This is Part 3 of the interview with Aaron O’Sullivan from SystemsCultureImpact.com. This episode is geared towards people who are scaling up from 20-30 products to 100+ SKUs or product lines and people around the level of 6-7 figures per month that are looking to create a business development strategy. Check out Part 1 and Part 2 of this interview to find out more about the systems you need to set up in your life and business to scale.
This is Part 2 of the interview with Aaron O’Sullivan from SystemsCultureImpact.com. In part one Aaron covered the ways you can build out the systems in your life and business that will allow you to grow your business on Amazon. In this episode, we’re focusing on someone who’s already live and has at least 20 products.
Aaron O’Sullivan is the guest today from SystemsCultureImpact.com to talk about how to start a business online.
Back on the show today is Steve Chou from MyWifeQuitHerJob.com. Continue reading
We have a special guest today, Augustas Kilgys, to help up with seller optimization. Augustas is from Lithuania and Germany which gives him a unique insight into selling. He is also running the Seller Optimization Summit which is going to be going on very soon. If you are interest, please sign up to get more information.
The great thing about running an Amazon business is the freedom it allows in your personal life. You can go on holiday as you want and you can take a day off as needed. You set your own schedule and make your own deadlines. That also creates one of the more difficult aspects of your job as an Amazon seller, time management. Today on the show we have David Aggiss and we’ll be discussing time management techniques when you’re running an online business.
If you are first starting out, the challenge is finding enough time to work on your business. You have your full-time job, maybe a spouse and children, then your Amazon business on top of that. It’s going to lead to some late nights and long days. That’s the struggle of it. It’s important to set aside time-blocks for specific tasks. If you start working without this, you’ll end up working on a number of things and accomplishing nothing.
Customer service is a daily task. You’re probably going to be in Seller Central a lot anyway, which is a good thing so you can respond to customer questions and other issues as they arise. Once a week, you want to look at your listings. See if there is any way to improve them. You should take a look at your PPC and keywords to make sure they are performing how you want.
Expanding your business is an evening job. If you are looking to research new product lines or find new suppliers, make sure you have a few weeks available where you can put in some serious evening hours. You’re going to have to work everyday with emails back and forth with your suppliers, especially if they’re in China. Unless you can get on a Skype call, this process could take a week or more because of the time difference.
Skype is recommended to help speed up this exchange. However, keep in mind that if you’re looking into several suppliers, that Skype could get overwhelming. It is easier to maintain all the information if you limit it to email since that has understood, built-in limitations. Also, you will have a record of everything discussed.
If you find that you don’t have the time to handle everything that you need, consider outsourcing. Be aware of what your strengths and weaknesses are. Focus on your strengths, outsource your weaknesses.
If you are making enough money from your Amazon business that you can afford to outsource, then you are probably pretty proficient at the day-to-day Amazon tasks. Then you’ll want to continue to handle those. If your background is in web design, then build your website yourself.
If, however, you don’t know the first thing about building a website and you have no idea how to work on social media, outsource those. Chances are you can find someone that will do it better and faster. If a task is going to take you a week, but someone who is an expert can do it in a day, pay them to do it. The task will get done several days soon and you now have that week to work on something you’re an expert in.
While time management is important, focus management is as well. Like I said before, you have the freedom to make your own schedule, but you don’t have a boss to keep you on track. It’s easy to lose focus and let your business suffer because of it. You have to keep in mind why you want to run your own business. Whether it’s to have a luxury house, nice cars, or to simply spend more time with your family. Whatever it is, whether it changes over time, always remember that and let it be your motivation to stay focused.
Today on the show, I have one of the first contacts I made when starting this show, David Aggiss. I had him on, all the way back in November of 2015. Since then, he has given up the day job and is his own full-time boss. He has a few business, one of which being an Amazon business. We’re going to dive in and find out David’s strategy for selling on Amazon.com.
David started learning about Amazon in April/May of 2015 and began receiving some training. In about four months, he started selling his own product. He took off quite well in Q4. At the time, incentivised reviews were still allowed so he made that a large part of his strategy. His sales exceeded his expectations going from 10 units a day to 30 on average. He launched his second product in Q4 last year and focused on his listing since incentivised reviews were no longer available.
There are a lot of techniques for finding products. David decided to simply look through Amazon. This is a great technique for finding good products. Look for lower prices and low competition items when first starting out. If you find a good product and the listing isn’t optimised, then there is definitely an opportunity for you to sweep in and take over. You can use Google Trends, Merchant Words to help you find what popular and what people are looking for.
David didn’t use any tools to find products, like Jungle Scout etc. He didn’t know what his products would be so he wouldn’t know what to search. Once he picked the products, he verified through Jungle Scout that there was a demand. Now he has about 5 products he’s working through launching.
He search Amazon to find his products. He narrowed his search to products between $15 and $50 and looked for products that interested him. If you are interested in the product then it’s easier to relate and figure out what those buyers are looking for. Then you can tailor your listing to those shoppers.
Getting reviews has become much more difficult since Amazon banned incentivised reviews. With this new world, you have to pay more attention to reviews since you can no longer give products away in exchange for a review. One thing to pay attention to when getting started with a new product is the number a reviews your competition has. If they have thousands of reviews, it’s going to be much harder to compete because it is more difficult to reach a competitive level.
Make sure you competitors only have a hundred or so reviews so you can better compete. Then you can use other services to help get legitimate reviews. You can also try to get traffic coming in from off Amazon.Ads on Facebook, Google, and Bing are great places to start.
There are also ways you can use Amazon to boost your listing. Spending heavy on PPC at the beginning is a good way to drive traffic when selling on Amazon.com. Once your listing gets going, then you can cut back to where it’s profitable. One thing David mentioned was participating in Lightning Deals. These deals on put on by Amazon that offers their shoppers very good discounts for a very limited amount of time. There is a link underneath your Advertising tab on the main screen of Seller Central. It’s not all the time, but Amazon will offer you a Lightning Deal when it’s relevant. This is a great way to drive a lot of sellers to you listing and gives a nice boost to new products.
Amazon sets the parameters. They will tell you the time slot, the minimum number of units, and the sale price which is based on your sales history. David, for example, recently got a time slot for 1am to 7am. Not the best time as many people aren’t looking at Amazon so early in the morning. Despite that, he had an additional 40 sales from the deal.
There are a few things to remember with an Amazon product launch. You need to get as much traffic and sales velocity for your product as quickly as possible. This is a given in any sales capacity. Also, you need to high rankings early, as in on the first page, using an important key word related to your product. Run a promotion when your product goes live which will get people talking and stimulate sales velocity. You can make your products even more visible by turning on the automatic sponsor ads. Lastly, go after some reviews and use family and friends, who will be sure to help your product out in the early days.
It goes without saying, you need to find the primary and most relevant keyword for your product. This is something that people will be able to identify and make the connection to you as the one selling said product. You should make sure the keyword(s) are in the title of your product AND inside the URL address. People can be very lazy so when they are looking for something they are overjoyed when they can find it with relative ease. You can run Facebook ads, external ads and even banner ads from Amazon Marketing Service. Aside from Anthony’s launch too, Zonblast, you can also use Keyword Inspector and Merchant Words.
This has a lot to do with the total views your product actually gets during an Amazon product launch. If you have a low number of searches in a month, say under 20,000, you could see sales velocity stimulation in one day, see some solid movement, as opposed to over several days. However, if you only spike with search hit one hour of each day, your average will be lower. It would be much better for you to spread it out over a number of days for better results. Anywhere from 4 to 7 days seems to be a good time frame in which to work from. It’s all about averages. If you can spread your views and sales over a longer period of time, it will average out to a total that will look much better to you as the seller and to a potential buyer as well.
Make sure you understand Amazon’s new Terms of Service. ‘Free’ sales or giveaways are now considered product manipulation. The big reason the Terms of service were put into place was to stop people from operating multiple accounts and thus being able to receive ‘sales’ of the same product anywhere from 50 to 100 times during an Amazon product launch. Specifically, Amazon are trying to stop buyers from receiving codes to allow them to do this for free. You can now have your product suspended for this. Always remember this and you’ll be fine: Real sales are unique sales to an individual.
Great customer reviews are always welcome but you should not depend on them to help boost sales of your product. While Amazon won’t remove or stifle a review if a customer got a discount on your product (remember though, no coupon codes for free) they can take down good reviews, paid in full by the customer, if they have been attacking the buyer accounts. There is also some unpredictability overall in terms of the reason or reasons why Amazon removes some reviews. All you can do is turn the review machine on, have a great follow up sequence in place, and get reviews as naturally as you can. The best way to success is to have a great quality product and then you can worry about everything else.
Brad runs a one-stop consulting firm that helps Amazon sellers and one of the strategies they use is not to think of a product or product sales life cycle one dimensionally. There are different phases a product goes through. You want to identify those phases and what is need for each phase. A lot of people are wondering what to do for an Amazon launch. After the review blast is over, what do you do?
They have something called “Spur the Machine” that they do for their ASINs and sellers. It’s a four phase approach to the first step of getting something up on Amazon. In their experience, it takes about three months to get a product up and running and there’s a lot going into this.
The big thing is to take a snapshot, then stop and review your data. People tend to keep going and make small adjustments along the way. Doing that makes it difficult to see what’s happening and what’s causing it.
Some research was done on this topic. They gathered data from millions of SKUs and they found that the number of reviews stop mattering after 21 reviews. After that, it’s the amount of stars you have. Reviews matter for sure. Intuition would say that a product with 3000 reviews would do better than one with 100. However, according to the data, what really matters is the star rating.
Brad has found that when you run promotions, there is a higher rate of reviews that comes from people buying your product. The normal rate is about 1-3% of people who buy your product, will review your product. That number jumps up quite a bit when you run promotions. Usually, you don’t have to give away more than 30-50 units on products with a lower price point. With product over $100, you could probably get away with less.
A Facebook crowd around your brand is a great resource. You can promote new products there and get a good response
If you have built up a following around your brand. i.e. A Facebook page or group. You can leverage that following to help you. When you have an Amazon launch and are trying to get a new product out there, you can post about it on your page or group and tell them about your promotions, and ask them to leave a review. It’s a great resource if you have that following.
You can. It’s the idea of making your Facebook community feel special.
It’s hard to say. Within Amazon, it’s an individual person making the call every time. They have their SOPs that say if someone is given a promotion for a review, take it off. If it’s in a grey area, Brad has seen them overreach their bounds too much. However, there should be nothing against giving away promotions for your products.
It shouldn’t. It’s such a new thing and Brad doesn’t know what the internal procedures are but it’s not an incentivised review. You’re not saying, “Here’s a product so that you’ll review it for us.”
Brad could see that argument between two VPs as he has seen in the past, however, he doesn’t have much more insight than that. All he can really go on is the success of promotions in that past that his firm has experienced.