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154 Time Management for eCommerce with David Aggiss Part 2 of 2

The great thing about running an Amazon business is the freedom it allows in your personal life. You can go on holiday as you want and you can take a day off as needed. You set your own schedule and make your own deadlines. That also creates one of the more difficult aspects of your job as an Amazon seller, time management. Today on the show we have David Aggiss and we’ll be discussing time management techniques when you’re running an online business.

Time Management for eCommerce

If you are first starting out, the challenge is finding enough time to work on your business. You have your full-time job, maybe a spouse and children, then your Amazon business on top of that. It’s going to lead to some late nights and long days. That’s the struggle of it. It’s important to set aside time-blocks for specific tasks. If you start working without this, you’ll end up working on a number of things and accomplishing nothing.

Customer service is a daily task. You’re probably going to be in Seller Central a lot anyway, which is a good thing so you can respond to customer questions and other issues as they arise. Once a week, you want to look at your listings. See if there is any way to improve them. You should take a look at your PPC and keywords to make sure they are performing how you want.

Time Management when Expanding Your Business

Expanding your business is an evening job. If you are looking to research new product lines or find new suppliers, make sure you have a few weeks available where you can put in some serious evening hours. You’re going to have to work everyday with emails back and forth with your suppliers, especially if they’re in China. Unless you can get on a Skype call, this process could take a week or more because of the time difference.

Skype is recommended to help speed up this exchange. However, keep in mind that if you’re looking into several suppliers, that Skype could get overwhelming. It is easier to maintain all the information if you limit it to email since that has understood, built-in limitations. Also, you will have a record of everything discussed.

Outsourcing

If you find that you don’t have the time to handle everything that you need, consider outsourcing. Be aware of what your strengths and weaknesses are. Focus on your strengths, outsource your weaknesses.

If you are making enough money from your Amazon business that you can afford to outsource, then you are probably pretty proficient at the day-to-day Amazon tasks. Then you’ll want to continue to handle those. If your background is in web design, then build your website yourself.

If, however, you don’t know the first thing about building a website and you have no idea how to work on social media, outsource those. Chances are you can find someone that will do it better and faster. If a task is going to take you a week, but someone who is an expert can do it in a day, pay them to do it. The task will get done several days soon and you now have that week to work on something you’re an expert in.

Focus Management

While time management is important, focus management is as well. Like I said before, you have the freedom to make your own schedule, but you don’t have a boss to keep you on track. It’s easy to lose focus and let your business suffer because of it. You have to keep in mind why you want to run your own business. Whether it’s to have a luxury house, nice cars, or to simply spend more time with your family. Whatever it is, whether it changes over time, always remember that and let it be your motivation to stay focused.

153 Selling on Amazon.com with David Aggiss Part 1 of 2

Today on the show, I have one of the first contacts I made when starting this show, David Aggiss. I had him on, all the way back in November of 2015. Since then, he has given up the day job and is his own full-time boss. He has a few business, one of which being an Amazon business. We’re going to dive in and find out David’s strategy for selling on Amazon.com.

Getting Started selling on Amazon.com

David started learning about Amazon in April/May of 2015 and began receiving some training. In about four months, he started selling his own product. He took off quite well in Q4. At the time, incentivised reviews were still allowed so he made that a large part of his strategy. His sales exceeded his expectations going from 10 units a day to 30 on average. He launched his second product in Q4 last year and focused on his listing since incentivised reviews were no longer available.

Finding a product

There are a lot of techniques for finding products. David decided to simply look through Amazon. This is a great technique for finding good products. Look for lower prices and low competition items when first starting out. If you find a good product and the listing isn’t optimised, then there is definitely an opportunity for you to sweep in and take over. You can use Google Trends, Merchant Words to help you find what popular and what people are looking for.

David didn’t use any tools to find products, like Jungle Scout etc. He didn’t know what his products would be so he wouldn’t know what to search. Once he picked the products, he verified through Jungle Scout that there was a demand. Now he has about 5 products he’s working through launching.

He search Amazon to find his products. He narrowed his search to products between $15 and $50 and looked for products that interested him. If you are interested in the product then it’s easier to relate and figure out what those buyers are looking for. Then you can tailor your listing to those shoppers.

Selling on Amazon.com Post-Incentivised Reviews

Getting reviews has become much more difficult since Amazon banned incentivised reviews. With this new world, you have to pay more attention to reviews since you can no longer give products away in exchange for a review. One thing to pay attention to when getting started with a new product is the number a reviews your competition has. If they have thousands of reviews, it’s going to be much harder to compete because it is more difficult to reach a competitive level.

Make sure you competitors only have a hundred or so reviews so you can better compete. Then you can use other services to help get legitimate reviews. You can also try to get traffic coming in from off Amazon.Ads on Facebook, Google, and Bing are great places to start.

There are also ways you can use Amazon to boost your listing. Spending heavy on PPC at the beginning is a good way to drive traffic when selling on Amazon.com. Once your listing gets going, then you can cut back to where it’s profitable. One thing David mentioned was participating in Lightning Deals. These deals on put on by Amazon that offers their shoppers very good discounts for a very limited amount of time. There is a link underneath your Advertising tab on the main screen of Seller Central. It’s not all the time, but Amazon will offer you a Lightning Deal when it’s relevant. This is a great way to drive a lot of sellers to you listing and gives a nice boost to new products.

Amazon sets the parameters. They will tell you the time slot, the minimum number of units, and the sale price which is based on your sales history. David, for example, recently got a time slot for 1am to 7am. Not the best time as many people aren’t looking at Amazon so early in the morning. Despite that, he had an additional 40 sales from the deal.

152 AMS – Amazon Marketing Services with Anthony Lee Part 3 of 3

AMS – Amazon Marketing Services

It’s offers more robust to you PPC advertising. The top banner ad on Amazon, that is usually a link to someone’s storefront, that’s Amazon Marketing Services. Sometimes there are ads under the Buy box, those are Amazon Marketing Services ads. It’s more exposure and drives more customers to your products which, in turn, could lead to more sales.

Getting Started With Amazon Marketing Services

It’s only accessible to vendors. This used to be invite only until Amazon started Vendor Express, which is open to everyone. Now you can get access to Amazon Marketing Services once you have a purchase order. So once Amazon orders product from you, then you have access to AMS and all the benefits that come with it. To learn how to get started with Vendor Express, please check out my interviews with Will Tjernlund.

AMS Workaround

If you don’t want to go down the route of Vendor Express, there is a work around. You can sell Amazon a product that you don’t intend to keep in stock. Go to aliexpress and buy 10 units of some item. Tell Amazon that you want to sell it to them and they will request samples. Once that process starts, you should be able to then sign up for AMS. Once in Amazon Marketing Services, you are able to advertise any products, not just the ones you have in Vendor Express.

Not only can you advertise products that are in your Seller Central, you can advertise products for items that Amazon doesn’t list you as the seller of. This is very beneficial if you have a Merch by Amazon account. If you sell Merch, you don’t have access to ads. With Amazon Marketing Services, you can then run ads for you t-shirts. You can check out my interview with Chris Green if you are interested in getting started with Merch by Amazon.

Issues with Vendor Express

It may not be worth it, for everyone, to utilize Vendor Express beyond getting your foot in the door. There are many issues with it because they take over the listing and they tend not to optimise it so it converts. However, it’s almost a necessity for some. For example, Anthony has a friend that selling a health and beauty product that he makes from home. Since he makes it from home it is impossible for him to get ungated. However, by selling through Vendor Express he is now able to get past that since it’s technically Amazon selling it, not him.

Vendor Express is making strides to improve the listings by making some of it available to the sellers to be edited. Some aspects, like the title, you may need to ask Amazon and jump through hoops for, but it is possible to optimise your listing.
Get in touch with Anthony:
He has written two books about selling on Amazon:
Bootstrapping E-commerce: How to Import and Sell on Amazon
Bootstrapping E-commerce: Advanced Amazon Tactics

You can contact him at he publishing company
anthony@reidandwrightpublishing.com

Zonblast offer an optimising service which is a great place to start. You can get more information by emailing support@zonblast.com.

151 Amazon Product Launch with Anthony Lee Part 2 of 3

Basic Launch Strategy for an Amazon Product Launch

There are a few things to remember with an Amazon product launch. You need to get as much traffic and sales velocity for your product as quickly as possible. This is a given in any sales capacity. Also, you need to high rankings early, as in on the first page, using an important key word related to your product. Run a promotion when your product goes live which will get people talking and stimulate sales velocity. You can make your products even more visible by turning on the automatic sponsor ads. Lastly, go after some reviews and use family and friends, who will be sure to help your product out in the early days.

Running a Promotion

It goes without saying, you need to find the primary and most relevant keyword for your product. This is something that people will be able to identify and make the connection to you as the one selling said product. You should make sure the keyword(s) are in the title of your product AND inside the URL address. People can be very lazy so when they are looking for something they are overjoyed when they can find it with relative ease. You can run Facebook ads, external ads and even banner ads from Amazon Marketing Service. Aside from Anthony’s launch too, Zonblast, you can also use Keyword Inspector and Merchant Words.

Spiking Algorithms in One Day versus Over Several Days

This has a lot to do with the total views your product actually gets during an Amazon product launch. If you have a low number of searches in a month, say under 20,000, you could see sales velocity stimulation in one day, see some solid movement, as opposed to over several days. However, if you only spike with search hit one hour of each day, your average will be lower. It would be much better for you to spread it out over a number of days for better results. Anywhere from 4 to 7 days seems to be a good time frame in which to work from. It’s all about averages. If you can spread your views and sales over a longer period of time, it will average out to a total that will look much better to you as the seller and to a potential buyer as well.

Product Manipulation, Spiking a Listing and Terms of Service

Make sure you understand Amazon’s new Terms of Service. ‘Free’ sales or giveaways are now considered product manipulation. The big reason the Terms of service were put into place was to stop people from operating multiple accounts and thus being able to receive ‘sales’ of the same product anywhere from 50 to 100 times during an Amazon product launch. Specifically, Amazon are trying to stop buyers from receiving codes to allow them to do this for free. You can now have your product suspended for this. Always remember this and you’ll be fine: Real sales are unique sales to an individual.

Reviews Can Help but Don’t Depend On Them

Great customer reviews are always welcome but you should not depend on them to help boost sales of your product. While Amazon won’t remove or stifle a review if a customer got a discount on your product (remember though, no coupon codes for free) they can take down good reviews, paid in full by the customer, if they have been attacking the buyer accounts. There is also some unpredictability overall in terms of the reason or reasons why Amazon removes some reviews. All you can do is turn the review machine on, have a great follow up sequence in place, and get reviews as naturally as you can. The best way to success is to have a great quality product and then you can worry about everything else.

150 Optimising your Amazon Listing with Anthony Lee Part 1 of 3

Optimising your Amazon listing basically means setting up your listings to get the most traffic and the most sales. This is especially important because you want to be set up in the best possible position for success. Optimisation does not happen instantly but it is a process emanating from having the right foundation set up. Your optimization before your first product listing is actually the laying of foundation for your products or business.

Basic Elements for Optimising your Amazon Listing

Your Images

Your images are the most important part of this process. First, understand the direction to which you are driving. The first goal is to increase traffic and the image is the first thing that people see. It’s the image that causes people to click on your product. You want to use the best, most captivating picture as you main image.

You need to optimise your image for all browsers and ensure it is captivating. On mobile, you want to use portrait images because they appear bigger on mobile devices. Use various shots from different angles. It is highly recommended that you use staged shots. These are the images where the product is shot where it can be found in real life. For example, if you are selling kitchen knives, have images of them in a kitchen next to a cutting board. Include images with people using the product because then the buyers can imagine themselves using the products.. Use infographics if you need to include complex information in a simple form.

Title

When optimising your Amazon listing, a good title has to be keyword rich and feature oriented. It needs to be keyword rich because if has to be found by the Amazon algorithm. But it has needs to be easily read by humans. Your title can give the targeted buyers a brief description of the benefits and what the product does. Ensure the most important information is captured in the first 80 characters as this will ensure this section shows in all browsers. Don’t be too specific if your product has multiple uses. If you are selling a cat brush, it is likely that it can be used on dogs and other animals. Rather than saying “Cat brush” in your title, use “Pet brush.” This will attract owners of all types of pets rather than limiting yourself to a specific type.

Bullets and Description

Description and bullets play an important role in SEO as they are indexed by Amazon. The bullets give details on the uses of the product. The first three points are always the most important since those are the one that show up in mobile. The description area is important; put the most important information in the first part as this is what shows on mobile devices. Description also gives technical specification and makes your listing more professional.

Your Price Point

As buyers understand the details of the product through the product image they become more comfortable with the price you set for the products. Ensure the image design justifies the price set for the products.

149 How to Become a Wholesaler with Manuel Becvar Part 3 of 3

How to Become a Wholesaler

It’s more than just growing your business on Amazon. You have to actively contact and cold call retailers in order to sell your products. It’s the next step in the process. You’ve sold on Amazon, you’ve diversified through other channels, and you’ve built up your brand. If you want to become a wholesaler, you have to take the time to build your brand. It’s not an overnight task. It takes a lot of time to build a brand.

Approach Local Retailers

It might not be a good idea to start large chains like Tesco or Wal-Mart. The better idea would be to find a smaller one in your area. Make contact with the owner or decision maker, and set up a presentation where you can make a pitch on your products. A fallback would be to create a PDF that goes over all the information. You can them email the document to them and follow up a few days later with a phone call.

Go to Exhibitions

You may not have the money to get a booth or a stand, but you can go as a guest. You can find local retails and get their contact information. Then you can send them an email and PDF where you talk about your company and make a pitch. One vital aspect, in order to become a wholesaler, is making these connections.

Build Your Catalog

You can’t go to these retailers and sell some generic widget. It needs to be unique. It also helps to have several products in your catalog before you become a wholesaler. Bear in mind that even though it may take a year or two for your wholesale business to get going, the payoff happens when retailer orders tens of thousands of products at once.

Immense Potential

The great thing about wholesale is the potential. It really is possible to to do great things with it. Whether you want to do it to make some extra income or make it into a large operation. Manuel has done this. He currently does about $300,000 on Amazon, and close to $1.5 million in wholesale. When you factor in his consulting and sourcing income, he is making around $2.5 million a year. The potential is there if you’re willing to put in the time and effort.

Get in touch with Manuel at importdojo.com and get a free eBook and newsletter.

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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