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April 19, 2016

#38 Amazon FBA Q & A Tuesday No. 1

Show Notes for #38 Q&A Tuesday No. 1

This is a brand new part of the Podcast, dedicated to answering questions raised in the Amazing FBA Facebook Group

Q1: Packaging your products

A1: Always ask your supplier to reinforce (priority order)

1. corners (where 3 sides meet) 2. edges  (where 2 sides meet) (3. sides is a bonus)

They won’t charge much more but won’t do it unless you ask. They work on wafer-thin margins but you shouldn’t!

Also ask for minimum 10% replacement packaging (to replace damaged packaging) to be sent along with your products to your warehouse in USA or to your home/office/warehouse in the UK (eg 500 units order, add 50 spare packaging boxes). 15%-20% is safer.

Q2: Has anyone used AMZTracker for reviews? How many reviews can I get from 50 coupons given away? How fast do reviews come?

A2: I’ve tried Snagshout (several promos), Tomoson (2 or 3 times) and AMZTracker (maybe 10-15 times!). I must say, AMZT is the cheapest/easiest and mostly the best. I’m wary of Amazon review clubs, so haven’t used them.

The simple answer is about 66%-70% so probably about 35 reviews from 50 giveaways.

Generally reviews should be mostly done within 2 weeks – many within a week.

Don’t get too obsessed with Review NUMBERS only; pay attention to the AVERAGE review (e.g. 4.8 stars) and the quality of individual reviews: plenty of detail is important now. Photos are good. Videos even better. AMZTracker seems to give good detailed reviews but the reviewers can be critical.

To ask your own question, join the Amazing FBA Facebook Group

Q3: Anyone fulfilling from the US to the UK?

A3: Broadly speaking – don’t! Get the Chinese (or US) suppliers to send directly to Amazon USA.

If you have inventory in the UK and want to send it to the USA as a test order, I’d use DHL or UPS.

BUT Air freight is often similar to or more than actual manufacture costs. Then you have duty, warehousing costs and Amazon inbound shipping to pay. So for anything over say 10-40 units (depending on size and weight of course), it’s probably cheaper and easier to go back to your Chinese supplier.

Q4: Is it worth using FBA Inspection’s photography service or is it better to use a proper professional photographer?

A4: I would personally use my product sample with the best pro photographer you can afford. I use Brian Cottam (and so have several members of this group, with great results).

I haven’t used FBA Inspection for product shots so I can’t speak from experience, but I would stick to using FBAI to just photograph any flaws with the product.

Also I would suggest getting someone in the same time zone or even similar area. A relationship with a great photographer is a crucial asset in your business. If you get a chance to meet them physically at least once, it’s a great bonus.

Q5: Do I need to be registered as a company or sole trader to set up my Amazon seller account? Do I need a reg business number?

A5: You can set up on Seller Central and change over from Sole Trader to company pretty easily.

I did this myself (although it was about 18 months ago or so).

The simplest path is to start off as a sole trader. If you don’t have much time or business experience, I recommend it.

However, setting up a company is simple and quick. I used Companies Made Simple  (as recommended by my accountant, Penny Lowe).

 The 3 bits of paperwork you’ll need to deal with after about 12-18 months are:

1. Annual Return (5 minute job max – easy)

2. Corporate tax return (involved- get an accountant to help)

3. Annual accounts (with Companies House) (also use an accountant).

This is more work than a personal tax return. However, you’ll probably need to use an accountant either way. AND you will be able to separate your business and personal tax situation, which is HIGHLY advisable!

This can wait till you’ve proven the market so don’t get stuck on this. But if you’re more serious/have more time/are putting more money in, I’d advise this route.

To ask your own question, join the Amazing FBA Facebook Group

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

Watch Amazon FBA Q & A Tuesday No. 1

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Michael Veazey


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