10 Reasons We’re Thankful To Sell on Amazon
Happy Thanksgiving! While you’re sitting around waiting for your turkey to brown up just right, we thought we could share with you our 2018 Amazing Freedom Top 10 Reasons Why We’re Thankful To Sell on Amazon!!
Top 10 Reasons Why We’re Thankful To Sell on Amazon!!
And this is really a mindset episode. We think that there is a lot of negativity that you can hear in the different groups, different podcasts, even us sometimes, right? We’re talking about some of the challenges of selling on Amazon but at the end of the day. At the end of fourth quarter maybe it really is a great opportunity still. And so we think it’s important to now and again really focus on a growth mindset, not a fixed mindset. And talk about some of the awesome, positive things about being able to sell on Amazon.
Andy, you’ve been selling for several years now. Maybe you can just, again, remind us how you got into this, where you’re at today, and then we’ll get into those 10 reasons we’re thankful this season to be able to sell on Amazon.
Sure. So again, just super appreciative that Amazon allows us to sell on their platform. I think the last time I heard 50 percent of the products now that sell on Amazon is owned by third-party sellers like us. Every day I wake up, it feels like I’m living the dream. Super thankful and I’m looking forward to this episode too. To talk about the 10 things that we’re thankful about Amazon for.
Thankful Reason #1 – Fulfillment By Amazon (FBA)
The first one I’ll start out with is I’m so thankful for Amazon FBA, Fulfillment by Amazon. It allowed me to be able to scale up. When I first started a part-time, the first year I think I did $120,000. And that was all because I was able to send in multiple units. And then Amazon right ships each of those units to the customers.
So I think FBA started in 2007, 2008. I think that’s the real game-changer for third-party sellers like us. To be able to store our products in their warehouse and then have them shipped to the customer, individually. I no longer have to wait in the line at the post office as I used to when I was selling on eBay. So super thankful for Amazon FBA.
Nathan: Yeah. When you got started. No warehouse, no employees, right? You were able to do it part time and the only reason you are able to do that was because of FBA. Awesome.
Liran, why don’t you talk about the second thing we’re thankful about the amazing traffic and this is something we talked about so much. Probably the biggest reason we have so much opportunity and why so many people do sell on Amazon.
Thankful Reason #2 – The amazing traffic that Amazon drives to its website.
Yeah, I mean Amazon is an amazing platform. You have, you know, I think over 100 million prime customers around the world. And you know, I think one out of every three households or something and in the US at least has a prime subscription. Which is amazing. And you know, every year Amazon’s traffic and sales seem to grow. Even though the company, if you think about it now, is not such a young company anymore. It’s been around for 20 years or so. And it still drives and delivers so much traffic.
You know, I was thinking when Andy was talking about, FBA. I in the past have tried so many online marketing ventures and one of those ventures, it was probably 10 years ago maybe was, I was selling products on Ebay. It was actually buying Gymboree kids clothing. They used to have all these coupons and like groups and stuff where you can buy stuff and then resell it on Ebay.
And I would go home and take all these pictures for the listings, you couldn’t just jump on a listing. You get to create your own listing. And then you have to ship it to the customer. And man, and it was such a pain for very little reward and you know. So the opportunity with Amazon FBA and then with, uh, the ability to get in front of customers, right.
That’s why we’re all on the platform and not just trying to sell on our own website because you’re sort of getting in front of the wave of customers that, yeah, that’s coming to the platform and searching. Um, you know, we’ll talk more about all the data that’s available. So maybe you can talk a little bit about why we’re grateful for the data.
Thankful Reason #3 – Data! Access to data to make buying decisions that no other platform provides.
Nathan: Number three here is data. Uh, we talk about this so often on the podcast because it really is the basis of our buying decisions. Liran, you know, even that example you just gave at the time, you basically saw there was some opportunity. But probably were kind of just guessing your way through some of those products now, you know, we say so often that you really don’t have to guess your way through this process. If you look at the data, there’s proven traffic. Obviously, Amazon brings that in.
And then there’s proven demand if you will get things like the best seller. It’s just so awesome that not only does Amazon provide this data that really no other platform provides to the level, like the bestseller rank that Amazon does. And then that we’re able to use that data in combination with some tools to be able to make good buying decisions. So I, I’m definitely thankful for the data that Amazon gives us.
Thankful Reason #4– International Expansion Opportunities.
Nathan: Number four that we’re thankful for is international expansion. This is actually a topic that we haven’t hit a whole lot on our podcast. Maybe a couple of episodes we’ve talked about it. But I’m sure we will be more as we head into 2019 and beyond.
This is an area, Liran, where you’ve been working over the past year, past couple of months and kind of going live stronger. Maybe you can talk about international expansion.
Liran: Uh, you know, Amazon has some pretty big markets outside of the US, specifically in Europe and in Japan. Japan recently became the number two market. And I think Germany now is number three. I have now a product that recently arrived at Amazon UK. So I’m going to start selling in Europe. And again, it’s just another opportunity to be able to reach a whole new audience. A customer base that would have been difficult for me to do on my own.
And you know, as Amazon is growing in the US, it’s growing just as fast in other markets around the world. And I think in the next couple of years markets like India and other emerging markets are going to get even bigger. And so I’m just so much opportunity beyond just kinda where a lot of our listeners are in the US.
Thankful Reason #5– Amazon PPC! The ability to get new products in front of customers on the first page of search.
Nathan: Definitely. Andy, maybe you can talk about number five here, Amazon PPC. And this is kind of a love-hate relationship for a lot of people, right? PPC, you can think of it negatively or positively. We’ll focus on the positive during this kind of positive thankful episode here, but maybe you can talk about PPC and why you’re thankful for in your business.
Andy: Yeah, I mean it’s amazing that we can bring a new product to the Amazon marketplace. And by using Amazon PPC we can get that product on the first page of search for the terms that we’re trying to rank for. I always use the example. Think about how much money it would cost if you wanted to get your product in the checkout lines at Walmart. Number one, you have to be a million dollar company, right? To be able to even get in there. And then it’s going to cost you millions of dollars in inventory.
You and I can bring a brand new product and get it on the first page. Again, where millions and millions of customers, right? Are looking for those search terms by utilizing Amazon PPC. And again, when you compare the amount that you spend an Amazon PPC. Internet channels, it’s still very low. So I’m super thankful that we can bring new products and get them on the first page of search using PPC.
Yeah. And I think sellers level of thankfulness for PPC directly correlates with the competitiveness of their niche. Um, I’m definitely thankful for a new product I’ve launched recently is not super competitive. And so PPC has made a very large portion of the sales up until this point. As it’s still kinda getting ranked organically.
So, you know, definitely thankful for it. It definitely with niches that aren’t super competitive, so the ACOS is still low. And getting sales kind of a win-win combination.
Thankful Reason #6 – How selling has evolved. Software tools and all the things available for third-party sellers within Seller Central for building brands.
I’ll talk about number six. I’m thankful for how selling has evolved even from when the three of us started selling, you know, three, four years ago with private label. All the software and the tools and the things available to third-party sellers has definitely changed the game. You know, tools like Viral Launch. And Jungle Scout and Helium 10. Those kinds of things that have suites of tools that really make selling, buying decisions and ranking and looking at all that so much easier. It definitely has helped.
And Liran, on maybe you can talk about even things within seller central like lightening deals, coupons, PA, all that that’s changed. And in your case, do you feel like positively?
Yeah, absolutely. I mean, I think probably a lot of us that kind of got started with Amazon sometime between 2013 and 2015. It was kinda like a big wave. A lot of sellers came in and got into a private label. We didn’t have access to a lot of these things. So we couldn’t do Lightning Deals. We didn’t have the uh, that was reserved only for vendor. We, we didn’t have coupons. We didn’t have Headline Ads.
Now we have, you know, some amazing product targeting that’s in Beta within seller central PPC. And if you haven’t checked that out, you need to go in there and see how you can optimize that with a negative targeting, et cetera. Really, really powerful.
We didn’t have access to it all these tools that were really, kind of save for vendor. But what’s been happening at Amazon from what I understand is that the sort of leadership on the vendor side and on the marketplace side used to be used to go up in two different chains of commands. And is actually now all going into one chain of command. There’s one leader that’s in charge of both marketplace and vendor ultimately. And that’s why a lot of these things are sort of merging.
I think we’re going to continue to see more and more things become available for, um, for third-party, Exactly the same as are available to vendor today. And Yeah, definitely. I mean lightening deals and um, I’ve had deals of the day and all that has made a big impact on my business.
Thankful Reason #7 – Low startup costs compared to other business ventures.
Nathan: Awesome. Number seven is the relatively low startup costs that it takes to get into Amazon. Andy, maybe you can talk about this because. I often hear you said how say how you really can get started with the private label products in some cases with just a couple thousand dollars, right? Sometimes more, sometimes less, but the relatively low startup cost compared to if you want it to set up a new brick and mortar store or get into a mall, right? Is relatively low.
Andy: Yeah. Going again, back to selling on Amazon and it only costs $40 a month. So do you want to sign up and you want to sell on Amazon? All Amazon is requiring you to do is send them a check for $40 a month. I mean, were again can you get a brick and mortar presence for $40 a month? Nowhere.
Then the same with products. I mean, if you’re good at researching, uh, you can find profitable products and you don’t need a lot of money to start with. And uh, and it’s all digital, right? So you’re doing it from your laptop, you’re creating your listing, and you throw it on Amazon marketplace. And again, then it’s in front of millions and millions of customers.
Thankful Reason #8 – The physical product opportunity and variety when selling on Amazon.
Yeah. So true. All right. Number eight here is just the Amazon opportunity in general when it comes to physical products compared to other business ventures out there. Liran, you mentioned this before, how, you know, there’s, we feel like this is one of the best opportunities on the Internet really. And the cool thing about the physical product space is that even though the three of us, and probably all of our listeners are in the physical product space. We might, each one of us be selling completely different things, right? So there are millions of different products we can sell within e-commerce on Amazon.
Liran maybe you can just relate that as compared to like even your previous job that you worked before starting on Amazon.
Liran: Yeah. So, you know, before I had started selling on Amazon, I had an online insurance business. And my business was all predicated on the way I made money was obviously selling life insurance. And it was basically all depending on how many people can I talk to per day. And so many, so many people are in that kind of position, right?
If you have a job, you’re trading your time for money. Even though I had my own business, I was trading my time for money. And so many businesses are trading their time for money. Even the doctor right trades his time for money. But when, you know, the reason why Amazon was so appealing to me is that there wasn’t this ceiling as to how much I can earn. I could put these products up and when I started like you and Andy. Um, you know, I, I did arbitrage and I would go to the store and buy a ton of product and then send it into Amazon and I would wake up and I’d have sales. Right?
And that was like an amazing phenomenon of like, wait a second, you know, while he been sleeping, I’ve had sales and that kind of, you know, that kind of turned on a light bulb. That you can really scale this type of business without, without a ceiling. Yes, it takes capital. And yes it takes work and effort, but there isn’t, there’s so much potential upside versus another type of business that, and you might need to hire a lot of employees in order to scale.
Thankful Reason #9 – “Laptop Lifestyle” and flexibility of owning our own brands.
Andy, maybe you can just talk about, this is something you’ve often said that the Amazon seller community is one of the best communities out there. Maybe you can talk about why we’re so thankful.
Andy: Sure. So I’ve worked for a number of altruistic, uh, organizations, uh, you know, who really had, um, strong missions. And I’ll be honest. I’ve never been in a more encouraging community than the Amazon seller community. And we talk about this often. It’s why we go to conferences. Eight to nine conferences a year. Liran probably goes to 12 to 15 conferences a year.
And honestly at each of those meetups when you’re talking with other sellers, it’s just extremely encouraging. Folks freely share best practices, and really, are generally trying to help each other out. And we receive all that tenfold from, from our podcast listeners, from the folks that are in the course that we’re coaching and helping become better sellers. And, yeah, it’s just, it’s a tremendous community.
Nathan: Awesome. Well, thank you for joining us during this time of the year where we just thought it was important to express our thankfulness. We are definitely appreciative of everyone that listens to our podcast. Everyone that supports it and shares it with their friends and family. And we hope that everybody is getting value out of the podcast and hopefully continues to listen in.
If you’re not already in the amazing freedom facebook group, definitely go to amazing freedom.com/facebook. Join up there. Another way that you can just interact with us both on the podcast and a video and we’re giving tips and helps in training all the time within there.
Thank you for joining us for this special Thanksgiving edition of the Amazon Seller podcast. We’ll catch you on the next episode of the Amazon Seller Podcast!