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Podcast (10k-podcast): Play in new window | Download (Duration: 28:03 — 19.7MB)
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Ecommerce growth strategy sounds too abstract to get round to. In fact it’s often the critical differentiator as Amazon hacks lose effect.
eCommerce Growth strategy with Brad Moss
Brad is CEO OF Product Labs, one of the largest Amazon consulting and technology companies in the world. They aim to be the “McKinsey of eCommerce”.
Former Business Lead of Amazon Seller Central Platform and the creator of the Amazon Seller App.
What is eCommerce strategy in plain English?
It means planning for the future.
Especially for the unknown.
Like chess –
Brad used to think “you need to know every move that your opponent could make”
In reality – after trying to teach chess – he realised that it’s about keeping options open.
“I may not know what’s going to happen but if I take this step, it will open four opportunities. Whereas that step will open only one.”
How does an eCommerce growth strategy translate into action for 7 or 8 figure sellers?
Brad uses statistics to back up everything.
Brad at Amazon wasn’t just operating businesses – he was also creating new businesses for Amazon.
Ask the right Questions
What do you look at?
How do you structure the metrics?
Is it healthy? Is it going to be $100 million business?
He got a lot of hands-on action – no training! – but experience.
eCommerce Growth Strategy is not just about current product sales
You don’t just look at – sales this week were $30K, how do I get to $35K next week?
You look at last year’s metrics say $4M, and then look forward – set =goals then reverse engineer- eg I want to do $8M dollars next year.
What’s a realistic growth rate in my category?
Do I put new products in?
Look at the failure rate too.
You might say, expect 50% fail, 20% do really well, launch within 6 months, that would mean $4M in the following year.
What mistakes do you see your clients making?
Relying on one method is risky. There’s a lot of people who have a lot of success with one method and swear by that.
Brad learned still at Amazon – you could use the same method on two products – one works, one doesn’t!
Jumping to conclusions and over-simplifying is not going to work.
Failure to plan:
- You’ll pull the ads back because of profit
- The next month you’ll look at lower sales and change over
In the early days, you didn’t have to do anything like this.
IN the early days, you could take a picture with a cellphone.
The land grab has happened – now you need to do the real estate development.
You need to start thinking longer term.
Plan longer term
You need a 3-year plan as well as a 12-month plan
What’s the product group makeup?
How could I pivot if needed?
If this happens, what’s my backup plan?
DOWNLOAD THE PDF FRAMEWORK HERE:
https://www.amazingfba.com/framework
How do plans interact with improvisation and growth strategy?
Examples of pivots
Example – product not selling as expected.
You might think it’s reviews – but it might be about the images.
You need to look into the customers – segmenting into groups can be important.
Marketing and images pivots
The Squatty Potty – it’s about a silly unicorn in a video – it’s genius in how they changed the dynamic of marketing the product.
Amazon has infinite shelf space so you need to think it being more interesting in the lifestyle image
Eg is it a couple on the beach vs. Something more integrated in people’s life.
Pricing pivots
Apple products are made for a cost-effective price but the multiples are high because the brand is so strong.
There may be room for a premium brand in your space.
Typically they come in high but they can’t be premium
- Product not good enough
- Images not good enough
- The consumer doesn’t perceive this
How do you actually get premium pricing?
You have to be REALLY good at branding.
Images
You need to involve agencies for top photos.
It’s a 10-20% difference.
If someone comes in with something REALLY good.
EBC and presentation
Reviews
Getting reviews helps obviously but it’s not enough.
How easily can you build a brand only on Amazon and get premium pricing?
Brad’s done it multiple times but it’s maybe the exception, not the norm.
A lot comes down to the category and the detail page.
Typically it doesn’t happen that way.
Off-Amazon branded companies
That can really help you establish a brand and a good price point.
They sometimes miss the gap in the market.
What Product labs does for sellers
Amazon brand management – full service.
Full amazon marketing. Innovative email technology (off and on Amazon)
Strategy and analytics – 12-month planning.
Support 7, 8 and 9-figure businesses. ($100 million a year
“The McKinsey of the Amazon World”
That’s their angle.
Core services – always useful
- strategic consulting
- give clients an audit
- Advise what to do
How to contact Brad Moss and Product Labs
DOWNLOAD THE PDF FRAMEWORK HERE:
https://www.amazingfba.com/framework
Watch my full interview with Brad Moss
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