 years
Interviewing serious power sellers - mostly American - for the podcast (about 3 ½ years)
Private connections in the UK to Power Sellers (over £100k/month) (for about 3 ½ years)
The 10K Collective Masterminds (collective turnover around £12/$15 mill a year) This group, which I've run since Sept. 2017, is full of power sellers. The most successful sellers in that have about doubled turnover since they joined (just about 22 months ago)
Jul 25 2019
Rank #6: How does Retail Arbitrage work for Private Label Sellers?
What is Retail Arbitrage and how is that going to help me create a Private Label business?
It’s like buying apples from a fruit and veg stall in the East End for £0.10 each, then selling them for £0.50 each in a posh shop in Hampstead (Americans insert own cultural references here!)
Arbitrage, in general, is the basis of all successful trading, in fact - domestic or international.
Retail Arbitrage. Means buying a product in a retail store like Tesco, Argos etc. selling it on Amazon for a higher price and pocketing the difference.
But why do Retail Arbitrage if I want to build a Private label business?
I hear you.
While a lot of money has been made with Retail Arbitrage over the last decade, it’s getting hard to compete. You can’t create a sellable asset (ie you can’t sell your retail arbitrage business) either. You’re not learning to have products created, or to import.
Hear what I’m saying: Learn from arbitrage. I’m only interested in it as training wheels. Others find they make good cash from it but that’s not our focus.
But it IS an excellent way to learn the basics of your Amazon skills - shipping to Amazon warehouses, navigating the backend of the website (Seller Central) - while risking only a few hundred or even a few tens of £/$/€. It’s the easiest, quickest and lowest-risk way to learn the skills needed. It gets you started.
Watch my discussion of How does Retail Arbitrage work for Private Label Sellers?
Aug 23 2019
Rank #7: Make Money on Amazon
That ties in with my own experience as well. For this reason, those who know how to make money on Amazon focus their whole year on this magical quarter. To put it another way, ¾ of the year gives only the other ½ of sales. If you want to make money on Amazon, you need to be there!
Why This Particular Q4 is Such an Important One for Entrepreneurs in the UK:
One word: Brexit.
This is the last Q4 in the U.K. before Brexit. We don’t yet know what that will even mean, but we do know that the 2-year transition period now agreed with the EU is starting March 2019. We don’t know what import barriers there will be for bringing goods into the U.K. from China or even the value of the pound compared to the US dollar (which affects importing from PRC). However, we do know we can Predict a high probability of issues exporting to the eurozone. If you were ever going to tap into making money on Amazon, especially in Germany, the 2nd biggest amazon marketplace in the world, from the U.K., this Q4 is the time to do it.
Other Reasons it’s a Better Time than Ever to Make Money on Amazon
As e-commerce grows year on year by 15%, it doubles approx every five years, Amazon has also increased its market share. I started selling on Amazon four years ago. Since that time Amazon's market has more than doubled. If you win on Amazon now, you win bigger than ever.
Why You Need to Get Moving for Q4 NOW
It’s easy to start thinking about it at the start of Q4 on October 1st, but you need to be working right now to prepare yourself for the best Q4 of your business life. What products can you get in front of as many eyeballs as you can?
This is an Important Opportunity to Make Money on Amazon, So What's Stopping You?
Frequently failure to launch happens because of two things. Either you’re already selling on Amazon, or you're just getting started with e-commerce. Let’s deal with each in turn.
Preparing to START selling on Amazon
I interview each and every applicant for my mentoring programme, and I speak to every member of the Zero to Hero mastermind. Both of these programmes are currently geared to the beginning seller. That is someone who doesn’t yet have turnover or indeed any online selling experience, although about ½ of mentoring clients do already have turnover. If that’s you, and you want some hands-on help, you may want to check out the mentoring programme at www.amazingfba.com/mentoring. The main point here is that I get great insight into what roadblocks people have experienced that stop them from making money selling on Amazon.
I ALWAYS ask what my client's biggest roadblock has been to get started selling on Amazon. There are a variety of answers, but one always crops up in various forms: “Making my first decision and product." Product selection is the most immediate roadblock that stops people from making sales on Amazon. Here are some of the things people have said to me:
“Not ruling things out has confused me; how do I decide on products?”
“I’ve procrastinated and stood by the edge of the pool. I guess that indicates respect for the problems, but I’m probably being over-cautious.”
“I’ve been researching for weeks. I’ve used Jungle scout and been following a lot of people. It’s a bit confusing. People say ‘go for cheap, go for light’.
Others say, ‘Broaden your criteria to include a higher weight limit, slightly higher price. It’s about differentiation.’ Which is the right way to go?"
“I’m worried about getting set up, getting started generally, and picking the right product. I feel if I get that wrong,
Jul 20 2018
Rank #8: Build Step 3: The NSL Process
The biggest single issue mentoring clients need help with is undoubtedly confusion.
They come thinking: “I don’t know what to sell. So what I need is a product type/keyword.”
You may be feeling the same. You’re right- for now. Sadly, that is not really going to serve you in the future, though.
“Give a man a fish, and you feed him for a day;
Teach a man to fish, and you feed him for a lifetime.”
The overall process is critical. You need to know:
What it is (and that it works - see step 1)
Where you’re personally at in the process
Our Action Steps are simple and robust - and they work:
Niche - Define who you’re serving; find out what they want
Source - Get a quality product that solves that need at a profit
Launch - Attract your ideal customers & show them exactly why they should buy your product
Measure - make meaningful measurements, ie make sense of the numbers. Your necktop computer needs to understand your laptop...
Watch my full discussion of How to start an Amazon Store - Private Label Strategy
Aug 27 2019
Rank #9: Amazon FBA Product Research with Jon Tilley of ZonGuru
Jon Tilley is the CEO and co-founder (with Adam Hudson) of ZonGuru an all-in-one software toolset to help Amazon sellers scale their business.
TACTICS FOR MARKET RESEARCH
Problem 1: Using keywords and data to choose product niches
And how to visualise it when you do Amazon FBA product research.
As a private label seller, there are two factors in the product niche:
The data - 50% of the solution
The more creative skill around differentiation.
The data side
The data is becoming more and more important especially as the Amazon ecosystem has developed
Ranking algorithms getting more and more important
The key areas
Exact search volume from customers. In partnership with amazon, Zonguru gets access to exact search volume.
Actual $ from keywords - access to this data - for top 25 sellers
Money from keywords
Understanding what keywords to target for your launch - there are many 1000 variations for Amazon FBA product research:
Which produce the most revenue?
Find out which is the most competitive?
What keywords, therefore, to focus on?
It’s a combination of:
Relationship with Amazon
Revenue share and market share
Reverse engineering and testing it against the algorithm
“Keywords on fire” - type in a keyword phrase
Reverse lookup against ASINs
Data from Amazon
Exact search volume
The spread of market share
Based on the Brand Analytics API
which listings get the biggest click %
In market A Top 3 are getting top 60% of clicks
In market B top 3 are getting only 20% of clicks
Dollars from keywords tool
Eg “Back brace for men” top 3 sellers 12% - $330K/mo
“Posture corrector” - top 3 sellers 15% - $220k/mo
How to define a market?
Specific metric - niche score (“Rainbow niche score”)
Relative investment to launch
Amount of net profit
There are 20 metrics that go into that
The strategy is to go into a niche category - objective to rank on page 1.
How would you define “too competitive”?
You could put in a phrase like “gardening tools”
From a filtering perspective
Search volume filter out <2000 search volume/mo
Anything under an average of 400 reviews (filter out very mature markets)
$ from keywords
What’s your background?
Before Amazon was as an account director at advertising firms, esp in the digital space.
With Blue chip clients in London - lead “Have it your way” for Burger King.
In 2014 came across the Amazon selling and brand building opportunity
Built own Amazon business which got self out of day job
Adam Hudson and Jon who founded the company both sold on Amazon
CTO also sells on Amazon.
Unique perspective - a dev team of sellers!
Within the Zonguru business, every employee is encouraged to have their own Amazon business.
It flows into the software.
Even provide zero-interest loans for stock purchase to employees!
So 50% of workforce sell on Amazon.
Jon has unique perspective - sold on Amazon since 2014 as PL seller.
Believes in that philosophy and opportunity available.
He’s pushed that through the team - they can even get loans - to start Amazon businesses.
Out of the 25 staff, 50-75% are selling or going live.
Software developers make great Amazon sellers!
Jon started with Indian development proof of concept team.
The fact they didn’t get the business case changed everything.
How he came to work for Zonguru
Revenue share for top 3 listings - especially balanced with search volume
Do these have an off-Amazon feed off traffic?
“Listing score” tool
How well listing is optimised
Placement of main keywords
Dec 31 2019
Rank #10: Ways to Sell on Amazon – the 5 Main Business Models
There are in fact multiple ways to sell on Amazon. But most Amazon sellers tend to fixate pretty early on a particular one of the ways to sell on Amazon.
If you google "How to sell on Amazon", chances are high that in fact what you're going to be shown is how to private label products on Amazon (I know - I've looked!).
What 'How to Sell on Amazon' Usually Means
Model 1: Retail Arbitrage
Model 2: Online Arbitrage
Model 3: Wholesale
Model 4: Private Label/Custom Product
Model 5: Agency model
Comparing the Models
Do it YOUR Way
What 'How to sell on Amazon' really means
Most posts, videos or podcasts that come up in response to "How to sell on Amazon" really mean: "How to do Private Label on Amazon".
Private Label IS a great way to sell on Amazon - if it's the right model for you.
What is NOT usually made clear is that private label means doing a large amount of work, spending very considerable sums and being willing to take a considerable risk.
I know because I've done it multiple times and helped others do the same for about 4 years now.
You have to know how to do product research on Amazon; pick or design products; get them ordered (probably in China)and imported, then how to do an aggressive launch.
Each of these skill sets is quite big - but the biggest by far is product selection or design and working with a manufacturer. It's a great skillset to develop but not to be underestimated.
The other main ways to sell on Amazon
Leaving aside non-physical products, like Kindle books or other Media products, there are in fact many more ways to sell on Amazon than the ones you may have deep-dived into.
Let's discuss each of these main ways to sell on Amazon in turn.
Model 1: Retail Arbitrage
Model 2: Online Arbitrage
Model 3: Wholesale
Model 4: Private Label/Custom Product
Model 5: Agency model
Model 1: Retail Arbitrage
The most famous of all ways to sell on Amazon
This is probably the most famous/well known of all ways to sell on Amazon. Made famous by Chris Green, one of the most popular ways to start Amazon is also one of the cheapest, simplest and quickest. No wonder it's popular.
How Retail Arbitrage works
You basically go round retail stores (for example Walmart) "scanning" the barcodes of established brand products using your trusty Amazon Seller app and your smartphone (or a barcode scanner for the more dedicated).
If you can find a profitable difference between the price a product sells for on Amazon and the cost to you of buying it in-store (accounting for the costs of selling on Amazon, such as the Amazon sales commission and Amazon fulfilment costs), you've hit on a winner.
You then buy as many units as you think you can sell/as you can afford. Then, when you get home, you will label the products if needed, put them in a carton and ship them into Amazon's warehouses (under the FBA or "Fulfilled By Amazon" programme). Amazon will then store the products and when a product is ordered, it will fulfil the order (pick it from the warehouse shelves, package it and deliver it).
The upsides of Retail Arbitrage
It's very affordable indeed to start with - you can start with under $100. Plus your cash can turn over pretty swiftly, especially at peak sales times. You can probably get your cash back, multiplied, within a month to start with. That said, even RA will require you to keep a decent amount of capital tied up in stock (products) if you want to scale this up to a decent revenue.
It's the simplest model in most way and thus requires the least training and setup.
Retail Arbitrage Disadvantages
RA is a simple system, but the downsides are many. Above all, it's a lot of manual labour/travelling around. The real issue is that once you find a product line that sells well, you generally find you can't restock that product. Certainly not consistently; often, not at all.
Jan 25 2020
Rank #11: Avoiding Amazon Failed Products with Dani Avitz of Algopix
How to improve Profitability
Sourcing - if you don’t buy well, you won’t win (“Profit is made when you buy”)
Reducing dead inventory
Biggest pain points of dead inventory
If you buy some products based on intuition and they don’t sell, there are several downsides:
You’ve spent money (sometimes the bank’s money so you’ll pay interest on the debt)
You missed out on another opportunity (opportunity cost)
Usually, when we fail, it’s hard to admit we failed
They say we are going to pay an analyst and “make sure it will sell” - so now we pay more money
Instead ask this guy - here is the good inventory I based on data, now how to expose more customers to this.
In Dani’s previous agency, they had some great successes, while some products didn’t move at all.
Clients called them asking why this was so and what they were doing with the slower-moving products.
Response - “We don’t do magic. We take good products and help you with infrastructure.”
If you’re the brand owner -
You pay money, you brand your product, and if you do a good job, you might succeed.
The no. 1 rule
Make sure you manufacture good products with demand (Creating demand is different from fulfilling it)
Get it produced at a reasonable price
Look at competitors
calculate your expenses
Reverse engineer and get the price right
Data is king
Creativity is important but the data is king to avoid amazon failed products.
Let someone do the heavy lifting on the data though to save you time.
How else to reduce slow inventory?
There are two aspects:
Before you source, understanding the market - make a small bet
Maybe you can tell it won’t be a killer but it has some traffic and demand.
It’s a bet -but if you bet on the product based on data you are in a safer position when avoiding amazon failed products.
In addition, if you bet on a product based on only modest sales data, you should be ordering an appropriately modest order size.
If you are a PL seller, work with a factory that has a lower MOQ (Minimum Order Quantity).
When you have a product already that is slow-moving.
If you will have a decent chance to sell.
Perhaps the answer could be international expansion.
However, maybe you’ll understand that demand is low and the only way to get rid of slow-moving inventory is to sell it for cost price. Bear in mind that demand varies and that maybe next month it will be easier.
Is it important to assess taxes etc. as part of keyword or market choice?
Taxes are part of the game these days.
Algopix produces a tax estimation. It is only an approximation but you may need to add about what it predicts.
At this point, you might need to discuss with your CPA or accountant if you need more precise figures.
Back in 2011, when Dani had started an agency, he visited big companies in UK, EU.
90% of the time he sat with the CEO.
The CEO would say “I know I can sell sunglasses on eBay. They are selling on eBay for $80, I can buy it for $20”
But Dani’s response would be:
Somebody offered it for $80. You don’t know if it sold.
Maybe it did sell but went for $60, not $80
You don’t know the cost structure.
Compensation for people who leave negative feedback (eBay) or review (Amazon)
You need to take care of all these factors before you can make any decisions!
Logistics estimation for FBM or own shipping
Since having product size and weight.
This can only be an estimation which is pretty accurate.
Amazon store audit
You should analyse your competitors’ overall offering if you are to realise understand the competition.
What products sold, which one did not etc.
Sep 26 2019
Rank #12: 313 Amazon Launch
Links mentioned in the show
Pre-Launch Plan consultation with Michael: www.amazingfba.com/RARE
3 Areas to Examine When It Comes to Launching
This is imperative for showing up in the search results for particular keywords
When people see your listing, are they clicking on it?
Are people actually buying?
It starts and ends with this.
You need to have a clear set of keywords that you want to rank for to show up on page one, near the top.
Create a target list of keywords for your listing and for your PPC.
Get 3-5 main keywords for volume.
Also, get 15-20 more medium and long-tail keywords for profit.
Set this up BEFORE your Amazon Launch!
Use a keyword ranking tool, such as the one in Helium10, to measure your target keywords.
Take all your short-tail keywords (4-5 keywords ) you’re targeting
Take all your medium long tail keywords you’re targeting (20 keywords )
If you can afford to, measure around 100 keywords per listing
Reverse ASIN search top relevant competitors to get these
Put those into keyword tracker
Measure your keywords before you change anything, so that you know what will be most successful.
Manually finding ranking
If you don’t yet have a tool to measure keyword rankings, you should check 3-4 keywords manually on Amazon.
Search on Amazon and keep scrolling through the search results until you find your listing.
Keyword rank = page number x listings per page + position on page.
Example: If your result is on page 5, on position six, assuming about 14 results per page (make sure to double check this!)
Keyword rank = 5 x 14 + 6 = 76
Before you start running PPC advertising, you want to make sure you have your keywords in the right place in your listing.
Important keywords should be in your title close to the front, in the bullet points, in the description, and in the back end.
If it’s a secondary keyword, yet still important, you want that keyword in the bullet points, description, and back end.
If you don’t put your keywords in those places, it is going to be more difficult for Amazon to rank you for them.
Once you built the listing correctly and you’ve started tracking your keyword ranking, you should then be running PPC, or pay per click, advertising.
If you find that you’re getting very few clicks, one thing is that you aren’t bidding enough.
If you’re in a competitive niche, you need to bid quite aggressively to stand out.
If you have a cost per click of about ￡1.50 and your budget is ￡10 per day, you’re only going to have a budget enough for about 6 clicks, which won’t do much.
It doesn’t send strong signals to the algorithm.
It’s not probably going to make sales very fast.
I would recommend ￡30-50 per day if you’re launching a product.
Click Through Rates
In terms of click-through rates, CTR, you want to be getting a decent minimum, around 1% if you can.
If yours is too low, it means people aren’t clicking on it.
People are looking at the overall offer:
You need to have a good main photo
Make sure it’s not priced too high
Social proof in the form of reviews
If you don’t have reviews, you may want to lower the price until you get reviews
Bid aggressively on advertising
Once you have reviews and the rankings you want, you can then feather down the advertising spend and feather up the price over time.
If you try this, but your listing does not succeed after you feather down on advertising and feather up...
Feb 26 2019
Rank #13: #328 Building Relationships in e-Commerce (Based on “7 habits of Highly effective people”) Part ONE
“Self-mastery and self-discipline are the foundation of good relationships with others.”
“There’s no way to parachute into this terrain. The landscape ahead is covered with the fragments of broken relationships of people who have tried. They’ve tried to jump into effective relationships without the maturity, the strength of character, to maintain them.”
“The most important ingredient we put into any relationship is not what we say or what we do, but what we are. “
“And if our words and our actions come from superficial human relations techniques (the Personality Ethic) rather than from our own inner core (the Character Ethic), others will sense that duplicity.”
“We can often live for years with the chronic pain of our lack of vision, leadership or management in our personal lives. We feel vaguely uneasy and uncomfortable and occasionally take steps to ease the pain, at least for a time. Because the pain is chronic, we get used to it, we learn to live with it. “
“But when we have problems in our interactions with other people, we’re very aware of acute pain—it’s often intense, and we want it to go away. That’s when we try to treat the symptoms with quick fixes and techniques—the Band-Aids of the Personality Ethic. “
“We don’t understand that the acute pain is an outgrowth of the deeper, chronic problem.
And until we stop treating the symptoms and start treating the problem, our efforts will only bring counterproductive results. We will only be successful at obscuring the chronic pain even more.”
“Let’s go back to our earlier definition of effectiveness. We’ve said it’s the P/PC balance, the fundamental concept in the story of the goose and the golden eggs. “
“In an interdependent situation, the golden eggs are the effectiveness, the wonderful synergy, the results created by open communication and positive interaction with others.
“And to get those eggs on a regular basis, we need to take care of the goose. We need to create and care for the relationships that make those results realities.”
Watch my discussion of Building Relationships In E-Commerce
May 23 2019
Rank #14: Product Research for Amazon with Stephen Somers of Marketplace Superheroes
How to do Product Research for Amazon (amazon.com figures)
PL Winner Percentage
6-7 out of 10 in Stephen’s case succeed.
Out of the 3, 1 sells slowly.
One is a loser. It will take 18 months to sell through.
Defining a winner
They define a double initial investment within 9 months
Even a product that is selling 1 unit a day.
Tangible - if you do a bonus item, it’s always physical (no ebooks or downloads).
Start at a category level
Then look at the top 100 products to get you started
Filter 1 avoid list
Click into products that don’t have reasons to avoid (checklist of 15)
Look at generic keyword/search term eg “plastic shoebox”.
Look at what number of results does Amazon return eg 1 of 2000 results.
Typically they like to have sub-1000 results.
Filter 3 DS Amazon quick view
Shows you the BSR of different products scrolling down the page.
What BSRs are the products on the first page
Sub 30,000 BSR
They don’t bother with tools that estimate sales data.
They want real data from own sales.
If everything is 100, 500 BSR, they get nervous because the market is big.
When the Results are low and the BSR is low, they get excited (big demand, modest competition).
But if BSR is around 40,000, 200,000 not so exciting.
Roughly 1200, 5000, 6000 BSR means…
Subcategories and related items
Do the same with subcategories and related items:
Then you find “hidden gem” products.
It does take time- but by using those filters…
Putting in a generic/short tail keyword
You start to see opportunity with bad listings.
“Too big” BSR cf Units sales
They used to sell a wholesale item (satellite box from Labgear) that was BSR 2 and literally hundreds of units a day sold.
Stephen considers a decent product - sells out in 6-9 months
Say it does £1000 in revenue per continent (US or EU), it’s still of interest!
That's £30 a day!
It’s still making you £300 profit at 30%
It is better to build a business with 100 SKUs doing £1000 each month than one with 2 SKUs with the same revenue.
Rolling with changes
They follow Amazon’s TOS -one day the all caps etc. will get wiped out by Amazon.
Because selling lower competition products.
Conversion rates can be as high as 60%
No fitting issues
Don’t have to consider forever
Not that much competition.
Odd Niches work
For example a hunting mount (like a moose’s head) - a member had 60% conversion rate
“Bacon bandages” - had something like 7,000 searches a month
Yes, you can make outrageous money selling supplements.
But everyone is competing with you.
You have to bid against others for Amazon ads space.
Their volume on Amazon is really high BUT had to build a massive brand off Amazon to start with.
Ryan has a hair-replacement company
Amazon is just a distribution platform
MPSH aim: Boring works even better - “marketplace products”
Covers that go under the feet of a washing machine.
They do YouTube videos about this to be transparent
Example: stud finder - finding studs in the wall
Bought from the wholesaler at the time.
Listed poorly on Amazon
Then it suddenly took off
Stephen went back to the company asking for 2000 stud finders and company said they didn’t do them any more.
Developing expertise in
Robert will find 4-5 products in an hour now.
Get marketplace validation first
Yes, you need to create a brand, get a trademark etc.
But you can’t even get a trademark without trading!
Feb 25 2020
Rank #15: Amazon product research with Dana Derricks
Learn more about Dana and "The truth about business".
Dana had a 7-figure amazon business he ran for 2 ½ years before selling it.
He was a freelance copywriter for about 8 years before that.
So 10 years’ Amazon experience in all.
Dana likes to look at building a portfolio -
The big programmes ask you to find secret hidden niches. This is wrong!
The “Hidden niche” fallacy
Dana worked with a bunch of sellers who launched a product, spent all their money, though it was a Hidden niche. Then they see 3 other people selling it.
Dana sees other people selling it - that means that other people are buying it - there’s a market for it.
Get the notion of secret hidden products out of the way!
There are a lot of people selling software based on the “hidden niche” idea.
Other ways to figure out what to sell
Dana looked at businesses on Craigslist.
He’d heard horror stories of sourcing from China and wanted an alternative.
Lady selling pet supplements company - all-natural formulas.
Obviously not doing well at selling
Great at science
Great at products
Dana bought it for $3500!
He wasn’t looking for pet supplements but it “found him”.
The key: make sure you have a product line in Amazon product research.
So you can sell more stuff to the same customers
Random products make no sense.
Instead, sell a line of products that all fit under an umbrella!
You have a tiny store in a large town (your storefront within Amazon).
Think about who would come in to buy things.
Think of a specific person who comes with the intent to buy something.
Sell something you care about and will do good. But also you can package and bundle and create a business
Creating a sellable asset
When you go to sell this thing, it will be way easier to find a good buy if you find an umbrella of products in Amazon product research.
Dana sold his business within a week - didn’t even use a broker, just someone in his network.
He sold to a friend doing $3-5M with 2 brands on Amazon - he thought their portfolio could grow to $10m - and then sell to an even bigger company!
Average customer value was high from selling more to each customer, so that also helped the sale.
Friend no. 1 seller of umbrellas on amazon - $1M a month
Sold a bunch of random products. They made good money.
However, they had a terrible time selling the company. The margins were good, but their products were all over the place!
Sourcing - quality vs. Profitable
Sourcing is not something that Dana is good at in Amazon product research.
That’s why we have real experts in different areas.
Dana was afraid of sourcing from China because of horror stories first-hand.
That is not what others have to do.
Dana decided to acquire the pet supplements company in part because he knew he could produce it.
It was essential-oil based - holistic herbal remedy for 36 different things.
Start small and grow
He didn’t roll all of them out at once - it would have been risky.
He started with 4 products
He got as much info as he could from the person who started the company.
Made calls to see if he was getting good deals.
Made in the USA - more dear to buy but sold premium price
Each unit cost $7-12
Sold for $25 a bottle
So about $9-10 a bottle all in, sold it on Amazon
Was not at mercy of vendor or supplier
Also could put “Made in the USA” on bottles
Really look at cost of inventory and raw materials.
When Dana sold the company, he had
Too many raw materials
And also bottles of inventory - about 30,000 - 40,000 on hand!
don’t buy into “economies of scale” esp when starting.
You’ll tie up too much cash in the inventory
It’s a RISK
Oct 10 2019
Rank #16: Amazon KPI – Private Label Strategy (Step 8 of 10)
Don’t ignore the data
It constantly shocks me how few sellers know their conversion rates
or sessions (visits). Don’t join them!
Equally: don’t drown in data either!
Make sure your “necktop computer” can absorb what your laptop is
Detail Page Sales & traffic report (Under “Reports>Business Reports” )
• Sessions: Is your product getting seen? If not, it’s time to drive
• Units ordered: Are you making sales? How many?
• Unit session percentage: = conversion rate. How well (as a
%age) is your listing converting visitors to buyers? If this is low,
it’s time to improve your offer (inc. price)
Profit and Loss
Don’t get buried in the numbers. Measure for a purpose
• The purpose of P & L is to help with decisions:
• Will you reorder this product?
• If so, how many units, what can you afford (cashflow)?
• Use software for Gross Profit!
• e.g. Manage by Stats, Fetcher, HelloProfit
Amazon Ads statistics (Advertising>Campaign Manager)
Amazon Ad Spend
• If you’re launching, expect to spend a LOT initially. That’s fine IF
you’re gaining keyword ranking for valuable keywords as a result.
• Overall picture by campaign: Monitor for either really good
(profitable) or really bad (expensive) results.
Measure Keyword by keyword for manual campaigns:
• Look for sales - are you driving sales and ranking?
• Next look for clicks - are you telling the algorithm to rank your
• Check CTR (Click-Through Rate). Over 0.7% is good for ranking.
Get the Overall ad spend by-product:
• Take the ad-spend on a product for a period.
• Check your overall sales (Business reports) for the same period.
• Calculate your ad-to-sales ratio (ATS). If it’s high in launch
period, that’s fine. After launch, aim for about 10% overall.
• Mostly ignore ACoS unless it’s super high (over 100%). It’s a red
Watch my full discussion of Amazon KPI - Private Label Strategy
Sep 12 2019
Rank #17: #343 Rebates for Amazon with Paul Harvey of Seller Chatbot
What are rebates for Amazon about?
In the e-commerce world, rebates for Amazon are another way to get good keyword ranking for new products when launching. It works especially well because the ranking effect of each reduced-price sale is much less than that of full-priced sales. Basically it means giving a customer a rebate after they buy an item.
Are Rebates Amazon TOS compliant?
Back in the day, you could sell products by using incentivised reviews.
Paul played by what he thought were good rules, but his competition went past him
It took Amazon getting nasty press to change it.
Rebates are similar. Rebates are not against TOS [but they are possibly a grey area -ed.]
However, asking for rebates and then asking for a review IS against TOS and Paul has known a couple of Amazon sellers have their Amazon accounts suspended for doing this.
Amazon are reluctant to change it - BUT it will change!
Rebates are likely to stay for a while. Amazon makes more money off a full-price sale than a discount
Also, Amazon would need to get access to Paypal to prove that rebates are being used.
One day however it will change - so you need to have more tactics than that.
So how does rebate flow work?
You can automate everything eg on Manychat.
There are API integrations with FaceBook - eg automatic PayPal refund, or add another product (Buy One Get One Free deals etc.)
Paul recommends automating everything.
HOWEVER, Paul and Anthony and Steve Simonson were chatting about this 2 months ago.
And Steve said, “hang on, are you wanting to automate a way to take money out of my account? What if your whole flow went viral?"
Yes, you can put boundaries and restrictions in place - but they take work.
Hasn’t Amazon got a stake in Paypal?
What's the best way to talk to customers about rebates?
Paul speaks to customers - who ask "why is it free?". The reason he gives is that he wants to get their feedback about the product and the buying process.
Some sellers choose to follow up later and ask for a review, but this is definitely black hat.
Chatbot Flow for Rebates
In the flow, when you do search and buy, seller chatbot cycles through various keywords, which helps the searches appear more organic to Amazon.
VA manually handles all the stuff and does rebate. She monitors this and uses customer screenshots as proof before issuing rebates.
Using Chatbots to improve PPC
Eg search and buy - if bidding heavily on a keyword, you will often have your ad appear high in the search results.
You can get Super low ACoS if you combine PPC with Chatbot in the right way.
What URL do you use?
Paul hasn’t used a Super URL for 2 years.
He has used "search and buy" for 2 years.
Why search and buy not a Super URL?
Amazon can see that customers are coming to the home page, typing in the keyword and then clicking on the ad (and in the best case, buying the product as a result).
Ranking and relevancy go through the roof.
There are something like 80 data points that Amazon accounts for in ranking, so it's not the only aspect of ranking, but click rates and sales via Amazon ads are very powerful still in ranking your organic product listing.
If the customer types in “baby blanket” and they see your ad, likely to click.
Amazon will reward your organic ranking in response to better CTR, conversions via ads.
Amazon loves ads because that makes them profit!
ACOS drops and relevancy will improve.
Sellers don’t want to spend on PPC but it sends more signals to your listing. It pays off really well in the medium term.
Customer searches "baby blanket"
Sees sponsored ad
Clicks on ad
Then PPC improves because the conversion rate (CVR) and Click-Through-Rate (CTR) are high.
Relevancy improves; all of which pushes organic ranking for that listing for that keyword.
Aug 01 2019
Rank #18: Amazon FBA Product Ideas with Dana Derricks
Dana Derricks is the author of “The truth about business”.
Founder of the Dream 100 Launch Programme, Dream 100 book, Dream 100 Challenge
Amazon seller pain points
Amazon as a business model
Most people are so in the weeds, they don’t see the big picture.
It’s easy to get excited about a tool but lose track of what works.
So discussing Dana’s book (“The Truth about business”) we’re going to zoom out.
Dana has made $1M four ways, one of which was on Amazon.
Is Amazon for me?
What is it you want? What’s your outcome? Then reverse engineer from that.
Do you care?
Dana had a pet supplements company.
One thing he weighed up was “Do I care about what I’m going to sell?”
If you don’t, the road won’t be as smooth.
Especially the RESULTS of what you sell.
Dana was able to help a ton of pets.
To finish the marathon, you have to care.
Every new seller Dana worked with - a lot of programmes promise “passives income” etc.
They don’t tell you how much money it will actually cost you.
They don’t tell you you’re going to need to have at least $10K to pay for inventory, services and software.
You need to have a cash cushion. Either anticipating more cash or access to it.
And you need to be able to swallow a product flop, a bad supplier, a bad batch.
It’s a long-term strategy!
How to start out in Amazon
Being a freelancer is a great way to get into any space.
Dana worked with 100s of sellers as a copywriter.
Also, you get paid to learn about Amazon FBA product ideas!
Dana then created a 7-figure amazon business within a year.
You see the gold medal in the Olympics but you don’t see the 10 years of work before it.
If Dana’s Amazon business had tanked, he would have had a freelance business.
What outcomes can be served by an Amazon business? And which not?
If you can’t articulate what you want, it’s okay. We don’t really know until we get stuff.
Maybe you feel like you want a sports car, maybe you don’t know until you get it.
So you don’t have to know what you want.
Amazon is not property/real estate
There is a misconception that Amazon is like an investment when you passively invest $1000 and get $10K back. This is not a real estate (property).
It’s an actual business rather than an investment.
Is it worth doing?
Some of the things that make it worth it:
Random wins that keep you going
Success stories from products - eg dog had seizures daily, on medicine, took the product and was seizure-free for 6 months. So make a great Product and make a difference.
When it started scaling, Dana was able to employ family members - aunt working at a grocery store
Had huge demand for product inserts and packaged etc.
Take control/ownership overproduction
Found company that employs people with special needs
Sent inserts to be folded and stickers etc to that company
That company loved them and felt good about it.
Less fun things
If you’re in the game for real, you’ll launch a product that flops
You can blame others including Jeff Bezos, gurus, coaches
But you’re the one who has to have the stubbornness not
Competitors will rip you off.
Chinese will rip you off.
Supplier may rip you off.
Just PLAN on it happening to you.
Put it in perspective
Something bad happens but you build up a tolerance.
Was your listing hijacking worse than x event in your life?
People post screenshots of money-making but not this stuff
How does Amazon compare to the other ways to make money/business models?
One of the ways was as a freelancer - service.
Another was digital/info products om Amazon FBA product ideas.
Another was coaching/consulting.
What Amazon is not
Amazon is not an instant solution to a job you dislike
Oct 08 2019
Rank #19: GBP steady, Amazon France Tax & "Amazon Choice" under Fire (Amazon Newsday)
The latest UK labour market data has beaten expectations, and should provide Sterling with some short-term support but we remain of the view any strength in the currency should ultimately remain limited in nature.
According to the ONS, Average Earnings - excluding bonuses - read at 3.9% in June, ahead of economist forecasts for a reading of 3.8% and the previous month's reading of 3.6%.
This is an 11-year high.
The Average Earnings Index - with bonuses included - for June read at 3.7%, in line with economist forecasts but above the previous month's 3.5% which was itself revised higher.
And, the better-than-expected numbers extended to the employment statistics where it was shown the UK workforce grew 115K on a the three-month-on-three-month basis in June, markets had only expected growth of 65K.
"While much of that was part-time employment, it is encouraging that firms have retained their workers, suggesting they expect activity to pick up again following the Brexit hangover in Q2," says Andrew Wishart, UK Economist with Capital Economics.
The UK unemployment rate nudged up unexpectedly to 3.9% in (the three months) to June. Consensushad been for a steady rate of 3.8% for the fourth consecutive month.
When it comes to currency markets, deviation from expectations move a currency, and the best on expectations should therefore be supportive of Sterling.
We are seeing some gains in the Pound following the release, with the Pound-to-Euro exchange rate trading at 1.0785, the day's low is at 1.0756. The Pound-to-Dollar exchange rate trading at 1.2067, the day's low is at 1.2042.
The Pound Advances on Reports 'Remainer' MPs Have Options to Block 'No Deal' Brexit
- GBP/EUR @ 1.0786 +0.56% | GBP/USD @ 1.2098 +0.64%
- MPs said to be working on credible route to preventing 'no deal' Brexit
- Sterling seen higher in Monday trade
- But gains tipped to be short lived
- However, IfG says ability of Parliament to block 'no deal' effectively not possible
Pound Sterling went higher on Monday in a move that coincides with fresh reports that there are in fact still credible routes that can be explored by MPs wishing to prevent a 'no deal' Brexit.
Sterling has been under pressure over recent days and weeks as it became increasingly clear that Prime Minister Boris Johnson could deliver a 'no deal' Brexit if he truly desired such an outcome, and all indications thus far in his young premiership suggest he is intent on doing so.
From a currency perspective, it is therefore likely that any suggestions that MPs do in fact still have options to thwart the Prime Minister's intentions would potentially prove supportive to Sterling.
"There were some developments on that over the weekend which could suggest some upside risk for the Pound," says Fritz Louw, a Currency Analyst with MUFG.
Louw references a report in the Times that says "MPs are drawing up plans to compel Boris Johnson to break his “do or die” pledge and force him to request an 11th-hour Brexit extension from the European Union."
According to the report, MPs would look to bring down the Government in a no-confidence vote. However, instead of forming a new administration in the 14 days stipulated by the Fixed Parliament Act, MPs will try introduce new legislation.
This legislation will state that the Government must ask for a Brexit extension before calling a mandatory General Election.
After all, if no alternative government is formed within 14 days, a General Election must be held.
This document has reportedly been discussed with Labour leadership and it has also been signed off by Dominic Grieve and circulated among 300 MPs who support a second referendum.
“It would be counterproductive to spell out the precise mechanism(s) through which this might be achieved, but we must be clear about the principle — a general election must not be used as a dev...
Aug 14 2019
Rank #20: Merch by Amazon (Chris Green 1 of 3)
New with Merch by Amazon
Stop the presses! Merch by Amazon has scaled up and the application process has been streamlined! They've drastically reduced the time it takes to get up and selling! Chris is a well-known figure in the Amazon community; we've got loads of valuable information for you today!
More on Chris' Background
Chris started as an eBay seller, got in on the ground floor with Fulfillment by Amazon, transitioned into books and scanning media, started a software company and then–kind of by accident–got into consulting and featured speaking. He's one of the closest things to an Amazon guru that we'll have here on the show. Check some of his links:
Merch by Amazon VS Retail Arbitrage or Private Label
Let's get this out of the way before we plunge into Merch by Amazon; Chris isn't here to tell you what to do. Merch by Amazon, Retail Arbitrage, and Private Label can all work in Concert. It's all about figuring out what's right for you. Chris made his name in retail arbitrage buying at home depot and selling on Amazon. It's great for some people. It's just not for everyone.
The appeal of Merch by Amazon is this: little to no upfront cost and complete ease of use. There's no inventory management. There's no dealing with customer returns. It's just your product, fulfilled by Amazon on an order-by-order basis.
Changes to the Merch by Amazon Application Process
First up they ask for your tax ID and country up front now; that speeds up the screening process dramatically. Social Security number or tax ID both work, but people who have neither automatically get the boot. They don't have every country, but they've got the big ones–U.S., U.K., Australia, Canada–and now they have something like 30 others as well. Even if your country isn't natively listed, you can still sign up. Chris has a course on Payoneer coming up that will definitely be worth checking out. Long story short, they've totally streamlined the screening process.
Pro Tip: Fill out the whole application. Include a design and a website. Don't cut corners and you should get approved.
Why Merch by Amazon Over Sites Like Teespring?
Because it's Amazon. Amazon didn't invent fulfillment. They simply offered it in concert with things like 2-day prime shipping and Amazon search. It's the same with Merch by Amazon. Print-on-demand isn't new. It's just that it’s never before been Merch by Amazon. Teespring is another print-on-demand service that has been around for some time, however, they lack the scale and customer base that Amazon offers.
Too Good to be True?
"This seems too easy... there's no barrier to entry. With the application process streamlined how can I be sure I won't get lost in the shuffle?"
The long and short of it is, you can't. You just have to offer something that nobody else is and effectively drive the right traffic to your page.
I get it, you're skeptical. I was too; I just had to know, "Can I really start with absolutely nothing?"
If it's not truly zero it's close. You can design on your phone and upload to Amazon on any computer. You don't even need a designer or a fancy webpage to get started. Just design, upload, and start raking in profit.
Stay Tuned for More With Chris Next Week.
Don't miss Chris' four-part video course available now!
Getting Started with Merch by Amazon - Part 1
Mar 30 2018