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.
Customers come to Amazon and use keywords to find your products. That’s why including the RIGHT KEYWORDS in your search terms is super important and can massively impact your sales. In this article we cover the top 7 tips for boosting your sales using search terms in the backend of your listing.
Tip 1 1000 Characters
lets you input five sets of search terms that customers might use to find your
Each one of
these can include up to 1000 characters of text.
You can include
phrases, individual words, or strings of keywords in a row in each slot during
the listing set up.
For example, if your main keywords are water bottle, BPA free bottle and non-BPA bottle you can include these one after the other in a string, such as water bottle BPA free bottle non-BPA bottle.
You have heard
selling on Amazon is a great opportunity. It doesn’t have to cost a lot to get
started. In this article we cover the 7 steps you need to take to start your
business with $1000.
You can also use
Unicorn Smasher 100% FREE to start finding product ideas.
Step 1 Multiple Channels
There are many
different ways to get started as a seller on Amazon today.
You can send in products that you have around your house for resale. From used books to used barbecue equipment, Amazon sells billions of different items and there are people looking for new and used items in every category.
Reviews are a critical
factor in the Amazon Ranking Algorithm & also in customers buying
positive reviews you have – the more likely it is Amazon will show your product
on page 1. And your conversion rate will be higher too!
recommend launching promotions on AMZ Tracker & Vipon – to maximize your
chance of getting more reviews. In this article we also cover our other top
tips on how to get more reviews for the things you sell on Amazon.
Tip 1 Use a
several great automatic email services that send a message to your buyer
straight after they buy your product or after it has been delivered.
Set up a series of emails to inform the customer the goods are shipped, to ask if there are any problems, and to ask if they are happy to give feedback. It’s more important to prevent negative reviews than to focus on getting as many reviews as possible.