Guest post by Matt Ward from FBA Allstars
Success on Amazon takes investment. It takes time and more importantly money. This is something many shy away from and it can lead to failure. Let me explain.
1. Investment Isn’t Optional
Starting an Amazon business on a shoestring budget is challenging. You may find you won’t be able to order enough inventory, you hamstring yourself on promotions and giveaways and you will probably run out of stock before being able to place a re-order.
So why do so many try this?
Two reasons: hope and fear. These don’t go well together. Here is why…
2. The Power of Hope
There is an expression in internet marketing that goes something like, “the only way to make money online is to teach other people how to make money online.”
In a sense, it is true. People feel hope about FBA. As with all internet business (affiliate offers, niche sites, drop shipping etc.), as people make money and start to sell “the secrets,” more and more inexperienced entrepreneurs become attracted to the idea. They buy-in and often become bottom feeders.
3. The Power of Fear
Commitment is hard. Investing in a product or idea and putting your full backing and focus behind it is terrifying. This keeps entrepreneurs up at night. It is also the difference between success and failure, especially with Amazon.
Sellers that commit big, can make it big. They set themselves up for success by taking risks. And oh do they reap the rewards—and the reward on Amazon can be huge. I have clients doing 250-500k a month – average people with incredible success. Why?
4. They Bullied Their Way to the Top
Winners view Amazon as an investment. That is why I spend hard on PPC and push promos to rank products. I understand the value of ranking and selling long term—it is critical for my one year million dollar exit.
And I have invested only $10-15k. That is manageable for most, and in my opinion, recommended.
5. Reinvesting EVERYTHING in the Business
This is the biggest difference between average and amazing success, the ability to delay gratification. I have been selling almost nine months and have not taken a dime. 100% of my profits go back into the business—new products, more PPC and pushing to grow.
The reason? Amazon is a race. More and more sellers flood the market daily. The abundance of courses out there are creating competition.
Sellers that want big success know they need to outspend, outsell and out-scale the competition. That means launching more and pushing faster (more on Amazon growth strategies). That is the only way to stay ahead of the rest. And it means enormous profits and sustainable business success if you do it right.
6. Building a Bigger Business
There are three way to grow a business: reaching more customers, increasing customer value and increasing conversions.
Typically marketing is the sexy approach. It can also be inefficient (learn more about Amazon PPC).
Imagine an F1 race car. It is fast, it is flashy but it only gets 7 MPG. That does not go anywhere, and it costs a ton to drive. Instead, let’s focus on efficiency, and add profit to your empire.
7. How to Instantly Earn More Money
Increasing customer value and conversions make the easy money. And profit is profit. It does not matter how you earned it.
First, let’s aim for more money per customer – the Holy Grail of commerce.
There are two ways to do this: repeat customers and up-sells. Both work. And the best part, Amazon up-sells for you. Frequently bought together and recommended products, push profits higher. But you can do more.
Consider creating promotions for multi-product purchases. These promotions display under the related products and create additional incentive to buy more. And multi-unit purchases have lower Amazon fees which drive profits and margins even higher.
8. Repeat Customers Rock
Do you know your cost of acquisition?
Most Amazon entrepreneurs do not. It is critical though. It usually costs money to get a customer. But with Amazon, it almost feels like cheating. It is an established buyer channel and short of PPC and promos to rank products, acquisition costs are low. Still, repeat customers remain the cornerstone of growth. They are more likely to re-buy. That means more money for you without any extra work. Here is how.
Strategies for Repeat Customers:
- Sell quality products – a must for any reorder.
- Have great customer service – build trust and confidence in the brand.
- Use follow up email pitches – get buyers back to your site.
- Offer coupons – incentive buyers to reorder.
- Build an email list – get customers to opt-in to your site.
- Sell related products – build a brand, do not just sell a product.
9. Convert Better. Sell More. Rank Higher.
I am a copywriter. I sell on Amazon. I understand the enormous power of the pen to boost sales. Most sellers do not. Consider this, Amazon wants sales and rewards sellers that convert. And boosting your conversion rate 2, 4, even just 1% means more sales. More sales means better rankings, more traffic and more or less, a ton of success. That is why I love copywriting.
With Amazon especially this is important. There is so much traffic to take advantage of but most sellers miss out. This is the easiest, most sustainable strategy to grow your business. Just convert more customers.
Here are just a few tips. There are dozens more.
- Sell benefits not features – how does your product fit in your customer’s life?
- Simplicity sells – people must understand an offer in order to buy
- Maximize keyword traffic – strategise key keywords and boost rankings
- Have an ideal customer in mind? – do not try to sell to everyone
- Understand customer wants – “Why would I buy this?”
- Anticipate customer questions – eliminate doubts to get the sale
Unfortunately a full Amazon copywriting course is beyond the scope of this article. Amazon copy is worth learning though. Imagine more sales and profit everyday – and then reinvesting it. That is exponential growth. That is what I want for sellers.
The Amazon Copywriting Bible
I hate pitches. Here I’ll make an exception.
I know the power strong copy has on an FBA business. I have seen it first-hand helping clients convert better. But most sellers settle for mediocre. They leave money and growth on the table. That is their choice, and most do not know better. That is why I wrote the Amazon Copywriting Bible.
Sellers told me they wanted stronger sales copy. They said they needed higher conversions. As a copywriter and Amazon seller, they asked me to help. And I believe I can deliver results. The Copywriting Bible is a simple, step-by-step process. We find the important keywords, we research customer wants and then we write.
First, a tested headline formula designed to sell well and rank better. Then bullet point strategies and writing styles proven to convert. We make a sales letter for your product and optimize the description. We cover all the bases on increasing conversion rates. Each chapter boosts your conversion rates. Each helps you rank higher. And you do not have to be a good writer to write great sales copy.
That is why I love selling. That is what I’d love to teach you. If you want to learn the psychology of selling and boost Amazon sales and profits every single day/