On this episode we’ll talk about how to make money on Amazon; It’s all about Q4! Amazon is a seasonal business. If you’re wondering how to make money on Amazon, the key is to realise one simple truth: a lot of sales and business come in Q4. In fact, many of my Amazon selling friends who are doing millions a year tell me that about 50% of their revenue for the whole year comes in Q4.
That ties in with my own experience as well. For this reason, those who know how to make money on Amazon focus their whole year on this magical quarter. To put it another way, ¾ of the year gives only the other ½ of sales. If you want to make money on Amazon, you need to be there!
One word: Brexit.
This is the last Q4 in the U.K. before Brexit. We don’t yet know what that will even mean, but we do know that the 2-year transition period now agreed with the EU is starting March 2019. We don’t know what import barriers there will be for bringing goods into the U.K. from China or even the value of the pound compared to the US dollar (which affects importing from PRC). However, we do know we can Predict a high probability of issues exporting to the eurozone. If you were ever going to tap into making money on Amazon, especially in Germany, the 2nd biggest amazon marketplace in the world, from the U.K., this Q4 is the time to do it.
As e-commerce grows year on year by 15%, it doubles approx every five years, Amazon has also increased its market share. I started selling on Amazon four years ago. Since that time Amazon’s market has more than doubled. If you win on Amazon now, you win bigger than ever.
It’s easy to start thinking about it at the start of Q4 on October 1st, but you need to be working right now to prepare yourself for the best Q4 of your business life. What products can you get in front of as many eyeballs as you can?
Frequently failure to launch happens because of two things. Either you’re already selling on Amazon, or you’re just getting started with e-commerce. Let’s deal with each in turn.
I interview each and every applicant for my mentoring programme, and I speak to every member of the Zero to Hero mastermind. Both of these programmes are currently geared to the beginning seller. That is someone who doesn’t yet have turnover or indeed any online selling experience, although about ½ of mentoring clients do already have turnover. If that’s you, and you want some hands-on help, you may want to check out the mentoring programme at www.amazingfba.com/mentoring. The main point here is that I get great insight into what roadblocks people have experienced that stop them from making money selling on Amazon.
I ALWAYS ask what my client’s biggest roadblock has been to get started selling on Amazon. There are a variety of answers, but one always crops up in various forms: “Making my first decision and product.” Product selection is the most immediate roadblock that stops people from making sales on Amazon. Here are some of the things people have said to me:
“Not ruling things out has confused me; how do I decide on products?”
“I’ve procrastinated and stood by the edge of the pool. I guess that indicates respect for the problems, but I’m probably being over-cautious.”
“I’ve been researching for weeks. I’ve used Jungle scout and been following a lot of people. It’s a bit confusing. People say ‘go for cheap, go for light’.
Others say, ‘Broaden your criteria to include a higher weight limit, slightly higher price. It’s about differentiation.’ Which is the right way to go?”
“I’m worried about getting set up, getting started generally, and picking the right product. I feel if I get that wrong, it could be game over.”
“The main block is being confident in the choice of product”
“I’ve been doing a lot of video watching on youtube & listening to podcasts (including Amazing FBA). It’s a bit overwhelming”
“I used AZ analyzer and Jungle Scout but found it a bit confusing. I’m not sure whether I can trust the figures the tools produce.”
“I would prefer to have a mentor to guide me through instead of making mistakes that can be avoided.”
“I’ve just had product choice overwhelm. I’ve watched a few videos. But choosing a product to start with is difficult. I also have been asking myself if Private Label is the right choice.”
The theme here is a lack of clear structure regarding how to make money selling on Amazon. I hear it from my mentoring clients all the time.
“I want consistency”
“Specific knowledge around how to make money on Amazon is a roadblock”
“It’s good to have an education, like some kind of course”
“There’s a lot of free material on the internet, but it’s overwhelming.”
“I’ve used Jungle Scout and was a bit overwhelmed, is training important?”
“I get Analysis paralysis; there are just too many options.”
If you feel overwhelmed, the key is to break tasks into manageable chunks and make a timetable so there’s dedicated time to complete them. Be rigid. Buy a course, get a coach, join a mastermind. It can be hard to find places to get feedback. Getting started can feel isolating. Courses, coaches and masterminds are the solutions.