Did you know, by just negotiating face to
face with a supplier you could save 10% to 30% or more off your product.
One of the biggest competitive advantages
you can get on Amazon is insider knowledge by visiting your supplier.
In this article we talk about the top
benefits of visiting your suppliers before ordering.
Benefit 1 See How the Product’s Made
By going to the factory and seeing how the
product is actually made, you’ll be able to design a lower cost and better
all-round product because you know more about the production process.
You could also spot potential issues by
watching how the factory makes those kinds of items.
You will understand how to make the product
better quality too. You can instantly see many material options in the
Benefit 2 See your Competition’s Products
I’ve been to many factories and seen some
of my competitors’ top-secret products being made.
Also the factory might be selling to over
100 countries around the world. Each customer will have different packaging,
maybe including bundles, and you can use everything you see to improve your own
Imagine being able to see 500 different variations of your potential product all in 1 room. You can take the best ideas used by buyers from other markets and apply it to your design.
WIth Corona, many events and trade shows
have moved online. Do you sell home products? Electronics? There is definitely
an international trade show of suppliers for your niche.
You can learn a huge amount simply from
checking out top suppliers and brands in your market. In this article we’re
covering the top reasons why you should go to trade shows or events – even if
they are online .
A typical trade show in Hong Kong or China
has between 2000 and 5000 suppliers or more. Each supplier may have 10 to 1000+
products on display or in their catalogue.
You get to see 500,000 products in a single
day. Online events let you browse top manufacturer products. Often products
shown at events are the best or newly developed.
Maybe you found the perfect niche product
to sell – but how can you be sure you can actually get it into Amazon
How do you know you have the right supplier
for your new product?
In this article we are going to cover the
top questions you need to ask new suppliers when selling on Amazon.
Question 1 Price
First of all, ask them the price for
different quantities of the product you are considering.
You need to know the price for the MOQ,
which is the minimum order quantity a factory would accept. Some factories
expect you to order 3000 units first time, while others may request that you
spend $2000 on your first order.
It varies from factory to factory so you
need to check the minimum order requirements. At the same time, ask the price
for 5000+ units, so you can see what savings you can make by ordering larger
By knowing the prices for small and large
orders upfront you can more accurately estimate your profit margin as your
Question 2 Lead Time
Both for the minimum order quantity and
5000 pieces, ask the factory for the normal production lead time.
Usually this is between 2 to 6 weeks for
most products. During busy times of the year the production lead time may
double, so always check with the factory before you place an order.
When planning your launch, always allow
some extra time for manufacturing. The best is to have at least 30 days buffer
built in because sometimes things go wrong – like the recent blockage of the
Question 3 Background
Ask all suppliers to send you their
profile, including the size of the factory, how many workers they have, the
machinery they have, their main products, markets and customers they sell to.
Most factories will willingly give you this
information. You need this to evaluate if they are a reputable supplier.
Go through their sales brochure, website,
product catalogue and get an understanding of what other products they could
potentially produce for you. If all their products are very different – e.g.
wood products and plastic products – they might be a trading company and not a
Question 4 Location
Ask for the detailed factory address in
English and Chinese and Google this. Also ask for their showroom address.
If the showroom address is different from
the factory address you could be dealing with an agent and not the factory
direct. Ask for photos of both the factory and the showroom to see their
production lines and products.
Check the location yourself and try to find
links or references about the factory online. Maybe another seller has used
them before and had issues and posted about it online. It takes 5 mins to check
but could save you thousands by avoiding the wrong suppliers.
Question 5 Other Similar Products
When you contact suppliers, ask them to
send you their catalog.
Ask about similar products to the one you
are looking for and check which materials they can make it in. You might get
some new ideas for products no-one else is selling on Amazon.
Question 6 Branding and Packaging
A factory may have made the same product
for 100 customers around the world.
Each one has their own unique way to brand
the product and package it. So ask the factory for pictures to show how you can
add the logo and to discover the standard packaging they use for it.
This will save you a lot of work. You can
also ask to see other customers packaging, although some factories may refuse
Question 7 Sample Arrangement
In your initial email to suppliers, find
out the cost of a sample and how long it will take to arrange the sample.
I usually request for the sample cost to be
refunded against the main order. This way you get that money and cost back.
Most factories are willing to do this.
These top 7 points cover most of the
questions you need to ask when reaching out to new suppliers.
One of the riskiest steps in launching a
product business is paying suppliers. What if they make a mistake with the
order? What if they are not a real factory?
Follow our top tips to reduce your risk!
Tip 1 Start Small
When you’re first starting out dealing with
overseas suppliers, it may be difficult to spot which ones are great and which
ones are unreliable.
Over time you’ll know almost instantly if a
factory is worth dealing with. When it comes to payments, especially to
international suppliers, there are many scam artists because there’s so much
If they persuade you to send them a deposit
and they disappear with the money, just by posting a few listings and a few
emails they could make tens of thousands of dollars. That’s why it’s essential
you verify the background of whoever you’re making payments to.
Try to start with a small order to test
their reliability and quality.
Tips 2 and 3 Background Check
The quickest and fastest way to do a rough
background check is using the following 3 tactics of the ABC method.
Step A: Ask for their full address in
English and Local Language as well as their company name and incorporation
Search their company name and later their
address on Google and skim through the results. If the factory claims to be a
silicon specialist but their website has many different kinds of products from
toys to wooden goods, they are probably a trader or someone who has put up a
fake website to try to get business, or even a scammer.
Buy from the experts. If you’re buying a
wooden item only buy from someone who is a specialist in this area. You’ll know
that from their website, their product range and their knowledge when
communicating with you via email.
Avoiding traders and doing a quick check of
the website on Google is a great way to filter out bad suppliers and potential
Step B: Ask for references from 3 to 5 customers.
These can be in our countries, such as the
UK, Germany or France. Any serious supplier will have customers across the
globe and should be able to provide you with 3 references. Call or email them
and ask them about their experience with that factory.
Also Google search the brands they give you
as references. If they are mid-market to high-end brands the factory should be
able to produce products to a good standard.
Step C: Visit the factory address or ask your agent to conduct a surprise visit.
I’ve been given factory addresses and when
I showed up it turned out that it was just two guys in an apartment pretending
to be a factory. Before you place any purchase order, you or your
representative should always visit the factory.
Tip 4 Deposit
Normally factories ask for a 30% deposit
when the order is placed and 70% balance payment before shipment.
This is standard across Asia, especially
China and Hong Kong. If the supplier asks for more deposit, be very wary. It’s
hard to get that deposit back if you later cancel the order or if the factory
cannot make the goods to your standard.
They will claim they spent on materials
already, so you’ll never see it again. That’s why you have to do as much due
diligence before placing any orders as possible.
Tip 5 Escrow
One way to minimize payment risk is to use
an escrow service.
The payment from escrow is only released
when the quality of goods has been checked and verified. If possible add to
your contract that a third party inspection done by SGS or Intertek has to be
conducted and passed before the payment is released.
This goes some way to protecting you and
ensuring that your product is in good condition before leaving the factory.
Tip 6 Other Payment Types
Larger businesses use letters of credit or
TT payments for their orders.
A letter of credit is issued by your bank
and tells the supplier’s bank that you have the cash to pay for the order and
that your bank has set it aside, much like a certificate of deposit. The funds
are released to the supplier only when they meet the conditions of the letter
Usually this includes passing inspection
and presenting your bank with the shipping documents. This service is very
expensive and your order needs to be $10,000 or more before it make senses to
use this kind of payment.
Most suppliers will refuse a letter of
credit for the first couple of orders because they want to use the cash to buy
the materials. The alternative payment method is to send the deposit by
telegraphic transfer directly to the factory’s bank.
This is the riskiest payment form because
you are transferring the cash directly without any terms attached.
Tip 7 Credit
As you build your relationship with
suppliers, ask for extended payment terms.
Since manufacturing is so capital
intensive, it’s rare for factories to extend lengthy time frames for you to
pay. You might be able to push for payment on delivery into your Amazon
After two or three orders, ask the factory
if you can pay 30 days after delivery. Ask for more than you expect them to
agree to, because if you settle
somewhere in the middle the terms will still be in your favor.
Getting to the top of Amazon is hard if you
are competing for the search traffic on Amazon. But what if you were getting
thousands of visitors a month to your product from outside Amazon?
Sending Influencer Traffic to your listing
can boost sales, profits & conversions. Here is our step by step process
for finding and working with influencers.
Step 1: Who?
Make a list of potential partners on your
chosen platform. For example, if you were going to partner with influencers on
Instagram, you would search for people with profiles & accounts that match
Start by looking for small to medium
influencers with around 10,000 to 50,000 followers. These are most likely to
work with you and also they might not ask for much in return for promoting your
As your business grows it will need more capital. You can start small but if your product sells well you might need to put in more cash too.
In this article we cover the different stages of your Amazon business lifecycle and the investment required.
Stage 1 Test Order
For your very first product, even if you think it’s gonna be a massive hit you should order the minimum amount possible and ship it to Amazon as quickly as possible, just so you can learn the process of listing and selling an item.
Doing a course is one thing, but actually getting one product into Amazon will teach you the process much faster. I would say, buy $100 worth of any product that costs you less than one dollar per unit, ship it to Amazon and start trying to sell it.
This will teach you what makes a good item. You’ll also learn how to use Amazon’s system and get the basics of things like freight.
You can do this easily for under $500.
Stage 2 First Product
After you’ve done your test, you want to research in detail what will be your first serious item.
The test was to learn, and this first product will make your first profits. Depending on the factory minimum order, you will probably need $3000 to $5000 at this stage.
Check the freight costs before placing your order so you can calculate the total budget and aren’t hit with any surprises. Aim to order around 1000 pieces of your first item.
This will give you enough to cover a promotion of 50 to 100 units and enough stock for 1 to 3 months, depending on how well you sell.
Stage 3 Scaling the Business
Even if you sell 1000 units of your first product and make 100% profit, you’ll have to reinvest nearly all your profit into reorders.
If you spend $5000 and now have $10,000 after three months, you will probably need to buy 2000 to 3000 units of your product to cover the next 2 to 4 months of stock. If all your money is being reinvested you can’t scale the business.
You have to wait 6 months before some of the profits can be used for new items, or find additional capital for new products. Also you are assuming that you will sell all of your first product quickly.
The reality is a few sellers do this, but usually only 20% of products do very well, 30% percent of products do okay and around 50% or more underperform. For each new item, you need $5000-$10,000 of capital, and the more you can commit, the more profit you will make 6 to 12 months later.
Don’t commit more than $5000 for your first item, and gradually use the balance capital you have once the first item is selling well.
If you shoot all your bullets at the same time, you might choose bad products because you haven’t taken the time to learn by optimizing your first product.
Stage 4 Realistic Returns
Doubling your money every 3 to 6 months is realistic.
If you buy $10,000 worth of a product at $5 a unit, and sell it for $15 a unit, after Amazon fees you should be left with around $20,000. If you reinvest the $20,000, after a further 3 to 6 months you should have $20-$40,000.
If you start with a smaller number it will take you longer before your business makes good returns. You’ll hear a lot of success stories about people starting with much less and making much more. But for every one person who brags on Facebook, there are 99 who didn’t do so well.
Amazon is a numbers game, so the more time, effort and money you put in the more profits you get out in the long run. There are no shortcuts.
The best you can do is to minimize big mistakes and to try to optimize every area of the business.
Stage 5 Breakeven
You can expect your products to breakeven in around 3 to 6 months and after that they should start to spit off profits.
If you started with $50,000 you can expect to earn around $15,000-$30,000 a month six months out. If you start with only $5,000 and sell your product for double what you paid, it’s mathematically impossible for you to make $50,000 a month in six months time.
Realistically you’ll make about $2000 to $3000 a month, maybe more if you’re lucky and if your product is extremely successful. I say lucky because nobody except Amazon knows exactly how to rank their system.
There is an element of luck when you are choosing your niche, but the more work you do the luckier you get.
Stage 6 Covering Your Costs
It’s only when you start to sell about $30,000 worth of product a month that your business can cover your living expenses and leave enough profit to reinvest for growth.
This should take you around 9 to 12 months depending on how much capital you start with.
Stage 7 $100K Month
Your business really starts to take off when you hit six figures of sales a month.
You can afford to take a decent distribution, and have a lot of profit left over for expanding your business. Less than 2% of sellers make it here, but you can do it if you consistently work towards optimizing your Amazon business.
If you have 10 products selling $10,000 a month each, you will hit this target. All you need to do is take one step at a time and keep adding on additional products.
I spent months
trying to build my following to 10,000 people. Then I decided to try contacting
a few influencers with 20,000 or more followers in my niche.
After a few
emails, I got in front of over 100,000 potential customers for my products. It
was much faster and cheaper to market via people with established losts then
trying to build my own following.
In this episode
we cover our top tips for reaching social media influencers about your Amazon
Keep it Personal
channel you target, remember that influencers get hundreds of emails a week
asking them to promote people’s products.
Maybe you are
already selling on Amazon or you are thinking about starting. In this article
we cover the main growth stages building your multimillion dollar Amazon
Stage 1: Test
first starting out you won’t know everything about creating the best possible
converting products on Amazon. The key is to just start with a small test so
you can learn the process and apply it to future products.
A great way to
do that is with the hundred unit test. Do some product research to select the
niche to target.
The best place to advertise your product is on Amazon itself. The ads can be profitable, reach tens of thousands of customers and even boost your rankings.
Every ad sale also boosts your organic ranking too. Optimizing ads is one of the best ways to rapidly grow your Amazon business.
Tip 1 Broad Phrase Exact “Exact” keywords only show when the user searches the exact words you selected. For example, if your exact phrase is steel garlic press and they search garlic press or steel press, your result will not show.
“Phrase” will show whenever the words you’ve used are searched for even if the user adds other words to the front and backend of what they’re looking for. If your keyword is garlic press but they search blue garlic press, it will still show up in the results.
“Broad” is usually the best option because your ad will show for similar and related searches. For example, if your keyword is women’s socks and the user searches buy ladies socks, your ad will still get shown.
The best is to choose your top 10 keywords then advertise for them in exact, broad and phrases all in the same campaign. Let the ads run for 2 weeks then analyze the data. That should give you more of an idea of what works in your niche.
Tip 2 Impressions There are several ways to increase the number of impressions you get.
Amazon works differently to Google pay per click. You need to include a wide range of keywords in your product listing for it to show in the ads.
Amazon searches your product listing and uses the words it finds for both automatic campaigns and manual campaigns.If you try to advertise for garlic press but you have not included it anywhere in your listing, then your ad will not show up.
So be sure to add as many relevant keywords into your listing and back end search terms as possible. This will help your organic rank but also make your ads more relevant too!
Tip 3 Bid Another way to boost impressions is to increase your bid.
Start with a low bid of around $.50 and increase it by $.10 at a time if you feel you need to increase your sales through advertising and impressions.
If you start high, you won’t know what works the best or you may end up overspending. By starting low and scaling up over time – you can slowly increase the bid whilst controlling your costs.
Using this strategy I got very high returns on investment from ad spending. For the ads that are performing well – just leave them running then adjust the keywords and ads not doing as well.
Tip 4 Budget If your campaign is profitable then increase the budget.
Keep the budget low, around $10 a day, until you optimize listing impressions and returns.
You need about 2 weeks of data to see what is going on. So let your ads run for a while before making changes. Increasing the bids and budget for a profitable campaign can also destroy it – so be careful to track any changes you make so you can revert back to campaigns with good ACOS and returns.
Tip 5 ACOS ACOS is a measure of how successful your ad campaigns are.
It shows how much you have to spend for every dollar of sales. For example, a score of 50% means you’re using $.50 of clicks for every one $1 dollar in revenue.
The lower your ACOS the less each sale is costing you. There are many ways to reduce this over time – one of the best is simply optimizing your listing so you sell more products for the same ad spend.
Tip 6 Keywords The most important part about optimizing your pay per click is your keywords.
Make sure your keywords are included in the title, features, description and search terms of your listing. If they are not there, Amazon will not display your product for ads with those keywords
Tip 7 Page 1 Bid On Amazon seller central you can check the estimate bid for page 1 in the advertising section.
You can use this to estimate how much you should be bidding if you are not getting enough impressions.
Any great Amazon
business starts with great products! Try to find a product you really like
& make it better than the competition.
The days of just
copying are over…you have to make your item the best in the niche. But before
you launch…in this article we are going to cover the top types of product you
should avoid selling on Amazon.
This is still
the most challenging type of product on Amazon. There’s a lot that can go wrong
with any electronic product. Also there is a LOT of competition for top
Optimizing your listing can lead to a boost in conversion rate. If you can double conversions you make double the profits, all with the same traffic. In this article we cover the top secrets to creating great product descriptions for items you sell on Amazon.
Secret 1 Call to Action Always end the product description with a call to action for customers to buy your product.
You can suggest that they get one for themselves and one for a friend and add it to their cart today and buy now. Numerous studies have shown salespeople who ask for the order at the end of the presentation boost sales by hundreds of percent.
So it’s reasonable to assume that asking customers to buy will also result in more sales, and most sellers using these tactics have found that it does.
Secret 2 HTML You can use HTML to bold key text, space out paragraphs and bullet points, and improve the overall readability and format of your description.
There is still some debate about whether or not it’s allowed, but if you only use it for these simple tasks there will be no issue with Amazon.
By making key benefits bold with HTML you make it easier for readers to skim through your listing and catch all the key points. But don’t bold everything.
Focus instead on the 4 or 5 key points that will convert potential customers to buyers.
Secret 3 Keywords The description is a great place to add in more relevant keywords for your listing.
You have more than 1000 characters to write about your product so you can sprinkle an additional 5 to 10 major keywords throughout the description without affecting the natural flow of the sales copy.
Secret 4 Copywriter As with your features and title, use a professional copywriter to complete your description.
They can turn ordinary text and keywords into a compelling description of the benefits of your product for the customer.
Secret 5 Extended Benefits The five bullet points for features are quite limited in terms of what you can say.
Use the description area to go into more detail on the extended benefits of the product. You can also include additional features and benefits with a more detailed overall specification for the product so the customer has everything they need to know in one easy-to-read place.
Secret 6 Highlight the Discount
Use an inflated manufacturer’s suggested retail price in the backend of your listing.
So if your product is selling for $30, but the recommended retail price is $40, users will see a 25% discount highlighted by Amazon. Mention that the product was originally $40 and is now $30 for a limited time only in your description.
Also state that once this item goes out of stock, the price may be increased. What you are doing is creating scarcity, a time limit and a perceived higher price in the mind of the consumer.
This may well be the case because if your item starts selling well you might increase the price later.
Secret 7 Specifications Itemize exactly what is included in the package that the user will receive.
For example, state that there is a garlic press, instructions and a free spatula included in every box. Give them the exact size and weight of the product here too, since they may be looking at your description to find out these details.
It doesn’t hurt to let them know exactly what they’ll be getting in this section.
Woohoo! It is a
New Year and a fresh chance to launch new products on Amazon. Before you commit
to a new product – make sure to avoid problem products!
In this article
we are going to cover the top seven types of product you should avoid selling
Tip 1 Electronics
There’s a lot
that can go wrong with any electronic product.
They also need
special certificates for customs. Avoid any product with a battery or a circuit
when first starting your Amazon business.
Only if you are
an electrical engineer and have a lot of experience in this sector – then maybe
you can consider it. But for new sellers or new products – electronics is a
super hard and competitive niche.
algorithm uses your main title, features, back end search terms &
description to understand your product and index you for keywords.
The title is the
most important but the features on your listing also play a huge part in the
In this article
we cover the top 7 tips for writing great features for your Amazon product
Tip 1 Keyword Research
important part of your listing is the keywords you use.
If you miss out
the main keywords, customers won’t be able to find your product. Include 5 to
10 of your main keywords spread throughout your five features. Make sure the
language sounds natural so it doesn’t feel like it’s stuffed with keywords.
If 10% buy, you sell 100 units. But if 20% buy you sell 200 units.
A simple change to your listing can result in DOUBLE PROFITS and DOUBLE sales.
In this article we will cover the Top Tips on the most important ways you can optimize your Amazon listing.
Tip 1 Keywords The most important part of your listing is the keywords you use in the title, features, description and backend.
Spend a few hours on each listing to develop a list of the highest volume relevant keywords. Check your competitors listings, use Google keyword tool, and use the keyword suggestion in cash cow pro to build a list of potential keywords.
Make sure to filter only relevant keywords that match the product you are selling.
Keywords are the most important tool to optimize your listing because users find your product by searching the Amazon website or Google.
Tip 2 Title Now that you have the top keywords for your product, try and include 3 or 4 of them in your title, while still keeping it easy to read.
You also want to highlight the most important benefit for your user in the title. For example, a normal title might be: iPhone 6 protective case Made of PC. Whereas an optimized title might be: iPhone 6 Case Designed with anti-scratch material and anti-drop protection.
I recommend you create four different titles and test each one to see which one generates more profit. You can do this test automatically using cash cow pro.
Tip 3 Photos I recommend sending your product to a professional photographer who can create high quality, high resolution images for you.
After a user searches for a product, the first thing they see is the product image and title. That’s what they use to decide which items they will investigate further.
You want your image to be as professional, clear, and high quality as possible. Minimize the white space around the image, show the product in action and have 10+ different high-resolution images showing all the benefits.
Tip 4 Features Read the reviews of your top five competitors and check out the 1-star, 2-star and 3-star reviews about the product.
You want to make sure you cover any of the potential issues raised in your features and description. Also review their benefits listed in their features and description.
By consolidating all the benefits from several competitors, your listing will be the most appealing of all the similar products being sold on Amazon.
Tip 5 Description In your description, make sure to go into detail about the benefits of the product for the user, and end it with a call to action such as add to cart and buy now.
Descriptions can be 1000 or more characters giving you the space to cover any additional features and benefits you didn’t mention in the five-feature bullets. You should also use any additional keywords you haven’t used previously here.
Tip 6 Backend Search Terms This is your chance to use all the different keywords you found during your research and insert them into your listing.
In this section Amazon is asking you to tell it what uses this product relates to and which terms people might use to find it. Starting with the highest volume keyword, add as many keywords as you can into the space provided by Amazon.
Tip 7 Price You need to test your price to see which is the most profitable. You can do this automatically with cash cow pro.
Selling 1000 units at $15 might be more profitable than selling 1200 at $12.50. It depends on your Amazon FBA fees and landed costs.
Make sure you optimize these seven key factors for everything you sell on Amazon. They will have the most impact on your sales in the fastest time possible.
is one of the most important factors for ranking your product. Amazon
Advertising can help drive sales hence improving your product ranking too. In
this article we are going to cover the top 7 tips for setting up your Amazon
pay per click campaign.
Tip 1 Amazon Pay
The same team
who built the Amazon search engine also built the Amazon pay per click engine.
It’s not the same as Google. Amazon’s campaigns work using relevancy.
For example, if you use the keyword men’s gift in your pay per click campaign, unless it’s included on your listing you will get very few impressions.