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137 Best Products to Sell Online with Greg Mercer – Part 3 of 5

Talking about the best products to sell online , Greg Mercer, Let’s back it up to how get ideas in the first place. Do you do that organically, or do you use some sort of tool?

To find possible best products to sell online, as Greg mentioned in the previous episode, you can look at Amazon’s best seller, or look for trends in your everyday life. If you have time and are cost conscience then that works. However, the Jungle Scout web app was created to solve that problem. There are a few tools in the Jungle Scout web app, which is different than the Chrome extension. It’s more like traditional software. It has a database tool which is a recreation of the Amazon catalog. It’s available for the European and North American marketplaces.

What they’ve done is rebuilt Amazon’s catalog so it’s more user-friendly for sellers. You are able to search by metrics that sellers care about. You can search for all products that sell more than 500 units, have less than 50 reviews, have a poor listing, and weigh less than 5 pounds. You can put all that in and get it down to 5000 listings. From there you can get ideas of the best products to sell online. What people are are some really obscure products that people would have never thought to look for.

Let’s talk about competition. I would imagine by the end of the year, a lot of people will be using the same tools when deciding what to sell online. A lot of people will be using the Jungle Scout suite trying to find the obvious products. How do we deal with the competition? You mentioned going for the obscure products, do you have any other ways to find the best products to sell online on Amazon?

There’s a few strategies you can implement. One is finding a product, and improving on it. This is the age old practice. Take an item people are already buying even though it’s crappy, and just improving upon it. That’s what’s great about this day an age. 20 years ago, big corporations had to spend a lot of money doing research to find this same information that any average Joe can get by reading product reviews.

Just find a product to sell online that is selling despite poor reviews. Then filter by 1-star reviews and find out what everyone hates about it. Then contact a factory in China and have them make this one simple change. Put it on Amazon, and now you getting 5-star reviews while your competitors are getting 3-4 star reviews.

You’ll also find that anything with a higher barrier of entry will have less competition. If it’s a larger item that need to come in containers, those will have less competition, but will come with headaches. More expensive items will have less competition. The U.S. is the most competitive out of all the markets, so Greg has been expanding into Europe. According to an Amazon representative, if you combine all the European stores, they do about as much volume as the U.S. 

135 Greg Mercer on the Best Products to Sell On Amazon – Part 1 of 5

We have Greg Mercer on the show again. You can listen to our previous interview on product research, as well as one on supplier negotiations. Greg studied civil engineering at university and had a corporate job that he hated. He began selling on Amazon as a break from his day job. He managed to quit his day job and just do FBA full-time. He did that for about two years when he was frustrated by trying to find products to add. The best way to scale your Amazon business is by adding more products. Greg didn’t have a lot of capital to throw around so he wanted to find ones. Out of this need, Jungle Scout was born. Now he joins us to help us find the best products to sell on Amazon.

Today, Greg is still selling on Amazon. He has released a few products in the last few months. He’s been working on Jungle Scout, and that has expanded into a quite a tool for Amazon sellers. There is Jungle Scout, which a research tool. Jump Send is a deal site to get you additional sales, as well as a follow-up sequence. Splitly is an AB testing tool for Amazon sellers. Fetcher, which is profit analytics. It calculates what you’re really making after refunds, promos, etc. All the numbers Amazon likes to hide from you.

Let’s start with the one thing that every struggles with: finding something to sell. What is your first step to finding the best products to sell on Amazon?

That’s a common issue. Everyone knows how good of an opportunity Amazon is, but it’s finding products to sell that is a struggle. The best products to sell on Amazon are ones that have existing demand, that means Amazon customers are already searching for it. You want products that have low competition and that have good margins. Those are the main things. Other things you may want to consider are whether they may infringe on any patents, and they don’t need to be licensed. Think of liability; if a person can hurt themselves with it, you may want to steer clear. Lighter, smaller items are generally less complicated. They are easy to ship and you don’t have to worry about oversize storage limits.

Jungle Scout was created to solve that issue, but you can look on the Amazon’s best sellers page. You can get ideas from Pinterest, look at what people pin a lot. You can hang out in big cities where trends start first. Once you do that, make a list of product ideas and go to Amazon. There is actually a free way to find out how well a product sells. You can click on a listing, then look at the best sellers rank under the product description. Then you can go to junglescout.com/estimator. It’s a totally free tool, you don’t even have to put in your email. You put in that sales rank and it will give you an estimated amount of units that product sells on a monthly basis and see what the demand is.

You say you want high demand and low competition, can you define that in some way, and how do you find that out?

For demand, you want to look for products that are already selling on Amazon. A beginner mistake is that people “know” that a product will do well if it gets on Amazon. A small percentage of the time, that might be true, but more often than not people are wrong. It’s much safer and less risky to go with something that is already selling.

I want to see 2000 units a month, being sold on Amazon. Let’s use a coffee cup as an example. If you search “coffee cup” on Amazon. Then take the top 10 listings, or however many are relevant. Let’s say 8 are selling coffee cups. Then click on each of the listings, get the best sellers rank. This is helpful because it tell us how well this product is selling. This number, by itself, is very difficult to interpret. However, at Jungle Scout, they have come up with an algorithm that can estimate how many units are sold based on that number. It changes on a daily basis and they have a full-time data scientist that is always updating this. So, get that number for each listing, find the units sold on Jungle Scout and add them up. If it’s more than about 2000, then the demand is there.

One issue that many people have had, is regarding the monthly sales number. Some sellers have noted that the estimate Jungle Scout shows differs than the actual numbers when they lookup their own products.

The first thing is to look out how they drive these algorithms to estimate the sales. Depending on the category, they collect between 200,000 and 500,000 data points every month for that category. This is the relationship between the unit sales and the ranking number for that day. Then they run a regression analysis and they come up with a line of best fit to estimate the sales based on the rank.

The best sellers rank changes on an hourly basis. The way they estimate sales is that if a product continues to sell as well or as poorly as it has for the past few days, this is how many units will sell in a month. If, last week, your product was selling 10 units a day, but this week is selling 1 unit a day, Jungle Scout will estimate based on the 1 unit per day. So you’re sales might be 60 units that month, but Jungle Scout will only estimate 30. It’s the best they can do with the limited data Amazon gives out.

Some people will get on there and see their products are 10% more than Jungle Scout’s estimate and will conclude that you need to add 10%. That’s not true. If you look at the regression analysis, there are some points that run above the line, and some below. They’re taking the average of hundreds of thousands of products in a particular category. So, your 1 product may not fall on that line, but if you average the whole category, it will be on that line.

People seem to put too much faith in tools. You can give me the best painting supplies in the world and I still could paint a good picture.

Exactly. People get caught up, too much, in the tools. Keep in mind this is still just an estimate. You’re using this tool to determine a ballpark range on a product’s sales. Jungle Scout may estimate that a product does 900 units a month. In reality, it might be 800 a month, or 1000 a month, but you know it’s in that range. It helps with forecast and it help determine if there is good demand in there.

Let’s go back to the 2000 units a month number. I had a product that, on Cyber Monday, sold 103 units. Now, the same product is selling 4 or 5 units a day. How do you account for that, especially this time of year when sales volume tend to be low?

This is difficult. One tool that helps is Google Trends. This tool allow you to see how a search term has trended over the years and seasons. This is a fairly good gauge of how items will sell on Amazon. As many people know, Greg has done public case study selling bamboo marshmallow sticks called Jungle Sticks. Based on Google Trends, you can see how the sales have changed based on the seasons. January to February are the slowest times. July and August were the highest times. And if you look at the sales, you can see that matches up. So can look on Google Trends to determine if this is a high season or a low.

The reason I like to use the 2000 or 3000 units, is because people like to answer “It depends”. It’s too arbitrary if you’re a beginner. At the end of the day you’re looking for the item with the biggest spread between demand and competition.

As you know, sales tend to spike in December, plummet in January, then even out the rest of the year. Would you try to take account of that?

If I was a complete beginner looking to sell my first product on Amazon, I wouldn’t worry about that. That’s more higher level strategy. Focus on getting your first product up on Amazon and learn the rest later.

If you’re already have your products on Amazon, and you’re trying to figure out forecasting, that is a good idea. Two good resources are Google Trends, and Keepa. Keepa has a really nice, free database of how sales rank has trended. A lot of products have two years or so of data. You can look at the and see how the sales rank has trended over the months and seasons. You can try to start estimating how well your product is going to sell.

Some products you can tell by common sense. If you’re selling lawn products, then the summer months are going to be the best. Other products, like the marshmallow sticks, it’s not as clear when they’ll sell well and Google Trends can help with that. If Google Trends shows there is twice as much searching for marshmallow sticks in the summer months, then you know to order a little extra inventory.

How do you measure competition?

Reviews are a great indicator of competition. That’s probably the biggest thing to look at. On top of that, the quality of your competitors listings. If they have a poor listing, like one picture, a really crappy title, than that is someone that would be much easier to outrank. As opposed to someone with a really good listing.

The first thing to look for is how many reviews they have. Older, more mature products that have been selling consistently well, are harder to outrank.One way to tell how mature a product is, is how many reviews it has. An older product that sells well, is going to have more reviews. A product with 1000 reviews is going to be much harder to outrank than one with 15. A rule of thumb is to look for something, where 3 or 4 of the top reviews have under 50 reviews. That signifies that it’s probably a young niche.

Tell me about the relationship between the average review and the number of reviews. I had a product that had a 4.9 average but only 22 reviews. It was selling quite well against competition which had 700 reviews. Is that a one-off thing or is there a correlation between the average review?

One thing to understand is how Amazon ranks the listing. They use keyword relevance. The sales velocity probably makes up about 50% of the algorithm. That would be the number of sales per day. Another factor is the conversion rate of your product. Now the sales velocity and the conversion rate depends on a number of factors. Those including the quality of your pictures, the price, the social proof, the average star rating. If you competing against other listings that have a lower rating, then you’re probably have better conversions and more social proof. People would much rather buy a product with a higher average rating than one with more reviews.

I’ve noticed that if a product goes from 4.9 to a 4.6 average, the conversion almost halves.

Yeah. Visually, if you have a 4.9 average,Amazon displays 5 stars. But a 4.7, they show 4 and a half stars.

132 Will Tjernlund on Selling to Amazon Directly – Part 1 of 3

Today, we have one of the giants in Amazon, Will Tjernlund. He’s a man that is always ahead of the curve and is always willing to help the rest of us catch up. This isn’t Will’s first time on the show, you can find his last interview in episode 45, and episode 46.

The big trend coming to 2017 will be selling to Amazon directly using Vendor Express, Vendor Seller, AMS, and all these other buzzwords we have to learn now. 

First off, why is it a good idea to sell to Amazon directly?

Will says that it’s inevitable. Eventually, Amazon does want to source and sell themselves. If you can get ahead of the curve and get on their side early, it will only help you in the future. It’s one of those things that you know you’re going to do it three years from now, and you’re going to ramp up three years from now, why not go ahead and do it today. Will’s of the mindset that if you’re going to have to do it in three years, then do it now and be the expert in three years when everyone has to do it.

What’s behind the statement that it’s inevitable?

Because it’s their game plan. If you read The Everything Store, Jeff Bezos’ biography, he talks about it being the game plan to make it easier for third-party sellers to sell on their marketplace, take care of the annoying aspects like fulfillment, customer service, storage, and marketing.

Then, all they need is us third party sellers, essentially, glorified sourcing agents, to find the best SKUs and see what sells the best. Then they start from the top and decide if this product is easy enough to manufacture that they just want to come out with their own Amazon Basics version of it, or if they want to work with the biggest brands in that category and source their products directly.

So, if you’re not selling directly to Amazon, eventually they are just going to try to squeeze you out.

Third-party sales are becoming a bigger part of Amazon, something like 50% of sales were from third-party sellers this past Christmas season, but from the different advantages Vendor Seller gives you and the heads up if gives you, and also that it works better with Amazon’s business model, it’s for sure, the way of the future.

What you’re saying is that you want to be one of these big brands that Amazon goes to for sourcing, because it’s easier to source from you than from the Chinese, is that correct?

Right. Just think of a general catalogue, think of kitchen knives. Like a block with 10 knives in it for $29.99. Amazon can come out with that knife block for $29.99 and then there will be, like German manufacturers with brand names.

The customer has to decide if they want to get those cheap Amazon knives, do they want to get the expensive German knives, or something in between. That’s were you, as a third-party seller, has the advantage. You can offer that middle product that better than Amazon’s version, but not as expensive as the German brand. You make sure it’s good quality and all your packaging looks good, and Amazon buys directly from you because you’re filling a gap in the market.

Are you trying to find those mid-points in the market between Amazon basics and the expensive brands? Is that the general strategy?

It’s different for every category. For that category, that may be the best route taken. Also, think of it this way, when you jump on Vendor Express and get upgraded to Vendor Central in six months and you’re selling directly to Amazon, then everyone else who is selling those mid-level knives will get blown out of the water because yours are going to be shipped and sold by Amazon.

Two or three years down the line you’re going to have a lot more reviews than everyone because you’re shipped and sold by Amazon. They do different sales and they do different marketing things to push your products. Then, when these other mid-level sellers try to jump on Vendor Central, Amazon doesn’t want to work with them because you’ve got them covered.

How do you find these gaps in the market that works with this business model?

Will’s been taking a roundabout way by looking for big brand names that have terrible accounts and I go and consult with those companies. He will offer to run their Amazon accounts. He will then optimize their listings, fix violations, and get everything back in stock. From their, he’s been using these big brand companies as his private label arm. He will suggest new products. If they’re selling a bunch of kitchen accessories, he will suggest another one, which is smart for them since they own their own factories. They then will fly to China to get samples, and then buy every product on the first page of Amazon as comparison.

Right now, Will is looking for niches of these companies that he is already consulting for, let them handle the research and development, and he looks for products that are within their wheelhouse, but not being manufactured yet.

Let’s say they sell 40 different types of ladles, he will suggest a slotted spoon. He’ll look up that product on Jungle Scout, and find their review-to-revenue ratio. Check the revenue to review ratio: Let’s say slotted spoons have 10,000 reviews and $100,000 revenue a month, so $100 revenue to review ratio is good. He takes that information to the company and shows them that there isn’t much competition, it has proven sales, and it’s in the category they are already selling in.

Will uses the review-to-revenue ratio as a way to quickly gauge the lifecycle of a product and it’s maturity. Determine if it’s easy to ship. If every listing on the first page is being sold by Amazon, then you’re probably too late. From there you look at every facet and see if will work, and if you can’t find anything wrong with it, it’s worth a shot.

Do you have any other criteria you use to judge a product?

Will likes to find products that you have to explain what it is. It’s that niched down. 

Would that not lead to negative reviews, if you have to explain it to the customers?

It wouldn’t be unusual within the niche. For example, a little tool that is only used for cutting fly fishing rod lines. Yeah, it’s a weird product. It’s a small piece of metal with a blade. It’s costs $.50 to make and the guy is buying it for $10. Not much by the way of sales, but there’s no competition and it’s $8 profit.

It also has to have a very specific keyword that the customer searches for. A woman recently came up to Will talking about her product that was a wireless bluetooth headset that you can sleep in. When asked how a customer would search for that, she replied with “bluetooth sleeping headphones that are wireless.” The problem with that is it’s too specific, no one will search for that, and you can’t rank with “bluetooth headphones” or with “wireless headphones” as as that’s too general/generic. Since she didn’t have a keyword in mind, she could even do a revenue-to-review ratio because she did know where to start.

First, we’re searching for keyword niches and then finding products to fit, is that right?

Exactly. Will recently started climbing and there is a tool called a grigri. Now, no ones knows what a grigri is, but if you’re in mountain climbing, everyone know what it is. Plus, how easy is it to rank for this very specific word, grigri? No one else is going for it. Anyone who searches for it, knows what it is and wants to buy, and if someone doesn’t know what it is, they wouldn’t need it anyway. Also, if no one know to search for it, then there isn’t any private labelers nipping at my ankles, looking it up on Jungle Scout.

That’s a really good strategy since there’s no competition, and I would imagine conversion rates are really high since the only people searching for it know exactly what they want.

Yep, and it works really well with US brands. Will contacts these climbing brands that have been in the niche for years, and they’re selling these harnesses for $140 when they sell them wholesale for $40 because they have this established brand. So, no one knows who Black Diamond Climbing is, but every mountain climber knows who they are. So when someone searches for them on Amazon, they are astounded that they can get the entire cataloge because no one else carries as much. From Will’s perspective, it’s amazing. There is high demand, he doesn’t have to do any research and development, and he can still make huge margins, and he only has to place an order once a month with a U.S. based distributor.

How do you begin to develop the relationships with these wholesalers and distributors? And what kind of capital do you need to get started?

Many of these distributors have very small minimum-order quantities. One particular company said their average yearly order volume from one of their distributors is $2500.

Will finds them by searching through Amazon. As he’s looking for climbing stuff, he notices that these major brands have three of the five bullet points filled out, their out of stock, or they have one of the five images. All sorts of these red flags exist and they tell you that these Amazon accounts are being managed poorly and they don’t understand the Amazon ecosystem.

It’s easy enough to contact these companies, become a distributor, and send them a message. Tell them who you are and that you were looking to buy one of their products on Amazon and saw that it was a mess. Let them know about the issues you found and that you can help them get their account in order. Ask them to make you the only distributor on Amazon, you won’t screw over the brick-and-mortar store by selling their product too low, you’ll pay up front, and keep their product in stock. All the things you can promise them that their distributors can’t promise them. These other sellers are only using them and not adding any value whereas you can actually add value to their company. You can be this A+ consultant, but you’re paying them instead of them paying you.

Another selling point is that it’s in their best interest to work exclusively with you. You can make sure to keep their listing looking good and their prices at the right level. They wouldn’t let big-box stores carry their products if they didn’t know who was selling it, at what price, or what the packaging looked like.

It really seems like these companies don’t understand e-commerce, or at least Amazon.

Imagine you’re a big mountain climbing company that specializes in making the best carabiner. You have been in business since 1975, you have 10 people working in manufacturing, 1 person in accounting, 1 person in HR, and 5 people in sales. Each salesperson has their region in the U.S. and they call up local shops asking if they want to place an order. Their whole job is to get as many accounts under their belt as possible. Then, all of these distributors start selling out the backdoor, and now they have 40 people selling on Amazon. This puts the company in a tough situation. They told these stores that they can only sell in the store. They can’t cut them off because they have been doing business for 40 years and they want as many accounts as possible. However, the Amazon market is hurting their brand.

These old-school companies will gladly sell to you because they still have the mentality of “sell to everyone,” but some will question the sale if you are selling it on Amazon because of this issue.

What do you say to those companies that are hesitant?

A lot of these companies don’t know the first thing about Amazon. They will contact seller support and demand they stop sellers from selling their products.

How do you deal with that? My understanding is that you can sell any product on Amazon.

There are some gated brands like Nike or Louis Vuitton, and there is no way you can sell their stuff on Amazon. You can go onto Amazon and gate your brand. If you explain that customers are getting hurt by counterfeits, then they will likely approve it. Make sure to put in the customer first mentality and use the word counterfeit and you’ll have a better chance.

Would you do that yourself, or would you persuade the brand to do it?

It depends on the company. When Will calls up these companies, he just feels them out on how they want to go about it. They might just want him to be a distributor, that’s fine. Or they might want him to be a distributor only if he can keep the price high, that’s a different conversation. Or they might want him to run their Amazon account, but it’s all going to be under their brand. Each time a company will ask for something different, and usually he will say yes because they are simple things. You just have to feel the company out.

If they’re making $20 million in sales on Amazon, then they’re making enough money to go and hire a whole team. Until they get to that point, it’s better to hire a someone like Will to handle it. It’s not worth it to take six months to hire and train a team when they don’t even know what to train them on. 

Basically, you’re offering to be their Amazon front-end allowing them to focus on what they best.

Exactly. Amazon is like this big scary monster in retail. Instead of them trying to deal with it, Will is like the band-aid on the wound. They are sick of dealing with it, it’s not working with their business model. Just hand over that part of the business to an expert that will take care of everything. All they have to do is deposit a check.

1

125 How KLT Can Win You Customers Again and Again…

Today I am bringing you another episode on marketing fundamentals: KLT. Know, Like, Trust. Once again, this isn’t a mindset for you, but that of your consumer which is really important to understand. Stepping back, the most important thing to understand is what marketing means. Marketing isn’t about creating a widget and figuring out how to sell a lot of it. It may look like that, but marketing is really understanding markets. Simply put, supply and demand.

Understanding Markets

If you start by understanding the markets, and find what people are looking for, then create a product that fulfills that need, that it truly smart marketing. To take a pre-existing product, and then try to sell it is much more primitive and difficult to do.

Last episode, we talked about message to market match. If you are the only person selling red dog bowls, even though a lot of people are selling dog bowls, you win. The caveat to that is credibility. I gave the example of trying to sell the world’s best dog food to cat owners and how you won’t find success with that.

Now, imagine you have that same dog food in a room full of dog owners, except that you are trying to give this amazing dog food away for free. That puts the questions in people’s minds. Why in the world would someone be willing to give away this great product for free? How can this dog food do everything it claims?

KLT: Know, Like, Trust

There is a simple marketing principle of KLT. Know. Like. Trust. These are the elements we need to have in place before people will buy from you. Amazon puts a spin on this that you should be aware of.

Know

If people have never heard of you then it’s going to be harder to get people to buy from you. This is difficult to do when you only have a listing to do this with. If you are the only person selling a red dog bowl, it’s less important. However, you won’t likely remain the only one. If there is any sort of competition, you will need to work on your brand marketing off Amazon. You will need to have a website. You need a social media presence and you will want to get YouTube videos up.

Like

The next step is getting people to like your product. It is possible to accomplish this entirely on Amazon. You must have great looking pictures and amazing packaging. No longer can you get away with putting dreadful products on Amazon and sell it. You really must make sure that you have a good quality product.

Trust

The last element is trust. If you’re going to sell dog food, and make some big claim that it’s going to make your dog live five years longer, then you need to back that up. Be careful on how to try to backup these claims. Amazon supplement sellers were leveraging the trust people had in Dr. Oz after he claimed vitamin c serum was the next big miracle drug. Soon these sellers started getting cease and desist letters from his lawyers. If you’re going to reference an expert, be sure you have their permission to do so. A long-term strategy might involve referencing celebrities and big names in your industry and paying them for permission to use them.

Using this Principle on Amazon

Let’s bring it back to the simplest stick: how to I make my listing more likely to convert? KLT. The know part is a long-term strategy. If you are around for a long time, keep showing up in Amazon results, dominate a niche, then you gradually become known to people and they start searching for your brand name. That is when you know that you’re starting to build a brand. When you’re sticking in people’s minds to the point they search you out specifically.

To get people to like you, you have to have a remarkable product. Since you, likely, aren’t well-known, your images and packaging have to look simply stunning.

Trust is much harder to build, but you are leveraging Amazon’s trust. Which isn’t the same as your consumers trusting you or your brand. If it’s on Amazon, and it has good reviews, you are leveraging the trust generated by other consumers in their reviews, and the general trust people have in the Amazon platform.

This principle of marketing is harder to implement on Amazon, but it is vital to understand it you are wanting to build a business and if you are planning to sell that business. The more of a brand value it has, the more differentiation it has from any rivals, the greater multiples you can get when you go to sell. That could be the difference between selling your business for 2x your profits versus 3x. This is when you get the payoff for all the hard work you put in now.

Long-Term Strategy

I want to emphasize that this is not an instant win situation. You will get quick wins with higher conversion, the real payout shows itself long-term with a strong independent business. There are plenty of tricks you can use to circumvent the system, but Amazon is quick to fix that and then you are left with nothing. What I am teaching you today is a tried and true marketing principle that has stood the test of time.

If you are serious about moving your business forward, there are still spaces left for the December meeting of the Amazing FBA mastermind in London. In January I will be expanding to include a high-level mastermind for those that are serious about creating a strong business.

123 Are your products beautiful?

Are your products beautiful?

If you are selling on Amazon, you are likely private labeling products, probably from China. Although, if you are in America then you might be looking at other alternatives in light of Trump’s plan to raise tariffs. For now, let’s assume you are importing from China. China makes some of the world’s worst products. China makes some of the greatest, such as the Apple iPhone. It’s equally possible to create terrible products as it is to create amazing ones since 80% of the world’s manufacturing happens there.

Have you got a design that is interesting? If not unique, is it at least beautiful? Are you sure you are really checking the quality of your manufacturing?

From the consumer stance, simply put, is your product beautiful? Does it work beautifully? Is it reliable? Is it amazing?

Today, I was out in London and came across the amazing building. It was once a school for choir boys that is now a youth hostel. What makes it truly beautiful is the detail. They put so much care into the details that it is immediately striking. When you really look at the detail, it is magical as well.

Now my question, is your product doing that for your customers? If not, you need to get on that. I am, by no means, an expert in product design, but my business partner and I have some products on their way from China and we are very excited about them. We order samples from about six suppliers and got eight samples from some suppliers. We went through a lot of trouble. We reviewed 60 suppliers! Some were dodgy and their prices came tumbling down from $15/unit to $3; some didn’t have solid business credentials, and we rejected them.

We have a whole complicated system that we use to check out a supplier thoroughly, and I can go into that later if you are interested, but the big thing is to get a sample! Check through different photos on Alibaba, or wherever. Get out of Alibaba, do some Googling, go out and get some samples in real life. Whatever you need to do to get a vision of what would be your perfect vision of you product.

Keep in mind what your market wants. I’m not saying to create something in a vacuum. Never do that! Do research. Look at demand. Look at demand depth. If here a lot of sales in training shoes, but 90% is Nike, forget it. If you want a company that you can sell down the line for two or three times yearly revenue. If, you want a brand that people are willing and excited to buy. When people see your product in their search results, they should immediately be drawn to it and want to click. If you want a product where people will be amazed when they scroll through your photos and want to buy it. They you have to work and sweat and make your product beautiful.

Don’t stint on samples!

I hear complaining all the time about how suppliers want to charge for samples and whether it’s worth paying for. Let me tell you, it is. If you are going down the private label route, you’re going to be spending thousands of pounds, tens of thousands, don’t be cheap about the research. Don’t go too far and get 20 products when you know the 10th is really really good, but take the time to find that 10th products that is really really good. If you can’t afford to get the proper samples, can you really afford to get into private label?

The room is not mass producing cheap crap, it’s being the Apple iPhone of your category. China is the kings of cheap products, but there are still manufacturers where the designs are fantastic and the quality controls are rigorous. Even if you don’t design your own products,at least you can pick one that is still good.

You either have to do research designing your own product, or you have to do research in looking for a great design. Regardless, you have to do the work. Warren Buffett used to say, “You can either create value, or find value.”

#100 Adam Hudson on Amazon Basics Pt. 4

To find out more of Adam’s own strategies and tactics, CLICK HERE

Reviews are a major part of any strategy and you mentioned earlier that you want enough reviews to seem viable. Is that correct and could you expand on that?

Yes. It hard to seem credible if you have five reviews and everyone else has 100, so you have to work for those reviews.

How much is enough? And what do you do now that incentivised reviews have been removed?

How many depends on the product. It depends on what page one looks like for you products’ search terms. There is still opportunity out there. There are a lot of products with low reviews that are still dominating. Adam would use ilovetoreview.com, which he also owns, to get 25 reviews for products in the UK and 50 in the US.

Find out more of Adam’s latest thinking HERE

It’s only in the US that incentivised reviews are gone and it’s only compulsory reviews. There are other services that never guarantee the review but would push out your products at a discounted rate or for free. It’s not clear how it works, but it seem that after you get around 25 or 30 sales in a day then you products get a jump start and the sales keep rolling in. So even if you’re not getting a guaranteed review, there is still value in pushing your products out at a discounted rate.

Adam can only speak to his community at ilovetoreview.com, but the reviewers have been doing this for three years where they use the coupon, get the product, and write the review. So, they will probably continue to do so even though it can no longer be required.

Companies will continue to do this even if the review rate drops in half. Adam’s company has a review rate of 87% meaning 87% of products that were pushed out came back as a review. With these new rules, that will likely drop. And if it drops in half that means you will just have to send out twice as many products. This is a one-time investment for something that can generate income for life.

Another tip from Adam is to follow up with you customers via email. Especially in the UK, they are very responsive to this. Zonguru (which Adam also own) has this automation built in.

Every time you make a sale it can send an email when it ships, six days later following up with any issues,and 14 days later asking for a review.

Not only will this help in getting reviews, but it allows you to get ahead of any issues with the product, say if the box was damaged or the product wasn’t right, allowing you to take care of the issue without before going through Amazon’s return system.

Adam tries to casual in his style in his emails. Just a quick “Hey, how are you doing? Just wanted to make sure everything is good with the product.” He doesn’t try to sound like a big company with huge copy in the email, just a quick message like you would send to an acquaintance. 

The bogeyman in all this, as Adam puts it, is that Amazon can change this against this type of thing. They have already sued a bunch a review companies last year. All they have to do is make a change in the algorithm that scrutinizes those reviews that have reviewed an above average amount of products, and out of those, how many used a coupon and just wipe out those reviews. They can just remove reviews of people who are just reviewers.

No one knows how things will work out, but sellers will just have to adjust. They will still have to do product launches, just like every company in the world when they launch a new product. You just have to follow up and encourage your customers to leave a review. You only need 25 – 50 –  if you need more than that you’ve gone into the wrong niche.

As you say-  Amazon has the ability to wipe out these reviews if it chooses. It just drives the point, that at the end of the day it comes down to organic reviews and organic sales.

Yes. Just make great products that people like. It’s that simple. And don’t be impatient. Adam likes the way this is because it knocks out all the people that think they can get rich quick on terrible products. It’s about putting in the work. Putting in the effort. That gives him the freedom to sit around all day, and look at his seller account and see that he made $3,000 in  a day.

You mentioned earlier that you teach this stuff. How do you do that? Is it live webinars, live courses, group training?

He has a company called Reliable Education. The aim is to give people a realistic expectation going in and tell them the truth.

On the website, you can enroll in a free training program that is four videos where he shows you his home and drives you around where he lives in Australia.

He educates you on what the Amazon opportunity is, how to find products and his criteria for that. He teaches you about “Velicity Retailing” which is how to compound your capital over time.

All this leads to a paid programme which is an online course where you get access to about 90 videos that show you Chinese factories and how a 3D printer is made and a lot of very cool stuff.

It includes a private Facebook community and will link you with a mastermind group that they cap at seven people. Everyone signs a NDA so they can freely talk about what their companies are doing and talk on Google Hangouts or in person, and they’re all trained with the same philosophy of not being opportunistic, not get rich quick. They are solid people that want to build solid businesses.

They also have 12 coaching webinars with each member of the course. They have an onboarding program for every new member. There are two guys whose job it is to call every new member and talk to them and get a feel for them. They also have a program where they loan money to a 3rd-world entrepreneur, interest-free, and gets paid back over time. People seem to find a lot of value since their refund rate is less than 5%.

How do listeners get hold of you or find out more about you?

Just at reliable.education. Adam doesn’t really use Twitter etc. so you can’t catch him there – sounds like he’s more likely to be on his boat!

#98 Adam Hudson of Reliable Education on Amazon Basics Pt. 2

Get Adam’s Latest thoughts HERE

So, the first thing is to have a great product, what’s the next thing?

The next thing is to have great photography. Not good photos, not the best you can do, but great photography.

The best that you can possibly get. If you look at AirBnB for example, one of the decisions they made early on was to send professional photographers to the homes to take photos. In the beginning, people weren’t booking because the photos weren’t good enough. As soon as they started offering that to the AirBnB hosts, their business took off.

Another flaw in the course gurus is that they sold Amazon short. They said you can come in with $1000 and be making $30,000 a month in six months and that’s just not true. What Adam tells people is that is you can start with $5,000 and in the first year you can rotate that money at 30% margin in a year, that’s a win.

CLICK HERE for more details on Adam’s approach to Amazon on his “Reliable Education” site.

Warren Buffett is the greatest investor in the world and one of the richest men in the world. If you look at his record he is trading at 20% a year. If you’re doing it at 30% then you’re doing better than Warren Buffett. As you get better you’ll be able to rotate that twice in a year then you’re doing 60%.

If you sit down with a compounding calculator and do the math on if you start with $5,000 or $10,000 you can see that you have an amazing vehicle at your disposal.

However, a lot of these “gurus” are telling people they’re failures if you’re not making $20,000 or $30,000 a month in your first year.

You mentioned that you started with 6 products and turned that into a million dollars a year, so I would assume that you put substantial capital into that.

In fact, it’s at $1,000,000 a year “run rate”, ie, it now turns over about $83,000 a month.

Adam figures that he started that business with about $60,000. This was a different company. He has a completely different brand that he’s been running for about three years and he started that one with $20,000. At this point, he hasn’t taken any money from it. Except for a $20,000 loan from Amazon that he accepted just to see what it was about, he has been compounding that initial capital. Right now he has hundreds of thousands of dollars in inventory paid for in distribution center around the world.

The only other person I’ve talked to about compounding your money is Will Tjernlund. If you took that $60,000 and after a year turned it into $80,000 a month that clearly is a tremendous success. How on earth did you manage that?

Adam is experienced at this point, with his numerous business adventures, and experience comes from activity and time and anybody can learn to do that if you stick with it (learn more from Adam here at Reliable Education)

The difference, according to Adam, is that Will farms a product. He’ll throw 20 or 30 products out there and two or three will be a hit. He clears the rest out and starts over.

Adam wanted to build a brand with a small number of products. He currently has six products with an average cost of $8 and retails for $40 with one about $129. Adam’s strategy is to build his brand around a few products and get them to page one and keep them there. Last time he checked, Will had around 1700 SKUs. He didn’t want to think about what that was like, to wake up and have to monitor 1700 SKUs.

How do you find potential products?

To be successful, it’s about paying attention to the details and being objective. If you look at AirBnB and everything that makes it successful, then reverse engineer that and unpack it to find every component, that kinda what you have to do with Amazon. For example, AirBnB hired pro photographers to go every single place listed on the site!

Too many sellers go in with the wrong mentality. They go in think they need to make this product in this price range and that’s all wrong because you’re building a product around your limitations and needs rather than the wants and the desires of the customer.

Adam as two or three products that are on page one for the biggest term they’re on. Now, the top couple spots are taken up by his products and he sells them two in a box while his competitors sell it four or six to a box. His product is $40, the next person is $20, and everyone else is cheaper than that. He is at least twice as much as his competitors and is selling half as many.

For more details, CLICK HERE

This almost mirrors Kevin King in regards to the ideas behind the photos and going against conventional wisdom. How did you find these products in the first place?

Some people will misunderstand what he is saying, and you can find out more in his course at reliable.education. They think they just need to charge more. However, you must have a clear reason that a customer will give you more money. It’s more than headlines or you saying it’s better.

Many of these products are bought as a gift. The person is intending to gift the item to someone. Like with a ring from Tiffany’s, you paying for the box as much as you are the ring. So every aspect needs to be thought about. Don’t get on Fiverr and pay someone $15 for a logo. His philosophy is pay once for the best.

Write amazing briefs for everything from accounts to designers. Articulate exactly what you expect from them. If you hire a designer, the work is only going to be as good as the brief you give them. If you spend a little extra on the packaging, you can really impress your customers and all this goes to building a brand.
Sellers make the wrong assumption that no one has money and are looking for the cheapest product and that’s just incorrect. Now, this doesn’t apply to all products, not all products need to go to the extent, but at least make sure your logo is top notch.

(To get more training from Adam, go to reliable.education )

#87 The Amazon Reviewer’s Perspective with Augustas Kligys – Part 2

Can you tell us about any products that you get asked to review that are over-saturated and there are too many of them out there?

It can depend on the season. For example, during the summer he was getting a lot of review requests for money pouches and passport holders that you would use when you travel. As we get closer to Christmas he will likely start getting a lot of requests for lights and other holiday items. Keep this in mind if you have seasonal items.

For instance, let’s say you are going to sell neck pouches for traveling. You know the summer is going to be the busy time for travel so you want to plan ahead and start getting reviews in spring or even winter. You want to get ahead of the competition.

If you wait until June, the reviews will have received several requests for similar items and may not want any more. Also, reviews may take a couple weeks for the reviewer to get around to it. If you wait until June, it might be in July when the review comes in. At that point, you have already missed a good portion of the traveling season. As a bonus, if you get your reviews early, you are prepared for customers to start looking to buy these items. Click here for more information on the European summit if you are looking for tips on breaking into the European market.

Other items he gets requested a lot include flashlights, bike lights, headphones (bluetooth and wired), LED lamps, garden lamps, solar/ battery powered lamps.

Amazon has banned the use of super URLs, have you had any issue with this?

(A super URL is the address Amazon uses when you search for items and listings get ranked higher based on the keywords people search for. There are tools that will mimic this super URL and makes Amazon think people are finding your product based on keywords that they didn’t search for and thus these products get listed higher.)

Augustas hasn’t seen much of this lately. It used to be that the requests would give instructions directing you to go to amazon.de/keyword and it will be the third item down. This would build your ranking for that keyword but it was very inconvenient for the reviewer and often Augustas would ignore the instructions and simply locate it by the ASIN. He doesn’t get these much anymore and there is even a service that will mimic that URL so you don’t need to go through all that. However, be warned that Amazon is cracking down on the tactic and has even started removing listings.

A tip from Augustas for sellers that do fulfilled by merchant rather than FBA. If you have a good relationship with a reviewer, you can use them to make sure your staff or external warehouse is doing a good job. Augustas had a seller that had his own shop and staff that packaged everything. Augustas would give him feedback on the packaging and ways to improve it or if something was missing. It’s a good way to test for quality assurance. It’s better to get private feedback from a reviewer rather than a very public negative comment from a customer.

How important do you think reviews are in general for listing conversion?

Some people may not believe a review is genuine. As a reviewer, it might be difficult to leave a bad review if you have a good relationship with the seller. So rather than giving a 4-star review, you may give 5 because of the customer service.

As a customer, Augustas will always compare reviews especially if one doesn’t seem genuine. And if he sees a short review from a customer that hasn’t left many other reviews, it will hold more weight because it’s a casual shopper that wanted to leave their experience rather than a top reviewer. He noticed on one particular item that he was giving 2 or three stars and the reason why, and he saw the rest of the reviews were all 5-star reviews from top reviewers because they were getting free stuff.

Do you think, as a shopper, that the quantity of reviews is important for conversion? Or is quality more important?

Augustas will look for 2 or 3 quality reviews. If it’s just 2 or 3 lines he will often skip it and look for someone that wrote a couple paragraphs. If he sees that the person got the product for free in exchange for a review then he will look for another one and compare. But definitely, he wants to see a few quality reviews.

Augustas was looking at another product some time back and noticed they were getting close to 50 reviews a day. However, they are said they got the product for free. This went on for a while, around 50 reviews a day and they had around 1000. About 6 months later he went back looked and found that they almost completely stopped getting reviews. They might have gotten another 50 organic reviews which showed that they might not be getting many sales. They invested a lot to get all those reviews but that didn’t translate into actual sales because they weren’t quality reviews.

As a buyer, how important is the quantity? Are you looking for 100 reviews or are you happy with 5 as long as they are long quality reviews?

A few good reviews are great. If he can get a good idea about the product from a few well-written reviews then it doesn’t matter if there are 50 more reviews.

For more info on the European Private Label Summit, click here where you can learn other tips for succeeding in the European Amazon marketplaces.

What about photos and videos? Do you think they make a big difference to the impact of a review?

Oh yes. Since sellers cannot upload their own videos they really like it when the reviewer does one. Some sellers have approached Augustas about reviewing their products because they saw the videos he did.

Now Augustas will upload about 10 photos and a video for each review he does, and as a buyer, it holds more weight than what the seller uploads because it is an actual customer’s unboxing rather that the photoshopped images the seller is putting out. Depending on the product, in his video, he will show how the product is used. This could be particularly beneficial if it can be complicated. This way buyers can watch how it’s done rather than be dissatisfied with your product.

Does it make a difference to Amazon if you have a lot of top-reviewer reviews?

Probably not. It’s unlikely that Amazon would weigh top reviews more than regular reviewers. In fact, Amazon doesn’t really like these free reviews. He did an interview with a private seller that used to work in Amazon and according to him Amazon is all about the customers, and when reviews are getting free products then they are losing the true connection between the product and the customer. It may be, that in the future, it will be more difficult for this type of reviewer to exist.

Even as sellers, we know that these reviews aren’t completely genuine. It’s different than when as a customer, you buy a product, you really like it, and decide to go and leave a review. It’s likely that Amazon will make it more difficult and in fact, in the US, they are starting to require that sellers can only give a 50% discount for reviews.

Tell us about the private label online summit

Augustas wanted to start his own private label business but it ended up not working out and he got into reviews. He noticed that people often had a lot of questions about Europe and there wasn’t one place you could go for consolidated information about getting reviews in Europe, different languages, taxes, and many other topics. Augustas decided to help out by gathering experts about all these different topics. He has about 20 speakers that will be sharing their knowledge. He has some sellers from the US so you can hear their stories and follow their paths. There is a lawyer from Germany that will discuss some of the laws and regulations you have to follow, especially in Germany where they are a bit stricter.

He decided to go with a virtual format because it’s easier to set it up, it easier for the speakers to be there, and it’s easier for the audience to be able to get all the information.

If you have had any desire to sell in Germany, this is a great resource to learn what you need to know. If you’re a UK based seller, you can still be based out of the UK and sell in Germany. Your orders will be fulfilled by the UK warehouse. If you are in the US, don’t let the language barrier stop you, it’s not that difficult to work around.

Click here for more information on the European Summit

Do you have any websites/events/places that people can learn more from you or contact you?

agustaskligys.com

European Private Label Summit

Any parting words of wisdom?

Treat you reviewers like your customers. Forget you are giving them something for free and treat them with respect. You will get more and better feedback from them.

#76 Importing to USA, Brand Building & Email followup: Q & A Tuesday No. 12

Q 1 Corinne

First, I am not an American but want to sell [on] Amazon.com

I have sent a few small packages to Amazon FBA.

There was no issue at all until I started sending 15 cartons.

When I sent this 15 cartons, I don’t have Federal tax ID number.

Thereby I needed to spend US$ 500 to have freight forwarder to help me.

Then I tried 8 cartons through DHL which declared $1200 for the customs. However, it is still got rejected by the customs.

It seems FEIN is required if i want to ship my inventory to FBA.

I am not trying to escape any tax issues, but to get a FEIN number, I would need a legal address in US. I am not in US.

How do you guys deal with this?

A freight forwarder isn’t the same as a Customs Broker in the USA. Some companies do both, like Western Overseas Corporation. But it sounds like what you need is a Customs Broker.

You shouldn’t need a US address to get an EIN as a foreign entity (person or company). But if you need one (you do need a returns address for amazon or should at least have one), google. I used myaddressus.com – pretty cheap.

If you send in goods over the value of $2500, it’s a formal import so you’ll need a customs bond etc. At that point, I would use a Customs Broker, at least for the first time. That’s not the case here, but worth flagging up for future reference. 

Q2 Ben

Here is my newbie experience post #3. So I’ve been selling for about 3 weeks in the UK. Where am I?

I picked a great product. It’s flying off the cyber-shelves. I am about ½ way up page 1 for all my main keywords. I told myself to be ‘happy’ with 5 units a day. I was averaging 10-12 units per day, but have increased my price and now average 7-8 units per day. I have had days of 10+ including a day of 16 units. These are not giveaways, all giveaways were done in the first week. So why did I increase the price?

This first ‘test run’ was 500 units. At the current rate, I’m going to run out quickly. So I’m trying to find the balance between maintaining sales, and not running out of inventory. Am still undercutting some competitors at the current price, but also more expensive than some others.

I believe the reasons it’s going well so far are:

1. Branding. My brand is easily one of the coolest, and as I expand I’ll grow as a brand, rather than as “Bob’s generic stuff” which several of my competitors are doing

2. Social media. Many ‘gurus’ say – avoid social media until you are well established on Amazon. This is not a good move, in my opinion. I have an active twitter and Instagram account, and a new facebook page. OK I haven’t got many followers, but t’s growing and I’m getting a bit of engagement.

3. Branding. I said it again because it’s so important. Branding is everything. Cool brands get bought. Generic crap doesn’t.

Comments

Alex  You are doing well, but don’t talk about brand building. People don’t care. You drive them in your page and they just see information, reviews and price. Just set Ppc automatic. If doesn’t work move on.

Suzi I love to hear that you are growing a strong brand, and that you understand and appreciate how important it is. I cringe so hard when I hear people say your branding doesn’t matter…nothing can be further from the truth. Have you had any issues with counterfeits hopping on your listing(s)?

My response: it depends! 

If you just want to make sales on Amazon short-term (say next 6 months), I think it’s true that brand doesn’t matter much. Initially, customers will not have heard of your brand yet, and they mostly go with good images and price. Also, it is not realistic to expect Amazon to cross-sell your products even if they are in the same niche.

However, if you want to create a defensible business to later sell, you definitely need to create a brand. Also, even if you’re never planning to sell, if you want to create a Shopify store, to diversify and lower the risk of Amazon controlling your business,  you will need to develop a focussed suite of products. If you have multiple niches, you can develop multiple brand sites, but each one needs some unity for credibility.

Also if you do well, medium term even on Amazon, people can start searching for your brand or pay slightly higher prices for it, as long as you have lots of reviews by that stage.

Q3 David

EMAIL OPTIMIZATION: Hey Everyone…just a quick question regarding your post-purchase email autoresponder sequences. I am currently getting 8% and 9% conversion rates for feedback and reviews, respectively. I would like to increase this and was thinking of shortening each email to make more mobile friendly. Have any of you tested the length of copy an how this alters conversions? Thanks!

First of all, if you’re getting 8-9% conversion, you’re doing well. Average for most people I’ve spoken to about this (which was a while ago) was 5%, as it was for me last time I checked.

Regarding testing, I don’t know whether for example Feedback Genius or Salesbacker will do this for you automatically. I use a different system so I don’t think I have that option.

If you want to do it manually, then make sure you test a significantly statistically meaningful number. So I would be inclined to run three variations, one shorter and one longer, and I would try each of them for about 100 sales each.

Re. email follow-up sequences more broadly, I use three emails. Currently the 1st only offers help and a PDF and says thanks/please get in touch if any issues although Kevin King asks “why did you buy the product” which I may change to going forward.

The 2nd, after ben Cummings’s approach, asks the buyer to just hit REPLY and let me know why s/he bought the product. Similar to Kevin King but after the product has arrived. Only a small %age do but you do get replies in my experience.

THe 3rd then asks for Seller Feedback, which I can then follow up on and ask to be changed to review if it ends up being about the product. It’s a filtering mechanism.

THe point of the 2nd email is that if someone replies to that, they feel more obliged to follow through after the 3rd and actually write a review.

In David’s case, I’d be inclined not to mess with what is working too much but tweak it eg longer/shorter.

Or you could change the 1st email in the sequence. Or the 3rd. Test both variations and let us know!

1

67 Ryan Bredemeyer of Hello Profit Part 2

What are the other numbers people make mistakes on? What things to people go wrong on and how can they go right?

Promotion services

There are a lot of great services out there to handle promotions, but one major mistake is failing to calculate the cost of those promotions. It might sound like a great idea to give away another 10 units until you factor in the cost of that. It’s important to get those numbers in front of you because that is a lot of money.

Weigh your reasoning for doing that. Is it important to show Amazon that continued sales velocity? Do you want to hit 1000 reviews? Is that really important? For Ryan, he has goals outside of Hello Profit and Amazon. He wants to help others. By taking a look at his numbers and not just throwing money away to be the big seller, it helps him reach those goals.

Conversion Rates

It’s a very important element of selling on Amazon that is underrated and not talked about so much. Ryan was talking with another seller that had been working with Amazon for about a year that didn’t know what unit session percentage was or where to find it.

What this is, is the ratio of people that visit your page (sessions) to the number of units that those people  purchase (unit session percentage)

This number is very important to Amazon. Amazon has very limited amount of space to devote to ads and they spend actual money on you promoting products on Facebook and other places.

So it’s in their best interest to promote products that will convert. So will they choose product A that maybe 1 out of 5 times someone that visits that page, will buy the product. Or, product B that gets 1 sale out of 10? Amazon wants the higher converting product because that means they will make more money of the sales.

Whenever Ryan got his unit session percentage up, he noticed a lot more traffic to his ASIN because Amazon started promoting that product more.

Is there a magic number of conversion percentage we should hit?

There probably isn’t a magic number but Ryan suspects that it varies by category. For instance, in beauty, shoppers will more likely comparison shop. So they will look at several different items before choosing, therefore conversion rates will be lower. Unlike hammers which shoppers will likely buy the first one they come to.

On a side note, Ryan was getting around 30% in home improvement, which is really good. Sometimes up to 40%. However, if you’re getting 20%, that’s still very good. If you’re in the teens, still probably above average. However, if you’re below 10%, it’s probably a sign there is an issue with your listing.

With unit session percentage, is it important to differentiate between units per session or orders per session? For instance, if someone buys 10 units in a single order, that gives 10 units for one order

It seems to be units per session that matters. So if you sell 10 units in a single order, it’s 100% order session percentage,  but it’s it’s 1000% unit session percentage.

It’s unit sales that seem to drive Amazon. If Amazon can send an ad and get 2 units sold instead of 1, they get that 15% commision twice for the same ad. It is definitely in their interest to promote that product, so focus on units per session.

Refunds

Refunds often denote returns, and returns are not your friend. You will get listings, and even accounts, shut down if you have too high  a return rate.

Hello Profit has recently started tracking your refunds for you right on your merchant and product dashboard so you can see your rate of refund.

Now you can see if you are having a lot of refunds and can do something about it; check your customer feedback, reach out to them, interrupt that process somehow and contact the customer first instead of Amazon and give them their money back.

[When I had a product where a customer wasn’t happy, I contacted them and apologized. Refunded their money and let them keep the product. Now, that product probably had a 5-6% return rate, but Amazon showed less than 1% because instead of putting “Faulty product ” or whatever that option is called,,  as the reason for refund, I put “General adjustment”, which really means nothing]

Ryan brought up an example of his experience going the other way. He had a listing taken down because of returns. Once that happens, they start doing an investigation into your inventory which can take weeks. This is just as bad, if not worse than running out of inventory.

Customer order information

Hello Profit has not gotten into the automated email append world but it’s easy to find services for that, but HP makes it easy for you to do that on your own.

In HP you can pull up your entire customer list with all the information. You get the customer’s name, their real mailing address, and their phone number, and you can take that data to get their real email address.

It’s amazing what you can do with this. For example, you can look up which customers used a particular coupon code, get their email addresses and add them to Facebook as a custom audience. Then you can drive them to your ad. They’ll see recognize your product which will legitimize your company to them. Then when they click on it you can direct them to another item, or to review that item or anything.

This is data you can’t get directly from Amazon. You can download your order data from Amazon but it doesn’t give you the phone numbers, so you can use an email append service to find the real email. What you can do, and this is free, is download the customers that used a coupon code. You can get their Amazon encrypted email and write them that way and ask for a review.

What some of Ryan’s customers have done with this data, is look at seasonal items and find that they are very geographically located. The ASIN is very hot in Texas, California, and Florida. Then, they can go on Google and target those locations only and make a killing.

What top software tools do you use for Amazon selling?

Hello Profit

Jungle Scout (affiliate link)

Cynthia Stine – She helped Ryan get his account back up when they were shut down for image non-compliance. Her team turned him onto Canva. They convert your images to make sure they are Amazon compliant.

Time Doctor – To keep track of his VA team as they come up withnew products.

Asia Inspection – To inspect the products before they leave the factory.

Slack – For internal communications

Screenflow for Mac, or Camtasia for WIndows. Just a screen recorder for the tasks you don’t want to do so you can use it for training someone else.
What’s working well right now for you?

You can’t overinvest in your staff. They are doing the autopilot tasks. If they know that you love them, and that you care about them, and you give them praise, as well as some of your cash, they’ll love you back and you’ll be able to grow much better. Empower others so you don’t have to micromanage, and you can focus on growing your company.

What trends do you see happening on Amazon over the next 18 months?

I was listening to the co­creator of the Amazon marketplace and he was fielding this question about whether Amazon was just taking over the private label space. The bottom line is Amazon is going to keep growing and the marketplace, the third­party sellers, just does too well for Amazon to just take it over directly.

We’re essentially Jeff Bezos’s VAs. We’re doing the hard work to make Amazon grow into the biggest most well­-rounded inventory that the world has ever seen. Amazon is too large to be able to focus on a single product the way third party sellers can.

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