AS 15: Quadruple Your Amazon FBA Seller Revenue with This Secret
05 Feb 2016
Amazon is doing what it always does. It dominates anything it wants to. From ecommerce, to IT Cloud storage, services, from Smart electronics and now to Home Made. For Amazon sellers, this is only good news, especially if you’re in homemade items. A lot of mom and pop shops who create their items with their hands will see explosive growth with Amazon’s advantage in easy check out, distribution and traffic volume.
Etsy is here to stay for now, but I think it will be another ebay, second player in the fight of homemade goods over time.
Today’s episode is: Quadruple Your Amazon FBA Seller Revenue with This Secret
Amazon is a battleground, and in order to defeat the other warriors, especially when some of them have bigger wallets or “the most muscle”. No matter where you are at in your journey, this episode applies to you. The key is, you need to be strategic. With less money the big timers -and the big timers have million-dollar bank rolls, every single decision you make moving forward leads to a different path. Think about it. After your first product, you can then launch product 2, 3, and 4. But the thought process of choosing 2, 3, and 4 all lead to different pathways.
Should your product #2 be a variant of product #1? Should it be an add-on item to product #1? Should it be a completely new product, in your niche? Should you create a different product in a different category? Slow down David, hold the breaks, this is mission critical, and the can of worms you opened up, is
Perhaps you can do all 3. But is it smart to do all 3 products, a variant, a new product, and a different category product at the same time? Is it better to buy more volume of product #1, before going to product #2.
I believe the secret to this answer is as follows. First, ensure you have enough volume to support product #1. Don’t going into a new product, without being able to support the sales velocity of product #1. And this takes time, depending your bank roll. If your pushing 1000 units a month, or selling 33 units a day, then you’re going to need a lot of inventory replenishment.
Once you have product #1 fueled properly, I believe the next step is to weight the opportunity of adding a variant, which will convert better versus a “specifically related product” which can have a massive new effect on your business.
“What do you mean David?” – by specifically related product. Let’s say I was selling pencils on Amazon. Every pencil needs an eraser. By selling both, they complement both. The major advantage of this is, buyers will check what else your selling, and purchase that eraser. As you get more sales of pencil and erasers together, then your pencil listing will “eraser” as frequently purchased together on your pencil page.
Let me re-iterate. Your eraser will eventually also be added in your pencil listing under “Frequently Bought Together” The advantage of this is astronomical for your Amazon Business. In a simple click, your customer can add TWO products at the same time to check out.
That literally doubles your sales on the pencil page. Then after a short while, your eraser page has your pencil being on that page in “Frequently Bought together”. Now you have two areas of traffic, where you are selling both pencils and erasers, giving you 4x the sales as you once did.
Now, there’s another cool little secret. And I have yet to apply this, but it’s going to happen. In total, Amazon can put 3 frequently bought together items total, underneath the main listing. How crazy, epic, awesome, amazing, would that be if you we’re those 2 items + your main listing.
In other words, your main listing is a pencil. Frequently bought together is “your pencil + your eraser + a pencil sharpener” Let’s just say you’d be rocking and rolling, especially if you listened to the ways I pick products, and ensure they are #1 in their category, of the highest quality, and better than the competition. Then you have nothing to worry about.
Frequently bought together products, is one of the biggest secret in the Amazon game to private labeling, white labeling, AMAZON WINNING, and being a king in life.
So let’s break it down. If your pencil was $9.99. You would have sold $9.99 per customer. By selling an eraser, you sell them separately, which is great, but they it is bought with your pencil at 6.99. Now your average sale per customer is $17.00. Add that sharpener in for $20.00 and you now have an average of $47.00 per customer instead of $9.00 per customer.
AND, that is happening on all 3 of your main product listings. That upsell is key. Upselling is business is a very old-strategic-well known success factor. In Amazon, upselling IS best done in frequently bought together.
DO NOT OVERLOOK THIS.
So now knowing the implications of awesomeness to this secret, do you think your still add a product variation as your product #2. Yes, it can convert product #1 better. But if you can have a product #2, that directly compliments a buyer’s usage of your product, then I believe you should do it. You should absolutely do it.
You then have two products separately listed. You then have double the amount of potential page views from multiple separate products, and potentially different categories. You then, if your wise enough, can get frequently bought together items in synergy, and watch your sales climb even faster.
For example, in my business, this is happening. I chose my product #2 to closely synergize with product 1 instead of choosing a variation. My product #2 is now frequently bought together, bringing higher sales conversion. Not only that, my product #2 is doing better than my product #1. Did I expect that at all? Absolutely not. Amazon is like outer space. We know it’s vast, and ever expanding, yet we don’t fully understand why it behaves the way it does.
The other major secret to this podcast is, by launching complimentary products, it also gets added to not just “Frequently bought together” which is in the middle of your listing, it gets added to “Customers Who Bought This Item Also Bought” this item. Now, this is also an important complimentary upsell location if you use it correctly. With a 27-inch monitor with stretched browser, I see 10 products also listed in the middle of my main product listing. This is on every product listing. By adding complimentary products, you also will get showed here. So if you sold, an eraser, a sharpener, a notepad, a coloring book, sticky notes, eraser heads, binders, they would also get placed in this 10 product row here! That’s FREE upsell advertising, AS LONG as they are complimentary.
So what does this all mean!? To wrap things up,
Complimentary products are king. It’s why many people praise “selling products” in the same niche are good, but I don’t think they understand the full range of benefits that It provides. Most of them say it will show in your seller profile. But the true bonus is showing in under frequently bought together and the next row, customers who bought this item also bought ~.
Be sure to join our Facebook Mastermind Secret group at amzsecrets.com/fb . Be sure to join our Facebook Mastermind Secret group at amzsecrets.com/fb and if you did, it would help tremendously if you could take 5 seconds out of your Amazonian schedule, to leave a review on ITunes.
Also, every question to amazon has 10 different answers. Finding the right one is critical and can save you tens of thousands of dollars. AmzSecrets.com does this, and it’s all for free. See you all there.
This podcast has been written, directed, and edited by David Aladdin, a global king in logistics, strategy, and Amazon company. Hehe.
David Aladdin OUT
Popular: The masterlist of resources we use and recommend.
We are the fastest growing Amazon FBA Podcast with over 150,000 Amazon sellers tuning in. See why this is the best Amazon Podcast.
Amazon Seller Tools for ourselves, and for you, which we use to supercharge our Amazon listings and build epic kindoms. Comes with a 7 day trial.
Want to Sell Amazon Business?
If you own an Amazon or e-Commerce business with annual sales of at least $1M+ and you're open to a serious conversation about selling please read on. We have clients with funds between $2M - $20M who are ready to buy low maintenance Ecom businesses doing at least $1M+ in annual sales (with no upper limit) with a profit margin of 20% or higher. The business can utilize Amazon FBA and or Shopify and must own its own website and customer database.
This business will have a basic team of VA's in place or someone who can do most of the grunt work and it will also have sufficient evidence of scope of scale, without the new owner being handcuffed to their desk! If you or someone you know has a healthy Ecom business that meets these basic criteria and you are serious, here is where you can sell Amazon business.