September 2019 - Amazing FBA - How to sell on Amazon UK

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Only Connect – Private Label Strategy (Step 10 of 10)

In Business, Clarity=Speed & Security. So how do you get clarity?

Experiencing things out for yourself is the only real way to learn. However,

living in a fog of confusion is not going to enlighten you.

Reinventing the wheel is terrible for your peace of mind. Better to model

success in an efficient form. You can have much better experience & learn

faster.

It also wastes precious time. (If you have a product that makes you $5000 a

month, a 6-month delay just cost you $60,000 in lost sales)

 

The Solution for Clarity: The 3 C’s – Course, Community, Coach

Most other sellers I know, both power sellers and those just starting out with

their first few thousand a month, have found the same.

Those three things are a Course, a Coach & a Community.

You may say that I’m biased since I (now) offer all three.

Fair. However, the reason why my experience as an Amazon seller,

especially early on, showed me that I needed all three.

I’m scratching my own itch (which I advise you to do as well.)

For newcomers to e-commerce, a course is the best investment. Coaching is a

bigger investment but will help you move the needle faster and save a lot of

wasted time and money. If you are about to source product or launch, even

one or two sessions with a competent coach could save or make you $1000s.

 

Course

Sure, we have a course. (you can find out more here). We’ve worked hard to

make sure it covers what you genuinely need to know.

Two things to particularly look out for in an Amazon course:

  • Sourcing from China is complex. Any training needs cover it in detail.
  • Be wary if you are being asked to go from no Amazon experience at all

straight into putting down $6000 on an order. Trust your common sense.

Check out the Private Label Process here

 

Coach

I personally took on an excellent Amazon coach fairly early on in the game.

My only regret is that we didn’t have a more formalised, committed process.

Sure, she cost good money but it moved me out of the soup-like state that

could exist for months on my own.

I currently also work currently with an excellent eCommerce coach. Thanks to

a longer-term commitment, we’re moving the needle together much more.

Like everything else I’ve created, I make what I wish I’d personally had

available at the start of my selling journey. (Check out what I offer here)

There are a growing number of Amazon coaches. Get to know people from

their free content. Be wary if they are basing their training on their own

narrow success with one product category.

Above all, make sure they have a clear structured process. Diagnosing before

they subscribe; goal clarity’ and accountability are critical features of

professional coaches and consultants.

Go in with your eyes open and apply common sense.

 

Chosen well, a good coach can make sure you focus on what is most likely to

move the needle. And make sure you actually get the work done. This, perhaps

above all else, is the most valuable function of a coach for new sellers.

 

Explore working with Michael here

Scaling up – Private Label Strategy (Step 9 of 10)

How to use the Data & Skills You’ve Learned…

We learned a ton by selling an off-the-shelf, generic design in ready-made packaging. Now we the same skills and processes to have our own private label product created.

  1. Niche research
  • Refine Customer avatar
  • Redo market research
  • Use reviews etc. to customise
  1. Sourcing
  • Bigger orders/$
  • Define product features
  • Print Logo
  • Custom packaging
  • Rigorous QC
  1. Launch

Listing

  • Excellent Pro Photos
  • Infographics
  • Pro copywriting

Launch Traffic

  • High Amazon Ad spend
  • Aggressive (low!) pricing
  • Possible external traffic

Amazon KPI – Private Label Strategy (Step 8 of 10)

Why Measuring is so Important to your Cash!

Don’t ignore the data

It constantly shocks me how few sellers know their conversion rates
or sessions (visits). Don’t join them!

Equally: don’t drown in data either!
Make sure your “necktop computer” can absorb what your laptop is
telling it!

Detail Page Sales & traffic report (Under “Reports>Business Reports” )
Sessions: Is your product getting seen? If not, it’s time to drive
more traffic.
Units ordered: Are you making sales? How many?
Unit session percentage: = conversion rate. How well (as a
%age) is your listing converting visitors to buyers? If this is low,
it’s time to improve your offer (inc. price)

Profit and Loss
Don’t get buried in the numbers. Measure for a purpose
• The purpose of P & L is to help with decisions:
• Will you reorder this product?
• If so, how many units, what can you afford (cashflow)?
Use software for Gross Profit!
• e.g. Manage by Stats, Fetcher, HelloProfit

Amazon Ads statistics (Advertising>Campaign Manager)

Amazon Ad Spend
• If you’re launching, expect to spend a LOT initially. That’s fine IF
you’re gaining keyword ranking for valuable keywords as a result.
Track this!
Overall picture by campaign: Monitor for either really good
(profitable) or really bad (expensive) results.

Measure Keyword by keyword for manual campaigns:
• Look for sales – are you driving sales and ranking?
• Next look for clicks – are you telling the algorithm to rank your
listing?
• Check CTR (Click-Through Rate). Over 0.7% is good for ranking.

Get the Overall ad spend by-product:
• Take the ad-spend on a product for a period.
• Check your overall sales (Business reports) for the same period.
• Calculate your ad-to-sales ratio (ATS). If it’s high in launch
period, that’s fine. After launch, aim for about 10% overall.
• Mostly ignore ACoS unless it’s super high (over 100%). It’s a red
herring.

Private Label Launch – Private Label Strategy (step 7 of 10)

Make a Killer Listing

Revisit your Target Customer Avatar

Exactly who are you selling to?

As well as demographics (age, sex, location, income), try to define psychographics (values, drivers, etc.)

  • Precisely what Pain are you solving? Solving arthritis? Which kind? What location? Brought on by what activity? What is the “Ultimate Pain” you’re solving? Mobility? Thus freedom?

Revisit your Market Research

  • Keywords: Exactly which top 5 keywords are both winnable and worth winning (in terms of ranking ie where your listing appears in the search results)?
  • What are your 15-20 long-tail keywords? (lower search volume but very relevant – low-hanging fruit)
  • Differentiate: Exactly how is your product different from what is out there? Why is this important to your target customer? 

Craft your listing

  • Craft your words: Tone of voice matters. On Amazon, so does energy (especially in the USA). Give your listing punch and personality.

Fantastic Photos: Engage an exceptional product photographer.

  • Collect product images you like into a virtual scrapbook (Pinterest is excellent)
  • Make a clear brief for your photographer based on your other work above.
  • Include “lifestyle” shots (product in context) and use models if you can.

 

Plan Your Launch Like a Pro

Revisit your Target Keywords

  • Exactly which top 5 keywords are both winnable and worth winning (in terms of ranking ie where your listing appears in the search results)?
  • What are your 15-20 long-tail keywords? (lower search volume but very relevant – low-hanging fruit)

Plan your Traffic channels

Amazon Ads? (this is the mainstay)

Launch Services (JumpSend, Viral Launch)? Facebook Ads to Chatbot?

Plan your Budget

  • If you’re selling below breakeven, how much will each sale cost you?
  • Plan your ad costs – assuming that most of your sales will come via Amazon ads to start with.

Set up your Keyword tracking

  • Use software (like CashCowPro, Zonguru, etc.) to track your ranking for

all keywords you think might be important.

  • DO THIS BEFORE YOU RUN TRAFFIC!!

Set your price REALLY low

  • Know your numbers – what is your breakeven price without ads?
  • Set your price to breakeven to start (below breakeven if you can bear it!)
  • Gradually raise your price to when you start to achieve your target keyword rankings (see below)

Set your Amazon sponsored ads

  • Set an auto campaign with an aggressive bid per click (say $2-5) and strong daily budget (say $20-100/day)
  • Set up a manual campaign with your top 5 keywords and 20 long-tail keywords. If in doubt: exact match only.

Monitor but Don’t Mess

  • Monitor the numbers every couple of days (see next step)
  • RESIST THE URGE TO FIDDLE. You will want to mess with your settings daily. Listing words, price, ad spend, etc.. RESIST. Change something only once every 4 days maximum. That way, you will have meaningful data.

Click here for our free Guide on Listing

  • a couple of months ago
  • Launch

Private Label Sourcing -Private Label Strategy (step 6 of 10)

What’s the most critical prelude to sourcing?

Define what you’re looking for first!
China manufactures 80% of the world’s products. Its selection is just vast. Your job is to drill down.

The simplest starting point is: alibaba.com

Elimination is the name of the game

  • Filter on Alibaba: √ Gold supplier √ Assessed Supplier
  • Filter by responsiveness: Do suppliers answer your email? Answer your questions?
  • Filter by Sample: No point negotiating unless the product is quality. Time to get a sample!
  • Run the numbers: Go over your entire supply chain for your projected Profit & Loss. Know your numbers before you negotiate.
  • Negotiate: Agree Price, Quantities, Design & Freight.
  • Quality Control: Define exactly what you expect and all possible defects. Clarify that you will inspect.
  • Place your order: Detail everything then exchange documents & arrange to send money.