5 Reasons Why You’re the Problem in Your Own Business – Amazing Freedom, Episode 43
5 Reasons Why You’re the Problem in Your Business!
We all want to eliminate problems in our businesses, right? But what if you are the reason that your business is having problems? Maybe you don’t even realize that you are self sabotaging your business, stumping growth, and preventing you from scaling from where you should be in your business. In this episode we talk about 5 reasons why you are the problem in your own business.
Reason #1: Instead of Zigging when others are Zagging, you’re doing exactly what everyone else is doing:
This is a huge problem in the amazon seller Private label space right now. There’s a number of reasons for this. This group mentality happens once you start seeing what others are doing, you wanna follow that and there’s some good in that sometimes. But can also lead you into trouble. It might be because there’s a lot of courses out there that kinda teach the same stuff. Instead of teaching people how to actually do the process, they’re just telling them what to do.
Liran is here with us and speaks about this quite a bit.
Liran: It’s interesting, I read in a Facebook group the other day, somebody asking; “Which categories are good for me to look at for Private Label Products?” And my answer was: “The ones people aren’t looking at”. What are the most common categories that people look at? Home and Kitchen, Sports and Outdoors. But a lot of people are just Zigging. They’re going where everyone else is but they’re not Zagging. They are not going into those other categories that maybe there’s a great product in. “Industrial and Scientific” or maybe there’s a great product in “automotive” that you can launch in Amazon successfully.
You’re not thinking outside the box, you are following what the herd mentality is doing instead of doing other things. Maybe the price points that you’re looking at, maybe you are not looking at over-sized products. You are knot considering things that would have lower competition and still tremendous potential opportunity in Amazon. And that mentality could be the reason why your products are not as successful as they could be because you are just going with the herd mentality.
If you ask people, “Should I do a product in the clothing category?” Most people will tell you “No” but then if you look at Amazon, there are thousands of super successful products in the clothing category and the business and industrial category and office Category. Every single category has super successful products. And so, you really need to go where others aren’t.
Don’t be duped by the packaged PL formula that doesn’t work!
Nathan: So, Let’s talk about something that probably almost everyone that’s listening has heard of before, if they’ve done any private label research. It’s kinda the basic first courses for teaching. It says that you should go for products that are very small, very light, and can fit in the palm of your hand. The products aren’t complicated at all and can be very easily duplicated and easy to find a manufacturer. That’s the whole package together of what you’ve heard a lot out there couple of years ago. This was taught all over the place. What would be your thought process of that kind of mentality?
Liran: If I look for that same exact formula, I’m gonna end up in the same place as lot of other people. What that means is, a lot of competition, a lot of products that are already saturated on Amazon. And the key question that I often ask myself is: “Why would somebody buy this product from me?” And if you don’t have a good answer, if it’s “Hey, I’m gonna be in the first page and I’m gonna take some of their revenue there”. That’s not good enough. What value are you providing to the customer? What are you targeting that’s different? I think you really need to think differently if you really wanna grow and scale a big private label business on Amazon and beyond Amazon. Just because you can rank on the first page “Barbecue gloves” doesn’t mean it’s a good idea to launch barbecue gloves.
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Reason #2: You are being too timid in your business:
A lot of people are just too afraid when it comes to anything in their business. It might be because you are new to selling in amazon or new to business in general. A lot of people who are selling in Amazon see the opportunity but are new to running their own business.
Nathan: Liran, maybe you can share with us some of the ways that you feel people are too timid in their business. Even when it comes to asking Amazon for things and asking questions.
Liran: Too timid in thinking that every little thing is against Amazon’s terms of service. It’s very good and smart to be knowledgeable about what’s in the terms of service. But also knowing when you can push the envelope and and where you can’t. I would tell you, review manipulation and buying fake reviews is something you shouldn’t be involved in. Because it’s something amazon, if they find out, will take more aggressive action on. Whereas as something like, since it’s holiday, putting a Christmas sort of red ribbon in you image. We saw a lot of people do that last year and they were fined. And worst case scenario is, Amazon might suppress the image and you need to upload another one. Which is coincidentally why we’ve launched our holiday image package through our magic image service.
One of my most recent mistakes…
Liran: Recently, I made a mistake by removing some inventory recently right before long-term storage fees, not because of long-term storage fees. I had to send it back now and I wasn’t able to do that because I did not realize I removed some inventory and I couldn’t send in shipment. I kinda went up the chain through seller support and escalating cases and making phone calls. It took me about 24 hours. But I finally got somebody to make an exception and remove the restriction for me to be able to send in those units. Those are thousands of units that are going in for Q4, and if I would have just let that go back and say, “Hey I made a mistake and it’s my issue”, and just gonna set back and accept it, that would have impact my business in a big way.
One of the things that I did throughout this process was I initially contacted a rep, they said they had to escalate it. The following morning, I made another phone call. I got a rep in the US, they said they had to escalate it, and by that afternoon, I was like “okay I need to create this shipment.” So, I responded to that case, “This is urgent, I really need a response, I really need you to make an exception on this.” Ten minutes later I got a phone call and somebody called me and fixed it.
Reason #3: Being overly concerned with TOS (Terms of Service)
Nathan: We are are not saying to be reckless here and to break all the rules. It’s basically doing what you need to do to be competitive and to take advantage of our current situation. And if you see that there’s really nothing bad that can come out of it. Even it is slightly in the “gray” area or something then maybe it’s beneficial for your business. Again, it’s you business so you need to make that decision. But it might be a reason that you’re holding yourself back.
Reason #4: You’re not outsmarting and outworking your competition.
Andy: The topic of this is “5 reasons why you’re the problem in your business.” We need to do an audit of ourselves and we need to have a paradigm shift when we’re looking at products or looking at business. One of my products that I sell, my partner and I, we kinda have a paradigm shift about it. So Amazon sells a very similar product, they fulfill it FBA. And the reviews on the product are not that good. In fact they’re about 3 1/2 stars. Now we figured out there’s about a 15-20 % failure rate if you just were to ship that product into Amazon.
And so our paradigm shift was we said “Hey, if folks really want this product, and there’s such demand for it, let’s merchant fulfill it. We’ll try to correct some of the problems ourselves. We’ll inspect every product before we ship it to the customer, which then should lead us to really good reviews.”
Now that’s a lot more work sending it to FBA is so much easier. But it’s also I think was smarter, so that’s what we did. Instead of sending every unit directly into amazon FBA we actually merchant fulfilled this product. We inspect every single unit which is a lot of work. And then we get rid of that 15% failure rate. Our refund on this product is less than 1% but our overall reviews are 4 1/2 stars. And so we’ve been selling this product for 2 years now.
Nathan: Those are awesome points and hopefully by listening to that, you’re really getting the concept of what Andy is talking about. He is talking about what he did to outsmart and outwork his competition. Like he said he’s been selling for 3 years and is selling very very well, making a lot of money on this product. If he wasn’t willing to put in that extra work, if he wasn’t willing to think outside the box, that would be a huge revenue generator just gone or never been made.
Reason #5: Not being aggressive enough when you’re bringing new products to market
Liran: If your thought process was “I know my product is going to be successful.” Then you probably make decisions initially that are different from the decisions that you may be making. Meaning, “well I’m gonna do my own photography because I don’t know how this product will do.” But it’s sort of a “catch 22”. If you don’t pay and get that awesome photography. If you decide “well, I’m not a good copywriter. But again I just wanna see how this does” so I’m gonna write the copy myself instead of outsourcing it to somebody better. Then you’re gonna end up with poor quality listing without the proper keyword research or copy that really converts shoppers. It also goes with being timid.
You’re not confident enough in your product launch and therefore you’re almost predicting your own future. It’s a self-fulfilling prophecy sort of. You are not confident enough in the product. So you are not willing to be aggressive and spend the money on PPC in the beginning. Spend the money on the launch and giveaways. And spend the money to get amazing images and good copy. And maybe bring in enough units that will allow you to do that initial giveaway and be aggressive. Then have inventory leftover so that you can actually sell and start turning a profit. Being aggressive and having that mindset with your product is a big reason for success. And at the same time not being aggressive enough is a big reason why you’re the problem in the business.
Nathan: And the key to that is that you are still doing things in the beginning correctly that you’re researching correctly, you’re picking products that are good. If you get the concept right and you pick the right products, you don’t need to be timid if you’ve done your research, brought a good product to market, then you can be confident and you can be aggressive in order to lead to that success.
Hopefully after reading these 5 reasons why, you now have the confidence needed to crush the competition!!
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