In this 1 minute and 30 second PAREable, discover ideas from Ryan Moran and his Amazon FBA success story, which he shared on Smart Passive Income podcast #144. This is not a get rich quick scheme as it involves series of steps and takes a lot of work. Also worth mentioning, Ryan did not take a salary for an entire year as profits were rolled back into more inventories.
- Focus on a singular sales channel first (Amazon FBA in this case) before being distracted.
- Research everything about the specific sales channel so you can map out an action-able plan according to the channel’s characteristics (Amazon algorithm is sales based and people buy stuff based on # of reviews).
- Build a brand by going through verticals of products.
- Don’t be distracted by other ideas until you’ve mastered one specific channel.
- Don’t complicate things as it often delays action.
- Product idea simple hack is to look at what’s being advertised off line and people will look for it online.
- A product research hack is using a Reddit survey. Just ask people and read through Amazon reviews for user likes / dislikes.
- Source through Alibaba and get multiple suppliers to bid.
- Beta test prototype product for final validation before production.
- During production and freight delivery time, build up a social following related to your product so you can generate some sales the moment product arrived at Amazon warehouse.
- The first stage of Amazon sales (the Grind), beg your friends to get you 25 reviews on your product. This way, you can be qualified for Amazon pay per click.
- Bid on your product keyword up to your break even point. Keep at it until you’ve generated 20 sales per day and have accumulated 50 reviews on your first product. Only then you can reach for the next stage.
- The second stage of Amazon sales (the Growth), introduce complementary products as many as you can handle without detracting your existing product.
- Go through the Grind with the complementary products. Cross-sale and up-sale with the first product until you have 3-5 products each doing 20-40 sales per day.
- The third stage of Amazon sales (the Gold), focus on starting to increase customer value. Also, this is the stage that you can start to think about paying yourself.
- Offer bonus and future discounts for email signup on your own online website. Encourage brand loyalty by follow-ups so they will come back to buy more.
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Here is the link to the podcast.
Until the next PAREable..