Tuesday, 15 June 2021

7 Things You Need to Do BEFORE Launching on Amazon (and selling with Amazon FBA)

7 Things You Need to Do BEFORE Launching on Amazon (and selling with Amazon FBA)
18 Sep

Hey, guys In this video, I'm gonna be giving you seven things that you need to do before you launch your first product on Amazon using the FBA program

If you do these seven things, then you will easily overcome some of the common mistakes that new sellers make when they first launch their products on Amazon To find out what these seven things are and how to overcome these mistakes for yourself, keep watching this video One, have a launch plan to get initial sales Now, I'm gonna try to not spend too much time on this because I've already talked about it a lot in previous videos but it's crucial that you have a launch plan And if you don't, you'll be like my friend who went out there and manufactured a great product, sent it in to Amazon, and made no sales

And like him, you will be very, very disappointed Remember, on Amazon, your main source of sales is going to be people finding it through using the Amazon search bar So let's say that you are planning on selling a glass cutting board that you had manufactured Well, when people type in glass cutting board into Amazon, you want your listing to be on the first page of results that people see Ideally, you want to be in the top five

That's why when you launch your product, you want to have a plan in place that is going to propel your listing to the top of the search results because it is not going to magically happen So out of the countless glass cutting boards that are up on Amazon, how do they select which ones they will list on the first page of search results? Well, there are multiple factors but the most important one is sales velocity They look to see how many sales each item is making every week and they will greatly favor the listings that are making the most sales And it makes sense that they do because each time an item sells, it makes Amazon money in fees so, of course, they want to promote the best-selling items So when you go and you launch your glass cutting board on to Amazon, you want to go and check how many sales your competitors are making and then match them or beat them ideally, for about two weeks

If you do this, then your listing will soar to the top of the search results and you make tons of ongoing, organic sales Using Jungle Scout, I can see that the top competitor for glass cutting boards is selling just under 300 units a month or about 70 units a week Now, since I don't want to just match but beat my top competitor, I need to come up with a plan before I launch on how I'm gonna be selling 80 of my glass cutting boards every week for 2 weeks and there are multiple strategies that you can use to do this I've got a great video which outlines them, "How to Launch Your First Amazon FBA Product," and I'll have a link to that in the description below Two, take incredible photos of your product

Now, as I said, there are multiple factors that Amazon uses when picking which products to promote The most important factor is sales velocity but the second most important factor is conversions I recently learnt that the easiest way to make perfectly poached eggs is in a microwave so let's use that as our example All right, our example product This is a microwave poached egg maker

It is a product being private labeled under a brand called Cozzine So let's say for every 10 people who click on this listing, 1 person then goes on to actually purchase it It means that this product has a conversion rate of 10% The higher your conversion rate, the more Amazon will push your product up in the search results, which means you will make more sales and thus, you will make more money Amazon have tested multiple conversion factors for a listing and they have found that the number one conversion factor is having great photos so here are three tips to do this

One, take professional photos of your product That means that you can't be lazy and just repurpose stock photos that your supplier has taken Get a sample product sent to you and get a professional photographer to take photos of it Two, have photos that show your product from different angles Three, upload big, high-quality photos

Amazon have found that having high-enough quality photos that customers can zoom in on them greatly impacts conversions To do that, make sure your photos are at least 1000 by 500 pixels high but, of course, the bigger the better Three, hustle your friends and family to buy your product In addition to having great, incredible images, there is another important conversion factor when it comes to sales and that is having reviews Now yes, the ideal is to have hundreds of reviews but to start making organic sales, you don't need to have that many, just having 10 is enough to kick-start your product

Consider the Cozzine poached egg maker, it's only got 16 reviews Not all of them are even five stars Yet, using Jungle Scout, we can see that they still managed to sell 300 units in the last month And the absolute easiest way to get your first reviews for your product is to ask your friends and family to buy it and to then leave you a review Now technically, you're not allowed to ask them to leave a five-star review

You're technically only allowed to ask them to leave an honest review, though just saying I think that as long as you turn off your Amazon Echo, they're not going to know if you ask your friend in person to please leave you a nice review And here is a bonus tip, don't just link them to the product page to buy it Instead, tell them the keyword that you are targeting and then have them go to Amazon and search for that keyword and go through all of the listings until they find your product Tell them to then click on your listing and to then purchase it That will signal to Amazon that somebody was searching for your keyword and then purchasing your item as a result

And it's especially important that you hustle your friends and family to get them to leave you a review because of what I'm about to tell you next Four, have a plan to get reviews from your customers So your friends and family will hopefully have a 100% conversion from purchasing your product and then leaving a review but do you know what the average conversion rate is for anonymous customers? It's less than 1% Yes, you can expect less than 1% of customers to purchase your product and to then leave a review Luckily, with a little bit of planning, you can bump this conversion rate up to around 2% to 3% on average

No, that's not great but it's much better than less than 1% and the easiest way to bump up your conversions is to send your customers a follow-up email sequence using a service like Jump Send A simple three-email sequence goes a long way Here is a nice sequence to copy Email one, send it out the day that the item is shipped to the customer Send the customer an email letting them know that the item has been shipped

This builds anticipation for them receiving your product and it also helps build a relationship between you and the customer Email two, send it out two days after the product has been delivered In this email, ask them if they're enjoying the product and to please leave an honest review Also in this email, you should be telling that if they are having any problems, to please contact you This way, you can open up communication between yourself and them and you can turn an unhappy customer into a happy customer that doesn't leave you a negative review

Email three, send it a week after the item has been delivered Once again, ask them if they are enjoying it, to please leave you an honest review, be personal and tell them that if they did, that you would greatly appreciate it And again, tell them that if they are having any problems, to please contact you first Five, form a Limited Liability Company A super common question that we get asked here at Wholesale Ted is whether you need to register a business to sell on Amazon and the answer to that is simple, no, you don't

You can start selling immediately as a sole proprietor To do that, you don't register anything with the Feds or with the state You just go out there and you start your business and it's all run under your personal name Instead, though, a better question to ask rather than do I need to register a business is should I register a business and the answer to that is yes I would strongly recommend that you do that

An LLC has many advantages, one of them is that it gives you limited liability which helps protect you against being sued Well, let's take our glass cutting board Let's say something terrible happened and it suddenly snapped in half and you were sued and they won damages of $50,000 Well, if you had been selling on Amazon as a sole proprietor, then you would be liable for that $50,000 in damages and they can go after your car, your house, and your assets to collect that $50,000 but if you had been selling as an LLC, then it is your company that gets sued and not you Your personal assets are protected

Creditors are not allowed to go after you personally So just to be safe, I strongly recommend that you spend the 10, 15, 20 minutes, whatever it takes in your local area of residence to set up an LLC Six, have a back-up cash plan Something you need to be aware of is in the beginning, Amazon is going to hold your money for two weeks You don't immediately get paid out by them

What this means is that you're going to need to have a plan in place for how you're going to pay for expenses in the meantime while you are waiting for that money to clear So let's say your product is super successful and you start selling out of inventory really fast You need to have a plan in place on how you are immediately going to pay to purchase more stock because if you sell out of inventory, Amazon is not impressed Your listing will tank in the search results and you will get a penalty so it is crucial that you make sure that you always have stock in the FBA warehouses But if you've got no money left over from running your launch promotion and purchasing your inventory, then you're going to need to wait two whole weeks before Amazon pays you

And by then, it might be too late So have a back-up cash plan on how you're gonna pay for any emergency expenses and inventory in the meantime It could be that you've just got a bunch of money saved up or a credit card Seven, know your sales tax obligations Finally, a lot of people mistakenly think that if they're selling things online, it means that they don't have any sales tax obligations but that's not true sadly, especially when you're private labeling products for Amazon

And you wanna make sure that you get this right because no one likes being slapped with an unexpected tax bill That's not fun Most states in the USA require that you collect sales tax if you have a sufficiently large physical presence in that state So if you live in a state, then that's a pretty big physical presence and it means then that unless you live in a sales tax haven like Oregon, you're going to have to collect sales tax from customers within that state Unfortunately, there may also be some other ways that you have a sufficiently large physical presence even if you don't live within that state

For example, if you have stock in an Amazon FBA warehouse in Texas, then it's deemed that you have a large enough physical presence within Texas to have to collect sales tax from customers within that state Unfortunately, this topic is a little bit too big for this video Luckily, I do have one devoted to discussing what your sales tax obligations are and I will have a link to that in the description below Now, it's not the most fun part of running an Amazon business but hey, it means that you're making money so try to look at it as a positive Yes, there are downsides to running a business but luckily, the upsides like quitting your job and becoming financially free are more than worth it

Thanks for watching this video If you liked it, I'd appreciate it if you gave it a thumbs up and subscribed to us here at Wholesale Ted for more great videos like this And if you have any questions, please be sure to ask them in the comments section below Admittedly, here at Wholesale Ted, we do get a lot of questions but we try to answer as many as we can And if you would like to start your own online business but you don't know how, then you should be sure to download our free eBook, "How to Make $10,000 a Month Online with Dropshipping

"You'll find a link on how to download this incredible, life-changing eBook in the video description below

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