In today's video, I'll be answering questions from my Q&A Facebook group. If you'd like to get your question answered in an upcoming video, click this link to join the group:
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Hey guys, how are we doing? So I've been trying to record this video actually for the past 20 minutes and there's a guy on the roof of this building, drilling, and he's been there for about five months now on and off, just arbitrarily drilling things.
And you know, when you're trying to imagine all the ways that you could kill someone.. Oh, I was thinking, maybe we could just push him off the roof. Maybe I could kill him with his own drill. I dunno.
Anyway, some great questions today ranging from what to do if you want variations, how to start a brand with very little capital and what does it really mean to be a six figure seller. How do you get that?
When best to create a separate ASIN or just add to an existing ASIN as a variance.
So we're starting off of a question from Kevin Bursnall and this is a great question. So Kevin says, I have a wooden home storage product that is manufactured in one size. If I added extra sizes, would it be best to create a separate ASIN or add the existing ASIN as a variant? Any thoughts on the best option?
So this is a great question, man. There's two ways you could go about it. You could launch the products on separate listings, have them compete with each other and with all the other products in the niche, and have a little bit more dominance in the niche because you've got more products in the niche.
The only problem with that is when you have several listings, you have to get each one of them ranked separately, which can take a little bit more marketing spend. And it takes a little bit more effort. If I were you, I would put them all on the same listing because then they'll share the ranking and share a lot of the reviews as well.
'Cause people would see the reviews for all the sizes and I mean it's the same product, right? And you're doing less work. I think you'd get a better ROI if you did that. Also, if one of your products are selling well with the variations, you essentially just get to piggyback on the same listing and you get all of the SEO juice and everything else that's happened from that. That's the way I would go about it.
That should make things really, really easy for you. Good question, Kevin. And hopefully that product sells as well as your current one.
How can I build a successful brand that people want to buy without it costing an arm and a leg? I want to be reputable and get customers but I have a limited budget.
So we've got a question from Ann. Ann asks, how can I build a successful brand that people want to buy without costing an arm and a leg? She says, I want to be reputable and I want to get customers, but I have a limited budget.
How can I fulfill my request without it being costly? What are the steps required? Great question.
When anyone's thinking about building a business, the last thing you want to do is just constantly throw money at it and not get any return, right? We want to take things gradually to make sure every step of the way you're making progress with the least resources used up possible until you can get confidence that you're going to get a return on your investment.
You're asking the right questions and thinking about this in the right way. There's few things you want to do. First of all, you want to find a very, very hot niche that has all the elements you need for an opportunity on Amazon. If you haven't done that already, then please look in the resources at the top of this group. You can learn how to use my Smash Hit Product Radar to find products.
By the way, if you're watching this video outside of the Facebook group, then click the link either below or above the video, join the Facebook group, and you can access all those resources, too. So that's the first thing. Grab those resources, find a really hot niche.
Then what we want to do is import a test batch. Think of a way that you can add value to this niche. What are the customers complaining about in their reviews? How can we solve their problems? Then find a supplier who can give you maybe 50 units of a product. Starting small with less money. Ship those into Amazon. See if it sells. See if it sells for the price you want to sell it at. If it does, then launch gradually.
Rather than going from a test batch of 50 to a thousand units, go from a test batch of 50 to maybe 150 units. Important thing to do when you're launching is to make sure you do the calculations before you order the units and make sure that you can at least theoretically make a profit after all of your expenses.
So when you sell the product for say, 15 pounds and you're getting a quote for a larger order, would it be possible at some point to make profit after your FBA fees, after the cost of the product, after the customs, after the packaging costs, etc. Will you be able to make a profit after all of those costs? If you can, after doing a test batch, then move on with the launch and sooner or later you will get that product to at least a grand a month in profit, hopefully.
Your business will be off. You can approach this gradually, you don't have to go all in and take a huge risk. Great question.
What does it really take to be a 6-figure seller? The honest and brutal answer.
Julian asks, what does it really take to be a very successful Amazon six figure seller? Honest and brutal answer only please, Ollie.
That's a big question, man. I've been thinking about the answer and I've been thinking about a few things. Number one, what I did to achieve it in my first year and what a lot of my successful clients did to achieve it as well. I think I can sum it up pretty quickly. If you want to be a successful six figure Amazon seller,
then you have to act like there's no other option.
Because if you're thinking, hmm, maybe I can try and see if it works, and put one foot into it but leave the rest of your body behind, then it's just not going to work out for you. It's too tough out there for you to be half-assing this. If you act like there's no other option and if this doesn't work, then you have no other way of adding money, then you'll put your all into it. You will grow as a person.
As you build the business, you go the extra mile, which most sellers aren't willing to do. They just want to coast along and and hope and that will get you the success. It's that attitude that gets you that. The reason I got there is because this business was my ticket to being able to travel to Europe and live somewhere else and there was no other way I could do that. I couldn't have a job somewhere else. I just wouldn't, I wasn't willing to do that. Wasn't willing to have a job anyway.
With all my other clients, the pain from being in their job is too much. So they're not willing to continue with that job. The pain from the job is so much they want to get out of it and they put all their energy into the business and the business is the ticket out of that. If you're cozy in your job and you're relatively happy and you're thinking that Amazon is going to give you Lamborghinis and all this stuff and it sounds like a nice dream.. so you kind of half-ass it and just expect it all to go your way, you're going to fail, I promise.
There's no other option. Put everything into it. And then there's a chance you could be a six-figure seller.
How do you set product prices?
Hope asks, how do you set product prices after you found a product that should sell, in theory?
This is a great question and pricing is something that requires a little bit of strategy to get right. It's funny, when we see prices in stores, we assume that they were set by some board of people and they decided this is the price for this thing and everyone agrees in the world.
Yeah, that's the price for this thing. And that's the official price and that's what we should be paying. And it's not a rip off, etc. That's a load of rubbish. Prices are completely made up. They're completely made up. The seller of any product makes up the price. Then the customer comes along and depending on whether they're willing to pay that price or not, that determines whether the seller changes the price, lowers it, or reduces it.
Now listen, there's some funny psychology with pricing. Sometimes. I know a marketer who is trying to sell a product in the health niche. It was a product that helps you improve your heart health and decode arteries, etc. They tried pricing this product at 15 pounds. They wanted it to be the cheap alternative in the marketplace. Now, most products on the marketplace of similar quality was 60 pounds. Because of that reason, this person's product never sold.
Customers didn't trust the quality of the product because it was priced too cheaply. Imagine that. Exactly the same ingredients, better quality in some ways. That's a product. Customers didn't believe it because it was priced too cheaply, so it didn't sell. They had to raise the price from 15 pounds to 60 pounds. Then the sales started flying out the door.
What am I trying to say here? Pricing is down to psychology. So here's what you do with your price on Amazon. You start off undercutting everyone in the marketplace. Why? Because you have no reviews. No one's heard of your brand, no one's heard of your product. So chances of you making sales charging more than everyone else in the beginning is actually quite low.
So, cheap in the beginning. Then you'll get some sales, you get some momentum. You might get a couple of reviews as well. As you start to get sales, gradually increase the price of your product. Right now you can charge less, get more sales. As you increase your price, the volume of sales will decrease, right? 'Cause less people will be willing to buy a product as it gets more expensive.
But obviously when you charge less, you make more sales, but you make less profit. When you charge more, you make less sales, but you make more profit, okay? There's going to be a sweet spot in between the lower end of pricing and the higher end of pricing where you make lots of sales, but you also have great sales volume and this will mean that you have more profit in a seven day period.
That sweet spot is where you want to price your product, so you need to test quite a few price points. It's not a static thing. It isn't decided by some magical counsel. It's all about testing, seeing what happens with the marketplace and finding that sweet spot. That's how you price.
This is known in economics as price elasticity. You've got a rubber band, you pull it certain amount, but then you pull it to a certain length and it snaps. Same with pricing. You can charge a certain amount, keep charging more, more, more, and then all of a sudden it'll get to a point nobody pays that price anymore because they determined that it's not worth that value. This is how you do it. This is how you find the perfect price.
Great question. That's going to help a lot of people.
If I am doing Amazon Brazil, which suppliers should I look for?
Interestingly, we got two questions from people who live in Brazil and want to start Amazon businesses.
The first one is from Carolina who asks, if I'm doing Amazon Brazil, which suppliers should I look for? And where? We've got another question from Kelle who says, does it apply for any country and can I start this business in Brazil?
First of all, you can sell on Amazon from any country on the planet as long as they're in the approved banking regions that Amazon allows. So that's pretty much every single country. If you're not in an approved banking region, you can actually get an international bank and still sell on Amazon.
The simple answer is yes, you can definitely do this from Brazil. If you want to sell from Brazil, I would sell in the US marketplace because it's next door to you. Pretty much, right? Better than UK anyway. And of course you want to import from China, because that's where they do most of the cheap and easily accessible manufacturing.
So go to Alibaba, you can search for suppliers there and find a freight forwarder who's based in Brazil. They can organize the shipment of your products from China to the US, and into the US FBA warehouses.
Now, you could get some samples sent to you in Brazil from the supplier. You can check the quality of the goods. Then you can get the products shipped into the US. You can also use a prep center. They are companies who put the products in boxes, quality check the products, they can put products in packaging, bundle things for you, and then ship them into Amazon for you. Or, some freight forwarders do this service for you as well.
So there's a question of finding suppliers, finding freight forwarders, contacting several of each. Not just contacting the first one you see. Get five quotes at least. Remember, deal flow is key. And then go from there. Totally doable. You can do this stuff from anywhere.
I've got clients in Europe, I've got clients in Africa, Australia, New Zealand. I've got clients in Canada.. I mean, you pretty much name the country. I've helped people build Amazon businesses there, so don't let that discourage you.
Great. So if you watched this video anywhere outside of my Facebook group, then please look for the link. It should be in the description of this video or maybe above the video if you're watching on my website.
You can join the group, it's called Ollie's e-Commerce Q&A group. And the point is, as you enter the group, you'll see a little box that allows you to ask a question. You have to fill in that box to be allowed in the group. Just 'cause I want real entrepreneurs in there, not people who just want to jump in and spam.
So that's kind of my filtration system to check that you're real. And then once you've asked a question, I'll answer it for you in one of these videos so you can get your questions answered. Also has a bunch of great people in there, so definitely check it out.
Thanks so much for watching this video and I'll catch you very soon.