Want to Know How Much Your FBA Business is Worth? Start Here

Chances are, you probably sell on Amazon because you recognize the huge potential ROI there.

But have you ever stopped to think about your next step after your FBA business? Many FBA owners have never considered selling their business—or even know the option is on the table!

We wanted to share why selling your FBA business could help you build an even better business and be the best thing for your entrepreneurial journey. Let’s explore the reasons FBA owners sell their businesses.

The Truth about Selling Your FBA Business

Selling an FBA business boils down mainly to personal or business-related reasons. 

In terms of personal reasons, we’ve seen sellers exit because of an event or goal that meant they no longer had time to manage the business. Some of these reasons include a death in the family or wanting to spend more time with their kids.

Business-related reasons tend to revolve around raising capital for another project or losing motivation to stay with the business. 

Whatever their reason for selling, some FBA sellers have received two to four years of net profit in cash in one payment. That’s the biggest windfall many entrepreneurs have ever received in one go.

But don’t start counting your chickens before they hatch: first, let’s dive into understanding how FBA businesses are valued.

FBA Business Valuation

Online business brokers and individuals working in mergers and acquisitions (M&A) usually value businesses by a multiple of earnings before interest, tax, depreciation, and amortization (EBITDA). EBITDA represents a business’s annual profit, and it is multiplied in the range of two and four times.

The valuation formula we use is:

Valuation = 12-Month Average Monthly Net Profit x Multiple

There’s not much difference between the two formulas. We stick to the average monthly net profit because it gives a more granular view of an FBA business’s performance than an annual profit figure. 

While average monthly net profit is easy to calculate, determining the multiple is a bit more complicated as it takes into account the business’s age, traffic sources, branding, product line, and pricing window.

Age of FBA Business

A profitable older brand tends to be valued more highly than a younger one because it has survivability.

Unexpected market demands and changes place stress on FBA businesses, which can seriously affect cash flow and average order values.

A business’s ability to scale and grow through these challenges shows buyers that it’s resilient. While you can’t directly influence your business’s age, the takeaway here is that age works in a seller’s FBA business’s valuation, which is why a long-term Amazon selling strategy pays off more than a short-term plan.

Diversity of Traffic Sources

One of the greatest advantages of selling on Amazon is being able to leverage their brand, which customers love and trust.

However, selling on a single marketplace can lower a business’s multiple because if that source of traffic is shut down, there’s a higher risk that the business will be negatively impacted.

Amazon is well known for delisting products and shutting down stores for minor infractions. While you can prepare to ensure you fulfill Amazon’s requirements, increasing the number of traffic sources through multichannel selling is a good way to minimize your business’s risk and increase its multiple.

Branding

Branding has a smaller influence on the multiple than the other factors listed here since it’s hard to quantify how strong a brand is .

That said, the number of customer ratings and reviews, as well as how high the ratings are, play a part in determining the multiple. If people mention the FBA brand on social media, the context is also taken into consideration. Are customers raving about a store’s products and recommending them to their friends? Or are their experiences mixed, with varied reactions toward the customer service or the product’s functionality?

A strong brand is an attractive asset to a buyer, but it has less weight than the other factors that affect a multiple.

Product Line

There isn’t a perfect number of products that will help you gain the highest possible valuation. A couple of key things to keep in mind are the amount of work it takes to manage your product range and the diversity of the revenue generated by the products.

Let’s compare two FBA businesses in the home niche, both selling kitchen products. Business A has only one product, while business B has 50, and both generate $100,000 in revenue from sales each month.

Business A’s single product has the same risk as a single traffic source: if the product is delisted, the business’s cash flow is completely cut off. 

While it might look like business B won’t suffer from this issue, there are a couple of issues with its product range. For instance, if a single product generates over 50% of the business’s revenue, this is also cause for concern from a revenue-by-product basis. Managing all those listings could also consume most of your productive hours, time that could be spent growing the business in other ways.

We’ve seen the ideal range of products to diversify sales and be manageable without being overwhelming is between three and eight products. 

Of course, there are exceptions to the rule. Some buyers with large capital reserves won’t mind paying for a single-product FBA business because the potential ROI of a future flip may outweigh the risk. These types of buyers will probably make strategic acquisitions and have a team of optimization ninjas to increase the value of their assets.

Buyers who can afford to buy only a few FBA businesses will be much more cautious about a business with a product range that’s too large or small. They are likely to be solopreneurs who manage operations on their own, so the stakes would be much higher if the business didn’t work out as hoped.

Pricing windows 

Another thing to keep in mind is for how long you’ll calculate the average monthly net profit.

12 months is the golden standard because it provides a good view of the business’s traffic and revenue earnings and takes fluctuations in buyer demand, aka seasonality, into account.

If you started your FBA business less than 12 months ago, we’d recommend waiting before considering a sale. While you could shorten the pricing window to three or six months to reflect the profits, buyers will look at the business holistically and see that only a short window of data is available to help them decide whether to buy your business.

Again, there are exceptions to this rule. Some buyers with more capital means or a higher risk tolerance might make an offer for newer FBA brands.

Shorter pricing windows narrow the buyer pool, making it harder to find the right buyer who’ll offer you a reasonable deal. You might receive only a single offer and find yourself settling for a much lower offer than you wanted to ensure you close the deal.

Who Would Buy Your Site?

Now that you have a basic understanding of FBA businesses are valued, you might be wondering who would be interested in buying one. 

There’s a wide range of buyers with different levels of available capital and time, but all buyers recognize the power of selling on Amazon, and they want a piece of the ecommerce pie.

FBA businesses offer a lower barrier to entry for ecommerce entrepreneurship than full-blown ecommerce, which requires owners to manage many different moving parts. Instead of building a business from scratch, a buyer can acquire an existing FBA brand that’s generating steady profit.

To increase your chances of receiving a great offer and landing a successful deal, let’s discuss how to widen the buyer pool.

5 Ways to Optimize Your FBA Business

Buyers are much more likely to put down an offer after doing their due diligence if they think a business is a deal they just can’t pass up. So how can you make your business an asset that buyers will compete for?

By making it as hands-off as possible.

This is not to say that a less optimized business will attract zero buyers, but an FBA business that requires minimal work from the owner to maintain will be more attractive.

There are already some great tips for selling on Amazon, so we’ll focus on a few other ways you can improve your FBA business.

1. Use a Third-Party Logistics (3PL) Service Provider

Many sellers ship their inventory directly to FBA fulfillment centers, so storage and fulfillment are managed in one place. While it might be easier to allow a manufacturer to ship their products to FBA warehouses, it could be costlier than using a 3PL service provider.

Spend some time shopping for reputable 3PL solutions to see if there’s a more cost-effective route.

Another thing to consider is if you should use a 3PL as an additional storage facility. If stock doesn’t sell within six months, Amazon will charge long-term storage fees.

Depending on your products’ average turnover time, it might be better to hold stock in a warehouse and send batches of inventory to FBA centers according to your inventory forecasting.

While additional expenses sound like they should bring down your business’s valuation, removing essential services will in turn add extra burden and responsibility for the owner to manage and make the business a less attractive option.

A common mistake we see FBA sellers make is to cancel their 3PL solutions services, which brings down overall costs but adds 10–20 hours of work each week. The initial valuation price may increase but at the expense of making your business more hands-on.

2. Nurture Great Supplier Relationships

If you have exclusivity with your suppliers, ensuring that agreement will be carried over to the next owner makes purchasing your FBA business a more attractive prospect.

Establishing a strong relationship with suppliers saves the buyer the time and energy required to find reliable manufacturers, giving them one less thing to worry about, so they can focus on expanding the business in other ways.

Diversifying the number of suppliers the business owner can call on also works in a seller’s favor. The ability to order from multiple suppliers helps avoid dreaded out-of-stock situations for your top-selling products, especially during peak seasons.

We’re not advocating for drop surfing, where you’re encouraging suppliers to compete for your business by undercutting each other to offer the lowest price. Developing good relationships with more than one supplier opens up other manufacturing channels in case your usual supplier has production issues.

3. Optimize Product Listings

Creating a great product is only half the battle. Getting it in front of the right eyes is the other half.

Increase the chances that your products will appear to your target audience by optimizing the listings for SEO.

Search engine optimization will involve keyword research and the placement of target keywords in your copy’s title and body. Just don’t stuff the keywords in; Amazon’s search algorithm will deprioritize your listings if it detects too many keywords.

As an FBA seller, you can leverage Amazon A+ Content (formerly known as Enhanced Brand Content) to enrich your ASIN descriptions. A+ Content doesn’t get indexed by Amazon’s search engine but can increase conversion rates, leading to more sales.

4. Automation

Hiring virtual assistants or outsourcing time-consuming tasks frees you up to focus on your growth strategy. 

A great way to improve your own efficiency and automate more of your processes is by creating standard operating procedures (SOPs).

Well-documented SOPs will help a buyer keep the business running as it currently does, so it doesn’t drop performance after changing hands. SOPs are especially helpful to solopreneurs, streamlining the transition period by providing a resource they can refer to at any time.

If the new owner decides to outsource, they can use SOPs to train freelancers to operate the business as you did.

5. Build a Monetized Email List

Many FBA owners overlook using an email list as part of their marketing strategy, but to understand the power of email marketing, the real value lies in the audience it builds.

Gathering subscribers looks great, but the number remains a vanity metric if the list isn’t used properly. When you consistently deliver value to an audience through curated content, the email list becomes a valuable asset in itself because you don’t rely on search engine algorithms for your content to be found and you can address your audience any time.

However, if you are considering selling your FBA business and haven’t started an email list, I’d recommend that you use your time and resources to bolster your business’s strengths instead. 

Email lists take a lot of time, energy, and patience to get right.

You’re nurturing an audience from scratch, so you’ll need to experiment with the type of content you send out and to get all the elements aligned for the highest conversion rate.

The Myth of Timing the Sale

Deciding when to sell can be hard. Some sellers think they can time the sale like a stock based on market conditions and whether the forecast is bullish or bearish.

In reality, it’s extremely difficult to succeed with this approach. We’d recommend selling your FBA business when it’s at its strongest and performing optimally on the capital means available.

A buyer may be willing to pay a premium price for an FBA business generating steady sales that has products with Amazon’s Choice or Best Seller status in their subcategories. 

A business’s value is how much a buyer is willing to pay for it, which is why it matters where you list your business for sale if you want to succeed in landing a deal.

Best Places to Sell Your Business

There are really only two options: selling privately or using a broker.

A third option is to use a DIY marketplace, but we’d strongly recommend against using this type of service. DIY marketplaces charge a commission comparable to that of brokers, and you have to do a lot of the work to source deals and market your business yourself.

If you’re selling for the first time, a broker is the optimal route (even though we might sound biased for saying so).

If you go for a private deal, you risk running into two of the worst kinds of buyers: the savvy kind, who know how to negotiate a low price, and tire-kickers, the sort who make inquiries and non-serious offers, wasting your time. There’s also the need to attract many qualified buyers, which can be tough if you don’t have a wide network of suitable connections.

Then you have to worry about marketing your business and making it as attractive as possible without overselling.

There’s a mixed bag of brokers available. A reputable broker will have processes in place to attract buyers who can prove their buying intent with verified liquidity. When shopping for a broker, do your due diligence to see if they have such a system, as it helps both sellers and buyers.

You can register for free on a broker’s marketplace to talk about selling your FBA business and how they’ll help you handle the administrative side of things so you can focus on managing the different offers that come your way.

What’s Next? Preparing for Life After an Exit

We hope that by this point you’re aware of the amazing potential that selling your FBA business holds.

One of those possibilities is to buy another FBA business and keep your momentum going. After all, no one said you had to hang up your FBA hat and call it a day! The skills and experience you’ve developed could be used to scale a series of smaller businesses, so they reach their potential. 

In time, you could flip them for a profit, creating a money-making engine that provides five figures of capital for each deal you make.

In time, you’ll have built up an ecommerce empire.

This is just one of the routes you could go down. Of course, you can reinvest the capital in any way you want.

Whether you pursue a passion project or put the money from the sale in your kids’ college fund, the possibilities start with the knowledge that your FBA business is a highly lucrative asset to the right buyer.

This insightful guide was brought to you from Empire Flippers. Do YOU want to contribute to the Viral Launch blog with your expertise? Simply complete our brief guest blog post form and we’ll contact you if it it seems like a great fit!

Follow The Data: How To Grow Your Amazon Business by Growing Your Team

Ashley Kinkead has incredible experience hiring a virtual (AND in-person) team to scale her Amazon business and eCommerce operations.

Loyal Follow The Data listeners may have noticed growth and scaling are a steady topic in 2021. While “solopreneurs” are undoubtedly a major part of the Amazon seller community, hiring others to help run your business is necessary for large-scale growth.

Often times, the entrepreneurial mindset comes with a penchant for independence. For beginner sellers with a brand or two on Amazon, this can be a perfect opportunity to harness that competitive drive for success to execute your visions.

However, the bandwidth required for mass scaling is just too large for one person to sustainably handle. Luckily, sellers can grow their team to assist with the growth of their business. But the process of building a team for your Amazon business is one most sellers aren’t quite familiar with.

Ashley and Cameron dive deep into the world of hiring to scale in this episode of Follow The Data.

HIGHLIGHTS:

When turning your solo business into a team, who’s the first person you should bring on?

So you want to grow your team? Where do you even start? As aspects of Amazon become more sophisticated, elements that go into running an online business become more specialized. Ashley walks us through her recommendations for laying the foundation for building your team and reveals her first hire.

When you should consider first hiring for your Amazon / eCommerce business?

While we often speak in generalities that cover most of the Amazon seller community, no two businesses operate the same.

Find out how to properly scale your team as you grow.

Doing too much too soon, or doing too little too late can doom your attempt at growth. The relationship between scaling your team and scaling your company can be a complex one. Ashley provides her insight based on her years of e-commerce experience.

What can you do to help your employees AND your business grow together – how to properly support and pour into your employees?

Leading a team is about more than just growing profits, it’s also about helping your team grow. In addition to the monetary compensation, a part of the value for employees is personal and professional development. As an employer, investing in your team members can be a mutually beneficial opportunity for your business and the individual success of your team.

With much of 2021 ahead of us, what strategy tips and advice does Ashley have for the remainder of 2021?

After a hectic 2020, the opportunity for success selling on Amazon has never been greater. Along the way, pick up helpful tips and tricks to accelerate your online business in the year ahead.

Need to get started before considering growing your team? Enroll in our FREE course to guide you through becoming an Amazon seller.

A huge thanks to Ashley for taking the time to share her experiences and expertise with us on the show. Be sure to check out Ashley’s Amazon-based Facebook group (among other connections) here.

How many members are on your team? What’s been your experience with bringing others into your online business? Drop a comment and be sure to let us know!

Get the latest Amazon news and updates sent straight to your inbox. Drop your email below!

How To Self-Publish Through Amazon Kindle Direct Publishing

There are plenty of ways to make money on Amazon, with Kindle Direct Publishing standing out as an opportunity for those with a passion for writing. Fresh off the release of his debut book, Dylan Hughes shares a four-step guide based on his recent experience with Kindle Direct Publishing.

Going back to my third grade days, writing and coloring in blank hardback books, I have always loved writing. When I was even younger than that, I would take my kids books and write down their contents onto blank sheets of paper (someone should have taught Young Dylan about copyright infringement). 

When I was about 14, I finally took my talents to the internet, blogging about sports. Once I started, I fell in love and have been at it ever since.  

I have known for a long time that I want to become a professional writer. I knew I wanted to go to college for journalism and I did that, graduating last year with a Sports Journalism degree from IUPUI. While I was a little lost career-wise after graduating, the end-goal remained clear: I wanted to write professionally.

After months of struggling to find even an entry-level writing job, I threw in the towel and took matters into my own hands. First, I began my Substack newsletter, Heavy Pockets, where I write words weekly on what is interesting to me in the business world—as well as personal development stuff here and there. I also publish at least weekly on Medium.com on the same topics.

I have enjoyed doing that for the past five months. In late November, however, I didn’t feel like I was doing enough. So I made a snap decision: I was going to publish a book.

I have dabbled with the idea of writing a book for years now, but it was always something I looked forward to doing in the distant future. I had no idea what to write about, the process to go through to get it published, or how long it’d take. It felt like I was best suited to stick with blogging about dumb sports stuff online.

On that November night, though, I wasn’t willing to just toss the idea out. It felt right. Before thinking about anything else, I just started writing.

Step 1: Write the Darn Thing

Whether in writing or elsewhere in life, a lot of people get held back by the minutiae. Writing a book sounds hard. Editing it, making a cover, and finding a place to publish it is just too much to stomach, especially considering that stuff comes after actually writing all of those words.

So don’t worry about that other stuff! Write the book and worry about that stuff later.

You don’t have to write the entire book before researching how to publish it. But at least get the ball rolling and build some momentum. You’ll be surprised at how quickly you can write 1,000, 2,000, or 5,000 words. A handful of sessions like that and you’re either done with your book (if it was short like mine) or making great progress to getting to that finish line.

Step 2: Edit and Prepare

In the self-publishing world, this may be one of the more difficult steps. In my case, I was lucky enough to have a friend—who happened to edit our college newspaper—and my mom—an English major—edit my book. Alongside myself, a  perfectionist when it comes to my writing.

If you are not as confident in your editing skills and/or don’t have the supporting cast to help you out, there are surely editors available for hire on places like UpWork and Fiverr. If you aren’t looking to spend money, though, having a handful of friends read a chapter or two each and giving light feedback is better than nothing.

Once you feel confident in your words, it’s time to move over to Kindle Direct Publishing (KDP).

Step 3: Prepare the Manuscript

Amazon makes the remaining steps fairly easy. Which is great, since you just spent all that time working on the hard part: writing the book.

Head over to the KDP website, click “Your account” in the top right-hand corner of the screen (after creating an account, of course), and navigate to the “Bookshelf” menu located towards the top of the screen.

You will then see the “Create a New Title” section, which lays out your remaining steps in publishing your book—whether it be an eBook or paperback (it will later give you the option to do both).

After choosing your desired form of book, you will then start filling out the necessary information for the book, such as the title, subtitle, description, keywords, and categories, among other things.

Once that step is complete, you will be asked to upload your manuscript and cover. 

For the manuscript, I would recommend using Kindle Create (download here). This makes it easy to format your book to properly satisfy Amazon Kindle Direct Publishing standards and make it look as good as possible. You can also make edits to your writing through this tool if necessary.

For the cover, some people like to use Canva (which has a free version but more options through its subscription). I personally just used Kindle Cover Creator, which gives you some basic and decent-looking options. They also give you some options that they created on their own (I chose this option after doing a bad job making my own cover). It may not help your book stand out, but it that doesn’t concern you, it is a very easy option.

After that, set your price and you’re ready to roll!

Step 4: Start Sharing!

Once everything is complete and submitted, Amazon will review your submission and publish within 72 hours (or get back to you if there is something wrong). My submission took less than 12 hours to go live.

After it goes live, congrats! You’re finally done and you can now share your awesome work with your friends, family, and followers.

Want more helpful Amazon news, updates, and tips and tricks sent directly to your inbox? Drop your email below!


Now that you’re done writing your book, take a look at mine: From One Young Soul to Another.

2020 was hard for most people, and it wasn’t any different for me. While I didn’t lose my job or a loved one to the virus, I still faced many challenges that hurt my brain and heart for the majority of the year. After I felt mostly recovered, I took the lessons I learned from those challenges and turned it into a book, hoping to help young people struggling with similar issues. I feel that anyone struggling with relationships, employment, identity, or self-confidence could take something positive away, no matter the age.

And if not you, maybe a loved one would benefit.

Want to write a featured guest post for our blog? Submit a brief application to get the process started!

How to Sell Your Amazon Business and Boost Your Valuation

“If you’re going to sell a business, this is the best business in the world to sell.”

The concept of buying and selling Amazon businesses is becoming a hot topic in the FBA community. We chat with an expert on the topic to learn more.

Ryan Gnesin, a purchaser of countless Amazon businesses and brands as the Founder and CEO of Elevate Brands, comes on the show to talk through top-level advice when it comes to selling your Amazon business and increasing your total valuation to make more money!

In this episode of Follow The Data, Ryan breaks down the different methods of selling, advice in going through the entire process, how to prepare, and what to expect. It isn’t too often we have a guest come on the show to talk through Amazon business valuations, and this couldn’t come at a better time than early 2021.

Whether you’re just starting to sell on Amazon or looking to sell your Amazon business, this is a must-listen for anyone looking to maximize the worth of their online business.

HIGHLIGHTS

What do you think the business of ‘selling Amazon brands’ will look like in 2021 and beyond?

In the last few years, the buying and selling of Amazon brands has exploded. Companies like Thrasio and Heroes are receiving massive funding from venture capital firms to expand and buy more Amazon brands from sellers. Ryan breaks down what the subject may look like for the near-future.

Many current sellers are unaware of what the process actually involves. So what does a sale actually look like?

Since the prospects of selling an Amazon business have raised considerably in recent years, many sellers have no idea where to start with what the selling process entails. We ask Ryan for a brief summary of what the process looks like to help build expectations on where to start.

At what point should a seller actually consider selling their business?

On top of how to sell an Amazon business, knowing when to sell is equally important. Especially for sellers who built their brand from scratch, it can feel impossible to master the timing. It’s an age-old dilemma. When business is booming, why sell it? When sales are down, the offers likely aren’t at their peak. Ryan offers insight on when sellers should consider selling.

What are the core foundational principles you look for when purchasing Amazon businesses?

While buyers of Amazon business appear to be buying more than ever, it’s not without foundational principles. Of course, these businesses are looking for key elements when deciding on if a business is worth buying and evaluating its worth. Ryan lets us in on what buyers are looking for when making an offer.

What can sellers do early on to set themselves up for long-term success?

Whether looking to sell or not, building a healthy foundation is crucial for sustainable success. As someone who evaluates Amazon companies, Ryan gives his perspective on mistakes to avoid and tips to get your brand off on the right foot.

A special thanks to Ryan for joining us and sharing his wealth of expertise. You can check out his company website to learn more about buying and selling Amazon brands.

As the life cycle of Amazon businesses evolves, we’ll be there speaking with the experts to help you stay informed from trusted minds.

Lastly, drop your email below to receive the latest tips, tricks, and news about selling on Amazon!

Follow The Data: Creating A Distinctive Brand Identity With Emma Schermer Tamir

On this episode of Follow The Data, host Cam Yoder chats with Emma Schermer Tamir to discuss how to create a distinctive Amazon brand identity.

In 2021, branding is key for building and expanding your Amazon business.

Emma Schermer Tamir, owner and marketing expert of Marketing by Emma, is sharing her expertise on product branding and listing optimization in this episode of Follow The Data.

Branding is VITAL to the current and future success of any Amazon product. Emma’s here to give advice on principles to elevate the experience customers get from a product’s branding, and how a listing plays a direct role in that experience.

It’s crucial to remember that your brand is more than your logo and packaging. Everything you do creates your brand identity, whether it’s

Tune into this week’s episode to learn tips and tricks for maximizing your brand and optimizing your copywriting.

HIGHLIGHTS

What are the major areas of focus for copywriting and Amazon listing changes in 2021? (3:19)

As Amazon continues to evolve, sellers should be aware of the changing landscape. Periodically, it’s worth re-examining your listing’s copy to ensure you’re following Amazon style guidelines, utilizing proper tactics, and avoiding breaking any of the guidelines.

What does a good, well-established brand identity look like? (13:35)

We’re certainly aware that much of the discussion regarding branding can seem vague or generalized, making it difficult to learn the specifics. Before we dive deeper into the topic of branding, Emma provides her expert opinions on what goes into developing a strong brand identity.

Why is branding so important on Amazon? What’s the outcome of a strong brand? (21:51)

Within the Amazon marketplace, space for communicating your branding is limited and also given to all of your competitors. So what makes it so important? In short, the same reason it’s demanding is the same reason why it’s invaluable. Emma breaks down the benefits of owning a strong, unique brand identity.

Before saying goodbye, Emma provides a few final thoughts and helpful advice to remember while building your Amazon brand identity. (36:19)

Emma leaves us with a few gems of advice that should always be on your mind when considering your branding. As she mentions, your brand identity is happening whether you’re consciously crafting your brand or not. Creating your brand identity with a thoughtful, intentional strategy can pay off to help you stand out from the crowd.

A special thanks to Emma for sharing her expertise on building your Amazon brand identity. But her knowledge isn’t the only value you can gain from her.

In addition to all of the incredible information Emma gives in this episode, she provides listeners of Follow The Data with a FREE listing analysis. Head here to get your listing analyzed and checked over from one of the top minds in the Amazon game: https://marketingbyemma.com/freeanalysis.

Lastly, drop your email below to receive the latest tips, tricks, and news about selling on Amazon!

Brand New Features Added to The Market Intelligence Chrome Extension

With Viral Launch’s Market Intelligence Chrome Extension, discovering insights into product markets directly on Amazon has never been easier. And it just got even better.

In the extension’s latest version (4.12.4), we’ve pushed major updates to conveniently elevate your product research to new heights

Introducing The Keywords Tab

We’ve added a Keywords tab with key metrics from our Keyword Research tool in addition to the four existing tabs (Sellers, Trends, Analysis, and Calculator). Open up the Keywords tab when examining a page of Amazon search results or on an individual ASIN’s page, and you’ll see the following updates:

Related Search Terms

Using our proprietary ARCS algorithm and powerful collection of Keyword Research data, the extension now provides related search terms for you.

For example, researching “couch pillows” might come in handy. However, the search term “throw pillows” generates more than 3 times the search volume and would be a better primary keyword to use for your research.

Too often, sellers make the mistake of performing product research under a secondary or tertiary search term instead of the primary keyword. With this feature, you can now avoid making that mistake by quickly comparing search volume estimates for a handful of the most relevant search terms for the

Google Trends integration

Think you’ve spotted an emerging trend? Use Google Trends to validate ideas beyond the Amazon marketplace in just a click.

On top of receiving access to our Amazon search volume estimates, you can now check Google Trends to see how in-demand a search term is outside of Amazon. Under the displayed search term, just click on the Trends icon to see search interest directly from the company synonymous with search.

While we stand firmly behind Amazon search volume estimates being the most significant consumer demand indicator, we also believe the more data available at your fingertips, the better equipped you are.

Why do we recommend Amazon search volume estimates? Easy. While Amazon and Google are both search engines, they serve two entirely different purposes. Google’s mission is to organize information and make informational universally accessible, Amazon search takes you to a marketplace.

At the very core, Amazon searches are done with buyer intent, while Google searches are made to learn. However, Google trends data can help determine seasonal interest and provide another avenue of product research for the growing number of Amazon sellers expanding their brand beyond the confines of the Amazon marketplace.

Scout Your Competitors Like Never Before

We’ve incorporated our reverse ASIN lookup tool Competitor Intelligence into the extension so you can uncover how an individual ASIN is performing across crucial keywords.

When running the extension on a product page, the Keywords tab quickly compiles the organic rank for the selected ASIN.

Now you can instantly dig deeper into the performance of competitors! Knowing where the competition is succeeding and where opportunities exist can help you stay one step ahead and fast-track your Amazon success.

For an even more comprehensive look into your competitors and how they’re ranking on a keyword-by-keyword basis, be sure to add the competing ASIN into Competitor Intelligence for a deep dive into their performance.

The Market Intelligence extension is free to add to your Chrome browser. However, you’ll need a subscription to our Essentials package to earn access to the abundance of impactful data that has helped thousands with their product research.

Lastly, drop your email below to receive the latest Viral Launch product updates and Amazon news in your inbox!

Follow the Data Podcast: Maximizing Brand Potential With Dr. James Richardson

With a unique perspective, growth specialist Dr. James Richardson chats with us to discuss a four-part approach for driving exponential growth.

On this episode of Follow the Data, host Cam Yoder chats with Dr. James Richardson, an absolute master of growth about growing your business.

As the Owner of Premium Growth Solutions, he’s helped more than 75 CPG brands with strategic planning and growth, including Coca-Cola Venturing and Emerging Brands, The Hershey Company, General Mills, Kraft Foods, Frito-Lay, Mother Kombucha, and many more.

He’s a master of his craft, with a LOT of knowledge to offer. We’re talking principles of scale here, and while the context is given around that of a CPG brand, the principles James outlines are applicable specifically to any eCommerce company seeking growth.

This episode is a MUST-LISTEN for anyone with an interest in building a successful online business or maximizing their brand potential.

HIGHLIGHTS:

Who is Dr. James Richardson? (0:00)

Dr. James Richardson’s atypical journey into marketing from cultural anthropology is certainly a unique one. His distinctive background helps provide a peerless perspective on business. Before divulging into his four-step process for scaling your business, get familiar with his background.

Is Amazon An Optimal Starting Place for Your Business? (15:56)

With an extensive background helping a diverse set of businesses spanning many marketplaces, Dr. James Richardson breaks down the pros and cons of starting your business on Amazon.

The Importance of Design for Online Businesses for Growth (22:52)

In a prior generation of selling on Amazon, the bar for your product design and packaging was incredibly low. But in 2021, design and packaging should be strategically considered before going live.

Finding The Next Trend & Why Many Innovators Innovate on Accident (40:55)

With so many looking for the next “sexy” product market, many find it purely by accident. Citing Siggi’s Icelandic yogurt, Dr. James explains how these trends often happen by catching on with unintended niche groups.

Thanks to Dr. James for sharing his acute tips for growing your business. For even more of his expertise, check out his new book, Ramping Your Brand: How to Ride The Killer CPG Growth Curve.

Why Listening Is One of The Most Important Things A Business Can Do (60:48)

Too many business owners, especially ones in niche categories ignore feedback from the average Joe. Dr. James Richardson explains why receiving feedback from mainstream customers early in the process can pay off exponentially. To effectively scale, taking objective feedback from customers is key.

A special thanks to Dr. James for sharing his many insights with us! For even more of his astute expertise, check out his book, Ramping Your Brand: How To Ride The Killer CPG Growth Curve. You can also keep up with Dr. James at Premium Growth Solutions or connect with him on LinkedIn.

Lastly, drop your email below to receive the latest tips, tricks, and news about selling on Amazon!

Unveiling Viral Launch’s Revamped Pricing Plans: What’s New

With Viral Launch’s updated pricing plans, we aim to help sellers at each stage of selling on Amazon dominate in 2021 and beyond.

At Viral Launch, we’re committed to providing you with the tools and data you need to dominate on Amazon! So it only makes sense that as Amazon continuously evolves, so do we.

From researching product ideas to sourcing materials to scaling your online business, each stage of selling on Amazon requires unique tools and data points to make intelligent, data-backed decisions.

As we aim to support Amazon sellers throughout their entrepreneurial journey, our subscription plans have been thoughtfully redesigned to meet Amazon sellers’ needs at each stage.

Get Started With Essentials

You talked, we listened.

Formerly our Beginner’s Research Kit, our new Essentials product research bundle receives a few significant upgrades. Due to popular demand, we’ve overhauled our product research bundle with two features previously unavailable: reliably accurate search volume estimates and our proprietary Product Idea Score.

Search Volume Estimates

Reverse engineer product ideas by filtering through categories, sales, price, search volume, and more!

Search volume estimates are a vital element of product research, as they’re an incredibly powerful indicator of demand. At its core, Amazon operates as a search engine where searchers have a firm intention to buy.

In December of 2018, Amazon made changes to their data collection that prevented third-party providers like Viral Launch from collecting exact search volume. With search volume estimates generated from an in-house data science team, we are extremely confident in the accuracy of our estimates.

Furthermore, if you’re a seller with access to Brand Analytics, you can judge our accuracy by comparing our estimates to the Search Frequency Rank in that report.

Subscribers to our Essentials plan now have access to this high-impact metric. In Product Discovery, feel free to set minimum and maximum filters for estimated search volume to find products with your ideal amount of demand.

Product Idea Score

Our Product Idea Score is a rating system of 1-5 stars that analyzes key metrics such as monthly sales, review trends, sales patterns, market competition, and much more into one composite score.

Once you’ve filled out your search criteria, you can now sort by Product Idea Score to quickly assess the strength of an idea.

While not meant to replace thorough, intensive product research, the score is designed to simplify the product research process. We strongly recommend using the score as an indicator of if a product is worth further investigating.

Previously available exclusively to annual subscribers, this advanced metric is now available to monthly subscribers to our Essentials, Pro, and Brand Builder software plans.

Product Discovery: Quickly uncover brilliant product ideas to start selling on Amazon! With 4 unique search types and plenty of filters, sellers can reverse engineer product ideas that align with their goals and resources.

Market Intelligence: Master your market to ensure your product’s success! Gain access to the most accurate sales estimates along with price and review trend data to understand the market and validate product ideas.

The Viral Launch Pro Package

Our Pro plan retains all of the features that make it our most popular package, with a few upgrades.

Pro subscribers receive access to everything included in Essentials, plus full access to Keyword Research, Listing Builder, Competitor Intelligence, Listing Analyzer, and Keyword Manager. Pro subscribers now can utilize the Product Idea Score.

We’ve also expanded the limits for Competitor Intelligence, Listing Analyzer, and Keyword Manager to allow sellers more data than ever! In addition to Product Discovery and Market Intelligence, Pro subscribers get the following tools and features:

Keyword Research: Eliminate the guesswork with the most accurate search volume estimate data available. Search for a product and instantly see a list of all related keywords with current and historical search data.

Competitor Intelligence: Know the competition better than they know themselves with our cutting-edge reverse ASIN lookup tool. Find out what they’re doing right or wrong and use that info to optimize your listing, ads, and more.

Listing Builder: Craft an SEO-optimized product listing designed to convert with our time-saving tool. With a comprehensive keyword list to draw from and real-time feedback with our Optimization Score, anybody can create their listing’s copy like a pro!

Listing Analyzer: Never miss out on a sale due to a lousy listing ever again! The innovative tool provides data-based feedback and performs a SWOT analysis to ensure every aspect of your listing is top-notch.

Keyword Manager: Uncover cutting-edge keyword analytics such as index checks, organic and ad rank tracking, search volume trends, badge notifications, and keyword scores.

The New Brand Builder: Now With Kinetic PPC

Our renovated Brand Builder package has been thoughtfully designed for Amazon sellers looking to effectively and efficiently scale their brand.

Formerly, our two highest-level tiers were Brand Builder and Kinetic PPC. We’ve merged them into one comprehensive package containing the full fleet of Viral Launch software to provide everything you need to take your Amazon business to the next level!

Brand Builder subscribers gain access to Kinetic PPC, our time-saving tool created to optimize and simplify pay-per-click advertising. Generally, sellers are often scorned by PPC, with it being too complicated to understand, too expensive, or too time-consuming to be worth the opportunity cost.

Kinetic PPC helps eliminate or mitigate all three of these roadblocks so you can run high-performing PPC campaigns to reach more customers, improve organic rank, and take your Amazon business to new heights!

Moreover, sellers on our new-and-improved Brand Builder package secure access to every tool in our software suite, including all tools within the Pro plan and Kinetic.

KINETIC: Automate your PPC campaigns like never before! Set manual or automatic rules into place to end underperforming ads or scale-up successful campaigns and subsequently see easy-to-view PPC metrics to optimize campaign performance.

We certainly know that starting PPC can be daunting and filled with questions. No worries! We have plenty of resources, including our Kinetic PPC education series to answer questions and point you in the right direction for advertising on Amazon.

Find Your Viral Launch Pricing Plan Today

Lastly, be sure to check out our updated pricing page with our new subscription tiers for more information. Start your free trial today to access innovative tools to assist with building your Amazon business.

Have any questions? Feel free to drop a comment or reach out to our customer service team at service@viral-launch.com!

Want the latest Viral Launch updates, Amazon news, and seller tips and tricks sent straight to your inbox? Just drop your email in the box below!

10 Ways You Can Make Money on Amazon

Whether you’re searching for a side hustle or a full-time gig, here’s how to make money on Amazon.

As Amazon has grown, so has the opportunity for everyday folks like me and you to make money through the e-commerce mega-power.

Much of Amazon’s immense success comes from its ability to create and host marketplaces and charging for its platform and services. While millions and millions of people will pay Amazon for products this year, you can instead use Amazon to make money.

No matter your background, resources, or time commitment, Amazon has a money-making proposition for you. To prove that, check out this list for 10 ways how you can make money on Amazon.

1. Start Your Own Private Label Business

Through the Fulfillment by Amazon (FBA) program, selling on Amazon remains a tremendous opportunity for those looking for high-upside, sustainable income. You’ve probably purchased plenty of products on Amazon, but did you know you might be buying from an independent seller not much different than yourself? Independent third-party sellers sell over half of the products sold on Amazon.

Private label refers to sellers who manufacture a product to be sold under a retailer’s brand. Third-party sellers are independent sellers who own a product to be sold. Thanks to the seller-friendly Amazon FBA program, starting your own online business has never been easier.

Enrolling in FBA gives you access to Amazon’s seemingly endless warehouse storage space, two-day Amazon Prime shipping service, and customer service team. These features eliminate the most challenging barriers of starting an online business while simultaneously placing your product on a platform with hundreds of millions of built-in customers.

The process for kickstarting an Amazon business is more simple than you’d think!
  • Find a product to source and sell with help from a product research tool like Product Discovery. With access to sales data for product markets and customizable filters, you can efficiently perform data-driven research and dig deep to find a winning product.
  • Once you’ve broken down the numbers and decided upon a product that is right for you, find a manufacturer. Sites like Alibaba specialize in manufacturing products for independent sellers.
  • Sign up for FBA and ship your product to Amazon’s warehouse. Just complete your listing, and you’re ready to start generating sales. Your listing automatically is equipped with the Amazon Prime badge!

While selling on Amazon requires ongoing work in various business aspects, the startup is affordable and straightforward. With literally billions of dollars going to Amazon sellers, the prospect of selling on Amazon provides limitless potential for ongoing success.

2. Resell Goods Through Retail Arbitrage

Want to make money on Amazon without the cost or commitment of FBA? Retail arbitrage might be for you!

Retail arbitrage is the practice of buying an item from one marketplace and reselling it on another at a higher price. Recently, buying sports cards and collectibles at garage sales to resell online at a marked up price increased in popularity.

Because this often includes finding products on other websites (like eBay) or physically purchase products in stores, this option may not make sense for everyone. This makes scalability difficult but allows many to dip their toes into the water without diving in headfirst.

However, if you find a product you can reliably flip for a profit, it’s not much different than finding cash! Retail arbitrage is especially appealing for those who find joy in the hustle and grind.

3. Find A Wholesale Distributor and Sell Products from an Established Brand

Wouldn’t it be nice to skip building your own brand and sell products from name brands? If this sounds intriguing to you, wholesaling might be your route to success!

In a way, wholesale mixes of #1 and #2 on this list.

Wholesaling on Amazon typically involves buying products in bulk from an established company to resell for a profit. The process of finding an excellent wholesale product would be identical to private label until it’s time to purchase.

Once you’ve found a perfect product, you would go directly to the brand instead of sourcing from a manufacturer and slapping your logo on it. Instead, you’d purchase the inventory and ship it to Amazon’s warehouses under the brand name.

For example, Nike stopped shipping directly to Amazon in 2019, yet people still search for Nike gear. Hypothetically, you could research Nike’s wholesale policy and apply to become a wholesaler. If approved, you could sell a globally recognized brand that people are already looking to buy.

Of course, this is dependent upon their approval, your ability to gain the necessary certificates and documentation, and the negotiated prices that impact your profitability.

4. Start Dropshipping on Amazon

Similar to retail arbitrage, dropshipping features even less seller responsibility, although it often requires even more research and lower profit margins.

Dropshipping is an order fulfillment method in which the seller does not keep product in stock. Instead, the seller receives an order and passes it to a third-party supplier who ships and completes the order.

The appeal of dropshipping is apparent, you never touch or store the product, saving you a ton in manufacturing and inventory fees! However, the downside is equally prominent. Most of the money received will end up in the hands of the manufacturer, making it difficult to turn a profit.

For many dropshippers, it requires a high volume of sales for it to be worth the time and effort. Although it requires less

While there are plenty of pros and cons, dropshipping can be a winning method to making money on Amazon, or a way to give selling on Amazon without the long-term responsibility and fees of FBA.

5. Author Your Amazon Success Story with Kindle Direct Publishing

Amazon famously began as an online bookstore. Since then, it’s continued to look for ways to revolutionize bookstores.

Kindle Direct Publishing generates recurring income for authors.

In late 2007, Amazon launched the initial Kindle. While most of the emphasis centered around the way we read, Amazon also looked to revolutionize book publishing with the Kindle Direct Publishing (KDP) platform. KDP allows authors to publish their books directly to the Kindle Store independently.

Passionate writers no longer need to rely upon lengthy, expensive publishing companies for their words to reach the masses.

If you’re willing to give Amazon exclusivity to your e-book, you can earn even more money through KDP Select. Utilizing KDP Select makes your e-book “free” for anyone with Kindle Unlimited. Authors get paid per page read, which can be incredibly rewarding and makes it possible to earn money in perpetuity for your writing skills.

Now that I mention it, maybe this article would look better in an e-book…

6. Show Off Your Design Skills with Merch by Amazon

Merch by Amazon extends a golden opportunity to those with a passion for graphic design. And the best part? Selling on Merch by Amazon features zero upfront fees, making it completely risk-free!

To be a Merch designer, you must first submit an application stating your information and goals. Then, upload your artwork and click submit. Amazon takes care of the rest, placing your art on merchandise like shirts, phone cases, tote bags, and throw pillows. As orders come in for your artwork, you earn royalties for each item purchased with your design.

For designers selling goods, the issue of ordering the optimal amount of a product often presents problems. Make too many of an item, and your profits take a significant cut from excess inventory. Make too little and miss out on potential sales.

Merch by Amazon alleviates creators of any inventory concerns or other selling responsibilities, allowing designers to do what they do best.

7. Flex Your Marketing Muscle With Amazon Associates

Ask any seller on Amazon; visibility is the name of the game. With millions of product listings in the marketplace, sellers need to position their products for maximum visibility.

Enter Amazon Associates – an affiliate marketing program created to help influencers of all backgrounds monetize their audience.

Have you ever read something on the internet with a message like this?

Via GQ

Affiliate commissions are rapidly surging in popularity, from social media influencers to major publications to popular Facebook groups or other internet forums. And for a good reason.

Affiliate marketing commissions create continuous, recurring revenue. A written article, social media post, or video that drives continuously drives traffic can create a constant stream of passive income.

8. Monetize Your Large Following within the Amazon Influencer Platform

An extension of the Amazon Associates program, the Amazon Influencer Platform fits the specific needs of influencers.

How an Amazon Influencer storefront looks to viewers

To be accepted into the influencer program, Amazon requires a larger following than the Affiliates. Unfortunately, Amazon doesn’t state the magic number of followers for acceptance into the program.

But if you have a sizable following up to the program’s standards, it can be incredibly rewarding with little work!

However, being an Influencer gives you access not just to purchasable links but to an entire storefront. Add your storefront to your bio or high-visibility sections of your social media profile of choice and gain commissions as followers purchase from your curated list of favorites.

Just keep generating click-worthy content, build your following, and watch as your commissions pile up!

9. Be A Part of Amazon’s Revolutionary Fulfillment Process

In 2005, Amazon debuted Amazon Prime, its membership program boasting free two-day shipping, among other perks. As of January 2020, more than 150 million people are Prime members.

Fulfilling orders so quickly requires a massive team of workers.

To fulfill the massive amount of orders, Amazon needs plenty of laborers in its warehouses and delivery network.

Amazon employs more than a million people, many of whom work in logistics at one of the company’s many warehouses. In the wake of COVID-19, Amazon added over 150,000 employees to handle the booming workload.

In late 2018, Amazon announced it raised the minimum wage for U.S. employees to $15 an hour, more than double the country’s minimum wage. For full-time workers, that comes out to $31,200 before taxes!

Unlike most retail businesses that open and close daily, Amazon is open 24/7, allowing for flexible scheduling for warehouse workers and delivery drivers. Whether looking for full-time or part-time work during the day or night, there’s a shift for you at Amazon.

While most of the other jobs are a little more unconventional, being a part of Amazon’s logistics team provides a safe, traditional way to earn money for your time.

10. Craft A Worldwide Business with Amazon Handmade

Amazon Handmade allows artisans to scale their business internationally. Amazon boasts creators from over 80 countries through Amazon Handmade.

In eight categories (Jewelry, Home Décor, Kitchen & Dining, Beauty & Grooming, Handbags & Totes, Stationery & Party Supplies, Clothing & Accessories, and Toys & Games), craftspersons can easily take their local business global.

Amazon Handmade presents another option for artisans, in addition to platforms such as Facebook Marketplace, Shopify stores, and Etsy shops. By adding Amazon Handmade to the mix, handcrafted items reach a larger audience than ever before. For business owners selling do-it-yourself crafts, maintaining a presence on these platforms can pay off exponentially.

Conclusion

As the leader in e-commerce, Amazon presents plenty of excellent ways for people of all walks of life to make money. Of course, there are more than 10 ways to make money Amazon, and likely, even more will spawn as Amazon continues its explosive growth.

Thanks to Amazon’s massive, far-reaching marketplace, anyone can get involved and find a way to make money on Amazon.

At Viral Launch, we’re constantly amazed at the diverse backgrounds and stories behind those utilizing Amazon in the pursuit of financial freedom. For instance, we’ve witnessed college students pay for school via dropshipping and grandparents starting an online business with hopes to pass it down for generations.

No matter who you are, Amazon offers a way for you to make money online!

Have any questions or experience making money on Amazon! Feel free to leave a comment and join the conversation!

A Chat With Saqib Azhar, Leader of the Largest Amazon Seller Facebook Group in Pakistan

Saqib Azhar talks through his Amazon-focused growth strategies in 2021 and gives insight into how he built an enormous, highly engaged Amazon group on Facebook.

For the latest installment of Follow the Data, Saqib Azhar graciously shares his Amazon knowledge with host Cam Yoder. From starting your own business to training a country for taking on entrepreneurship, Azhar possesses one of the more influential voices in the Amazon seller community.

Azhar is the CEO and Co-Founder of Enablers and the leader of the world’s largest Facebook group for Amazon sellers.

At Enablers, Azhar’s mission is to combat unemployment in Pakistan by empowering and educating the youth to sell on Amazon. While most Amazon sellers seek to establish themselves, Azhar aims to lift a nation along with him.

With over a decade of e-commerce experience and a perspective unlike any other, Saqib has plenty of unrivaled knowledge to share. In other words, this is a must-listen for serious Amazon sellers.

Be sure to check out the show for advanced Amazon seller strategy from one of the world’s most knowledgable resources!

HIGHLIGHTS

Get familiar with Saqib Azhar and his unique experience as an Amazon seller and community leader. (0:00)

Enjoy the episode? Like and subscribe to our YouTube channel or wherever you listen to podcasts! Don’t miss out on the Amazon seller insights within our hundreds of episodes.

With years of experience in the Amazon space, how does Saqib plan on growing his business in 2021? (7:12)

As a long-time seller who manages one of the largest seller groups and teaches aspiring Amazon sellers, Saqib knows the ins and outs of Amazon in a way few others do. Don’t miss out on his valuable insights on how to take your Amazon business to the next level in 2021!

Saqib witnesses plenty of new sellers entering the marketplace. What common mistakes do beginner sellers make when starting out? (15:13)

Like many aspects of life, the beginning stages are an excellent opportunity for a learning experience. However, beginners on Amazon quite literally can’t afford to commit beginning blunders. Saqib shares common beginner mistakes, so you can accelerate the learning curve and avoid rookie mistakes.

On how he grew his community so rapidly. (25:49)

As e-commerce continues to grow, the ability to build a community around a product or a brand allows for explosive results. Further, Saqib breaks down how what has powered the growth of his company.

Before we say goodbye, Saqib offers sage advice for Amazon sellers. (31:29)

The entrepreneurial spirit and desire to be self-sufficient leads many to Amazon. But that same mentality can be their downfall on such a wide-ranging platform. To wrap up the conversation, Saqib leaves us with sound advice.

A special thanks to Saqib for stopping by to chat! Be sure to check out Saqib’s website for more details on their offering and mission to expand Amazon to Pakistan. Check out the eCommerce by Enablers Facebook group.

Enjoy this episode? Like and subscribe to our YouTube channel for Amazon seller updates and conversations with Amazon’s brightest minds.

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