This Episode, #23 , is a “bonus” episode that is a little less formal than usual episodes. I hope you can forgive the more casual style and above all the lower audio quality – this was squeezed in between visits to relatives and loved ones!
The end of December/start of January is a natural lull and a chance to reflect on what worked and what didn’t work in the year before. This episode is really my reflections on my 2015 and my conclusions regarding my Amazon FBA business.
SHOW NOTES FOR EPISODE #23 -Review of 2015
Here are the things I’ve been reviewing for myself – take what works for you and leave the rest!
Profit and Loss (only relevant if you’ve already been in business for a while)
- Gather all the relevant details from the various sources
- Use a spreadsheet or pen and paper:
- Gross profit and loss by product
- Net profit for whole business
- Make Go/No-go choices by product in response to P & L
Recognise Product choice errors:
- Not enough demand depth (top1-2 products take most of demand) (Low Sales for that Keyword)
- Too much competition (Amazon Ads are expensive; very price sensitive)
- Not enough differentiation of your product from others’
Expand your product line in response to your own data not just abstract market research
- Respond to your customers’ requests (best)
- Use your common sense to try products related to ones that sell
- Make a test order of MOQ (Minimum Order Quantity) unbranded
- If that starts to sell, then go back and place MOQ for PL (Private Labelled) products
Revise Budget/Cashflow Projections
First time out:
- Create budget
- Then add minimum 50% to budget. If possible, Double it!
When product is established:
- add minimum 25%-30%. If possible, add 50%
- Remember that the Amazon marketplace is always changing – mostly (sadly) due to increased competition
Revise Time Planning:
- Double timeframe to product launch (e.g. 3 months -6 months)
- Double time you put in per week (e.g. from 10 hours/week to 20 hours/week)
- Allow for things not going to plan!
- Outsourcing means the business is very scaleable, which is great
- However, it means that much of your business is not under your direct control
Work on my own character:
- Patience to deal with Things out of my control
- Courage to do the things that are under my control!
- Wisdom to know the difference…
Get guidance from others:
- Up-front training (including for example this Podcast)
- Find and use a mentor (pay if needed)
- Join or create an accountability group at or just above your level.
- Online communities (do join our Facebook group if you haven’t yet!)
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Watch Annual Reflection 2015 on FBA Business
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