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)