Accounting Archives - Amazing FBA - How to sell on Amazon UK

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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.

311 Amazon profit: How do I figure out how much profit I’m making? (Q & A Tuesday)

This is not something where I’m going to give you every single step blow by blow, because that is a bit complicated. But I can say that it sounds more complicated at the front because Amazon is a complicated business and it can be difficult to determine your Amazon profit.

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300 How to Review Your eCommerce Business Year

One of the things I focus on is: Learn. Do. Review.

I’m going to practice what I preach and look back over the past year, and past several years. When you review, it’s a prelude to changing your action to get a different future.

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278 Amazon Pay Per Click Ads with Mike Zagare Part 1 of 2

Welcome back to Amazing FBA! Today I’ll be talking to Mike Zagare of PPC entourage. Mike was a physical therapist in a former life. He’d started a physical therapy practice when he was about 25 years old, and it failed miserably. A coach suggested that Mike stop spinning his wheels in PT, he found Amazon FBA in 2015, began using Amazon pay per click ads in 2016, realised that there was a vacuum in the market for an Amazon Ads optimisation tool, and created PPC Entourage. The rest is history.

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253 Scaling a business on Amazon with Ashley Pearce Part 2

On this instalment of Amazing FBA, 10k Collective member Ashley Pearce returns with part two of our interview. If you missed part one and you’re a seller new to Amazon, make sure you go back and take a listen to Episode 252. If you’re already caught up, today we’re going to be talking about scaling a business; specifically scaling a business up to $1 million in turnover per year.

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252 The first 18 months of selling on Amazon with Ashley Pearce Part 1 of 2

I’m delighted today to welcome 10k Collective member Ashley Pearce. Ashley is one of the most active members of the 10k Collective mastermind, and he’s here to talk about selling on Amazon; specifically, the first 18 months.  He’s not a billionaire Amazon seller or revolutionary startup software company CEO. Ashley is merely a guy who heard about the Fulfilment by Amazon program on the Entrepreneur on Fire Podcast, cobbled together about £8,000, and jumped into selling on Amazon.

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251 Scaling your Business Accounting with Penny Lowe Part 2

Last time on Amazing FBA, we talked about startup businesses. Today, in part two of my discussion with Penny Lowe, owner of Wellington Consulting, we’re focusing on accounting for companies that would qualify for the 10k collective. In a nutshell, today we’re going to be talking about scaling from an accounting perspective.

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250 Accounting for Amazon with Penny Lowe Part 1

It’s long overdue that we’ve had an accountant on Amazing FBA. Today I’ll be sitting down for part one of my interview with Penny Lowe, owner of Wellington Consulting. If I had to name one single item as the most significant pain point for most entrepreneurs, it’s accounting. So many people in all walks of business struggle with tax accounting, bookkeeping, and payroll. It’s impossible to cover everything accounting in just an hour’s worth of interviews, but today in part one of this two part series on accounting, we’ll be covering the basics for new sellers on Amazon.

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210 How to Sell Products Online for a High Price with Dana Derricks Part 2 of 2

In today’s interview, we will continue our discussion with Dana. Tune in to see what he had to say about upselling to your customers and using different strategies to teach us how to sell products online.

For our other interview or access to a webinar Dana present, please visit http://amazingfba.com/dana.

Create an amazing offer

An amazing offer would be discounting your product by 50% because most sellers are only just discounting 5 or maybe 10%. Where 50% off is definitely is a big deal to most customers and they will love you for it. Especially if you can show that it is actually selling at that price on Amazon. Getting 50% off would be the best way to create an awesome offer.

Presenting your discount

You should give the customer a coupon inside with the package. When they get to Amazon and get to the right link they will find the product is at full price. To make sure the customer uses their coupon you would charge full price. Then at purchase when they use their coupon that would basically unlock the 50% off making the product cheaper.

Percentages and numbers

You come out ahead when you sell at a discounted price because you don’t have the fee that you would at full price, and most importantly you get a customer off of Amazon. The thing to remember is getting customers off of Amazon is value in and of itself. As far as percentages go your range should be between 5 to 20%.

The thing that is most exciting is once you get your backend build up really well, and you can take customers off of Amazon. Suddenly you don’t have to try and make your money solely off of Amazon.

Another tactic to making big money is to take an existing product and lower your prices that way you can get more people coming through your door, and potentially making a purchase. Combining this tactic with offering coupons is the best way of getting more eyeballs on your product. You’ll get more buys and outsmart your competitors.

How to Sell Products Online

Physical products businesses are cool. Some of the people don’t talk about how much money they require to grow and scale them. because every time you sell out of inventory you need twice as much the next time. The best thing to do is to inject product services into what you’re already selling. One of the things you could do on the front end would be to inject informational products like a how-to.

The next step is to become an affiliate for some of the products people are buying from you. The thinking of most people is that their next dollar only comes from launching their next product. But it is much more important to build it up from front-end to back-end first. Once you have done that just rinse and repeat which is much more important than injecting a new product.

The 80/20 Principal

A great book to read on this principle is written by Perry Marshall on how to sell products online. You’ll find the that 80% of your revenues come from 20% of your fulfillment. So, when you get higher up offers you’re actually spending less time and money, but you making more doing it. Any listeners out there that do not already have these high ticket offers you’re really missing out on your best customers.

Dana’s amazing book

Dana has sold numerous copies of his book at $2,500 because the contents of the book are so valuable. Inside his book, he shows how he’s able to sell most of his books for a whopping $200,000 and even up to $400,000 per copy when other people are selling their book for only $20.00.

He goes through the entire process of how to sell products online and making huge profits in the digital product world. The exciting part is that he is giving away a free copy to all the listeners at his own expense completely free. Stay tuned to get your free copy! Limited time only!

Dana’s Goat Farm Mastermind

Dana’s first go for the Mastermind was a couple months ago which was unbelievable and a really special event. Because it went so well the first time it will be happening again February 2018. This will be a live event. He will be personally working one-on-one with people, but he will also be having other people flying in to share with the community as well. It’s different than most masterminds because it’s at his house and there are only 20 spots available.

Goats will be involved. Doors are now open and several spots have already been taken so don’t wait too long to reserve your spot before February 2018. It is very simple to apply just by going to http://goatfarmmastermind.com. You can check out the success stories over there and if it’s something you’re interested in doing, you can sign up.

For our other interview or access to a webinar Dana present, please visit http://amazingfba.com/dana.

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