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190 How to Sell in Amazon Europe with Gil Lang Part 2 of 2

Today we will be delving further and looking at Amazon Europe. In Part 1 we spoke with Gil Lang of Private Label Journey, a German Amazon seller about the mindset of German consumers and the challenges and opportunities of building an Amazon business in Germany.

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189 How to Sell in Amazon Germany with Gil Lang Part 1 of 2

Today’s guest on the show is Gil Lang of Private Label Journey. Gil is from Germany, which is an important area that we need to investigate more and he’s here to share his insights into the Amazon Germany market. He is also a private label seller and runs the podcast Private Label Journey.

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167 Sponsored Products & Amazon PPC Q&A with Brian Johnson

We have, once again, Brian Johnson of PPC Scope and Sponsored Products Academy on the show. After we released the previous episodes I got so many questions that I had to get Brian back on. We’re going to do a Q&A session right now to address questions sent in from the listeners. Continue reading

166 Fetcher and the Future of Amazon with Shane Stinemetz Part 3 of 3

The Future of Amazon 2017

The future of Amazon is going to be challenging for Amazon sellers. Products are becoming more competitive and this making the Amazon space more congested than before. Therefore, people need to find a way that they can assert creativity in their sales by creating something original or by adding something original to the already existing products. Continue reading

148 Building a Brand with Manuel Becvar Part 2 of 3

Building a Brand Off-Amazon

As we discussed in the previous episode, building a brand away from Amazon is a very good idea.

Amazon owns you and your listing. They control everything. They can suspend your account at anytime. If you sell exclusively on Amazon, that puts you in a difficult situation. It’s a good idea to have multiple selling channels. That way, if any one goes down for whatever reason, you have other sources of income. Amazon only accounts for about 20 – 30% of Manuel’s income. Now, if something happens to his Amazon account, it wouldn’t shut down his business.

Another reason for building a brand is that Amazon is a race to the bottom on pricing. If you come up with a new product, in a couple months a lot of sellers have copied it and now everyone is lowering prices to get sales. If you have your own ecommerce site or wholesale, you can dictate the prices as long.

Off-Amazon Sales Channel

When building a brand, there are several options when it comes to other sales channels. There is jet.com where you can signup to be a third-party seller. Wal-Mart recently bought them for $3.3 billion. You can also sign up to be a third party seller on walmart.com. When it comes to these these third-party selling routes, it’s important to bear in mind that it may take awhile to be ungated. For those in the UK, you can use tesco.com. The downside to these platforms is that you are still a third-party that is subject to Wal-Mart or Jet or Tesco, etc.

Shopify

The best security would be owning the platform with Shopify. That way you control everything. It takes a lot more work than with Amazon as you don’t have the benefit of them shipping everything. However, the big issue is getting traffic. You can always find people on Amazon, but getting them to come to your site takes work, like all aspects of building a brand.

You have to work on SEO in order to be found. One strategy is to go to other sites where your target audience is. You can find forums or go to Reddit and talk to people that are interested in your category. For example, Manuel is selling VR products so he goes to a Reddit forum about VR and talks to people about a new headset Samsung is releasing. This can drive traffic to your Shopify store which will help your Google rank.

Ads are another way to boost rank and drive traffic. Google or Bing as are effective. You can use Facebook ads for conversion and email signup; not so much for selling products.

It can be more expensive and it takes a lot of work. But if you have good content, good SEO and traffic you can easily rank on page 1 or 2 of Google. That is building a brand that has visibility on the most powerful website on the planet: Google. 

147 Social Media Strategy with Manuel Becvar Part 1 of 3

Importance of a Social Media Strategy

Today on the show we have Manuel Becvar of Import Dojo. As Will Tjernlund mentioned during his interview, Amazon wants to increase their own private label operation. As Amazon become a larger competitor, you’ll want to establish your brand off-Amazon. Once you have a strong audience, this will not only help you sell more on Amazon, but give you the leverage you need if you wanted to sell on other channels. An important step to this, is creating a social media strategy.

There are differing opinions on social media. Some people say it’s a complete waste of time while others say it’s the cornerstone of their business. Social media can be a huge driver of traffic for your listings. When creating a brand, it’s important not to overlook the critical component that is social media.

Return on Investment

It’s understandable that people may think that social media is a complete waste of time. You’re not going to get instant results. You won’t see anything in a couple months. However, if you stick with your social media strategy, and keep building your social media presence, you will start to see in impact in a year or two. Manuel Becvar doesn’t run PPC ads anymore because of the success of the success of his social media platform. Now he can take the money he would have spent on ads, and use it on continuing to build on social media, and put it into his products.

You will have to invest in your social media. Whether that’s you putting in time, or paying someone to do it. Either way you decide to do it will still be beneficial. Even if you’re paying someone to put out content every week, you will still make more from sales than you would have if you put that money into ads.

Immediate ROI

If you’re creating a brand, then you might not have the audience for it to make much difference. However, you can always outsource it. There are sites, like Famebit, that will bring you together with influencers. These are people have have very large following on social media. You write up a campaign and get offers from different people. They will then review your product and send it out to there tens of thousands of followers. This can drive 2000 – 3000 people to your Amazon listings. Manuel Bacvar estimates that this led to 60 -70 additional sales in the first week. Well worth the $500 he spent on it because he wouldn’t have gotten that kind of return with PPC.

You could even contact them directly. If you go on social media and look up people that have a large audience and send them a message. This will let you target those that would buy your product.

Long Term Approach

As much as we all love to get a quick turnaround on our investments, you have to understand that your social media strategy takes time. Again, you can outsource this if you’d like. You can hire people to run your social media accounts and they will post new content weekly and maintain it.

There are a few techniques you or your VA can do to help grow your audience. The first step, obviously, is to post regular content. You need to be posting at least once a week on most platforms. Go onto other accounts that target the same audience to post similar content and follow their followers. The idea is that once you follow them, they will look at your content and will be more likely to follow you since they are already following a similar account.

Finding Your Audience

When planning your social media strategy, it’s important to target the right people. One way to do that is to target people that have purchased your products. This way you know they are interested in the category you’re selling in.

Manuel has grown his mailing list to over 800 subscribers in 2 ½ years. It’s very simple. As we all know, we need to put information in the packaging. This way we can encourage buyers to leave a review on Amazon, or to contact us, rather than Amazon, if they have an issue. Manuel goes a bit further and offers an additional 6 month warranty if they signup for his newsletter. His products are all coffee based. So now he has over 800 people that he can market to, who are also willing to buy coffee related products. Keep in mind that it doesn’t have to be a warranty. If you sell kitchen supplies you could offer a recipe ebook. You could simply offer a discount on their next purchase if they subscribe.

Google Trends and Facebook Ads

You can use Google Trends to help you build an audience as part of your social media strategy. You can look up your keywords and find out where they are popular. Then you can buy Facebook ads targeting those locations. So if you’re looking up hiking and you find that people in Manchester search hiking a lot, you can buy Facebook ads targeting Manchester.

Facebook ads are really good at building your audience and a following. They are effective if the user doesn’t have to buy something right away. So they aren’t useful for directing people to your Amazon listing, but if you direct them to your site and have great content, then they will be more likely to buy your product.

146 FBA Inventory Management with Jeremy Biron of Forecastly Part 3 of 3

Maintaining Ongoing FBA Inventory

There are many things that you have to take into consideration. You have to think of your lead time and everything that goes into it. Also consider receiving time at Amazon. It might take awhile for them to check it in. When planning a strategy for your FBA inventory, you should plan for the worst case scenario. There could be issues with it getting backed up at port or issues with your supplier.

Using Software to help FBA Inventory Management

A great thing about using software for forecasting, is that they can keep track of that, whether it’s Jeremy’s Forecastly or another piece of software. It tracks inbound inventory, current inventory, what you have in manufacturing, and true sales velocity.

You also need to consider spikes in sales. You may have consistent sales every day, but a couple times a month your sales spike. This is why you need to build in a safety stock. That gives you a cushion so that if you get a surge in sales, you have enough stock to cover it until your next shipment gets there.

Forecastly

Forecastly has many business that use its service. The software can then use this anonymous data to make predictions about Amazon as a whole. It takes ASIN level data over the past 30, 60, and 90 days to makes prediction about future sales numbers.

Their main focus is demand forecasting. It considers your recent sales including stock out periods. If you were out of stock, it can determine what you would have sold had the product been available. It also tracks the variability of demand which is something you can’t do in a spreadsheet.

The main thing you have to be conscious of when managing your FBA inventory is, what do you need to replenish, when do you need to replenish it, and how many units do you need to replenish. Forecastly tracks all that while monitoring your inventory and will recommend your orders.

Many sellers want to use a 60 day trend to determine their sales velocity which is a bad idea. If you selling in an upward trend, meaning your sales are growing, then your sales were much lower 60 days ago. This will make your average too low. Forecastly uses a 30 day trend to get the most up to date projections.

False Rule of Thumb

We, here at Amazing FBA, love a rule of thumb. Unfortunately, when it comes to FBA inventory, many sellers follow a rule of thumb that won’t help them, and could hurt them. It’s the idea that you need to have X amount of days worth of inventory. Whenever they place their order, they bring it back to this magic number.

For example, if you wanted to maintain 90 days of inventory and you order monthly with a 30 lead time. When it’s time to make an order, you have 60 days of inventory. Based on this, you would order 30 days of inventory.

You don’t need that much inventory. You wouldn’t need to order for another month because you have a 30 day lead time and you’re tying up cash in stock you don’t need. The rationale behind this method is security. The attempt to avoid stock outs by keeping a large amount of stock on hand.

Future of Amazon according to Jeremy Biron

Amazon will continue growing their own private label brands. So Amazon is now your competitor. International markets are growing. The European markets are booming. If you’re having success in the US, you’ll want to take those products to the UK and the rest of Europe. That isn’t as easy as it sounds. You have to come up with a separate replenishment strategy as well as deal with the tax regulations. There is an opportunity, though. Especially in Germany where 40% of the sellers are non-German, and very few are American. That means they are willing to buy from foreigners, but not many Americans are there yet.

As Amazon grows, the more warehouse space they will need. They are investing in new space, but they don’t want to overdo it. You will likely see seller-fulfilled-prime see some growth as a solution to this problem though will come with its own issues.

The inbound process is likely to change. It used to be that you would just slap on a UPS label. Then you had to also do the Amazon label. Now you have to do box contents. It’s going to get more and more complicated as Amazon continues handling more inventory.

If you want to receive a free tool for launching new products, head on over to Forecastly.

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145 Amazon Inventory Management with Jeremy Biron of Forecastly Part 2 of 3

How to Deal With Excess Amazon Inventory

This is one of the biggest issues with Amazon inventory management. It’s something everyone deals with. Sometimes a product doesn’t as well as you expected. Once again, there is no crystal ball solution.

Improve Marketing

It might seem obvious, but one thing you can do is to look at it from a marketing perspective. Take a look at what you can do to improve the conversion rate. Can you improve your images or other aspects of your listing? Pay-per-click ads. It’s an investment. It will take time to perfect it. Is there anything else you can do as a last ditch effort to recoup your investment in the stock?

Pull the Inventory

If you have already considered the marketing aspect, you could try a completely different route. You can wholesale it or sell it on a different channel. You’d be surprised how many people will buy lots of inventory on eBay other sites that will help you with that. There are sites that help you with bulk sales. You can work with a service that does flash sales, like touchofmodern.com. They will flash sales household products that are high-quality. If you want to leave it on Amazon, you could lower your price. Even if you take a loss on the sales, at least you’re putting money back into your pocket.

Avoiding Excess Inventory

Proper Amazon inventory management is very difficult. You have to think long and hard and it really comes down to a plan. In the case of excess inventory, many sellers just go on a whim. One seller is dealing with excess inventory because they bought 3000 units of a product they’ve never sold before. Their main reason was that they got a good cost on them at 300 units.

The cost isn’t as important on that first order. You’re really trying to prove the product is viable. Then on your second order, you can get the cost right once you know the product will sell. It might be difficult for a first-time seller since your money is tied up but you’re not making much profit. However, you are lowering the risk if the product doesn’t take off.

Casting a Large Net to Find the Right Product

One tactic that you might consider is ordering small amounts of several different products knowing you are likely to run out. Then you can see which one takes off. This isn’t a great strategy. If you find a good product that takes off, you will jump in the sales rank. Now you have a high ranking product with no inventory. Let’s say it sells out in a week but you have a 45 day lead time. Now you’re going to be out of stock for 45 days unless you can negotiate with your supplier and spend more money to have it expedited.

Minimum Order Quantity

One issue you might run into is a minimum order quantity (MOQ), where suppliers will require a large order otherwise they won’t accept it. You can try to negotiate with them saying that you will be ordering from them for awhile, but it’s company policy that the initial is smaller.

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