Mistakes Amazon FBA Businesses Make

– Hey everyone, this is Jamie
Davidson with AMZ Insiders. And a little bit about ourselves, myself, my two fellow co
founders, Jason and Brad, combined to do over 75 million dollars a year on Amazon last year
and already for this year, we’re on pace to do well
over 100 million dollars, all on Amazon. Today, what I’d like to talk to you about is the three biggest mistakes
I see Amazon FBA sellers make. The first one is really
about product selection. Product selection’s so
critical, so important, yet we see so many people not
put the appropriate amount of time and effort into really making sure you make a good product selection. So many people see products
that sell really, really well, and they think, oh okay,
that product’s making a lot of money, I wanna make a lot of money, so I’m gonna sell that product, right, which is a big mistake. You have to know what
you’re doing on Amazon, and in that case, if
you wanna sell a product that is already selling super
well, super competitive, then you’re gonna have to
invest a lot of money into it. There’s a lot more details that goes into all the reasons why, in terms
of how we give away products and all the things that go into place. But that’s the biggest
mistake, is they don’t go at it with a analytical process,
really analyze the market, really understand to make
a good product selection that’s gonna give you the
best chance to succeed. And they don’t get the
right amount of inventory. They often invest way too much
or they get way too little, So all these things, you really
need to put in your favor. There’s no guarantees. You need to be able to
pick a great product. You need to be able to test that product to make sure you’re successful. You make sure you get
inventory, get a great product, all these things, but they’re all related to product selection,
and we see so many people go into products without really
knowing what they’re doing, because they haven’t put
the time into understanding how do you actually select a product. So again, first thing,
the biggest mistake we see is all about product selection. And if you have the wrong product, all the other stuff,
doesn’t matter if you do so many of the other steps right. Even some of our most advanced techniques and how to get to page one and market it, it’s really difficult if you
don’t have the right product. It’s not impossible,
but it’s so much easier if you know what you’re
doing on the front end and get that right. And so that leads me to
the second biggest mistake I see Amazon FBA sellers make is that so many people go at it alone. We have Facebook group with over, between our two groups,
well over 30,000 members between the two groups. And
we’ll see people all the time and people ask about getting help and so many people say oh
you don’t need any help. You don’t need any help. And I think that is absolutely crazy. You’re dealing with some with high stakes with a lot of money, there’s
a lot of complexity to it, there’s a lot of depth to it in terms of how to do things on Amazon. There’s a certain order
you need to put things in and people go out there just trying to figure
it out by themselves. And you can do that. It may take you a
lifetime to figure it out. It may take you five, 10,
you may lose so much money before you figure it out, so, some people are fine losing
10, 20, 30,000 dollars on their own because they’re afraid to get help from anyone
else and go it alone. Now there’s another group
of people that I see that totally get it. They wanna learn the quickest way, the best way how to do something, learn from someone else’s mistakes, learn from someone else’s experience, and really find a mentor
or find a coaching program. And those that don’t do that, it really depends on the individual. If you’re someone who can do it, great. Ourselves, we really
rely on people to help us in all sorts of areas. I like to use the analogy of even every Olympic
athlete needs a coach. So if you take any athlete
who’s in the Olympics, every one of them have a coach. These are the world’s best at what they do and they need a coach
to get that much better. Let alone, people who
are walking into things with no idea how to do this and they’re saying no, no,
no, we don’t need any help. We’re good. Or they say oh, we’ll just go out and we’re gonna get a little
piece of information here, a little piece from here,
and piece it all together. People can do that, more power to them. But again, in our
opinion, what we’ve seen, that’s the biggest mistake. We see so many people post
things in Facebook groups and we’ve got this large
75 million dollar plus Amazon business, we know what we’re doing. We say we don’t know everything,
there’s always new things, but we know a lot and we’ve
got a lot of experience as one of the early sellers on Amazon. And we see all sorts of
misinformation out there that people are taking an implementing and they’re wondering, you know, and it’s leading them to believe like oh, maybe there’s not a
big opportunity with Amazon anymore ’cause I tried
this and it didn’t work. It’s like yeah, of course it didn’t work because you didn’t know the right steps and the right process to do that. I definitely would recommend
finding someone you trust, finding someone who can help you. Find someone that’s actually done it and has a successful Amazon business that can actually legitimately help you and guide the way as opposed
to completely winging it. For the third biggest mistake
we see Amazon FBA sellers make from our perspective is
they give up way too soon. So we see so many people
that come into this and on one hand, everyone acknowledges, it’s indisputable that e-commerce and the opportunity with Amazon is growing and growing and growing there’s no doubt. No one refutes the point
that Amazon and e-commerce continue to grow and for
years and years and years, e-commerce is gonna continue to grow. It’s basically a fact. So what happens, people get involved and they see that it’s
a little bit of work, there’s issues, there’s challenges, you know they have their listing and maybe something didn’t
go quite right with their… You know they need Amazon
seller support to help them and they have to call them
and they don’t get something resolved right away,
so they get frustrated. Maybe a competitor lowers their price and it impacts their product a little bit. There’s endless little things
that happen with Amazon that can seem kind of
annoying and difficult and people think oh,
it’s not working for me, it doesn’t work or my product doesn’t work or maybe they didn’t follow
the right process initially with the first product
or their first product wasn’t a total home run, so they give up. And they’re like oh,
this stuff doesn’t work. Meanwhile, they kind of
waste all this knowledge they’ve gained from hopefully
things they’ve learned, but also the experience you gain. And what we benefit from is
we’ve taken the experience and the mistakes we made on certain things and then we reinvest our own mistakes back into ourselves,
back into our business. And with Amazon, it can
really move quickly. I mean in a period of a year, you know you get that holiday season, the product can really go up. Even if you don’t have a great first year, you stick with a second year. But so many people don’t even make it to the second year because, again, they haven’t enlisted
the help from people that can really help them do it, they run into some
hurdles and they give up. So the third thing I
really encourage you to do is to stick with it. Have this belief, this
longer term mindset. You can’t have such a short term mindset that hey, I’m gonna try
to make a bunch of money in a few months and if I
don’t, it doesn’t work. You’re trying to build something. That’s why what we teach people is to really build brands on Amazon, which is easy in terms
of the technical aspects of creating a brand. But we really believe in brand building because that’s the
long-term success over time. And the more and more
people buy your product, the more viable your business becomes. The other thing, Amazon rewards you for hanging in there and not giving up. So the longer you’re with there, is you get additional features on Amazon such as you get your product trademarked and you get into what’s
called the brand registry. Amazon then gives you new features. They actually unlock
new marketing features that only you have or only
people in the brand registry get that the rest of the sellers don’t get. You have the ability to add new photos in different spots, you
get the ability to do different kind of advertising
than everyone else. So it’s kind of like a video game where you’re unlocking features. And the more you hang in
there, the more you progress in your business, the more
Amazon’s gonna help you grow and grow and grow. So again, make sure you hang in there. So in summary, the three biggest mistakes we see Amazon FBA sellers make is number one, product selection. Not picking the right
product, not understanding the right process how to go about it. The second thing is not finding a coach, not finding someone you
trust, look for mentorship, and trying to completely
wing it on your own and end up making a lot
of expensive mistakes and so on as opposed to finding someone that can really help
you get there quicker, faster, and better. And the third thing is
don’t give up, right, the third mistake we see
too many people give up. Again, gotta stay with it and realize, this thing, our own
business, our own experience, we’ve been at it for,
this is our eight year, is it’s a process. It takes time and you’ll
learn things along the way, but the power and leverage of e-commerce is unbelievable and the
power of Amazon’s incredible and it’s only gonna continue that way with the incredible growth
of e-commerce and Amazon. So if you found this information helpful about the three biggest mistakes, I’d like to invite you to click below. Check out our free workshop. I put together an entire workshop all about our exact
process on how we built our 75 million dollar Amazon business and how you can implement
some of these exact steps. More importantly than us building it, is how you can build your
very own e-commerce empire whether you’re just beginning
or whether you’ve already sold on Amazon, how you can
learn from what we’ve done, our exact process and make it your own and get underway building your
very own e-commerce empire simply by clicking below for
our limited time workshop. So if you liked this
video, be sure to give us a thumbs up and, really important, make sure you subscribe to our channel. Every week we put out new content all about Amazon and
e-commerce to help you. You wanna make sure
you’re notified of that. Be sure to subscribe to our channel here. And lastly we’d love
to hear what you think are some of the biggest mistakes. I’d love to hear some
of the biggest mistakes maybe you think you’ve
made if you’ve already sold on Amazon or any questions you have about selling on Amazon,
we’d love to hear from you, commend below. (light music)

How the “Amazon Effect” is Shutting Down Businesses

– Hey there, Jamie
Davidson with AMZ Insiders. A little bit about ourselves, myself and my two fellow
co-founders, Jason and Brad, sold over 75 million
dollars last year on Amazon. This year we’re projected to do well over 100 million dollars. And today we wanna talk to
you about a question we get which is when you hear
what is the Amazon effect. So you may have heard of
this, you may have not. There’s a term called the Amazon effect and you’ll hear it thrown out a lot. You’ll hear it in news
articles all the time and they’ll usually talk
about a struggling retailer and the retail industry in total, the traditional brick and mortar business, and the death in large part of the brick and mortar business, not the complete death but for in terms of traditional brick and mortar retails. And they usually, almost every
article that’s referred to, they’ll be reference to the Amazon effect. And the point, what the Amazon effect is is just the impact that the
growth of the Amazon platform and Amazon as a company
has had on changing retail, how things work, how consumer behavior how they acquire goods, purchase goods, how we get physical products. And that’s called the Amazon effect, which is ultimately tied to
the financial performance of these traditional
businesses that can’t survive up against a new model
that’s much more efficient in so many ways, and it’s
actually an understatement to say it’s much more efficient. In the Amazon model, what’s
really unique about it is it allows sellers to
plug into the models. The majority of Amazon products,
over 85% are actually sold by third party sellers selling
through the Amazon platform. So when you buy something from Amazon, you’re typically you know, if you buy, I’m in our warehouse here, but
if you were to buy something off of Amazon, typically
this is not Amazon’s product. This is in this case, if you
bought this you’d be buying our product, this is our product. We’re a third party seller
leveraging the Amazon platform. What Amazon’s doing by
creating the platform, they’ve allowed this
economy, world wide economy basically to flourish
and ecosystem flourish for people to all plug in
and benefit financially of this huge growth of ecommerce. And it’s also a reward to
the customer to be able to get really good products
’cause we’re all competing for really good quality at
a really great price, right? Because you don’t need
all these store fronts and brick and mortars and
teams of customer service and all these things,
when you can just simply order it online, right? And you can sell things
where people can go, point and click on their computer, and even more popular right
now is point and clicking on their phones. So they’re just simply
going to their phone and Amazon makes it incredibly easy, they’re the best at this. If you’ve been to the Amazon app, to buy something at Amazon you could do it in like 15 seconds. Go find your item, click on
it, it’ll be at your doorstep within two days. If not tomorrow or even
maybe in a couple hours by this evening. That is the power of Amazon,
that’s the Amazon effect when we talk about the whole industry. What that means, for one
thing it scares the heck out of competitors. So the really kind of
inefficient, old retailers think of companies like Kmart in the U.S., Sears, those type of retailers, those are kind of the first
to really, really you know, be in a lot of trouble. Those retailers are already in trouble by more efficient
companies like the Walmarts and Targets and Lowe’s and so forth. But really, Amazon scares
the heck out of the biggest retailers so Walmart, which
used to be big bad Walmart that everyone was scared of
Walmart, Walmart, Walmart. Well Walmart is very scared of Amazon and whether they would probably
not use the word scared, that definitely is one of
the appropriate descriptions of how they think of Amazon. Because they know the power of Amazon and the online space is so powerful, that it is really certainly a
threat to Walmart’s existence. So Walmart naturally is trying to compete and that’s why they mimic
some of the platforms they would have. With this Amazon effect,
you know that sellers, it’s so hard to compete
because Amazon’s so far ahead of everybody, they have
this incredible opportunity. There’s so many people that
have made lots and lots of money, and we’ve built
a huge ecommerce business all leveraging the power, the technology, the breath, the marketing
skills, all of Amazon. I mean Amazon if you can
remember way back when, I think it was 1997 Amazon
started out as a book company. Amazon was just selling
books online, right? And then what happened,
you wanna talk about the Amazon effect. Think about Borders books,
when’s the last time you been in one of those? It doesn’t exist anymore. Think about music you know,
back then CDs, everything else, music stores went out a long time ago too similar to how iTunes crushed
a lot of that industry, but the ability to buy stuff online there’s just so many
industries and stores. And as Amazon’s progressed
it’s leveled the playing field, it’s eliminated those stores but at the same time it’s
created so many great opportunities for people like me and you, anyone that’s interested in
getting involved in ecommerce. It’s allowed us to step
in and basically get into the commerce space,
which before in the past you had to be part of a major retailer or you had to be a mom
and pop shop down below. But now because of the power of Amazon, really anyone has the
ability to get under way. So again that is, if you
hear the Amazon effect, that’s what it’s talking about, the impact of it. And the Amazon effect’s not going away, it’s only getting bigger so
you’ll continue to see more and more situations of it, which there’s always kinda
winners and losers of it too. There’ll be changes you know over time, technology grows so you
either can be on that side that guys are kinda getting squashed or you can position
yourself on the other end and taking advantage of the opportunity, taking advantage of the
opportunity that Amazon presents. The huge growth that’s
happening with ecommerce and position yourself
on that side of things, and learn how to sell on Amazon, learn how to have your
own ecommerce business and grow it yourself and take advantage of this huge growth ’cause more
and more is gonna continue to come this way. So why not be on that side
of things and take advantage and build your own ecommerce business? And be part of this incredible growth that the Amazon effect has caused. So if you like this video
all about the Amazon effect, we have a free workshop, click below. I talk specifically exactly
how we leveraged Amazon ourselves to build our
very own 75 million dollar plus business on Amazon, soon to be over 100 million. We go through the exact steps we used but more importantly, we
talk about how you can follow our processes and
take advantage of this exact opportunity for yourself
to build your very own ecommerce empire using and
leveraging the power of Amazon. So if you like this
video be sure to give us a thumbs up, and really important
make sure you subscribe. Every week we put out great new content all about Amazon, our
story, our taking advantage of this incredible growth
we’re seeing with ecommerce and how you can take
advantage of this opportunity. So again be sure to subscribe, and lastly we’d love to hear from you. If you have any questions about
anything related to Amazon, please go ahead and leave a comment below. Again we’d love to hear from ya or any feedback you have. (light music)

Am I Too Late to Start an eCommerce Business on Amazon?

– Everyone I’m Jamie Davidson with AMZ Insiders. A little bit about ourselves. Myself and my two fellow
co-founders Jason and Brad combined to sell over $75
million on Amazon last year. This year we’ll do over
$100 million all on Amazon. And today what we’re gonna talk about is another really frequently
asked question we get from people, friends and family, and people all over the globe which is, is it too late to get
started selling on Amazon? And or an e-commerce. And the answer is absolutely not. No way not even close. Not remotely. What happens is people
see certain elements small niches of something being maybe a certain product being maybe a little bit saturated and so forth. The reality we are very much
still in the very early stages of selling on Amazon and e-commerce. E-commerce currently is only 10% believe it or not it’s
only 10% of all commerce. Which is incredible because look at the chart of
the growth of e-commerce over the last ten years it’s like this. It’s incredible. And Amazon is by the far
the most dominant player within the e-commerce space. And that being the case, it’s like this it’s projected to be again keep in mind we’re only at 10% so over the next five years for example it’s expected to be to triple . The growth rate is expected to triple, to become only 30% of all commerce. Right so that’s still only a third. And so for years and years you
got so, so, so much growth. Think about the iphones
only been around for barely a decade. Barely a decade and think about how much that’s changed things. And with e-commerce particularly that’s one of the biggest reasons that Amazon is such a huge opportunity is because of the growth of mobile and how we’ve very much
still in the early stages of mobile and how much
further we have to go. The reason why Amazon
is such a great platform and such a great opportunity, because most people buy things now mobile. They actually use their phone. They still use computers
and everything else. But Amazon has made it so
easy to buy on your phone. I’m sure you’ve used Amazon. If you’re going to buy on Amazon, you are disappointed if you go to Amazon and you’re not able to buy something. It’s pretty rare. Right people go to Amazon
with the expectation that they’re gonna click the buy button, they’re gonna have it on the door step within no later than two
days with Amazon Prime. And really now a days you
can actually get stuff delivered by the same day. A lot of products you can literally get within hours delivered to your house. And so with that, it’s awesome from the consumer side. But also creates a huge opportunity that is still very much in early
stages on the selling side. In terms of Amazon in particular, Amazon is bigger than the next 10 biggest e-commerce platforms combined. That is why we eat,
breathe, and sleep Amazon. Is because it’s so much bigger than all the other e-commerce platforms. Even though we sell on all
sorts of other platforms We sell on Walmart.com We sell on ebay, we sell on bunch of e-commerce platforms you probably never heard of. Still all day long, whenever we’re focused on
our e-commerce business we always go to Amazon and
focus on that primarily because that’s where
all the customers are. And so basically if you
can get your product, if you have a good quality product you can get in front of this
massive amount of customers that are all on Amazon. And you leverage Amazon’s
system and do things. You can sell an incredible
amount of money per month. That’s why you hear people selling these incredible amounts of
sales on Amazon every month because they’re taking
advantage of the traffic. Now it’s not to say it’s easy
and doesn’t require any work. That’s not true. With anything in life, there’s kind of winners and losers. And just know that there’s
incredible opportunity. Those that get on the
platform and think that they’re just gonna throw stuff up there. They’re not gonna learn
how to actually do it, follow a process, learn from people who actually
know what they’re doing, sure those people are gonna struggle. Which we like because
we know there’s gonna be those that are successful and those that are not. And if that wasn’t the case, it really wouldn’t be an option at all. Because if anyone could just do it, then sure wouldn’t be an opportunity. But the reality is, there is absolutely
huge, huge opportunities. It’s a matter of who’s gonna
get that slice of the pie. I mean the pie is getting
bigger, and bigger, and bigger. But again I’m sure if you read about it, every week all the new
articles about Amazon getting bigger and bigger. And local retailers
struggling more and more or big retailers chain
retailers going out of business. And again it’s called the Amazon effect. And that’s not going away. There’s certain things
that can be debated about how to go about certain things. But what’s not in debate is
the growth of e-commerce. All right we’re still very
much in the early stages and there’s very much a long ways to go. Related to that, if you’re interested in
getting started in e-commerce you wanna learn, you wanna do some more homework first, we’ve got an awesome free workshop if you click the link below. Where we tell you the
exact steps that we used to build our business. And more importantly, we go into the exact
steps that you can use to get underway with an Amazon business, build your e-comm empire. Everything from how you pick a product to how you rank a product to
get to page one on Amazon. We go through it. So again be sure to click the link below and check out our workshop all about how to build your own Amazon empire leveraging the power of e-commerce. So if you liked this video, be sure to give us a thumbs up and definitely be sure to subscribe. Every week we go through all sorts of new tips and techniques and topics all about selling on Amazon and how you can be
successful selling on Amazon. And if you have questions, we’d love to hear for it Be sure to put in the comments below anything about selling on Amazon, about how to get started, and next steps again we’d
love to hear from you

Testing Products for Your Amazon Business Before Investing More Capital

– Hey, everyone, I’m Jamie
Davidson with AMZ Insiders. A little bit about us. Myself and my two fellow
co-founders, Brad and Jason, buy and sell over $75 million
a year on Amazon alone. And this year, we’re gonna project to do well over $100 million all
through the power of Amazon. One of questions we get, first
and foremost, is always about product selection and investing in product and how much should we
invest in a product. And it’s a great question. In particular, one of the
questions is, you know, how aggressive should
you go with a product before investing larger amounts into a given product that you select. Our advice there is that
always like to test a product. You know, here in our warehouse we have, literally
thousands of products here, and we’re launching new
products all the time ourselves. Even though we have a
large Amazon business, we do not launch a new product and go in super, super
aggressive in terms of the amount we spend initially, because, as much as you can
follow a set of processes to rank your product really
well, and we’re experts at it, and we love helping people how to rank their products on page one, and all of the other
techniques you can use managing, kind of, the Amazon ecosystem, there’s still an element of
the unknown with any product. You don’t know for sure. There’s so many variables
relative to your competition, the market, the pricing,
the quality of your product. So, there’s no sure thing. There’s never an absolute sure things. What you’re doing is you’re
putting the odds in your favor when you go through our
detailed methodology on how we select a product and then how we go about
ranking and launching a product. But even with all that, again, there’s no a hundred percent certainty. And with that, so what we
like to do is get enough units that you can have some success early on. So, typically, we’re gonna
spend anywhere between 2,500 and $4,000 on a new product. Even ourselves as, you
know, even when doing $75 million a year, when
we first launch a product we’re gonna do about that range. We basically want to have
enough units, all right, that we can sell them for a
couple months if it goes well. We don’t want to have so few units that, if our product really
does well and takes off that we run out of stock just like that because that’s not a good
problem to have in the sense that then you’ve gotta go
back and get your, your item. You didn’t give yourself
enough of a chance of success. On the flip side, we’re not gonna go out and spend 10,000, 15,000, $20,000 on a our product for our first order. You know, we’re gonna execute
all of our launch steps. We’re essentially testing,
you know, our product. And not every product we’ve
ever done has been a home run and we’ve certainly had failures as well, but the power of Amazon is
when you do have success is all the action you can take that can be really, really successful. I mean, you can be incredibly
successful on Amazon with just a couple products that do well, and certainly you can expand more because you can sell ’em
in the US on amazon.com, you can take ’em to Canada,
you can sell ’em in Europe, you can sell on Amazon over in Japan now. All the marketplaces, all
with that same product, assuming that product, there’s demand for it all over the world. And you have that power just through this whole platform of Amazon. And so, you want to invest time up front kinda testing products and not over-investing
in one product, you know, because you think it’s gonna work. At the end of the day
you need the customer to ultimately see that product take off, make sure it’s a good quality product, make sure you do all the
steps to rank on page one, all the stuff that we teach those that we work with how to get there and make sure, of course, up front, how to do a great job picking the product in the first place that you’re gonna test. So, in summary, again, (clicking)
spend, maybe $2,500, up to about 5,000 at the most, typically even a little
bit less than that, but give yourself enough room that you have enough inventory to sell but not a huge order, ’cause
you can always order more, and what we do is, as we see success with our products selling, then the next order is
a little bit bigger, and then if we’re having a
lot of success even more, third order may be really, really big. It may be, like, 10 times bigger than the first order, right? And we can go up from there based on the growth of the business. So, if you found this topic helpful, I really encourage ya
to click our link below. I put together a free workshop where I go more in depth all about launching a product, selecting a product, the exact process we use to build our very own $75 million
business on Amazon and how you can get started
with ecommerce yourself, leveraging the power of Amazon. Again, click the link below, check out our limited time free workshop and we’ll see ya there. So if you liked this video, be sure to give me a thumbs up there and make sure
(popping) you subscribe. Every week we come out (clicking)
with great new content all about Amazon, how we’re
growing out own business, how you can use our exact
methods and make them your own whether you’re just startin’ on Amazon or whether you already have
an existing Amazon business and we love to hear from you. If you questions about product
selection, how you do it, comment below.
(clacking) We’d love to, any feedback
you have we’re always open. And again, we’d love to hear
from you. Comment below. (truck rumbling) (uptempo music)