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237 Chris Green on Merch by Amazon Part 2 – How to get free traffic – and how, and when, to defend your designs!

Today I’m back at it again with the second half of my three-part interview with “Mr. Amazon” Chris Green of Merch Dojo, and it’s time to dive back into the nitty gritty of Merch by Amazon. Read More
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#90 Merch by Amazon with Chris Green – Part 2

Using Merch by Amazon, are there good ways to game the system, Chris Green? Is it worth it?

Chris Green says: Merch by Amazon, like all Amazon models, is not best done by trying to game the system. The best practice it to reverse engineer the system instead. Figure out what Amazon wants you to do, because that will be rewarded. You can try to game the system, but if Amazon doesn’t like it, you will face consequences.

There are time-tested methods for creating and launching new products with FBA. With Merch, how do you select new products, and how do you launch them?

A lot of the people, Chris Green has been working with are relying on organic traffic. One way you can find new products is to search on Amazon. Start typing in the search bar and see what’s populating and you will find the products people are looking for. So if you see that people are buying “I love Panda” shirts, then maybe you should make one. Make sure you don’t copy. However, there is nothing original in this world. Everything is built on something else. So make your “I love Panda” shirt or whatever is popular, but make it your own.

The people that are going to win at merch by Amazon, are the people driving traffic. If there is already a demand for something, find out where the demand is, and go give them a product. For example, there are a lot of Facebook groups for classic cars. Now, there are probably sayings and phrases that go along with classic cars that you can put on a shirt. Have someone create a mockup of a cool car and make a shirt. There are some shady ways of promoting it, but the best way would be to go to the admin, and offer to give him/her some shirts that they then and giveaway to those in the group.

This applies to anyone with an audience, not exclusively Facebook. You might consider making a mockup of a logo for a smaller YouTube channel. You could find someone with a podcast that is respected by their listeners. Approach them with the idea of the shirt, share the link to the listing, you can make it unlisted so you’re not selling anything, and offer to share the royalties. It’s about getting creative with the platform you have because most people want to keep doing what they’re doing.

Chris Green feels that advertising within Facebook groups is under-utilized. Some groups you can just post a link and that’s fine, but if you need to approach the admin, you can give them something to giveaway to make them look good, or cash may work. Just ask if you can advertise in the group for $100. If you have a good design then people will go buy the shirt and you’ll make your money back.

Or, you could get involved in the community. If you know about classic cars, join the group. Ask questions, answer questions, help other people and you will gain rapport and you’ll have more freedom to advertise the shirt.

Here is an actual secret from Chris Green: Send them to redirect them to Amazon. You can send them straight to Amazon to buy the shirt, but you won’t get any data or analytics. However, if you send them to your website first and redirect them to Amazon automatically. That way you can attach a Facebook pixel and get a lot more data. This way you know that everyone that clicks through that link is into classic cars and you can target them using Facebook ads with all of your classic car shirts. You now have a list of people that are into classic cars right now and are willing to click out and to look at a t-shirt.

If you’re selling your shirt for $7.68, then you can spend $7 per sale and you’re still making money. Better yet, you’re spending money on highly targeted people who are the most likely to buy your shirt. Since Amazon is doing all the work, every sale is like printing money. That is the huge potential with Merch by Amazon. Unlike with FBA and private label, you have no money tied up. Right now it’s only t-shirts, this is the ground floor. In time we will look back and reminisce about when Amazon merch was only t-shirts. Now is the time to carve out you space.

Amazon is where the customers are. Sure, there are other options like eBay or teespring where you can sell your shirts, but the people are on Amazon. They want Prime shipping. They will filter out products to make sure it is Prime eligible. People don’t search on Google, they go straight to Amazon and you need to be where the people are. Merch by Amazon is prime eligible, and no inventory and you can’t find that elsewhere.

Let’s say you have 10 designs. What is the simplest way to get going?

Leave Facebook until after you get some sales. Don’t get into that fancy targeting stuff right away. First thing would be to post it on Facebook and ask your friends for their opinion. Get some feedback for it and be prepared for them to be honest. Which is what you want. Bad looking shirts won’t sell so get feedback first so you don’t waste your time on a bad design.

Look at what is selling. Don’t reinvent the wheel. See what people are buying and make your own version of that. See what’s popular. It’s election season in the U.S. right now so Trump and Hillary shirts are popular. Go to your local school and sports teams and do a fundraiser. Put their logo on a shirt on Amazon and have all the kids push them on their social networks. Every shirt sold with mean $5 to the group. People are more likely to buy the shirt than donate the money.

Find local businesses that want to want people to wear their logo. Give them a shirt to display with a link to the Amazon page. They can offer promos and discount to customers wearing the shirts. The possibilities are endless. There are so many different things you can do. If you’re a marketer, you can team up with a designer and split it 50/50. You might be good at promotion, or networking, or relationship building; find what you’re good at and then fit in the missing pieces.

How does launching a new shirt work? Is it similar to launching with FBA private label? Do you do a lot of giveaways to get your ranking up? Does ranking work in a similar way?

There is definitely some overlap between merch and private label. If you want to be competitive, and get your shirt to the top you’ll need some recent sales and reviews. You can certainly do giveaways; buy the shirt and put someone else’s address on it. You can send Amazon gift cards instead of refunds. Have your shirt as a prize in some kind of drawing. You can bundle it with your private label items. Put an insert in the box that gives the buyer an opportunity to get a free shirt.

Is there any way to gauge competition or predict sales?

You can certainly see your ranking just like you can with private label, says Chris Green. So with retail arbitrage, everyone is fighting over the same pie. THere’s only so much to go around. With private label, you introducing a brand new pie into the market and you get all the pieces. With merch, you own the pie but the pie is getting bigger. There is no limit to the market because you’re not fighting over the same design, you’re introducing new designs and the best ones will win out.

The biggest mistake Chris Green thinks people will make is relying on organic sales. He thinks Amazon will reward people that drive traffic. When people search for something, Amazon will determine what the best products are for that customer. If your product has better page views and conversion rates, you will be one of them. And having a better ranking gives customers more confidence in your products.

GET AN ACCOUNT NOW! There is no reason not to. You have nothing to lose, even if you never doing anything. As of right now, there is a waiting period to get your invitation, so even if you’re not ready to do anything yet, apply now so that when you are ready, you don’t have to wait for the invitation.

Get in touch with Chris:
Merch Life Facebook Group
merch.life
chrisgreen.com
facebook.com/chris
Merch Life book

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#88 Merch by Amazon with Chris Green – Part 1


Chris Green, Merch by Amazon expert How did you get into Merch by Amazon? What’s your background?

Merch by Amazon is only one of many ways that Chris Green has been selling online. He started out as a seller on eBay actually. After Amazon opened their platform to other sellers he began listing there. He found that it was much lower maintenance on Amazon as he wasn’t getting a ton of questions from the buyers and he began listing more and more.

The major turning point for him came from being a buyer after signing up for Prime. With free 2-day shipping he and his wife order a lot from Amazon and realized that if he was hooked, other people would be as well. With the introduction of FBA, he and other sellers would have access to these same benefits and knew this was a golden opportunity. The fees were lower, it was much less work, and his customers would get the product faster. He was all-in after that.

With Amazon doing so much of the work, he found he had too much free-time. He would then go to bookstores and yard sales and scan books to send for Amazon. After that, he was bored again and wanted a better way to scan for products and came up with ScanPower, the leading FBA software tool where you can scan any barcode and it will tell you what you can sell it for on Amazon.

He got his start as a public figure after self-publishing a book, Arbitrage, teaching how to make money on Amazon. It started as a simple book that answers the most common questions about selling on Amazon and ended up being the go-to guide for people wanting to get started on Amazon.

What is “Merch by Amazon”?

Merch by Amazon is a very simple concept and Chris gets a lot of questions about it, mainly because it seems too good to be true. That there is no way Amazon would do this, or if you’re hearing about it then it’s too late and there is no more opportunity. That is all false. This is the ground floor of this platform because no one has heard of it.

[Compare it to Prime and FBA.] Prime is a household name. There may be a few people that have never heard of it but it’s relatively commonplace, and it’s 11 years old. Most people don’t know what FBA is or have never heard of it, and it’s 8 years old. Merch by Amazon has been out less than a year.

Basically, all you need to do is come up with a design, make it a .png, and upload it to Amazon. They will then sell this as a physical product that people can buy and you get a cut of the profits. All you have to do is make an image that is 5400x4500px and 300 DPI png file. Then you upload it, make a listing and that’s it. You can pick 5 of the 15 colors in every size. If it sells, you get a royalty check. If it’s a $20 shirt, you’re looking at an $8 payout.

What Makes Merch by Amazon better than alternatives like “T-Spring”?

FBA wasn’t a new idea just like the t-shirt print on demand isn’t a new idea. There have been warehouse fulfillment companies for decades before Amazon got into the industry. However, Amazon has a huge customer base and has Prime which these other companies can’t compete with. That’s why Merch by Amazon is going to be so huge. People aren’t going to hop onto T-Spring and buy your stuff but they are going to Amazon and there they can buy with one click and get free 2-day shipping.

Can you really make $8 on a product and not put in any of your own money?

Yes! With FBA you have to get the product, buy hundreds of units, prep it, pay for it to get to Amazon, and hope it sells at a price that will return a profit. With Merch by Amazon, you don’t pay for anything. If you don’t sell a shirt, you’re out the time it took to make that image. You can make almost $8 on a $20 sale and not use any of your own money.

The only investment for Merch by Amazon is the image. You can now get Photoshop for $9.99 a month and they have their own tutorials. Or you can get on YouTube and find hundreds of videos on using the programme. If you go to http://merchshirts.com/ you can search for a keyword and see every item on Amazon for that word and you can see what’s selling.

Tell us more about the structure. How do the percentages work?

You choose your selling price with Merch by Amazon. The royalty has to be at least $0.01 and a max of $49.99. There is a 15%  fee so the final cost will vary depending on the royalty cost. When you make the listing, you put in what the final cost will be and it tells you what the royalty is. You can adjust the price based on what you are trying to get out of it. If it’s a brand t-shirt, you might price it lower so that you can get more sales and get your logo out there. You might price it higher if you are trying to make a profit. The most common price is $19.99 so if you don’t know what to price it, start there. If you’re going to charge more than $19.99, you better have a reason.

Different options will affect your royalty. The example Chris gives is a $19.99 Anvil shirt, with front side image. Cost plus listing fee is $12.31 giving you an estimated $7.68 royalty per unit. Even if you pay someone $5 for a design, as long as you sell one shirt you are making a profit.

Is there a separate platform for sellers or is it bundled in with Seller Central?

It is completely separate. Go to merch.amazon.com and request an invitation. As of right now, due to the popularity of the program, they have a waiting period. In order to slow things down and to scale properly, they decided to limit how many new sellers are coming in.

As of right now, it’s tied to a buyer account. So if you use your personal buyer account to sign up, you may not want to bring people on because you would have to give them your personal account as well because they are tied together and cannot be changed. But only the login. If your account gets suspended for whatever reason, then your merch by Amazon won’t be affected. The best advice is to make a brand new account just for merch,

Is it just t-shirts?

The term merch came from the concert scene where bands, in order to make money, would sell their merch after a show. At the time of this recording, merch is only t-shirts. However, there is a huge demand for other products. They didn’t call it t-shirts by Amazon so expect to see other items available in the future. Probably not in the near future due to logistics. Right now the have 15 colors, in 5 sizes, for men, women, and children. If they decide to do another type a shirt you’re looking at over 1,300 blank shirt options that they have to stock and keep track of.

Amazon has the data and has determined that t-shirts are the place to start. It is likely they will add more types of merchandise but it will be slowly.

You can see this trend in Amazon’s history of expanding from one product type outwards . Amazon started as a book company. Jeff Bezos was debating on 7 different categories and decided to start with 1 and getting established in that. Then they expanded out gradually into other categories.

#99 Adam Hudson on Amazon Basics Pt. 3

So you mentioned you started with $20,000 when you started your first company and I often tell people that you need at least $5,000 to start, which is a manageable figure for many people, but is that a viable number for people to start out with?

It is. You just need to do a lot of research. Adam uses Zonguru, which he owns, which is similar to AMZ Tracker and Jungle Scout if they had Feedback Genius built in. You need to track something like 100 – 200 products.

Spend hours tracking products and going to Amazon and Alibaba.com Use Pinterest, that is a great resource. If you want to sell coffee cups, just do a search for cool coffee cups, and people have built boards with all these designs they like. They are literally giving you the products they want to buy.

Adam isn’t interested in tracking the number 1 product. He’s is looking at the number 4 or 5 listing and he sometimes goes to the second page. He doesn’t like tracking products with a lot of reviews. He prefers niche products where if you were to count all the reviews for every product on page one, he wants the average to be below 60 or 70.

You can LOOK HERE For more detailed training from Adam. 

In the UK, you would probably adjust those numbers down. Simply put, it’s not worth it to go into the huge niches with a lot of competition and products are doing $20,000 or $30,000 a month. He is more interested in a smaller portfolio of products where each product is doing $5,000 or $10,000 a month. He’s happy having ten products doing $3,000 a month. A more stable business with lower, but consistent sales day in and day out.

Some sellers in the US have found their products have a life cycle of about three to six months. Have you found similar results? And how do you defend against competitors coming in, driving the prices down and advertising costs up?

Adam hasn’t found that in his experience. Most people want quick success and they aren’t willing to do the labour that he does. He will labour over a logo and package design and he will take a month to get another sample and other people just aren’t willing to put in that kind of work.

One unique thing he does when he gets a quote from a supplier is to offer them more money. If they tell him that it’ll be $4 if will ask if they can do it for $5 and explain that he wants the best possible product. The best quality control and the best possible outcome. No cutting corners. Taking that extra step to make the product the best it can possibly be.

The response he gets is remarkable because that extra dollar could double their margin and it’s only a dollar that he has to get back on the retail end, and he could get $10 because of the superior quality.

One thing you have to be wary of with these gurus is their ability to misrepresent their earnings. They could talk about how much of a margin they’re making but leave out the cost of acquiring new customers. Sometimes they may be losing money whenever the get a sale from an ad because the ad costs are so high.

Find out more about how Adam gets these results.

In the US many sellers aren’t making any money from sales that come from ads, and it seems like the only money they’re making is coming from their organic sales. So, tell us about what needs to be measured, and once you measure it, how do you deal with it?

The first step, with any business, is to write down what kind of life you want to have. You may want to make as much money as you can. But that means you will be working as much as you can.

Adam made his decision early on that he didn’t want hundreds of products because it’s too much stress. He also didn’t want hundreds of keywords that he was bidding on in PPC because he didn’t want to spend his day going through PPC reports and optimizing his keywords. For his products, he bids on 10 words, exact match. He doesn’t do any broad match advertising.

He is aware that he is missing sales but he doesn’t care because it will be eating into why he got into the business. Because of that, his ACoS is really low he hardly spends anything. Be sure to read Adam’s blog post about how advertising costs can eat into your margin.

You cut off everything that doesn’t make a profit, so how do you drive sales volume? How do you drive traffic to your listing?
Amazon does it. He has twice the conversion as everyone else because he only does exact match keywords, so if someone sees his listing they are looking for that exact product. Lke he mentioned before, he is charging twice as much as he next competitor. Therefore, it is better for Amazon to drive traffic to him because they can send have the amount of customers and get the same conversion and make the same amount of  money per sale. It all comes back to having the best product.

(More of Adam’s insights are at reliable.education)

#98 Adam Hudson of Reliable Education on Amazon Basics Pt. 2

Get Adam’s Latest thoughts HERE

So, the first thing is to have a great product, what’s the next thing?

The next thing is to have great photography. Not good photos, not the best you can do, but great photography.

The best that you can possibly get. If you look at AirBnB for example, one of the decisions they made early on was to send professional photographers to the homes to take photos. In the beginning, people weren’t booking because the photos weren’t good enough. As soon as they started offering that to the AirBnB hosts, their business took off.

Another flaw in the course gurus is that they sold Amazon short. They said you can come in with $1000 and be making $30,000 a month in six months and that’s just not true. What Adam tells people is that is you can start with $5,000 and in the first year you can rotate that money at 30% margin in a year, that’s a win.

CLICK HERE for more details on Adam’s approach to Amazon on his “Reliable Education” site.

Warren Buffett is the greatest investor in the world and one of the richest men in the world. If you look at his record he is trading at 20% a year. If you’re doing it at 30% then you’re doing better than Warren Buffett. As you get better you’ll be able to rotate that twice in a year then you’re doing 60%.

If you sit down with a compounding calculator and do the math on if you start with $5,000 or $10,000 you can see that you have an amazing vehicle at your disposal.

However, a lot of these “gurus” are telling people they’re failures if you’re not making $20,000 or $30,000 a month in your first year.

You mentioned that you started with 6 products and turned that into a million dollars a year, so I would assume that you put substantial capital into that.

In fact, it’s at $1,000,000 a year “run rate”, ie, it now turns over about $83,000 a month.

Adam figures that he started that business with about $60,000. This was a different company. He has a completely different brand that he’s been running for about three years and he started that one with $20,000. At this point, he hasn’t taken any money from it. Except for a $20,000 loan from Amazon that he accepted just to see what it was about, he has been compounding that initial capital. Right now he has hundreds of thousands of dollars in inventory paid for in distribution center around the world.

The only other person I’ve talked to about compounding your money is Will Tjernlund. If you took that $60,000 and after a year turned it into $80,000 a month that clearly is a tremendous success. How on earth did you manage that?

Adam is experienced at this point, with his numerous business adventures, and experience comes from activity and time and anybody can learn to do that if you stick with it (learn more from Adam here at Reliable Education)

The difference, according to Adam, is that Will farms a product. He’ll throw 20 or 30 products out there and two or three will be a hit. He clears the rest out and starts over.

Adam wanted to build a brand with a small number of products. He currently has six products with an average cost of $8 and retails for $40 with one about $129. Adam’s strategy is to build his brand around a few products and get them to page one and keep them there. Last time he checked, Will had around 1700 SKUs. He didn’t want to think about what that was like, to wake up and have to monitor 1700 SKUs.

How do you find potential products?

To be successful, it’s about paying attention to the details and being objective. If you look at AirBnB and everything that makes it successful, then reverse engineer that and unpack it to find every component, that kinda what you have to do with Amazon. For example, AirBnB hired pro photographers to go every single place listed on the site!

Too many sellers go in with the wrong mentality. They go in think they need to make this product in this price range and that’s all wrong because you’re building a product around your limitations and needs rather than the wants and the desires of the customer.

Adam as two or three products that are on page one for the biggest term they’re on. Now, the top couple spots are taken up by his products and he sells them two in a box while his competitors sell it four or six to a box. His product is $40, the next person is $20, and everyone else is cheaper than that. He is at least twice as much as his competitors and is selling half as many.

For more details, CLICK HERE

This almost mirrors Kevin King in regards to the ideas behind the photos and going against conventional wisdom. How did you find these products in the first place?

Some people will misunderstand what he is saying, and you can find out more in his course at reliable.education. They think they just need to charge more. However, you must have a clear reason that a customer will give you more money. It’s more than headlines or you saying it’s better.

Many of these products are bought as a gift. The person is intending to gift the item to someone. Like with a ring from Tiffany’s, you paying for the box as much as you are the ring. So every aspect needs to be thought about. Don’t get on Fiverr and pay someone $15 for a logo. His philosophy is pay once for the best.

Write amazing briefs for everything from accounts to designers. Articulate exactly what you expect from them. If you hire a designer, the work is only going to be as good as the brief you give them. If you spend a little extra on the packaging, you can really impress your customers and all this goes to building a brand.
Sellers make the wrong assumption that no one has money and are looking for the cheapest product and that’s just incorrect. Now, this doesn’t apply to all products, not all products need to go to the extent, but at least make sure your logo is top notch.

(To get more training from Adam, go to reliable.education )

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#55 Amazon Private Label Strategies: Kevin King Interview Part 1 of 3

**WARNING: Contains a bit of swearing &  A Lot of Truth!**  

How did you come to be selling on Amazon?

Entrepreneur since age 4 when resold bubble gum to friends! Not had a job as an employee since age 17.  Direct marketing background not SEO. Sells calendars directly to consumers, also wholesale.

Been selling on Amazon since late 1990s – e.g. old CDs, DVDs etc.

Also in calendar business signed up for Amazon Advantage – media only e.g. CDs, DVDs

In Q4 gets purchase orders. Start of season 3-4 a week; end of season say 1000 a week.

That alone pulls in six figures – and everything else on top of Amazon orders is 100% profit.

So Kevin has seen the power of Amazon grow.

2 years ago he looked into the PL model but didn’t jump on it, which he regrets.

Started doing it May last year – doing some Retail Arbitrage – see how shipping and systems work. He realised RA is too much work and not scaleable. Race to the bottom.

Why do PL?

Calendars are seasonal. He had pay-per-view TV revenue stream but the internet had killed that off. Plus Kevin’s Background matched all the skills needed, including:

developing packaging, product development, online marketing -plus sourcing from China and Korea. So he went for it.

Kevin’s philosophy is to prove a product on Amazon then take them into retail on other channels.

Amazon is the bulk of his revenue. This is problematic long term because they could in theory shut your account down or suspend your best selling product at any point.

Recent example: Amazon wrote to Kevin saying they’re suspending his best selling product because of an image violation. They didn’t even tell Kevin what the violation was!

Kevin worked out it could be cartoons or extra elements in the images that he had put in. So he was able to deal with the issue. But it was a reminder that you’re vulnerable to some robots or some employee doing things by the book.

Where would you get started as a newbie with Product Selection?

How much money do you need to start in Amazon PL?

Product selection depends on how much money you have to start with.

Even Scott Voelker and other people say unrealistic things about how much you need to start. Kevin says you need a lot of money. There are stories of someone who started with $300 and made a lot of money. Some of the stories are untrue, some are true. But what’s missing: five days later that person took a loan from the uncle for $10,000 & 10 days later put $20,000 on the credit card. etc.

It paints a false picture. Some people get lucky, but it’s very rare. It takes a lot of work and a lot of money. If you just want a bit of extra holiday money you could do one of two products. But to make a living demands serious money, determination and hard work. Even Kevin didn’t realise how much money it takes even with his product.

Do you believe in staying in one Amazon category and building a brand? Or do you pick each product on its own merits/just follow the numbers?

In Kevin’s case, he started five brands because he came from a product background so he was a aware  one might not work. So he wanted to increase odds of success.

Launching second product won’t double sales unless it’s just an add-on or extremely complementary. So he’s not so worried about potential complementary sales.

However, if you can, do get them. An example is that Kevin started in the makeup category. The problem was  massive competition because it was easy to get into. Now for example he sells makeup tools instead of makeup itself, and many of those are complementary [cross sales potential].

How do you go about picking products? If you had $5000 to start out but potentially use credit card later?

If it’s capital intensive, what’s your approach to finance?

Kevin will make use of available credits. For example at bankrate.com you can get find credit cards listed. Like City and Chase which will give you know percent balance transfer and also wash purchases for about 15 months

If you have good credit and some good history, there’re other places like a deal struck on deck etc. If you have a pro seller account for a year and the metrics look good, Amazon will offer you a decent rate on loans as well.

How do you differentiate your products on the competition?

In some cases, Kevin sources products that are straight up private label from Ali Baba. But he makes a few changes. Every product has retail packaging.

A lot of people will take the brown box that is given by manufacturer, but customers care about the look of packaging.

Kevin doesn’t do an initial order under 1000 units – if he doesn’t have confidence in the product he won’t buy it. He believes he can sell out over time if it was a dud product. It may take a year and tie up cash but you can sell anything on Amazon in time. So the risk is not that great.

Kevin picked his first product in May 2015 it took two months to get products out but that was okay because he used for long photo shoots and made a really beautiful products and packaging.

Three Product Examples.

Example 1: Product for dogs, just wanted to do it, the research tool said no but Kevin wants to do it anyway. It’s doing well because it’s a great positioning and marketing.

He went to www.upwork.com for CAD design in Argentina which he had sketched on paper.

He went to one factory that messed it up; 2nd factory  however made new moulds.

Kevin rarely has a hijacker because they are original. The only time that ever happens to him is when you sell the products for $0.99 to people who have accounts on review groups. So they probably have 10 accounts and they basically use it today bit of retail arbitrage..

Example 2: Kevin spent $30,000 dollars on creating a mould and tooling. But where the best seller is selling a product for $10, Kevin is doing it for $100. BSR doesn’t matter to Kevin for that reason.

The competitor is making only $1 a sale, Kevin is making $20-$30. Because Kevin has differentiation against the high end to compete, BSR does not matter to him, also at the high end of product quality and price there is less competition.

Example 3: Kevin recently launched another product in the dog space. He did use tools like: ASIN Inspector, Jungle Scout, other tools including Merchant Words and UberSuggest. However, all these tools are just guesses. The only numbers you can totally trust are Amazon ads results.

Again, most of the competition were playing at the low end. They were the equivalent of McDonald’s, whereas he wanted to create a product that was equivalent of the best steak house in town/French chef. It’s a smaller market but enough to make it work.  They were using cheap packaging, where is Kevin created a  kind of cigar box type packaging.

Kevin’s product is twice as expensive as the main competition, and has half the number of products e.g. five treats instead of 20. On Friday it was put up with no promotion. He had 3 sales with no reviews. He started PPC (one sale) but it is already selling at a high price point without it.

Differentiation and going for the High End

Kevin makes sure to be different and go for the high end of the market [less crowded/more profit].

Kevin may sometimes go to Alibaba and source an existing product. However he will add pieces to it change things so it is different.That might be thought of as bundling, but Kevin things it’s bigger than that.  It is about changing things so it is different from the existing products.

He does not go into the model of getting it in fast and then get it shipped. He is in for the long haul, not “get rich quick”. People preach that model but Kevin doesn’t buy that.

Differentiation and building a brand is an end to end process. It is no good skimping on the product or if you have issues, even if the packaging is good, it will still go wrong!

Building on email list from your Amazon customers

If you use a manage by stats, they will take your Amazon customer’s postal address is match them up email addresses. This is not perfect, but 30 to 40% should match up. 

Testing your market and their views on products

Kevin recently send out an email to 100 people on his email list. He had 20 responses and he email he sent out 20 units from his competitors, In plain packaging.

He got great feedback on the pros and cons of different models. He also got the sales copy for his bullet and title. And he knew what was a good product.

Those who raved, he went back to and asked them for reviews. He had up a dead listing for the product said that it could have reviews on. So it actually had eight reviews on it before the product went live.

Reviews – numbers and discounts

It is a myth that you need 50 or hundred or 500 reviews. However, now you really need verified reviews. If you sell it out over 50% discount, it won’t be a “verified” review. Customers are also getting savvy.

Kevin now sorts by verified reviews when he is searching on Amazon, and other Amazon customers are probably starting to do the same.

An example of this is that Kevin got a product that got five stars reviews across the board from giveaways. But after it was used for real, the real reviews went down fast.

How to maximize positive reviews – Email followup tip

Kevin has the first email which does not even offer anything, it contains tips and suggestions and checks. For example if it is a potentially dangerous product, it tells the consumer to be careful when opening it.

The timing of this email is crucial. Assuming that most customers use Prime, they will receive the product two days after ordering. So Kevin times this email to arrive one day off to the order. In other words it is after the order but before they receive the actual product.

He puts the question in the PS: “Why did you choose us?” And offers a free gift if they onto this question. Always put something in the PS if you want someone to read it.

This gives an important psychological insight before they have a product in their hands. From this he can change the listing, bullet points etc. and he gets a lot of verified reviews. About 10% respond. It gives great insight into why they hit the buy button. The product itself can negatively or positively influence them.

You start to see patterns here.

Optimising listing

What are your main points? Photos? Title? Bullet points?

The title is really important. The reviews the second most important thing including a video on page 20 possible. Images are also very important. If somebody’s shopping for a well-known brand, the images not so important. But for private label, they are crucial.

Packaging is also very very important. If you have great packaging, it can help you make sales with the photo of the packaging itself.

An example of improving packaging:  Kevin started with a $1 box. The new box cost $2.20 but he was able to raise the price to $40- $50, his customers didn’t feel ripped off, they felt they were getting a good deal. This is what to aim for.

If you look at high-end products like Apple Samsung, the packaging is absolutely critical especially somewhere as competitive as Amazon. It gives the customer confidence even if it’s not fancy, it can be a couple bucks but the spelling must be good and it must look like something they can get in a retail store. In a retail store if you think about the people by based on packaging anyway.

You can use great packaging in your photos to catch the eye and differentiate your product.

Careful who you listen to

The figure of “ 50% of full price figure to get verified reviews” comes from Kevin’s own testing and people who know what they are saying. 

Kevin warns that some people don’t have a clue are giving advice, in Facebook groups and even some podcasters. Some give great value but a lot of the podcasters don’t have a lot of experience selling. It varies a lot. It’s best to trust the guests are doing the numbers.

[Michael does not claim to be an expert in doing big numbers, which is why these days he focuses more on more on getting in guests who are doing big numbers, and focusing on what they have to say]

HOW TO SUBSCRIBE TO THIS PODCAST

A podcast is a free downloadable audio show that enables you to learn while you’re on the go.  To subscribe to my podcast for free, you’ll need an app to listen to the show from.

For iPhone/iPad/iPod listeners – Grab your phone or device and go to the iTunes store and search “Amazing FBA”.

This will help you to download the free Podcasts App (produced by Apple) and then subscribe to the show from within that app.  Every time I produce a new episode, you’ll get it downloaded right away.

For podcast enthusiasts – If you already listen to podcasts and have a podcatcher that you prefer, the feed you’ll need to add is: http:// amazingfba.com/feed/podcast.

For those who don’t have a mobile device – You can always listen to the show by clicking the audio file at the top of this page.

If you have any queries, just go to www.amazingfba.com/ask

 

2

#52 Working out UK Import Duty, Using Amazon Inbound Shipping – Q & A Tuesday no. 5

#52 Q and A Tuesday no. 5

Q1 : ANILA: For products coming from China to UK, how do you work out the duty value to put on the boxes to estimate for the taxes? Not a VATable product

MICHAEL:  Basis for duty is Commercial invoice value = Manufacture cost plus freight (if your supplier is handling freight, it will probably be on the same document). AKA Total Landed Cost (TLC). Then put that value into the dutycalculator website. 

Any freight experts here, please feel free to correct and or refine this statement.

If you are using a Freight Forwarder or even just a Customs broker, obviously ask them how it works and check any nuances for your own product.

Q2: BEN: Hi gang! Thanks for your help with my previous question. Here’s another one. I’ll shortly be sending my first delivery to Amazon. I haven’t finished the ‘send/replenish inventory’ section on seller central yet (as I’m not ready to send yet), but when i am, I presume I’ll end up on a page that tells me how to organise delivery with one of Amazon’s preferred carriers?

Otherwise…the Amazon help pages aren’t very helpful in detailing how I actually get my stuff from my house to their warehouse! I understand that amazon’s preferred carriers offer discounts for going to amazon…which I presume I book through seller central, rather than parceforce.com, for example.

MICHAEL:  Yes that’s right. Amazon’s preferred carrier is just the one, UPS. They give Amazon amazing shipping rates. Something like £1 a kg or less. Get a quote at the Post office or from a courier yourself and you’ll realise how cheap they are.

STUART: Unless, I have missed something but my experience of using Amazon’s preffered carrier, UPS, only applies when shipping from within a particular country.

For example, rates are fantastic when shipping from UK to FBA in the UK. However, when shipping from UK to FBA in the US, there are no special rates. I have found using Transglobalexpress to be very competitive, and they use UPS as well as other carriers.

MICHAEL:  Thanks for the hint, Stuart. May I ask why you’re shipping UK to US in the first place? Is it sending stock from UK you already have here in order to test the market for that product in the US?

STUART: That’s correct. I merchant fulfill in UK, and have sent stock to US FBA to test market.

Q. 3 BEN: Guys, I’d be interested in your take on this idea. Especially MICHAEL:  after the last two podcasts… I have heard some stories of people sending off their branding to suppliers to get branded samples, and then when they choose another supplier, the un successful suppliers have gone and made stuff with heir branding and sold it on to other people, or just gone ahead and stuck it on Amazon themselves.

What are your thoughts on getting samples made with ‘test’ branding. e.g. my branding with watermarks over the top. That way I can still see the quality of the printing/branding process and can still see roughly what my branding looks like, but I’m protected…

MICHAEL:  thanks for raising this point. A few thoughts:

yes that is a danger. It does happen.

Firstly, short-term, nobody really cares about your brand yet. So I wouldn’t over worry about it yet.

However, I like your idea in that you are testing the quality of printing but protecting your brand.

For that matter, if all you want to see is the quality of printing, you could use a different brand altogether!

But The only thing I would say is that by doing this, if you decide to go ahead with a supplier, you probably should get another sample done with your actual logo. Which will delay the process.

You could just trust them to do it well and get it done, I guess.

Overall, I’m basically in favour of your approach.

However, I would say this: I’m not sure how much back and forth you’re doing with Suppliers with samples. But it is really important in the PL market now it’s so crowded to move fast when you spot an opportunity in the market.

SO for speed, I would get my 2-3 samples from suppliers upfront without worrying about branding. Just check out the quality of the product. That should take max 7 days from order to having it in your hand.

Then choose a supplier on the back of that.

If you want to then check the quality of the printing of logos etc from your chosen supplier at THAT point, I would then order a proper sample with your real logo. Unless they really mess that up, I’m going to place an order. If there are minor defects, I’ll have them correct it and then send me photos of the corrected sample.

Then get the order placed and in manufacture

Please understand: There is nearly ALWAYS a trade off between speed and quality.

Yes, it’s good to have a professional process in place and yes you should protect your brand (reputation) and IP (Intellectual Property).

However, if it takes you 6 months to get to market with a good, but not amazing product, which is frankly pretty much the same as everyone else’s, the competition will often have killed off the profit in that market.

You’re better off getting your good but not great product to market, learn about the realities of trying to sell, listing optimization, handling Adwords etc etc and get some feedback from customers.

You may then simply choose

  1. to abandon that product, if quality is too low or it’s not profitable OR
  2. you could go back to your supplier and customise the product in response to customer

3, or if quality and sales and profit are all good, just go back and reorder!

Either way, you get MOMENTUM. Do not underestimate the importance of this.

“Money Loves Speed”. Quality, sadly, does not.

An eternal conundrum. My advice (as a perfectionist): “The Perfect is the Enemy of the Good”

Good luck .

BEN:

Thanks for the excellent and in depth response – it really is appreciated.

I have decided that this week I’ll be sending a ‘test’ version of my branding to three suppliers for samples. I expect to get them in 7-10 days, and then I’ll trust the best one to go ahead with the first full order using the real branding.

My ‘test’ version is close enough to my ‘real’ version that I’ll know what it looks like from the sample (it’s basically my branding with a ‘test’ watermark over the top, but in such a way that they can’t remove it’.

MICHAEL: Sounds perfect, good process. I like the thinking.

BEN: Only issue now is finding the guy who is going to design my packaging…wink emoticon

MICHAEL:  By the way, don’t assume that the Chinese will care about the watermark. If they spot a product that will sell, they will be interested. Period. Part of doing business in China. Yes protect your IP to a degree, plus make it clear in your paperwork that they are not allowed to use it. But then you’ve done what you can in practice. Then move on!

Also don’t spend much money on design before you know if the products are worth selling.

First check the sample quality before you invest time money or energy in it.

HOW TO SUBSCRIBE TO THIS PODCAST

A podcast is a free downloadable audio show that enables you to learn while you’re on the go.  To subscribe to my podcast for free, you’ll need an app to listen to the show from.

For iPhone/iPad/iPod listeners – Grab your phone or device and go to the iTunes store and search “Amazing FBA”.

This will help you to download the free Podcasts App (produced by Apple) and then subscribe to the show from within that app.  Every time I produce a new episode, you’ll get it downloaded right away.

For podcast enthusiasts – If you already listen to podcasts and have a podcatcher that you prefer, the feed you’ll need to add is: http:// amazingfba.com/feed/podcast.

For those who don’t have a mobile device – You can always listen to the show by clicking the audio file at the top of this page.

If you have any queries, just go to www.amazingfba.com/ask