2020 has already brought many challenges to Amazon FBA sellers.
To help your business keep going and overcome issues that all sellers are struggling with, we put together some of the best insights from two 7-figure Amazon sellers who shared their experience during the “7-Figure Sellers Expert Panel – Ask Them Anything” discussion.
This panel discussion took place at the European Seller Conference on March 12-13, 2020.
List of topics covered in the video:
06:53 How to outsource? Biggest challenges that come with it.
10:37 What is you biggest challenge right now?
12:55 How many brands you've had before hitting 7 figures?
13:34 If you had a time machine, what would you do differently?
16:24 What are the top three metrics KPIs that you're measuring regularly now?
17:40 Do you use any PPC software? Do you do all the taxes yourself? Or do you outsource it to somebody?
19:44 Tools that they've been using.
21:54 Do you have a proven routine for new product launches?
23:11 For someone who starts the business, what do you recommend to avoid at the beginning?
25:58 How many products do you launch per month?
26:56 3 recommendations for the audience.
Jump to the specific topic in the blog post:
What are the 2 most important things when selling on Amazon FBA?
If you're struggling to sell on Amazon, there's only two things that might be contributing to it - it's either your sessions or your conversion rate. And that's where you should start on every single product.
Now, you should always start with conversion rate. Just think of it - there's no point sending hundreds of people to your listing and paying for that traffic when you've got a low conversion rate.
If your conversion rates are not above 20%, it means there's so much you can improve on your listing.
And to get sessions, for example, you need to concentrate on winning the click. Make sure your image is the one that stands out on when you look at the search engine results pages.
Have a clear vision and goals
The main thing that helped Etienne going from 6 to 7 figures and continue growing his Amazon FBA business, was having a clear vision of a long-term objective.
More than half of the value you can create for yourself in this business is not about the profit you make every month. It's about the exits that you can make at the end if you sell your business.
Etienne tries to keep that in mind and have a clear objective of how much he wants to make in his exits, so he can precisely build a roadmap based on that and focus on the key actions that will make him reach the next goal.
How to outsource for Amazon FBA?
If you can write an SLP on how to do something, then all you need to do is just check and review. So even if it's listing optimization, you can assign your new VA to work on how to improve it and stand out from competition.
Another way to solve whatever problem you are facing at the moment, is to research tools that other entrepreneurs have created for this reason.
If you have a problem, probably you're not the first one who struggles with it. And probably there is already a great tool to help you with that.
In a long term, you might want to build a team that knows your goals and follows KPIs. As Joshua thinks, in this scenario, you can just look at the figures each week and it allows you to then get involved in what you're interested in.
For example, sales revenue is down. You can go straight to the person who's responsible for the sales revenue KPI and then you'll know exactly what they're doing wrong, what they're focusing on as the right change, and so you are assured the things are taken care of.
If you had a time machine, what would you do differently?
Joshua says he would really keep it simple. Just concentrate on the key things that are making the gross profit and optimization being a huge thing.
Etienne, on the other hand, would invest more in in learning. He would invest more in events, trainings, masterminds, and grow faster and learn from peers.
What made the biggest difference in his business life for the past year was having an accountability partner with whom he can share his progress and struggles with.
So find someone who could relate and make weekly status calls - it's easier if it's also someone selling on Amazon because you can share the same challenges.
What are the top KPIs that you're measuring?
Etienne names daily profit, sessions and conversions. Meanwhile, Joshua focuses on sales revenue, even though some people think that sales revenue is not a good indicator.
Also gross profits and attack loss, which stands for total costs which basically refers to the PPC spend.
How to launch a new product for Amazon FBA?
At the moment, Joshua has no routine on how to launch a new product.
However, this is one of the things that he is working on - he says that as soon as he gets the fundamentals, he'll masterpiece for things that he's currently doing and double down on that.
Since he believes that this whole Amazon business is rinse and repeat, once you've done it, you literally can go back to step one and just do it in a circle.
So once you've got a system that's working, then the final step is just bring out product after the product. And at that point, you'll be able to launch as many products as you'd like.
What do you recommend to avoid when selling on Amazon?
Etienne strongly advices - don't do copycats. He himself started with copycat products and had many failures with it. The truth is, these products don't work anymore.
Joshua thinks it's important to focus on constant learning as much as you can. Bring out one product first and do that amazingly well.
If you start creating a product, it starts working, then you bring out another one. Eventually, by doing so, you'll start to encounter problems early on. So really concentrate on getting one product that's working amazing before you continue with another.
Etienne says that we usually start with a product because we see a market opportunity. Actually, we see consumers that are lacking certain features or have a strong problem.
As soon as you get the first product that is working on the markets and is focused on your consumers, the one that solves their problem, build a brand around it, because those are going to be your your strongest advocates.
About the speakers:
Founder of GoldMiner
A corporate dropout after having led various marketing teams in bluechip multinationals and startups, Etienne is a 7-figure seller operating in Europe, working from home with no employees nor VAs. He is on a mission to deliver the highest quality to his customers while making a difference for society. Etienne calls himself an entrepreneur in e-commerce that happens to use Amazon as his main distribution channel, for now.
Founder / CEO of multiple Amazon Brands and Partnerships
Joshua has been selling on Amazon since 2012 when he started a business with his mother. Back then, the family used to own hair and beauty salons and decided to start selling hair products online. Right now Joshua sells between 2.5 to 3 million and plans to double it within the next couple of years.
The event was moderated by Alex Chernenko:
Company Formation Agent, Owner of Chern & Co Ltd.
Alex helps to start new and growing existing businesses easy, accessible and affordable. He manages own Amazon Private Label account understanding the pains and requirements of e-commerce sellers. His company Chern & Co provides business registration, tax advice and accounting services to European and non-European residents who require an Irish based company.