The Chinese New Year is fast approaching. Familiarize yourself with the holiday – and how it affects your Amazon business.
In a few weeks, the Chinese New Year will begin, presenting a unique set of challenges for Amazon FBA sellers. For new and existing sellers alike, the holiday requires planning and attention to steer your business toward success.
When Is It?
Friday, February 12th marks the beginning of the Chinese New Year. While the celebrations can last up to 16 days, only the first seven days are considered a public holiday.
The upcoming year is the Year of the Ox. According to the Chinese zodiac, the Ox represents hard work and honesty.
What Is It?
In short, it’s one of the world’s largest celebrations, with estimates of over a billion people taking part in the fun.
The arrival of a new year is celebrated across China, with customs and traditions varying by region.
With customs and traditions varying by region, spectacular celebrations take place all over the country. Often referred to as the Spring Festival, Chinese New Year festivities are known worldwide for their glitzy fireworks display, Lantern Festival, and traditional dragon and lion dances.
During these traditions, all major businesses in China and Taiwan shut down for the holiday’s duration. These businesses, including factories, shut down for at least one week and could close for up to three weeks. Of course, this results in a pause in production for those depending on products from China’s robust manufacturing industry.
What Does This Mean for Amazon Sellers?
Since many Amazon FBA sellers source private-label products from China through suppliers such as Alibaba, the manufacturing halt can leave sellers vulnerable to inventory shortages if not navigated appropriately.
At this point, sellers should no longer expect the fulfillment of new orders before the holiday. Unfortunately, there’s little you can do to stock up if you haven’t already placed an inventory order. Marking your calendar in the months leading up to Chinese New Year would be wise.
If you’re a new seller leaping into FBA, understand this could complicate and delay your entry into the marketplace.
As you’d imagine, a heavy backlog of orders builds before, during, and after the celebration. Due to this, anticipate lengthier delays in months ahead as factory workers fulfill backlogged orders.
To successfully navigate through the Chinese New Year and the obstacles place in front of you is to communicate. When selecting a manufacturer, the importance of strong communication cannot be understated. Many suppliers with strong communication skills reach out to sellers in the months leading up to the Chinese New Year to effectively maneuver through manufacturing speedbumps.
If you have yet to have these conversations with your manufacturer, contact your manufacturer ASAP!
Don’t Sacrifice Quality
Additionally, the logjam of orders encourages speedier work. As workers rush to fulfill your order, quality may take a hit. But rushing orders by sacrificing quality leads to compounding problems for Amazon sellers.
Utilizing a China Quality Inspection company helps ensure quality control and save yourself from returns, negative reviews, or any of the potential consequences from quality issues.
While the holiday can disrupt your typical workflow, it’s important to empathize with your manufacturers and respect cultures! You may even consider buying your contact a gift to celebrate the occasion, especially if they have a history of going above and beyond for you.
In the hunt for FBA success, many forget or downplay the significance of the human element. But the benefits of a great working partnership far outweigh the cost of a token of your appreciation.
Best of luck in 2021 and the Year of the Ox!
What adjustments are you making for Chinese New Year? Leave a comment and let us know!
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Is it too late to start an Amazon business in 2021? Not at all! We spoke with Kae Peterson, an Amazon seller who launched her brand in the past year.
On Follow The Data, we aim to cover the hottest topics for Amazon sellers. In this episode, we tackle the most common question we receive from those interested in starting their own online business: Is it too late to get in the game?
The short answer: absolutely NOT.
In this episode, host Cam Yoder chats with Kae Peterson, who knows firsthand that starting an Amazon business remains an excellent opportunity for entrepreneurs.
Kae’s background and experience in the volatile entertainment industry pushed her to search for more consistent, reliable income sources.
With an entrepreneurial spirit and appetite for learning, Kae charted her own path into Amazon and eCommerce. After successfully launching her first product in the past year, she’s looking to expand her business and online presence in the new year.
Be sure to check out the video below to learn how Kae made her leap into the Amazon marketplace, her recommended best practices for starting from scratch, and some inspirational gems to get your mind right!
Get to know Kae! Although a newbie on Amazon, she’s no rookie in entrepreneurship. Dating back to 2013, she’s ran a brick-and-mortar store and experienced success with music and modeling. So what led her to selling on Amazon?
It’s one thing to consider the prospect of selling on Amazon, it’s another to go through the stages before selling your first product. Kae walks us through the evolutions of her learning experience. (5:26)
Even with Kae’s unique background, her learning experience is a fairly common one. Once you’ve decided to start your online business, it’s all about finding a process that works for you. Finding experts you can learn from and accurate, reliable tools to discover and validate clever product ideas makes all the difference.
Additionally, Kae includes one crucial mistake that taught her a vital lesson with the product-finding process.
The cost of starting up an Amazon business can be a major deterrent. But Kae didn’t let the start-up costs slow her down, funding her own business in a creative way. (9:56)
Faced with the issue of not having the funds to confidently start her Amazon business, Kae took matters into her own hands. While programs such as Amazon Lending exist, the prospect of taking out a loan can be scary. So Kae started her own business as a way to fund her bigger vision, becoming a perfect example of how you can grind your way to make your dreams reachable.
Possessing a big picture strategy and learning from past experience are crucial for growth. What’s in Kae’s roadmap for finding products in 2021? (14:15)
There’s no greater teacher than experience. With her first Amazon product experience down, Kae offers insight on the elements of a product idea that gained emphasis for future products.
You’ve started selling on Amazon, but what happens next? Kae outlines her goals for in regard expanding her brand after launching. (22:15)
Every seller jumps into Amazon with goals and a purpose that is driven from within. Those components can determine your path beyond your first product launch.
With so much emphasis on making sure your first product is a home run, it can be easy to feel lost once the product is launched. Listen as Kae breaks down her long-term goals and what’s in-store for her brand for the year ahead.
Certainly, 2020 presented a unique experience for Amazon sellers. What issues are on the radar for sellers in the new year? (27:34)
After the past year, we could all use a dose of optimism. 2020 showed that challenges, both foreseeable and unforeseeable, will continue to persist and the successful will take them as they come and persevere.
A special thanks to Kae Peterson for hopping on the show and sharing her experience starting an Amazon business to this point. Make sure to give her a follow in the links provided below to follow her on her Amazon journey!
Are YOU missing out on thousands of dollars because of hidden Amazon inventory and fulfillment fees?
Happy new year! On this installment of Follow The Data, host Cam Yoder chats with Joseph Abitol, founder of Seller Locker on how you can start 2021 on the right foot by saving your business from hidden yet costly Amazon FBA fees!
While most FBA sellers just accept Amazon-related fees as the cost of business and focus solely on driving sales, Joseph Abitol explains this is a mistake that could be costing your business a hefty amount of cash.
Well, a penny saved is a penny earned. But how exactly do you earn this money?
Cam and Joseph dive headfirst into how to identify the areas where you might be losing money. Additionally, Joseph provides a quick three-step process to remedy those losses!
Need proof of SellerLocker’s methods? Joseph shares his screen and showcases how one seller recovered over $400,000 in fees! (6:04)
In this space, unfortunately it’s common that “gurus” will use inflated or false numbers to showcase their alleged expertise. But this isn’t that. If there were any doubt about sketchy math, Joseph provides the proof that others won’t show.
The three-step process Joseph recommends that all sellers can do, with or without SellerLocker (8:36)
SellerLocker originated as a tool for the elite sellers on Amazon, but has developed methods that every seller can use to be reimbursed for lost money. Depending on the size of your business, this is an explosive, groundbreaking method to help improve your bottom line.
When you sell on Amazon, it’s easy to trust the system in place. But given the massive amounts of lost money, should sellers be skeptical? (11:30)
Cam asks the hard-hitting question. If this money has been missing, how can sellers trust the system in place? It’s less devious than you think, and Joseph breaks down why the reimbursed money and how Amazon already reimburses sellers for some of these fees you may not be aware of.
In step one, Joseph shows you how to open a claim. And too many sellers stop there. Following up on your claim is the only way to get your money back, and SellerLocker has methods to automate this process so you can save money automatically.
Always keep your receipts! This isn’t just a helpful tip for shoppers, it’s also one for Amazon sellers. When reporting these issues, Amazon asks for proof through documentation, just as a store will ask for a receipt to issue a return. SellerLocker showcases what documents you’ll need, and how to create a system to organize your documents.
Closing advice from Joseph on getting into ecommerce in 2021 (30:24)
Is 2021 too late to get into the ecommerce game? Nope! Even Joseph’s dad is looking to get into the selling space to take advantage of the massive amounts of money sellers are making. With the right tools and strategy, you could be one of them.
A special thanks to Joseph for hopping on the pod and sharing these invaluable insights! SellerLocker is a great software tool that automates this money-saving process for you that we highly recommend checking out!
The Amazon 2020 Year in Review: Examining the products that defined the past year.
“What was it like living in 2020?”
We’ll likely be tasked with answering that question at some point in the future. And oh boy, how would we begin?
Undoubtedly, we’ve all had our own unique, personal experience with 2020. But collectively, you can tell the story of 2020 through consumer trends. What were we looking for and buying? What was popular in 2020 like no time before?
Using Viral Launch’s comprehensive software suite, including tools such as Keyword Research and Market Intelligence, we’ve tracked Amazon trends via sales and search volume.
Using that information, we’ve compiled your Amazon 2020 Year in Review, with the data on the year’s hottest items.
The COVID-19 Pandemic
What a difference a year makes. Remember when “face mask” conjured thoughts of a football helmet, Halloween accessory, or a part of a beauty routine? Man, those were the days.
With an estimated search volume that lingered around 240,000 searches per month for nearly two years, we can’t accurately say the phrase itself came out of nowhere.
But the reasoning behind this search began to change and take on a whole new meaning starting in February as COVID-19 infiltrated the country. As towns, cities, and states mandate the wearing of masks to contain the virus, demand is higher than ever as we enter 2021.
With over 1.8 million searches this month, face masks may be as popular of an item that Amazon has ever had.
With the influx of searches, sales skyrocketed.
In the image on the left, we see sales estimates for a top-selling face mask listing dating back to January 2019. For the entirety of 2019, they sold between 100-200 units per month. Since late March, they’ve sold over 1,000 units per month for much of the year.
Many of the top sellers for the product just started selling in the past few months, as longtime sellers were wiped out of inventory quickly due to boom in demand. As the need for face masks has persisted, it’s allowed newer sellers to enter the market and find success.
But face masks were far from the only COVID-related product to rise to prominence in 2020…
We imagine no two products paired more often than face masks and hand sanitizer for the year.
Unlike face masks, there was no redefining “hand sanitizer” this year and it’s a product that has always experienced consistent sales. But clearly, the demand climbed exponentially in the wake of COVID-19.
Brands such as Germ-X, Purell, Rubbermaid, and Amazon’s Solimo were at the forefront of the pack to take on the massive amount of traffic looking to kill 99.9% of germs.
However, even the major brands couldn’t have been prepared for the onslaught of sales. As showcased in the image below, sales stagnated for months on certain listings, almost certainly due to providing enough inventory to meet the insatiable demand.
At Home Products
But COVID-19 had a much larger imprint on our buying habits than directly stopping or killing the virus through masks and sanitizer.
Due to the abrupt changing of our world, we had to adjust our everyday habits on the fly. Of these changes, finding alternatives to the gym has been one of the more impactful ones on Amazon. Whether because of gyms closing, restrictions on gym-goers, or people preferring to not using shared equipment, the home workout market has been on a tear.
If you’ve tried purchasing at-home gym equipment over the past few months, you’re well aware of this.
Hoping to avoid the dreaded “quarantine 15” weight gain, many gym-related products have seen a dramatic upswing in interest on Amazon. Across the board, searches for treadmills, dumbbells, adjustable dumbbells, and jump rope have all experienced nearly four times as much traffic at its 2020 peak compared to pre-COVID demand.
Additionally, work life shifted from the office to remote for many companies. In recent months, it’s become apparent that work-from-home is here to stay. Workers have begun to turn their at-home work station from makeshift to one that better fits their long-term needs, the market for traditional office supplies has grown substantially.
Here’s to 2021’s Year In Review centering around getting back to normal as we defeat the virus and get back to normal.
2020: The Year TikTok Broke Through
In a more typical year, 2020 would be known as the year of TikTok.
Once upon a time, the lifespan of a social network platform was brief. One day there’s a brand new app that your cool friend is touting. The next, it’s gone the way of the dinosaur. When was the last time you updated your Myspace Top 8? Made any cool Vines lately?
Facebook, Instagram, and Twitter all have a decade or more under their belt. Snapchat isn’t far behind. With the massive amount of money bankrolling these social networks, it had been a while since a new social network materialized that could compete.
Even before TikTok announced eCommerce integrations to allow merchants a larger presence on the platform, the rise of TikTok trickled into consumerism.
The Ring Light
Once an accessory for photographers and select content creators, the ring light became a must-have item for TikTokers this year. Peaking during the holidays, over 1.6 million estimated searches were performed for the product.
While searches for “ring light” peaked at the end of the year just in time for the holiday season, “ring light with stand” made a considerable leap in April and May before a holiday push.
Likewise, green screens saw a rise thanks to TikTok and it’s feature to use any backdrop with a handy green screen. As TikTokers pros like Jason Derulo and Will Smith use green screens for content gold, they rushed to Amazon to get one of their own.
Evidenced by over 440,000 estimated searches in December (compared to 106,000 in January), green screens were on everyone’s holiday wishlist.
Pop Culture Trends of 2020
As we spend more time indoors than ever, the year saw a rare shift back to the monoculture. With so many different sources of entertainment available, finding shared experiences through pop culture became a rarity. In a time where we were around family and friends less than ever, pop culture events of the past year gave us ample conversation topics, even if those conversations were through text, social networks, or Zoom.
Here are the shows, events, and games that helped define the past year.
The Netflix Standouts
With how long this year has felt, it may be difficult to believe that Tiger King: Murder, Mayhem, and Madness came out in March. But it’s true. Just as the coronavirus forced us indoors, Joe Exotic and Carole Baskin entered our lives and became the modern-day Hatfields and McCoys.
Released on March 12th, the day between the WHO declaring COVID-19 a pandemic, the docuseries provided much-needed entertainment and comic relief as we headed indoors.
But Tiger King was far from the only blockbuster hit from Netflix. In the last few months of the year, The Queen’s Gambit became the most-watched scripted miniseries in Netflix’s history. The drama, set in the 1950s and 1960s, renewed interest in the strategy-based board game.
Premiering on October 23rd, searches and purchases have spiked for chess-related terms. In September, searches for “chess set” totaled 41,868. As the show’s rise in popularity coincided with the holiday season, searches were up to 345,245 in December. But the holiday season alone can’t be attributed to the uptick in searches for the phrase, as December 2018 and December 2019 each had between 105,000 and 120,000 searches.
The Queen’s Gambit’s popularity and the resulting blitz of traffic and sales prove selling the right product on Amazon at the right time can be incredibly rewarding.
The Kobe Effect
On January 26th, the world lost NBA legend Kobe Bryant in a helicopter accident that took the lives of Bryant and eight others, including his daughter Gianna. Around the world, millions of fans lamented for the fallen icon.
Just before COVID-19 changed American life, countless fans of “The Black Mamba” gathered outside of the Staples Center in Los Angeles, where Bryant provided so many memories throughout his storied career. Fans adorned the area surrounding the arena with murals and items to memorialize Bryant.
As fans grieved, people sought Bryant gear to show their allegiance to Bryant was as strong as ever.
While Amazon typically isn’t the go-to source for athletic apparel from signature athletes, fans flocked to the eCommerce retailer looking for available merch. Much of Bryant’s signature merchandise is through the NBA or Nike, both of whom exclusively sell in their own stories.
However, part of Bryant’s allure is that he wasn’t just a typical athlete. You can find the five-time NBA champion’s autobiography, series of children’s books, and much more on Amazon.
Sports In 2020: Checking In On The Champs
Search volume trends for champions in the four major U.S. professional sports leagues mirrored the popularity of each sport in recent years, highlighting that football is America’s true pastime. Below, you’ll find each 2020 champion’s peak monthly estimated search volume.
(NFL) Chiefs: 174,757 (NBA) Lakers: 82,758 (MLB) Dodgers: 41,967 (NHL) Tampa Bay Lightning: 38,959
Even as teams played in empty or sparsely packed arenas, fans showed their support from afar.
The Gamers Level Up
Similar to TikTok, 2020 was a new high score for gaming. With more time spent indoors and next-generation XBOX and PlayStation consoles, it’s no surprise that competitive and casual gaming alike powered up. Amazon-owned Twitch, a streaming platform used primarily for gamers, nearly doubled the amount of content watched from Q3 2019 (2.5 billion hours) to Q3 2020 (4.7 billion).
The 2020 Console Wars
The latest battle of the Console Wars, with the XBOX Series X and PlayStation 5 consoles releasing in the last quarter of 2020. Due to production and manufacturing delays causing a stock shortage, many gamers are still refreshing their browsers in hopes for a restock.
Because of this, gamers are searching for the consoles at an astronomical rate. But which console wins in our 2020 year in review?
During the most popular shopping season, Sony’s Playstation 5 is holding a steady lead over its counterpart from Microsoft. Hopefully, more and more gamers can make the switch to next-gen as more consoles become available.
For reasons good and bad, 2020 has been a year for the books. As the ball drops in Times Square signaling the beginning of 2021, we at Viral Launch wish you a happy new year!
Thanks for checking out our Amazon 2020 Year In Review! Did we miss anything you think belongs on the list? Feel free to start your free trial with Viral Launch to dig through the data on your own! What was your favorite trend of 2020? Drop a comment below and let us know!
No matter what holiday you celebrate, we hope you do, in fact, celebrate. Meanwhile, for Amazon sellers, the holidays represent a time of booming traffic and opportunity. While an influx of sales is always welcome, it adds a challenge of work-life balance.
The holiday season signals the end of the year is near, and we think it’s safe to say we’re all collectively ready to put 2020 in the rearview.
It’s certainly been a year like no other, and just as such, it’s impossible to ignore this is a holiday season is different from years past. Perhaps you’re not traveling like normal, or won’t be around
But don’t let that get in the way of having holiday spirit!
Bake some cookies for Santa Claus, flick on your favorite holiday movie (Die Hard?), and pour a glass of eggnog to sip around the fireplace. To help you get in the holiday spirit, check out the playlist below with some of the best Christmas music.
Because if Mariah Carey and Co. can’t get you feeling festive, you might be a Grinch.
While we hope you’re able to celebrate this holiday season, we’re fully aware you have a business to run! Whether you’re an Amazon veteran or spending your first holiday rush as a seller, we’ve got you covered with tips and tricks to conquer Christmas and kickoff 2021 like a boss.
We wish you the absolute best this holiday season and hope it is filled with health, positivity, and success for you and your loved ones.
Last but certainly not least, be sure to drop your email below to receive the latest updates in your stocking inbox. We’ve got plenty in store for 2021 that you do NOT want to miss out on!
Amazon is removing the feature allowing anyone to comment on a product review, per a Business Insider report. Amazon officially retired the feature on December 16th, 2020.
What relevance does this have for sellers?
Many sellers utilized this feature to respond to customer reviews as a form of customer service.
Furthermore, this likely signals more changes to come, as Amazon noted the development of other opportunities to connect with customers.
Following the update, a few sellers have received emails notifying them of change:
You’re receiving this email because you recently left a comment on a review. While reviews and feedback are important to our customers and sellers, the comments feature on customer reviews was rarely used. As a result, we are retiring this feature on December 16, 2020.
We’re committed to your continued success and will innovate and develop other opportunities for you to connect with customers.
Thank you. Amazon Services
Initially, the removal of this feature has been poorly received by sellers.
“Just like removing customer contact information from the order information page, this makes it harder for good sellers to provide top-notch customer service,” stated one concerned Redditor.
However, the update changes the buyer-seller communication experience, but doesn’t end it. Recently, Amazon FBA updates appear to be centered around the buyer-seller communication process.
Sellers and buyers can directly communicate in the Buyer-Seller Messaging Service. Even so, this service permits direct messages to customers and not visible to prospective customers.
As a result, sellers should continue to monitor Seller Central updates as more information becomes available. As mentioned by Amazon, we’d expect more policy or feature changes concerning buyer-seller communication.
What can you do?
Potentially, your listing copy may be a way to address this obstacle effectively. How so?
Let’s put ourselves in the customer position for a situation. You’re looking to purchase a product, but have reservations due to a recent negative review or stream of bleak reviews with a common theme. In the past, the seller could provide help to quell concerns from prospective customers.
Your listing copy can address these issues without replying directly to the review. If customers are misusing your product in a way that could lead to negative reviews, you might be interested in addressing the issue in the product description.
Of course, making changes to your listing copy results in a temporary decline in ranking. So it may not be worth revising your copy after each negative review. But if a review is affecting your conversions, it might be worth the short-term hit.
Did you ever use this feature? How does this change your selling experience? Drop a comment below and let us know how this affects your selling experience.
Want to stay in the loop on the latest Amazon FBA updates? Enter your email below to get them in your inbox every time!
What’s ahead for Amazon FBA in 2021? How will Amazon change? What will it mean to be an eCommerce entrepreneur?
As the clock winds down on the current year, Follow The Data host Cam Yoder asks a handful of the brightest minds in the Amazon selling space to prognosticate what lies ahead for Amazon FBA in 2021.
As always, staying a step ahead of the competition is the name of the game when it comes to dominating on Amazon and skyrocketing your sales. For example, just think about how knowing how anyone who could see the future would’ve crushed it on Amazon this year.
Of course, 2020 was a year nobody could’ve predicted for unprecedented reasons well outside of Amazon. However, that was 2020. In most years, a glimpse into the future is more realistic, especially when that glimpse comes from Amazon experts who track trends to predict what comes next.
We’ve collected input from a wide range of Amazon & eCommerce experts to give their insight into how we can expect Amazon to change in 2021 & beyond, as well as key strategies and steps we can take to address the up & coming changes.
Amazon 2021 Expert Predictions
Got an Amazon FBA 2021 prediction of your own? Drop it in the comments!
Be sure to like and subscribe to our YouTube channel, as we’ll be sure to keep you up-to-date on all things Amazon with content and conversations with the best minds in the space.
All in all, thank you all for the support. We know that 2020 was rough, but there’s a light at the end of the tunnel. Keep pushing hard and finish the year strong! We’ll see you in 2021.
Lastly, we’re grateful for the expert insight and advice from our panel of guests! Find each of their names, contact info, and full-length show episode below:
One of the most challenging aspects of starting a business is getting your product in front of the right audience. As Amazon owns about 49 percent of the U.S. e-commerce share, it makes sense to start an Amazon FBA business to sell your e-commerce products as your target market already prefers shopping there.
Additionally, Amazon makes it easy for sellers to list, sell, and ship their products through their Fulfillment By Amazon (FBA) program. Here’s everything you need to know about an Amazon FBA business and whether you should start an Amazon FBA business or purchase an existing one.
What is FBA?
Some 73 percent of Amazon sellers in the U.S. use the FBA program, making it one of the most popular e-commerce sales options. Amazon FBA sellers receive immediate access to Amazon Prime customers, which can significantly impact the bottom line of the business. On average, Amazon Prime customers spend $1,400 per year on Amazon, whereas standard Amazon customers only spend $600 per year.
The other reason why FBA businesses are popular is that it’s convenient.
With an Amazon FBA business, you don’t have to ship, package, or store any goods yourself. Instead, you pay a small fee, and Amazon employees handle all of this for you.
Shipping fees are up to $5.26 for large items (items up to 21 pounds), and they also have oversized pricing options for much larger items.
Storage fees are also reasonable at $0.69 per cubic foot for standard items January through September (October through December fees may be higher to accommodate increased demand during holidays).
You’ll also have to decide whether you want to be a professional seller or an individual seller. You aren’t required to have a professional seller account to have an Amazon FBA business, though it may be cheaper depending on how many items you plan to sell. A professional seller account pays a flat rate of $39.99 per month, whereas an individual account pays $0.99 per item.
Therefore, if you plan to sell more than 40 items per month, it’s likely more economical to purchase a professional seller account.
So if you’re looking to own an Amazon FBA business, is it better to purchase an existing business or start one from scratch?
While there is no right or wrong answer, here are a few questions you should ask yourself to determine which is the best solution for your situation and goals:
Do You Have The Capital?
The first question you should ask yourself is if you have the means to purchase an existing business.
An Amazon FBA business usually sells for about two to three times its yearly net profit. In other words:
Annual Net Profit x Multiple (usually 2 or 3) = Valuation
Therefore, if you want to purchase a business that makes about $10,000 in annual net profit, you can expect to pay $20,000 – 30,000.
Unfortunately, if you don’t have any capital upfront, your only choice is to build one from scratch, which can still be quite profitable!
Is This a Long Term or Short Term Investment?
Another question you should ask yourself before getting started with an Amazon FBA business is how long you’re willing to invest in the project.
If you’re willing to invest in this business for a few years, starting from scratch may offer you a more significant ROI. Getting started can be challenging as you’ll have to find your own suppliers and build reviews and a brand. Therefore, during those first several months, you may not make a dime, so you can’t expect to flip the store in a few months.
On the other hand, if you are looking to purchase a store, sell for a few months, and then flip it quickly, an established store is a better option.
Building momentum in a brand new company takes time. Not all sellers are profitable in the first year of a new Amazon FBA business, making it difficult to flip for a reasonable price as your net profit may be zero or negative.
However, once you pass a certain threshold of reviews and brand equity, exponential growth becomes possible.
What Skill Sets Do You Have?
Some people entering the Amazon FBA world have a background in business or marketing. If this is the case, one of the best ways to decide whether you’ll purchase or start an FBA business is to play to your strengths.
For example, if you previously worked for an e-commerce store and understand how to grow it, you may perform better if you purchase an existing store and grow it.
However, suppose you worked at a startup company and understand how to be resourceful, play the long game, and hang in there during the first challenging year of zero profit. In that case, you might be more successful starting a business from scratch.
Building a business from scratch and taking a business from five figures to six or seven figures requires two very different skill sets, so play to your strengths.
What Kind of Risk Would You Rather Take?
Starting any business involves some risk. However, the type of risk you take differs based on whether you purchase an existing business or build one from scratch.
Building one from scratch requires zero capital risk upfront though your chances of becoming profitable are much lower.
If you purchase a business that is currently profitable, your chances of remaining profitable are much greater. However, if you suddenly run into problems with suppliers, knock-off items or pricing wars and your business falls apart, you’ll lose a larger investment.
Therefore, while the risks differ, both have risks. So would you rather gamble time or money? Here are your choices:
Buy a Business = Higher Probability of Profitability + Increase Capital Risk
Start a Business = Lower Probability of Profitability + Lower Capital Risk
What Is Your End Goal?
Ultimately, the right decision depends largely on your goals. Do you plan to grow businesses from scratch and then sell them? If that’s your end goal, starting a business from scratch is the best way to learn.
Above all, running an Amazon FBA business is similar to running any business. Regardless of whether you purchase one or start one from scratch, it requires a lot of time, dedication, and commitment, and you can’t give up on it after a few months. You’ll have to put out fires and appease angry customers, though the rewards of growing a thriving business are more than financial. Get started now, and commit yourself to keep going!
On the centennial episode of Follow The Data, host Cam Yoder chats with Amazon ad expert Destaney Wishon from BetterAMS to discuss PPC tactics to crush holiday season and 2021.
Amazon advertising strategy is frequently cited as one of the most challenging aspects of running an FBA business. But this difficulty should be viewed as an opportunity, not a roadblock.
As the importance of advertising grows more consequential, knowing the tips and tricks to turn what is an impediment for many sellers into a sales and growth accelerator for your product catalog.
Not many have a handle on the latest Amazon advertising strategy hacks than Destaney Wishon, CEO and Co-Founder of BetterAMS. Thankfully, Destaney sat down to chat with us to share her extensive knowledge of PPC strategy.
With timely advice on what you should be doing right now, how to handle the holidays, and what the near-future of Amazon advertising may look like, you’re not going to want to miss out on this invaluable information!
3 Key Holiday Season Differences for Amazon Sellers in 2020 (2:25)
On and off Amazon, 2020 has been a year like no other. If you’re an experienced seller, using reports from 2019 can be helpful. However, there are a few major differences to consider when strategizing for the rest of the year and into 2021.
Is your Amazon advertising strategy outdated and in need of a revamp? Destaney gives her valuable insight on why narrow ad spend isn’t enough anymore.
How to steal traffic from big-name players (11:10)
More and more major brands are coming to Amazon, but this doesn’t spell defeat for third-party sellers. On the contrary, it presents strategic opportunities to steal traffic and sales from major retailers.
On using remarketing post-Black Friday for sustained gains (14:20)
Black Friday and Cyber Monday are in the rearview, but you can still capitalize on that traffic! Destaney presents the strategy to boost sales from the exposure supplied by Black Friday and Cyber Monday throughout the holiday season.
Using new headline search policy to attract sales (17:08)
As any experienced seller knows, Amazon is continuously changing and evolving. In the busy day-to-day process of selling on Amazon, some of these changes will be overlooked by the competition. Staying up with the latest Amazon updates gives you an edge over your competition. Destaney explains a recent advertising update, and how you can use it to your benefit.
Over the past year, Amazon has provided even more advertising tools for sellers. As these tools mature, advertising figures to be even more prevalent in the marketing mix. Destaney breaks down a few critical advertising elements that all Amazon sellers should be implementing into their foundational advertising.
A special thanks to Destaney for joining the show and sharing her Amazon advertising strategy expertise! Keep up with BetterAMS on their website or Facebook for even more helpful information and solutions.
On this episode of Follow The Data, host Cam Yoder speaks with Michael Begg, founder of AMZ Advisers. Together, they identify key roadblocks through the rest of the year and discuss the best seller strategies to overcome them.
For Amazon sellers, the grind never stops!
With Thanksgiving, Black Friday, and Cyber Monday in the rearview, we look ahead to help you conquer Christmas and New Years. This week’s Follow The Data podcast details strategies to end 2020 on a positive note and pick up momentum for 2021.
Not many people are on top of the Amazon game quite like Michael Begg, founder of AMZ Advisers. AMZ Advisers is a full-service agency that drives remarkable results for Amazon sellers. With years of running a full-service agency under Michael’s belt, he’s seen it all and specializes in staying prepared for every situation.
Amidst a holiday season unlike any other, we appreciate Michael sharing his expertise on the show. Cam and Michael tackle topics such as what roadblocks can sellers expect in the upcoming months, best offensive and defensive strategies, and what to expect in 2021.
If you have any questions for Michael or Cameron from today’s episode, let them know by dropping a comment on the video. Huge shoutout to Michael for coming on the show – let’s crush the rest of the year!
Lastly, be sure to stay in touch, as we’ll continue pumping out content to keep you informed to help you end 2020 with a bang.