Amazon offers some incredible opportunities for sellers new and old, but it’s hard to find the right choices and maximize revenue through focusing on the data. It’s hard to find someone who’s done better on Amazon than Barry Taitz. Barry passes along some incredible insights into using FBA vs FBM, choosing the right products, optimizing ad spend, and so much more. Learn about how Amazon approaches issues with sellers, growing at your own pace, and the process before you can start selling on Amazon.
Takeaways:
- For new sellers, it’s important to focus on growing at your own speed by selling your own private label products and building it up slowly. There are many benefits to a ‘farm to table’ method wherein, you own everything from the production to delivering to the end-users.
- It’s better to sell your own products and brands than reselling another company’s products because you are entirely in control of the decisions on rotation, pricing, etc. If you own the brand, you’re actually building something.
- For those new to e-commerce, it’s advantageous to start by creating a store on Amazon instead of creating your own website. By starting on Amazon, sellers are actually able to learn how to do business online.
- Amazon is better at logistics than you. And that’s ok, take advantage of that! Using Amazon FBA removes the problems of creating your own logistics, driving traffic to your website, and providing customer service.
- When it comes to ad spend, you will spend more in the beginning, but you will reap the rewards later. There will be negative returns in the beginning and you need to accept that. You either need a huge budget or only focus ad spend on a few products.
- Don’t waste your time and money trying to get your listing to #1. Everyone is trying to be #1, but you can actually make much better returns when your listing is between #10-#20. Remember, the #20 listing is still on the first page of results.
- It’s a good practice to use an 80/20 split between FBA and FBM. You need to have your own fulfillment processes for peak times. With high ticket items, it can be better to ship it yourself than to use FBA as it could get lost or delayed.
Quote of the Show:
- “I want to change the world, I want to create the next generation of entrepreneurs the Barry way” - Barry Taitz
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