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Sunday, March 3, 2019

[Reddit Story] From 3.3k in a month to 3.3k in a day with Amazon FBA

March 03, 2019 Posted by Aman Dwivedi No comments

A few days ago I did a little over $3,300 sales in one day (all with private labeling Amazon FBA) without any launches or discounting (so no inflated sales #'s) but a new product had organically ranked extremely well so I was selling quite highly. 
So I was thinking and realized my eccentric post when I first started was about 3.3k in a month and now I am consistently averaging 1.8-2k a day which I never would of thought possible, even remotely before starting this.

(Alot of the advice below is specific to Amazon FBA, but can be applied to online entrepreneurship in general)

I want to make this a comprehensive (as I can) thread of major discoveries / different viewpoints that can be of use to beginners or even other mid level sellers like myself.
  1. It's ok to compete against name brands, I've never seen a guru who hasn't said this and I believe it to be very wrong. I rank next to one of the biggest brands in the world; probably one of the top 10 corporations in the world if I had to guess. I say rank next to because I wouldn't say im competing yet because I probably only take 5% of their market share which may be a stretch, their main listing does about 300k a month. All of my listings combined in that niche are currently doing about 50k/month in revenue. Theres alot of uni-dimensional and incorrect advice commonly touted although each does have some truth such as:
  • Don't sell anything under $15 or especially $10 items. I got started with a $10 item and my average sales order is probably $11/order. Yes I make profit, great profit actually with 35% margin so yes; 3.5 dollars a sale isn't alot individually, but it is when you average 50 units a day for that single item.
  •  But under $10 is when you may get deemed addon status from Amazon which means your item has to be ordered with $25 worth of other items and it is a death sentence for your listing unless your item is very small, so I would recommend staying away from items under $10 that aren't very small i.e easily fits in your hand. In my first listing there's times I would drop below $10 to sell more and I would get labeled addon status even though the majority of the other items I never do. Addon status is an arbitrary and undefined label unfortunately.
  • Don't sell anything too heavy. Weight can be a completely useless metric, you can sell something thats 30 lbs if its profitable, ideally yes lighter is easier and cheaper but it is a very restrictive and incorrect statement to say you shouldn't ever or at all sell something above 5 to 10 lbs. However you probably shouldn't sell something that weighs 10 lbs and is bulky dimensionally and only sells for $14 because after your shipping and Amazon fees theres virtually no way for you to profit unless you order in massive quantities.
  • Don't compete against name brands. To expand upon my first point should you try and sell something like laundry detergent and compete against Gain, Tide, and arm & hammer? Probably not, unless you have tens of thousands of dollars for marketing and a genuinely great product. But there are niches that aren't fully dominated by a name brand that is selling under that keyword. 
  • There are plenty of brands who are big brands but have lesser known products that are not the said brands bread and butter, and that scares alotta people away but it shouldn't; it is an opportunity. For reference my first item's niche with the aforementioned big corporation, the top listing for every keyword is that companies and their listing has over 3,000 reviews; i'd say that scares away virtually everyone but me. And the reason I know that is every single other seller right now on the first page are Chinese sellers likely located in their mainland, so no other private labelers like myself. They may have 3,000 reviews but when I was looking I noticed all the listings below them didn't have tons of reviews (under 100) and alot of them were doing 8-12k a month in revenue. 
  • Then I examined those listings and thought, I could craft a much better listing than that. So I did, and its worked out pretty well and I don't think its just some 1 off lucky thing, this can be applied to any other niche as long as like I said early half the listings on the first page aren't owned by one brand. If it is just 1 big listing then other private labelers / chinese sellers who are still making decent money & you think you can make a better listing / better product then the fact that there's a name brand making alot of money is irrelevant.

2. This should of been first but build an email list very soon, if not immediately. When it comes to your first product and your first order and you're clueless and it may not workout you don't have to go through the hassle of setting up an email capture page and doing product inserts to drive traffic to that page, but the second you decide to reorder or that you're going to stick with Amazon FBA and do a second product you must build an email list.
 Even if you solely want to sell on Amazon and you may think why would I need emails, 2 words legitimate reviews. Yes you can use friends and family for your first product (which would be breaking the ToS and im not advocating it) but that is not sustainable and everytime you use someone theres a big chance you wont be able to again so you will run out of people and be clueless how to get a review or have to rely on review services or launch services which review services are extremely sketchy and illegal and launch services are much better when done yourself and more effective if you know what you're doing.
 I highly recommend using Facebook ads hooked up with manychat to launch your product and collect email address and future reviewers, its an unprecedented way to get completely within ToS reviews AND email addresses for like $1-1.5 a pop to fairly cold traffic. If you're new you'll have no idea what that is but just youtube many chat fb ad launch method if you plan on launching an amazon product soon.
3. This is extremely important not to be misinterpreted but once you've proven you atleast have a solid idea of what you're doing which i'll define as 2 successful products that are consistently generating a decent roi. Loans to expand your business can be huge if and only if your growth is being heldback by capital**.** 
And for those wondering why would you be held back if you're making money, for me I was making great money but every single month I was reinvesting thousands and even tens of thousands back into the business for more inventory so getting a chunk or a lump sum can be huge. I'm not saying to go borrow 30k from your family or 20k from a business lender but if capital is bottlenecking you and you know what you're doing you can make a $10-15k loan multiply your business by 2-3x even with a 20-25% interest rate. I spend $1.61 for a product that nets over $4 so the ROI is 248% so even 20-25% interest rates aren't bad if you have a profitable product.
4. Make sure you have products in the pipeline at all times and launch more as soon as you have the money to do so, when your first product is shipping to Amazon be looking for your second even if you don't launch it for 2-3 months have multiple potential products because when you do have the money you should not be impulsively choosing a product and quickly trying to get it selling because thats how you make big mistakes.
 In the same token though you don't need to spend 2-3 months eyeing a product, using junglescout or whatever tools you may use almost all of the product research tools available if you know what you're doing can in about 30 seconds give you the information in a niche needed to known instantly if a niche is worth possibly pursuing or not.
 I don't believe in tracking a product for 1-2 weeks I make my decision by looking at the exact rank over time directly from Amazon using the JS chrome extension and decide if it is a worth product. I believe this sets me apart from 99% of other people doing product research I'm much more efficient with it, although now I use Virtual Assistants to look for products.
I'm going to stop there, could definitely write some more but I dont want to ramble too much and it takes alot for me because I have an off and on relationship with writing haha. As I said drop any questions below, hope this helps someone.

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