10 Popular Questions Amazon FBA Beginners Ask [With Detailed Answers]

Amazon FBA Success: Boost Sales, Rank Higher, Dominate Your Niche!

Are you diving into the exciting world of Amazon FBA?

Or perhaps you're a seasoned seller looking for some golden nuggets of wisdom.

Either way, you're in for a treat!

In this article, we're delving into the essentials, answering ten burning questions that often pop up in the minds of Amazon FBA beginners.

Recently, I was joined by Lucia Cracogna, a fresh graduate brimming with enthusiasm to kickstart her Amazon selling adventure on my YouTube channel.

We covered essential topics, from optimizing your Amazon listing to the ins and outs of PPC management.

Whether you're a beginner stepping into the FBA arena or a seasoned seller seeking fresh perspectives, our chat is bound to provide valuable insights.

And here's the best part – if you prefer watching over reading, you can catch the entire conversation below.

So, buckle up for a journey into the heart of Amazon FBA, where Lucia's curiosity meets my years of hands-on experience.

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Introduction: What You'll Learn In This Article

Vova: Hey there!

Today, we're diving into the nitty-gritty of Amazon FBA, addressing some common questions aspiring sellers often toss around.

Joining me is Lucia, all the way from Italy.

We connected, and I thought, why not turn our conversation into a video and article to help not just her but all of you out there?

We'll go step by step, and I'll share my seller insights.

Lucia, say hi and tell us a bit about yourself before we jump into the good stuff.

My Guest: Lucia Cracogna

Lucia: Hi, everyone! I'm Lucia from Italy.

Freshly out of university, I decided the traditional job route wasn't my thing.

That's when I stumbled upon the world of Amazon business, and I'm super intrigued.

I've got some beginner-level questions for Vova, and hopefully, it's beneficial for all of you to

Vova: Thanks for being here!

I appreciate you taking the time to join us today.

Let's dive into those questions.

Before we kick off, Lucia, I want to highlight how cool it is that you're exploring a different lifestyle.

I've been down that road, and let me tell you, being your own boss has its perks.

Sure, life's not a hundred percent under your control, but it's pretty darn close.

I'm thrilled to share my experiences and help not just you but also everyone tuning in.

Lucia: Thanks!

So, let's get into it.

#1 - Is there a real potential to start this business, or is it too saturated?

Related Read: Unique Amazon Product Research Method: Find Less Saturated Products

Lucia: So, the first burning question is this: Is there real potential in starting this business, or is it too saturated?

Vova: Fantastic question!

It's a common one because as Amazon FBA gains popularity, folks exploring online opportunities stumble upon it.

Even back in 2016 when I started, it was buzzing.

Lucia, things have evolved since then.

So, about that "it's too late" chatter from seven years ago – it's a bit of a déjà vu.

Sure, things have become more saturated, like most business niches do over time.

Amazon has seen changes, especially with the pandemic shaking up logistics and all.

But, bottom line, it's still the big player in the United States, and online traffic is on the upswing.

People, both buyers and sellers, are still flocking to the platform.

The game's a bit more complex now, but the core idea remains unchanged.

You bring your product to the table.

Now, talking about private label – Lucia, are you into that?

Lucia: Yeah, definitely interested.

Vova: Yeah, there's more to the Amazon game than private label – online arbitrage, retail arbitrage, wholesale.

Unfortunately, I can't shed light on those today since I haven't ventured into that territory.

My expertise lies in private label, and it's been seven years on this journey.

The core idea remains: create a product, bring it to market, sell it on Amazon.

You still have to crack the algorithm, get those rankings, and people are out there searching for what you've got.

It's a familiar dance.

But to step into the arena armed with knowledge and a better shot at success (because, let's face it, there's money on the line), you've got to do what I did seven years ago – learn the ropes.

Hit up YouTube for free knowledge or consider a course from someone who knows the drill.

The drill hasn't changed much.

You create a product, make it stand out, solve a problem for a specific market, and bring it to market.

Simple, right?

Now, the million-dollar question – has it gotten harder, more saturated?

Well, yes, and no.

More sellers mean some niches are crowded, but there's always room for new products.

Case in point: we're rocking the barbecue niche!

Now, let me take you into our world.

Our brand is all about grill cleaning products, diving deep into the niche of BBQ, and even further into the sub-niche of grills and specifically grill cleaning.

The beauty is, the deeper you go, the more you might find those not-so-huge products that bring in a steady $5,000 in sales each month.

Imagine pocketing a cool $1,000 in profits from just one of them.

Now, multiply that by five products, and suddenly you're looking at a decent monthly salary – $5,000 isn't shabby at all, in my opinion.

But, and there's always a but, you need money to get this ball rolling.

Some things don't change, and financial investment is one of them.

The more you have, the more you can throw into marketing, crafting a killer listing, and ensuring you never run out of stock.

So, to answer the initial question about the potential of this business – yeah, it's still very much there.

Quick side note – we're stepping into new territory, launching a brand in the gift sphere.

Things have evolved, too.

Now, you can jazz up your listing with videos, a feature we're fully embracing.

We've honed our skills in selling, knowing how to position ourselves against the competition.

It's more than just slapping a product from China on Amazon – it's about strategy and finesse.

So, let's break down the simplicity of it all.

How do you stand out? How do you differentiate yourself in this vast market?

What does the market crave, and what's their pain point?

These are the questions often overlooked.

Some folks toss a few images up, thinking that's the golden ticket to sales.

Well, it's not.

Same story seven years ago, just with a tad less competition.

But here's the scoop: there are still niches flying under the radar, waiting for someone to claim their spot.

Now, to your question about opportunity – I'm still at it, and let me share a video from 2021's results, the profits, the revenues.

In this video, you'll get a behind-the-scenes peek.

Stay tuned for that.

Lucia: I was reading a report yesterday, and it mentioned that only 30% of sales are happening online.

Wrap your head around that.

We all know this is set to explode in the future.

Just 30% of online sales right now means there's a vast space for growth.

E-commerce is the frontier, and there's room for everyone.

Vova: I love that you're forward-thinking because, let's face it, when you launch a product today, you're not just aiming for quick wins.

Our brand, for instance, is playing the long game, thinking years ahead.

During our product research, we delve deep, analyzing the growth of the niche for years leading up to today.

Now, sure, we're making assumptions because who can predict the future?

There might be unexpected twists, like the black swan event of Corona, flipping the script for some in the travel niche.

But your point about sales growing, more traffic, more people searching – that's the sweet spot.

Think of it as creating an asset.

Your keyword, your product, ranking on Amazon – it's like planting a seed.

If your niche is projected to thrive for the next five years, your listing grows too.

More reviews, more pictures, improved rankings.

You might even end up on Google's good side.

Imagine getting featured by a blogger – boom, your asset is expanding.

Now, don't get me wrong, it's not a walk in the park, but it's doable.

There's an opportunity, and yes, it stretches out over the years.

Lucia: Exactly, it's scalable.

Vova: Scalability – it's the name of the game.

You can multiply your products, and dive into different niches, but here's the real talk: it requires money.

This is a product-based business, and here's a reality check that often slips people's minds.

Imagine hitting $50,000 in monthly sales, and pocketing a cool $15,000 in profit.

Awesome, right?

But hold on, what about the products you need to keep this momentum rolling?

Enter inventory – the unsung hero of the game.

We'll dive into this more in a bit, but for now, let's move on.

#2 - How much should the budget be for a successful start on Amazon?

Lucia: On to the second question – how much money do I need to start Amazon FBA?

Vova: Excellent question, and it's a common one that usually pops up first when folks start contemplating the Amazon FBA journey.

You've spotted the opportunity, you can even glimpse into the future, and now you're thinking, "Okay, how much cash do I need?"

It's a great question, and the answer?

Well, that depends.

Alright, let's break down what the budget depends on.

When you're out there scouting for products, you'll encounter different opportunities.

And hey, I've got a treasure trove of product research videos on my channel, including a marathon 12-hour session – I was feeling talkative that day.

So, if you wanna watch that, look below:

Now picture this: a niche where a product goes for a hundred bucks, and sales are soaring – thousands a month.

There's room for new players, and not much competition in terms of reviews, and we can dig deeper into these details later.

Now, here's the kicker.

In a high-ticket niche like that, where the product costs a hundred dollars and let's say 20 to produce and bring to market, it might not be the best playground for someone with a smaller budget.

Competing with the big dogs to reach the top of the sales ladder could be a tough nut to crack.

Now, here's the lay of the land.

Picture this high-ticket product where the top sellers are raking in sales – let's say a thousand, eight hundred, six hundred a month.

On the flip side, you've got these fresh-faced sellers, rocking fewer reviews, who've recently joined the party and are still pulling in sales.

Exciting, right?

But the catch is that diving into such a niche might be a budget buster.

Ordering a thousand units of a $20 product?

That's a cool $20,000.

Not everyone has that kind of cash stashed away.

And that's not the only hurdle.

You need to factor in extra inventory for the next batch because, let's face it, selling physical products means waiting for Amazon to pay you, shipping times, and all that jazz.

We'll delve into the nitty-gritty of this turnaround time in the upcoming questions.

But for this particular niche, if the budget's not bulging, options might be a bit limited.

Now, let's shift gears.

Suppose your budget is a more manageable five, ten thousand dollars – or maybe a bit more, something that's within reach for many.

In that case, you might explore products on the market that are cheaper.

Not too cheap, mind you – there's a sweet spot.

Let's dive into the realm of Amazon fees because, truth be told, they take a chunk.

We're talking 15% off each sale, plus pick and pack fees.

These fees vary, ranging from a couple of dollars for small products to a bit more – maybe around 10 or 12 dollars – for the oversized ones.

Now, here's the game plan.

Imagine stumbling upon a gem, a product selling for 25 bucks, with a production and shipping cost of five dollars.

That's a sweet spot.

We're onto something here.

So, let's say we decide to roll with it, creating 500 units, each costing us five dollars, totaling 2,500, including shipping.

Toss in some cash for photos, maybe a video – those visuals matter.

To kick things off, we're looking at a few thousand dollars in investment.

And to keep the momentum, buying the second batch might edge a bit higher.

Let's say 500 units of our product sets us back 2,500 dollars – product cost plus shipping.

The good news?

Sales are on the rise.

Now, let's ramp things up a bit.

Say we decide to go bigger, aiming for a thousand units because, hey, the sales are picking up.

That means we're looking at a five thousand-dollar investment.

So, within our ten thousand dollar budget, we've got room for essentials like eye-catching pictures.

Pro tip: investing in a good designer is key.

I've got some stellar recommendations, and I'll drop them right below – worth every penny.

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4. Shipping:

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   2. Proboxx

   3. Unicargo

5. Videos from Bloggers: B Ambassadors

Plus, we're factoring in copy for the listing and a video, because visuals matter.

Oh, and let's not forget brand registry.

It comes with perks like fewer headaches dealing with competitors (those pesky hijackers on Amazon), and it ensures you're in the clear with trademarks.

So, with this starter budget, hovering under ten thousand dollars, you're set.

And hey, don't let that figure intimidate you.

We recently dived into the barbecue niche, snagging a product with a landed cost of around a dollar.

We sell it for 15, and after Amazon does its fee dance, we're looking at an 8-dollar profit.

That's an 800% return on investment (ROI), and it's flying off the virtual shelves without needing ads.

Now, let's shift gears a bit and address the ad spend.

Here's a little nudge of motivation for those who might think, "Everything's saturated; I can't find a product."

True, saturation is a thing, but with a bit of digging, you'll unearth hidden gems.

And hey, there's that 12-hour video I brewed up – coffee-fueled and borderline exhausted by the end, but it's there to show you that possibilities are endless.

Back to budgets – it's a flexible realm.

Take this dollar-landed-cost product, for instance.

You could snag 300 units for just 300 bucks.

Now, the magic happens when you sell all 300.

Of course, sales velocity plays a role, but let's say they all fly off the virtual shelves at 15 bucks each.

That's 4,500 in revenue from your 300-dollar investment.

Profit?

Well, that's the dance of ads and expenses, but at least you've got that one-dollar gem in your corner.

And, if this seems a bit hazy, feel free to hit pause.

Let's break it down further: one-dollar landed cost, ships to Amazon, sells for 15.

Amazon takes around seven dollars, maybe a bit less, off the fees – fees being 15% from the sale plus pick and pack fees.

Now, let's dial in on the specifics.

For this product, Amazon's fee dance is around three dollars, perhaps even less – details can get a bit fuzzy.

But let's roll with that.

So, after Amazon takes its share, we're looking at roughly eight dollars profit per unit before factoring in ads.

That's a sweet spot – it gives you a good eight dollars to play with for ads before hitting that break-even point.

But, here's the catch with cheaper products: the click costs for pay-per-click ads on Amazon might be a tad higher.

It's why exploring other advertising avenues is often a smart move.

Yet, every now and then, you stumble upon those golden opportunities – products costing as little as 50 cents, even with shipping factored in.

I tossed out a real example earlier – a product around a dollar, to be more precise, 0.07 cents.

It sells for 15.

Now, that's not a straight 15x return because of Amazon fees, but post-fee festivities, you're looking at a solid eight dollars profit.

That's an 800% return on investment – pretty darn good.

Sure, the norm is usually a bit less, and we're in a testing phase, aiming for those higher price points.

What's your take on all this money talk?

How much do you believe is needed for a successful Amazon journey?

Lucia: It really depends.

I mean, if you're looking to sell something like a dollar-landed product or delve into tech, the costs could vary significantly.

But if you're eyeing a low-budget entry, I believe it's doable.

Vova: Absolutely.

Lucia: There's an initial investment, be it three, four, five, or even ten thousand dollars.

Vova: I'd say having around ten thousand dollars is a good ballpark figure.

Now, while I wish everyone smooth sailing and successful ventures, it's crucial to keep in mind that things might take time to pick up.

Even if your initial product does well, it takes a while to see returns.

So, imagine you kick off selling these products...

Imagine this scenario: it takes around 30 days to create your products, followed by another 40 days for shipping.

Now, after all this time investment, you start selling, but the catch is, you only get the Amazon paycheck two weeks after your products hit the virtual shelves.

Enter the cash flow cycle – how fast you get money back into your pocket to reinvest in more inventory.

The shorter this cycle, the better.

If not, you might find yourself reaching into your own pocket to fuel the inventory engine.

So, how do we cut down on this turnaround time?

Well, one trick is exploring local production options or opting for faster sea shipping methods instead of the slower counterparts from China.

It's all about finding manufacturers who can whip up your product in a shorter time frame.

Related Read: Actionable Tips for Efficient Shipping to Amazon [Save Money and Deliver Your Goods Faster]

You might be wondering, why the discrepancy in time?

Perhaps one manufacturer takes 45 days while another gets it done in 30.

There could be various reasons – maybe they use different materials or have a more streamlined process.

It's a bit of a puzzle, but that's the intricacy of Amazon FBA.

Now, we're diving into the realm of product development, a fascinating journey of tweaking and refining.

And here's the thing, it's good to keep it simple.

I once knew someone who sold a unique electronic ear-cleaning gadget.

Simple, yet it did the job.

Lucia: Exactly.

And speaking of ears...

Vova: Ah, yes, I remember now – it was an otoscope, a digital one to be exact.

It was a unique product, a digital otoscope, and he did find some success with it.

However, there were various reasons why he eventually moved away from this specific item.

The whole setup got a bit complex with an app on the Google App Store for connectivity – lots of moving parts.

This complexity sometimes leads to issues, like the app not being user-friendly, which, in turn, translates to negative reviews.

What I'm getting at is, simplicity has its charm.

Look for straightforward products.

They might not be the most exciting, may be a bit mundane, but they often have a steady market.

And let's face it, people continue buying even the seemingly mundane items.

Lucia: Absolutely.

Sometimes, it's the less flashy products that quietly become the staples in people's lives.

Vova: Now, let's talk about product complexity.

While simpler products often have their appeal, there are still opportunities in venturing into more intricate items.

Why?

Well, fewer people might be inclined to tackle the challenges that come with harder-to-handle products.

This can mean less competition in those niches.

It all boils down to personal preference.

If you're up for a bit of a challenge, there might be a broader range of products to explore.

Imagine this scenario: you have a product that consists of several parts, and you decide to bundle them together.

Bundling can be a clever strategy, creating a unique offering that sets you apart.

For instance, consider a mask.

Someone might be selling a mask along with a complementary item, like a special light for the mask or a unique pattern to enhance its appeal.

These extra features not only differentiate your product but also address specific needs, making your offering stand out in the market.

Sure, delving into bundling and additional features takes us into the realm of product development, but hey, that's part of the game.

We started with the money talk, and now we're meandering through the maze of product intricacies.

By the way, for those tuning in, feel free to drop comments or questions.

We're always here to help!

#3 - What if I don't have a niche, and how to choose the perfect product?

Lucia: Let's tackle the third question, which has been a bit of a stumbling block for me.

The question is, what if I don't have a niche or a specific preference?

How do I go about choosing the perfect product?

It feels like I'm drowning in a sea of options.

Related Read: How to Choose the Perfect Product to Sell on Amazon

Vova: That's a fantastic question and a common hurdle for many beginners.

The product selection process can indeed feel overwhelming, especially when faced with millions of potential items.

It's like standing in front of a massive buffet with no idea where to start.

Fun fact, my first product was something as basic as kitchen scissors.

Lucia: Wow!

Vova: Yeah, kitchen scissors.

Sometimes, as I said earlier, simplicity is key.

Lucia: I second you.

Vova: So, let's dive into the tale of my first product, which surprisingly turned out to be kitchen scissors.

Yes, something as basic as that, and it was packaged in a gift box.

Remarkably, it's still holding its ground and selling well in both the Canadian and US markets.

Now, the niche, I must confess, is pretty saturated these days.

When we initially entered this arena, the top seller had around 500 reviews.

Fast forward, and the current top dog boasts a whopping 18,000 reviews.

Talk about saturation, right?

Now, we're not actively investing much in the development of this product.

It has a long history of stock-outs and various adventures, but it still manages to bring in sales.

It's like a relic with so many memories attached.

The reason I shared this journey is to emphasize that when I started, I had no clue that I'd end up selling kitchen scissors.

In its first year on Amazon, this product generated $147,000 in sales, with a profit of $17,000.

That translated to around $2,000 a month.

And mind you, this simple product was not alone; there was also a nutcracker in the mix.

Why am I sharing this?

Because sometimes, success in Amazon FBA comes from unexpected corners.

It's a testament to the unpredictable yet lucrative nature of the business.

Now, let's talk about how we turned those kitchen scissors into a success.

Related Read: How to Differentiate Your Amazon Product to Stand Out

We didn't just settle for ordinary; we added a bottle opener and a few other features that set us apart from the competition.

Plus, we threw in a stylish gift box to make our product stand out.

Our listing was carefully crafted, presenting our kitchen scissors as a superior choice.

Sure, we priced it a bit higher, but hey, quality and uniqueness come at a cost.

Now, here's the first piece of advice: If you already have a niche that you're passionate about or familiar with, start there.

Explore products in that space.

You might discover gaps or improvements you can make.

And if you're not sure where to begin, don't worry.

There are fantastic tools like Helium 10, Jungle Scout, and others that can aid your market research.

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Now, if you don't have a specific niche in mind, here's option number two: data-driven product research.

It's like having a roadmap for success.

Let me break it down.

I've got videos dedicated to product research, and I'll embed the entire playlist right below for you.

My Amazon Product Research Playlist

Essentially, you input criteria like desired sales and reviews into tools like Helium 10 or Jungle Scout, and voila!

The program shows you products that fit the bill across different categories.

Back in the day, this method led us to the unexpected success of kitchen scissors.

The data pointed us in the right direction.

However, keep in mind that some niches might be oversaturated now, like the one with our beloved kitchen scissors.

When that happens, prices tend to drop.

But armed with the right data, you can still spot those golden opportunities.

So, if you're thinking, "Show me products generating over $10,000 a month," these tools can do just that.

Now, once you've narrowed down your criteria, the program will present a list of products fitting your specifications.

Imagine scrolling through and stumbling upon a wooden bird cage or a crystal cup holder.

Sounds bizarre, right?

But here's the thing: sometimes these peculiar products hide a goldmine.

Take my first product, the kitchen scissors, for example.

With less than 30 reviews and only a handful of pictures on the listing, it didn't scream excitement.

I'm not much of a chef myself – maybe cook some eggs here and there.

Surprisingly, those humble kitchen scissors turned out to be a hit, and I even found different uses around the house.

It taught me the essence of this business: buy, sell, and aim for higher.

The key is to let the numbers guide you.

I didn't foresee falling in love with the kitchen niche, but I did.

The same goes for barbecue products – I'm not a barbecue expert, but my business partner is.

We saw an opportunity, took the plunge, and created a brand in the barbecue niche.

So, embrace the unexpected, and who knows, you might find success where you least expect it.

When you're faced with the vastness of Amazon's product landscape, tools like Helium 10 or Jungle Scout become your trusty companions.

They help you navigate and sift through the multitude of offerings.

Feeling a bit overwhelmed?

No worries – I've got your back.

Check out the product research playlist I shared above.

There, you'll find over 30 videos where I spill the beans on my experiences.

It might not be the fanciest advice, but it's real, practical, and it comes from navigating the trenches of Amazon FBA.

#4 - How long does it take from the order of the product until it arrives at Amazon?

Lucia: Now, moving on to the next question...

So, question number four is all about the timeline.

How long does it take from the moment you order your products from the supplier until they finally land at an Amazon fulfillment center?

Vova: That's a pretty good question, Lucia!

The timeline from ordering to arrival at an Amazon fulfillment center can vary, and here's the lowdown.

Let's assume your products are all set, inspected, and packed, eagerly waiting to embark on their journey.

For this example, let's consider shipping from China to the USA.

The first step is to reach out to your trusty freight forwarder.

Ask them about the shipping duration.

They've got the details on how long it takes to get from point A to point B.

They'll consider factors like the mode of transportation – whether it's by sea or air – and other logistics.

These wizards of shipping can provide you with a pretty accurate estimate.

Related Read: 3 Best Freight Forwarders For Amazon FBA (I Worked With All Of Them)

Alright, diving into the logistics side of things.

When you're gearing up to ship your goodies from the supplier to Amazon, you'll get down to specifics.

You'd go, "Hey, we've got 50 boxes of this size and that size, weighing in at this and that."

Now, there's this thing called the HS code, which you might remember from the free course on Udemy by Amit Rosenthal, the shipping maestro from Israel.

This code is like a little tag authorities put on your product, and it could mean you either pay a little extra or catch a break.

The rates vary – sometimes it's a smooth zero percent, other times it dances around five or even 30 percent, depending on where your shipment sets sail.

But let's not plunge too deep into the code jungle.

Now, here's where it gets interesting.

You've got choices for shipping speeds: the swift air shipping or the express flash mode.

With express, you can whisk your products from China to the USA in a mere three to five days.

Now, who should do the happy dance for this?

Well, it's perfect for those lightweight wonders where you've got some wiggle room for a sweet profit margin.

Alright, let's take a peek at the intricacies of shipping, especially when speed is the name of the game.

Picture this: you've got a shiny new product with a pocket-friendly landing cost.

Now, why might you want to splash a little extra on air shipping?

Well, there are a couple of scenarios.

Firstly, imagine you've got this fantastic low-cost product, and the air shipping price tag is a bit on the heftier side.

No worries!

You can still make it work.

Also, there's the urgency factor.

If you're flirting with the idea of running out of stock on Amazon, pump the brakes!

Going out of stock means you start sliding down the search ladder, and that's not a fun ride.

So, to keep the momentum, you can opt for air express, which takes a mere three working days.

Now, hold on a sec.

When I say "working days," we're talking Monday to Friday.

It's crucial to clarify this with your shipping company because sometimes they might sneak in calendar days, and we wouldn't want that surprise.

Now, if you're not in a mad dash and want to save a bit on shipping, regular air could be your wingman.

It usually takes around two weeks to gracefully land your products at the Amazon fulfillment center, all the way from the buzzing factories in China.

Let's dig into the nitty-gritty of shipping because, well, it's a maze out there.

First things first, shipping times can be a bit of a chameleon, changing shades depending on where you're sourcing your products.

Whether it's Russia, Italy, Argentina, or any corner of the globe, each comes with its own shipping nuances.

So, brace yourself for the express shipping rollercoaster.

There's the swift three to five-day express, a moderate eight to ten-day option, and then there's regular air shipping, sauntering in at a more leisurely pace of 14 to 16 days.

Now, let's set sail into the seas of sea shipping.

The slower the shipping, the lighter it is on the wallet, but it's also a bit of a time traveler, taking around 45 days to reach your destination.

However, the actual duration might play hopscotch depending on the shipping company, the routes they take, and their magic tricks to cut down both time and cost.

Oh, and one more twist in the tale – the location of logistics centers in both China and the United States.

The closer your products are to the centers, the faster the relay.

It's a logistics dance, and we're just learning the steps.

The shipping saga continues!

So, here's the next chapter.

Picture this: you've got your products ready to embark on their journey, and now you need to choose the right shipping speed.

It's like crafting the perfect blend of cost and speed, a delicate dance that can make or break your Amazon FBA experience.

Let's start with the fleet of options.

Express shipping can be a speed demon, delivering your goods in a swift 20 days or so.

It's like fast air shipping's slightly slower cousin but still quicker than the slow dance of sea shipping.

Now, sea shipping is a tale of three speeds – fast, slow, and somewhere in the middle.

The catch?

You need to ask your shipping company about all these options.

They might not spill the beans unless you're specific about what you want.

So, muster your best detective skills and inquire about the costs and timelines for express, slow, and middle-of-the-road sea shipping.

Now, the reality check.

The journey isn't a straight line.

It's more like a winding road with potholes.

Delays can happen – congestion at ports, weather tantrums causing bridge collapses, or even ships playing a waiting game.

In our own adventure, we faced a three-month ordeal with products stuck in Canada.

Winter brought chaos, collapsing roads and bridges, turning our expected arrival in September into a late December surprise.

Lucia: I'd like to chip in with something valuable.

It's worth asking the supplier for a DDP price and then comparing it with the supplier's quotation.

This way, you can get a clearer picture of the total cost involved in the entire operation.

Vova: Excellent point!

For those tuning in, DDP stands for Delivery Duty Paid.

Now, let's break down these terms for clarity.

Picture this: you have a product, let's say those trusty scissors, and it costs a neat dollar to produce – easy math, right?

Now, the Ex Works (EXW) price is that one dollar.

This is the cost up to the point where the manufacturer has crafted the product, boxed it up, slapped on the logo, and it's ready to roll out of the factory.

But here's where DDP kicks in.

Delivery Duty Paid is the total cost we'll have to foot for the entire journey, from the factory door to our Amazon FBA doorstep.

It encompasses shipping, duties, taxes – the whole shebang.

So, by comparing the Ex Works and DDP prices, you're not just getting scissors; you're getting the full price tag, ensuring there are no surprise costs popping up along the way.

It's a savvy move in the world of Amazon FBA chess.

Building on what you mentioned, understanding the DDP price is like deciphering the entire journey of your product, from the moment it's crafted to its arrival at the Amazon FBA warehouse.

It's the total package – literally.

And yes, you've hit the nail on the head: knowing this comprehensive cost is key to evaluating whether the venture is financially sound.

Here's a little extra tip: When you engage with your supplier directly, they might cut you an even better deal than a separate freight forwarder.

It's a bit like having an insider guide.

However, for more transparency and peace of mind, independent freight forwarders can be gold.

I've collaborated with several reliable ones, like the ones I shared above – Unreal China, Rosenthal Logistics, Unicargo, FBA Bee, and Forwarder One.

They can provide detailed insights, such as the shipment's whereabouts and tracking details, offering an added layer of assurance.

Remember, knowledge is power, especially in the realm of Amazon FBA logistics.

Absolutely, getting that tracking number is crucial for keeping tabs on your shipment.

But, you know, sometimes it felt like pulling teeth to get the info.

Maybe there was a communication hiccup, or maybe I didn't express myself clearly.

It happens, right?

So, here's a pro-tip: when you're in the nitty-gritty talks with your supplier, throw in some questions about the box sizes.

How big are those packages going to be?

And here's the bold move – you don't have to wait until you've sealed the deal with your supplier to get that info.

Nope, feel free to hit up a freight forwarder beforehand.

Don't be shy about it.

They're there to help.

You can toss questions their way like you're playing catch.

They're your logistics confidants, and the more you know upfront, the smoother the journey will be. 

Lucia: Great advice, Vova!

So, here's a golden nugget, folks.

Make sure to ask for the packing list.

It's like having a roadmap for your shipment.

Vova: Absolutely! It's all about requesting the packing list for the fresh order.

Just ask for it and send it over.

It's a smart move to get it beforehand, even before you kick off production.

This way, you'll have a clear idea of what's worth doing.

Otherwise, you might find yourself in a situation where you've started producing something, only to realize later that it's not bringing in profits.

Lucia: That actually ties into the next question I was going to ask.

#5 - How to make an accurate profit calculation for good profitability on Amazon?

Lucia: Now, the fifth question is about figuring out how to calculate profits accurately.

Basically, I want to know how to make a complete list of all the costs involved in the process.

This is important for getting a clear picture of our overall expenses.

Vova: That's a crucial question because, well, it's the heart of the matter.

Missing out on this part could mean your venture might not be profitable, or who knows, maybe pleasantly surprising.

To navigate this, how do you do it?

Well, there are calculators – the so-called ones.

You can use tools like the Helium 10 Chrome extension (which, by the way, is free) or Jungle Scout Chrome extension (not free, but effective).

These extensions have a cool tool that makes calculating profits super easy.

Since the Helium 10 Chrome extension is free, I'll talk about its Profitability Calculator.

Here's how it works.

Go to a product listing, let's stick with the kitchen scissors example.

Check out a similar product's listing.

With the Profitability Calculator, you'll be able to get a breakdown of the stats – the price, the weight, the Amazon fees, everything you need.

I've got tutorials on using the entire Helium 10 Chrome extension on my channel, walking you through the steps.

It's embedded right below so you can easily see how much Amazon takes from a comparable product – something in the same weight range, with similar fees.

This video will come in handy when you're selling products with similar weights and fees.

You'll be able to check what Amazon charges your competitors, giving you insights into the fees you might incur.

The next thing is, in the Profitability Calculator, you will input the cost of the product from the supplier along with shipping.

Even if you haven't received the shipping cost yet (which sometimes takes more time to get a quotation), you can still enter the product price, usually obtained from platforms like Alibaba.

This way, you'll be ready to evaluate potential profits once the shipping details are available.

And let's imagine, for instance, that you haven't finalized the shipping cost with the freight forwarder.

But you still have the option to input the cost per kilogram of weight or other weight measurements for shipping, such as four kilograms.

As an example, let's consider sea shipping, which, depending on the product, the destination, and the origin, might be around two dollars per kilogram – just for the sake of discussion.

The calculator will factor in this price by calculating the weight of the product and adding the corresponding cost to the overall quotation.

It's like your quick financial snapshot, showing you profit, margin, and return on investment.

Even if you encounter anomalies, like the example I provided earlier with an 800% return on investment, it's a great indicator. 

Now, when determining your product costs, let's consider the example of kitchen scissors.

If they cost one dollar, and with shipping, let's say it's another dollar, you're looking at a total cost of two dollars.

Now, suppose you observe competitors selling similar items for ten dollars. 

You can input a competitor's price, similar to yours, along with the shipping cost into the calculator.

This way, you'll quickly see the potential return on investment and margin.

It's like peering into the future of your product's financial performance.

Moreover, this is an excellent moment to brainstorm ways to possibly reduce the weight and size of your products.

Why?

Because Amazon categorizes items based on their dimensions and weight, and sometimes, shifting to a lower category can mean lower fees.

It's a strategic move to keep your costs in check.

Let me explain.

Picture this: your product falls into a category where Amazon charges a hefty five dollars per sale.

Now, what if I told you there's another category that charges only 3.5 dollars?

The key here lies in the weight.

If your product tips the scales above one kilogram, you're in the more expensive tier.

However, if you can craft your product to weigh in at a svelte 930 grams, guess what?

You slip into the lower-cost category, saving you an extra 1.5 dollars on each sale.

Now, here's the beauty – you can achieve this without compromising your product's performance.

Maybe you'll tweak the steel quality a bit, but nothing that impacts the product's overall excellence.

Lucia: It's all about finding that sweet spot in materials and weight to optimize your costs.

Vova: Absolutely, Lucia! Another pro tip is to keep an eye on the volume weight.

Sometimes, both Amazon and shipping carriers calculate fees based on volumetric weight rather than the actual weight.

Let me break it down for you.

Imagine you're selling feathers – virtually weightless, right?

But, here's the catch.

If you pack them in a stunning gift box and fill up a container, the container's weight won't change much, but someone still has to ship it.

This is where they calculate based on volumetric weight.

The same goes for Amazon.

I can't recall the exact equations, but there's a specific method.

This little trick helps you trim down those FBA fees.

Lucia: Ah, got it!

So, playing smart with the weight and packaging can make a big difference in cutting down Amazon fees.

Vova: Absolutely!

You need to base your product creation on that.

When creating your product, consider the packaging.

How can you make it more efficient?

How can you squeeze it to save on shipping and logistics costs?

If you can pack it more economically without compromising quality, you're not only saving money but also gaining flexibility.

You might even lower your prices to be more competitive, attract more sales, and still keep a healthy profit margin.

It's all about that extra research and optimization.

Lucia: That's good to know.

#6 - When is the right time to contact a freight forwarder?

Related Read: When to Contact a Freight Forwarder for Smooth Shipping

Lucia: So, the next question is when is the right time to contact the freight forwarder?

Do I need to do it well in advance?

Vova: Yeah, it's a good idea to reach out to them while you're still in the research phase.

This helps you get an idea of the shipping rates for specific products and lets you check if there are any special requirements, like products with batteries, for instance.

Also, it's beneficial to ask your factory about their experience in shipping the specific product.

I often do that – just inquire about any hidden fees or challenges.

But, here's the key: once your product is ready, let's say it takes 20 days to manufacture, that's when you want to get in touch with the freight forwarder.

Just check in and ask for the packing details.

You might ask "When will the product be good to go?"

And you could find out that your product needs about five more days before it's good to go.

Now, this is where it gets interesting.

You pick up the phone or shoot an email to your freight forwarder, and it's kind of like, "Hey, we've got this fantastic product ready to roll in five days. When can you swing by to pick it up so we can ship it ASAP?"

But here's the thing, if you're really trying to be on top of things, reach out to them before this moment.

Why?

Well, they might say, "You know what? If you finish packing a day before, we can ship it out on the earliest ship next week. But if you wait until the day after that, then it's another week because it won't make it to the same ship."

You see what I'm getting at?

So, advance notice is your best friend here.

It might seem like a small delay in the beginning, but when you're in need of that stock, every day counts.

I've got a friend, Alexander, who runs a company UnreaL China, and he swears by this strategy.

Alexander has dropped by my channel a few times, and during one of our chats, he made a solid point. 

He stressed how everyone is super keen to get their products shipped out as soon as possible.

And you know what?

It's true!

Even speaking for myself, I'm always thinking, "When can we get this shipped out?"

So, when you're in the final phases of product creation or even a bit earlier, it's especially wise to reach out and secure your shipping slot.

Ask them if there's still space or if you can book in advance – maybe even pay a bit upfront to reserve your spot.

It's a smart move, and, of course, it's crucial to do this early on just to get a sense of the pricing and logistics.

Lucia: Absolutely, Vova.

Once you've got a clear picture of the product you want to sell, it's a good time to reach out to the freight forwarder.

You can discuss booking a spot on the ship for your shipment.

Vova: Absolutely, timing matters.

When you're in the final stages of creating your product, it's ideal to reach out to the freight forwarder.

Just a little bit before the process concludes or perhaps a bit earlier.

However, even at the initial stages, when you're exploring product options and have the packing details, you can inquire about shipping costs.

It's worth checking with your manufacturer too to compare quotes.

I'd recommend sending emails to different companies; you might discover varying prices and solutions.

Just a word of caution, though – do thorough research to ensure you're getting reliable services.

Lucia: Managing inventory is crucial, and I certainly don't want to run out of stock.

#7 - How can I correctly manage the inventory in order not to go out of stock?

Lucia: And that sets the base for my next question: "Are there any tricks or strategies you'd recommend for effective inventory management?"

Related Read: 5 Best Amazon FBA Inventory Management Software

Vova: Absolutely, managing inventory is a skill, and there are some tricks in the book to keep things in check and efficient.

One idea is to avoid running out of stock, and there's another important concept related to being smart with your cash flow.

I actually have a video on the channel featuring Orion Avidan, an expert from Israel who specializes in balancing inventory.

You can watch it rIght below!

In this video, she dives into the concept of maintaining a healthy cash flow cycle, something she's an expert in, especially with larger companies.

Now, working with inventory can be quite intricate, and there are even software solutions for that.

But, let's talk about a concept that might be a bit challenging for newer sellers – it's more common among bigger companies.

It's the idea of having a positive cash flow.

What this means is that established companies, especially with trusted suppliers, can negotiate terms where they pay for the inventory 30 days after the products start selling.

Essentially, they don't pay for the goods until the sales cover the costs.

For smaller sellers, demanding such terms might be a bit tricky, given the trust factor and communication challenges.

But understanding this option sheds light on the goal: making our cash flow cycle more positive.

In simple terms, the closer we can get to a situation where we pay today and receive money in the future, the better.

So, understanding the cash flow cycle is crucial because it paves the way for effective inventory management.

But let's assume that you work on standard terms – which is 30% payment before production, and the remaining 70% after production but before shipping – here's where you'll encounter other expenses.

After paying your supplier, the next step is settling the freight forwarder.

Now, you can try negotiating with them as well.

Instead of the usual 70/30, propose a 50% payment when they take possession of the products and the remaining 50% upon arrival at Amazon.

It's worth a shot, and it all boils down to building relationships.

If you're a first-timer, having recommendations or referrals can significantly strengthen your negotiating position.

Now, leveraging connections can play a key role, especially when negotiating terms with service providers.

If, for instance, I recommend my friend, who's seriously venturing into selling, to the freight forwarder, they might be more open to negotiating favorable terms.

So, don't underestimate the power of your connections in your business pursuits.

Moving on, let's delve into the inventory aspect.

How do you determine when it's time to reorder?

How do you ensure a smooth flow in this regard?

Well, let's walk through a scenario.

Picture this: you're in the business of selling kitchen scissors, moving about 10 units a day.

You've got your production timeline down to 30 days and another 40 days for shipping from China.

Efficient, right?

So, sum that up, and you've got a solid 70 days.

Add in a buffer for unexpected hiccups, and you're looking at about 80 days from production to hitting the Amazon shelves.

Here's where the plot thickens.

Say you've just ordered 500 units of these sought-after kitchen gadgets – oh, the memories, that was my first order. 

And here's the twist, the very one I faced – we went out of stock with those 500 scissors.

We kicked off sales, juggling between promos, organic traction, and PPC campaigns, and suddenly, we moved products like never before.

Now, let's delve into a common pitfall.

Imagine you're clocking sales at a steady 10 units a day.

Sounds good, right?

But here's the catch.

If you've got a 500-unit inventory, you'll hit rock bottom in just 50 days.

Considering it takes you 80 days from production to restocking, it's a bit of a tightrope.

Fear not; there are tricks up the sleeve.

Air shipping could swoop in as your superhero, or you can fine-tune your logistics game.

But how do you know when to order?

That's where nifty tools like Helium 10, Jungle Scout, and Sellerboard strut in.

Plug in your production and shipping timelines, and voilà!

These programs crunch the data, offering insights into your Amazon inventory and signaling the perfect time to hit reorder.

Now, let's talk about the fine art of ordering stock.

Sure, software like Helium 10, Jungle Scout, and Sellerboard can work their magic, but there's a secret ingredient – your entrepreneurial instinct.

Hiba Weber, a guest on my channel from Seller Mobile, really highlighted this point, and she's absolutely right.

These tools can't quite grasp the nuances of, say, the holiday season looming.

You need to inject that human touch, letting the system know that Christmas is around the corner, and you anticipate a surge in demand.

And let me put this in perspective.

My journey on Amazon has racked up over a million dollars in sales since we kicked off.

That's not too shabby, right?

But keep in mind, there are sellers out there achieving that in a day or even a month.

Crazy, but true!

Absolutely, getting insights from others is a gem of advice.

It's not just about listening to me; cast a wide net, dive into groups, and soak up knowledge from various sources.

It's always good to gather as much wisdom as you can.

Yes, you can always use software solutions.

All the tools I mentioned above – those tools are like your inventory crystal ball, helping you predict when you need to restock.

But remember, it's not just about relying on algorithms.

When your product hits the virtual shelves, keep a keen eye on how it performs in real-time.

Lucia: That makes the perfect sense, Vova!

Once your product goes live, it's like having a magnifying glass on sales.

You'll quickly see the numbers and know when it's time to hit that reorder button.

Vova: Sure thing! Just keeping an eye on how many items are selling online is crucial.

Lucia: Indeed, it gives you a solid indication of when it's time to restock.

Vova: Right on point, Lucia!

That's why having a low initial stock is fine, especially when you're just starting.

But here's the trick – be mindful of your production time.

If it takes a while to create your product and there's a potential surge in demand (you can spot this by studying the big players and the smaller ones entering the scene), grab the opportunity.

Look at those newer sellers with modest reviews, making their mark with 5, 10, or 30 reviews.

Analyze their sales – maybe 300 here, 200 there, and a whopping 500 in another corner.

That's your cue to jump in and secure your spot.

This intel will guide you on when to hit the reorder button for more inventory.

Absolutely.

Using software is a game-changer for precise calculations.

However, it's equally crucial to grasp the underlying principles.

There's this fantastic book by Eliyahu Goldratt titled "The Goal," published in 1986.

It's a gem that delves into the theory of product business operations.

Lucia, and for everyone tuning in, I highly recommend giving this book a read.

It not only sheds light on understanding the intricacies of production time but also dives into optimizing the cash flow cycle.

Trust me, making that cycle more positive makes our entrepreneurial lives way smoother.

It's harder on the negative cash flow.

Because that's when things get a bit tougher.

Lucia: Absolutely, Vova.

It's all about easing the process.

Vova: Absolutely, Lucia.

Maintaining a high return on investment is key.

A solid ROI means you can reinvest those returns into ordering more inventory.

This is a fantastic way to fuel your business growth without constantly relying on loans.

While I occasionally use loans, especially when launching new products, it's always a goal to minimize that reliance.

Additionally, having other revenue streams, like my YouTube-based affiliate marketing, provides extra support.

So, it's a mix of strategies to keep the business thriving.

Lucia: True, Vova.

Sometimes, it's a necessary part of the game.

Vova: Absolutely, Lucia.

Taking calculated steps is crucial when dealing with loans.

It's not about avoiding them altogether, but rather managing them wisely.

As a mid-sized seller, I haven't ventured into the territory of million-dollar investments just yet.

It's a gradual process.

#8 - Is it really hard to create a good listing on Amazon?

Related Read: Pretty Awesome Amazon Product Launch Strategy

Lucia: Now, moving on to a common goal for every seller – getting your product on the first page.

Is crafting an effective listing really that challenging?

Vova: Figuring out how to stand out and truly understanding your customer's needs is the real challenge here.

Identifying who your customer is, understanding their pain points, and providing a solution can be tricky.

For instance, with kitchen scissors, are you targeting a mother managing a family's meals or a guy who enjoys cooking solo?

Lucia: Yeah, it aids people.

Vova: Vova: Absolutely. If you ever find yourself uncertain, there are effective ways to gain valuable insights.

A great approach is diving into your competitors' reviews, and it's like discovering a treasure trove.

Tools such as the Helium 10 Chrome extension and Jungle Scout come with nifty features like Review Downloader or Review Insights.

These features empower you to collect and analyze reviews for a specific product.

For example, let's say you come across repeated mentions of sharpness in reviews.

That's a cue!

Now, you can highlight the sharpness in your product description and showcase it in images – maybe someone effortlessly cutting through a salad.

It might take a bit to get the hang of it, but these tools simplify the journey.

Consider this scenario: you decide to use the term "to cut" in your product listing as you notice it appears in 25 competitor reviews.

But what you can really do to outperform the competition is, use a picture in your product listing where someone is using the scissors to cut through a salad – that's a clever move inspired by researching your competitors.

Now, you might be thinking, "Is it really that challenging?"

Well, understanding this process may take some time, but the real challenge lies in identifying the right keywords.

So, it's more about patience and precision in uncovering those key terms that resonate with your audience.

Lucia: Exactly, keyword research is crucial.

How do we find the right ones and create effective phrases?

Vova: Great question!

In fact, I've got this free course on my Udemy and YouTube channels.

Access My Free Amazon Listing Optimization Course

It's all about keyword research – how to build a solid set of keywords to ensure your listing appears in the most relevant searches right from the start.

So, let's say you're selling kitchen scissors.

It's not just about those words; it's also about kitchen shears, dishwasher-safe kitchen tools, cutting chicken, sharp blades, stainless steel, and more.

We want to compile a comprehensive list.

Now, there are keywords that will directly bring in sales.

However, some keywords are more about the product's functionality, like "sharp."

Well, "sharp" could also be a search term because people might specifically be looking for sharp kitchen scissors.

But then there are keywords that describe what the product does, and you must incorporate them into your copy.

My recommendation to you, Lucia, and our listeners is, if you're not well-versed in copywriting if you haven't studied it extensively, consider outsourcing it.

Copywriting is an art that requires learning.

Personally, I've taken numerous copywriting courses, read several books on the subject, and learned how to touch people's emotions with words.

For instance, with "sharp kitchen scissors," you might say something like, "These sharp kitchen scissors will quickly slice through your salad, allowing you to create a mouth-watering meal for your loved ones."

So, it talks about the product – what it is, how it makes your life better, goes over some of its cool features, and fills you in on the end result.

This beats just stating that these kitchen scissors are sharp and made of stainless steel that won't rust.

Sure, mentioning stainless steel and rust resistance is great; it's a nice feature and a valuable benefit.

But what takes it up a notch is what we call feature-benefit transformation.

It goes beyond merely listing product features; it's about showing how the product enhances the customer's life.

Now, let's turn those features into real benefits.

"The stainless steel feature translates into the benefit of preventing rust, ensuring there are no germs in your food."

See, the customer's outcome is not just having a sharp tool; it's about maintaining a hygienic and healthy kitchen environment.

Lucia: Right, and emotions play a crucial role in making that connection.

Vova: Absolutely, emotions are key in sales.

You want to connect with your customers on a personal level.

But alongside emotions, there's the logical aspect.

It's what we call emotional logic.

Lucia: Yes, and it's about touching the heart of customers

Vova: So, touching emotions is crucial, but logically, consider another segment of your audience.

Some may be excited about the salad, but they want to know the size of the blades.

It's about providing comprehensive information.

Inputting details like the blade size is essential.

You can easily understand all these concepts – what to communicate, where to convey it, and how to do it – by diving into effective keyword research.

My free course is designed to assist you in mastering this skill and will undoubtedly be a valuable resource for you.

In it, there's a lesson where I actually delve into the importance of pictures, showcasing 40 different examples of effective product images.

Also, consider using professionals for both pictures and copy, unless you're comfortable doing it yourself.

Using professionals for your product images, especially a designer for pictures, is highly recommended.

Investing in quality visuals pays off.

It not only enhances your listing but also contributes to a strong sales history, aiding in long-term ranking.

But don't just forget to conduct thorough competitive research.

Understand what resonates in your niche.

Here's a little hack – children.

They often add a positive touch to pictures and act as excellent social proof.

Seeing others, especially potential buyers, in hero images contributes to relatability.

Consider factors like age and gender, ensuring your visuals connect effectively.

Sometimes, there are tools that analyze different features of your product against a real audience, revealing which features resonate with them.

This insight can guide your image creation.

Another valuable resource is reviews.

By studying what customers appreciate, you can identify aspects to highlight in visuals.

Ages might not always be useful, but watching YouTube videos of people using similar products can offer demographic clues.

However, be cautious with representation.

I recall a friend's product for toddlers that featured a child slightly older, leading to a mismatch with the target audience.

Small mistakes like these can cost time and money.

Crafting your listing is not just a task; it's an enjoyable process.

It's about weaving a narrative that resonates with your audience.

The effectiveness of your story is revealed through data testing on Amazon and thorough competitive research.

Having a skilled designer and copywriter is crucial; they blend art and words to create a listing that stands out.

While videos can be a powerful addition, they're not a necessity for everyone, and you don't necessarily need brand registry for videos now.

However, I strongly recommend investing in a well-crafted video.

Prices can vary – ranging from $200 to $1,000.

FBA Vids is a great resource for professional videos, and while they might not be the cheapest, you can use my coupon code VOVA10 to get a 10% discount because they deliver exceptional quality!

Lucia: Alright, that's helpful.

Now, onto the next point.

Vova: Absolutely, let's dive in.

#9 - How long will it take to see results with Amazon FBA?

Lucia: So, how long does it typically take to start seeing results, to witness a positive impact on cash flow?

Vova: That's a fantastic question.

The truth is, when we approach this with a mindset of closing all the gaps, ensuring we have a compelling video, and understanding our product and the market thoroughly, the results can start to show fairly quickly.

We're constantly learning about inventory management and refining our approach.

Bringing a unique product to the market – one that people genuinely want to buy – positions us well.

Interestingly, you can even turn on PPC with zero reviews initially.

Now, there's some debate on whether to get a few reviews, perhaps from friends and family, although it's against the terms of service.

People do it, but it's a personal choice.

It's like they say, even without reviews, if you've crafted a remarkable listing that genuinely addresses customer needs, you can still make sales.

On day one, the algorithm might undergo a reset, and gradually, you'll start ranking automatically.

Why?

Because you've strategically placed all the relevant keywords, optimized your images, and fine-tuned every detail.

Turning on PPC (pay-per-click) on Amazon is a good move, and you'll hopefully begin to see sales.

Over time, with a stellar listing, you'll climb in rankings.

Sure, selling with zero reviews might have a lower conversion rate compared to having a few reviews.

A single review can significantly boost conversion – people trust those stars, and a first review is far more impactful than starting with a blank slate.

It's worth noting that a one-star review isn't what we're aiming for, hopefully, but that first positive review carries a lot of weight.

Getting just one review with one star is a tough spot.

Honestly, I've never bought anything with just a single review and a one-star rating in my life.

Most people probably wouldn't either.

It's a challenging situation because having only one review, and a negative one at that, can seriously hamper your sales.

That's why, having a plan for initial reviews can be beneficial, just as a precaution.

Also, consider driving traffic from other sources.

If you're launching a product, like those kitchen scissors, find a few bloggers who can showcase it on their channels.

They can demonstrate the product in action and provide a link to your Amazon listing.

Platforms like YouTube and even emerging ones like TikTok (which I haven't personally tried yet but plan to soon use a service called BAMbassadors) can be powerful for creating awareness.

Lucia: Yeah, or even Pinterest.

Vova: Exactly, Pinterest.

We've tried Pinterest, and it's all about organic traffic, and it works.

I would recommend exploring that avenue.

The interesting thing here is that, unlike videos which can be a bit more challenging, you can manage Pinterest on your own.

You can create your own page.

Yes, it takes some time, but you can set up a page even before launching the product.

It's a proactive step.

Start building your presence on Pinterest or any similar platform.

That's a fantastic point you brought up about community.

Creating something around your product not only helps with initial exposure but can also foster a sense of community.

Another strategy to consider, and I highly recommend it, is sharing your entrepreneurial journey.

Starting a YouTube channel early can be a game-changer.

You can showcase the entire process, even your product.

While some entrepreneurs hesitate, fearing it might impact metrics, I prefer not to do it on my channel to avoid any unintended consequences on conversions and rankings.

However, building a community around your product allows you to share valuable content – whether through posts, blog updates, or other means – and also promotes your product.

If you're building a personal brand, sharing your story can be compelling.

You can engage with your audience, seek their support, and even encourage them to be a part of your initial sales, and in return, they might happily provide reviews.

Engaging your community is key.

You can straightforwardly ask them, it's not against the terms of service.

You can politely request, "Could you please buy my product? I'd be delighted if you could share a review." This approach is acceptable.

However, this initial traffic mostly comes from Amazon – the hottest source.

Pinterest is good, but its users might not necessarily be Amazon buyers.

The critical point is that you can anticipate sales as soon as the product is distributed across Amazon FBA warehouses.

Once you kick off your launch, it's crucial to have a well-thought-out plan.

Learn the basics of PPC, consider involving a few friends and family to make initial purchases.

Even without reviews, these initial sales help in gaining traction, signaling to the system that your product is in demand, and this, in turn, aids in ranking.

As you initiate this flow of sales, your follow-up strategy becomes crucial.

There are insights on product inserts in some of the channel videos, and you can explore strategies, even delving into some gray hat tactics.

The key is to get reviews faster.

However, it's important to note that if you offer stellar customer service and deliver an exceptional product, you'll naturally encourage reviews.

Of course, the review frequency can vary depending on the niche.

For instance, a coffee cup might not prompt many reviews – after all, it's just part of the routine.

Yet, if your product holds sentimental value or solves a specific problem, you might find customers more eager to share their experiences.

Indeed, the connection with the audience is crucial, regardless of the product.

Take coffee cups, for instance; even in the simplicity of a routine item, you can add a personal touch.

A little note saying, "Thank you for opening me. I wish you a hundred tasty coffee cups," adds charm.

When you later request a review, the chances are higher because you've made a connection.

Now, as for making money, initiating sales is one thing, and you can achieve it quite swiftly, especially with strategic promotions.

However, turning those sales into a sustainable income will take time.

This is why I always advise against quitting your day job right away.

While your kitchen scissors might gain traction, having a financial cushion is essential.

Life on Amazon might surprise you – it's not an instant money-making machine.

In my situation, the stability of my 7-to-7 lifeguard job was crucial.

It provided the funds needed to launch new products.

Eventually, I reached a point where I decided to take the leap of faith and transition into being a full-time entrepreneur.

By then, the business was already working, with around $150,000 in sales and some profit.

It's important to note that this process took time, and it's especially true if it's your first venture.

Taking it slow, giving it the time it needs to grow, and then making the decision to quit your job is my advice.

While I'm an advocate for the freedom of entrepreneurship, some people with businesses much larger than mine still choose to keep their 9-to-5 jobs because they enjoy it.

Everyone's journey is unique.

Lucia: That's motivating indeed.

Vova: It's great to hear your positive outlook.

Indeed, it's achievable, and as I mentioned, sales can happen quickly.

For our new product, a one-dollar investment turned into a $15 item, and it's been selling steadily.

Even without an extensive marketing push, we've sold eight units in just two weeks, thanks to having an optimized listing.

It's not even the peak season for this barbecue product.

Each sale provides an 800% return on investment, and that's without any PPC advertising.

I must note, though, for our listeners, it's better to have a launch strategy in place.

Unfortunately, due to the other brand launch and various happenings in my life, I haven't given it the attention it deserves.

Nonetheless, it shows that with an optimized listing and the right keywords, you can attract organic traffic on Amazon.

Lucia: Well, that sounds like a good stream of passive income.

Vova: Yeah, exactly!

It's like passive income, but it's crucial to have a plan in place.

Currently, we're implementing a campaign to give the listing an extra push in terms of launching and ranking.

Lucia: That sounds like a solid strategy.

#10 - Are there any strategies to become the best seller in your niche?

Related Read: The Secret to Becoming a Best Seller and Niche Leader on Amazon

Lucia: So, Vova, the final question on everyone's mind is, are there any strategies to secure that crucial first sale and eventually become a bestseller?

Vova: Absolutely, Lucia.

That's a fantastic question, and the best seller badge – it's like the gold star of Amazon, right?

Achieving that badge means you're the best in your category, and that's not just a title; it usually means you're selling the most.

But let's start from the beginning – how to get that all-important first sale.

First and foremost, it begins with product development.

If you want people to keep coming back, your product needs to genuinely solve a problem within your niche.

Differentiation is key here, not just in the product itself but in how you communicate its value.

Let me illustrate this with an example.

Let's say, and again, this is where our research comes in.

Alright, let's dive into it.

Imagine these kitchen scissors, and from our gathered reviews, we notice that they are often purchased by women who gift them to their husbands.

That's one slice of the audience pie.

But as we explore further in the same category, targeting people searching for kitchen scissors, we find another subset – those specifically seeking a tool for cutting chicken, for instance.

So, in our messaging, we want to address both the general users who cut salad and the niche group focusing on chicken cutting.

However, let's shift gears a bit, back to coffee.

Let's say the coffee is associated with hipsters, right?

Lucia: Right, got it.

Vova: Imagine this – in your product images, if you showcase someone with that distinct hipster look, automatically, you're speaking directly to that audience.

The hipsters out there will see your product and get excited.

They'll share it within their community, and those actively searching for a product like yours within the hipster crowd are more likely to make a purchase.

Even those outside the hipster realm might get intrigued seeing a hipster in the pictures with the coffee cups, but it's all about positioning.

You're tailoring your product for a specific audience, crafting a unique message.

Nailing this isn't a walk in the park; it requires some reading, maybe a few courses, and watching some videos.

However, it's not rocket science.

I've got a video on positioning as well on the channel, it's quite exciting! It's titled "How to Become the Best Seller in Your Niche."

That would be a great watch for you – exactly what you're looking for.

So, we create this amazing product and then optimize the listing with all the right keywords.

The idea is to capture the entire relevant audience, present our product to them, and secure those valuable sales.

It's about having the perfect product, the right keywords, a well-crafted semantic core, outstanding visuals, and a compelling video.

Essentially, it's like putting the absolute best coffee cup on the market, tailored specifically for a certain audience.

However, it's essential to acknowledge that somewhere along the way, you might make a mistake – just being honest, that's part of the journey.

Also, the idea is to bring a product to market swiftly, not hastily, but intelligently and efficiently.

This approach allows you to gather feedback from your audience, learn from people's experiences, and gain insights into the system.

So, you've got your product ready, positioned it perfectly, and now you're ready to launch on Amazon.

To make things even more impactful, consider reaching out to bloggers in your niche or finding email lists that can help promote your product.

Engage with Facebook groups where coffee enthusiasts gather.

If, for instance, Lucia is the face of your brand, connect with like-minded individuals, share your excitement about your special coffee cups, and perhaps even create a video for the community.

Now, let's explore various ways to launch your product.

One effective option is leveraging external traffic sources like bloggers, email lists, or Facebook groups to generate buzz.

But putting that aside, let's focus on the core – Amazon itself.

This is where the Amazon buyers are, and to tap into this market, you need to delve into PPC advertising.

Learning the ropes of PPC can significantly boost your visibility.

Additionally, consider Amazon's Vine program, where Vine buyers can purchase your product and provide critical reviews.

While these reviews can be demanding, they offer a faster route to accumulate feedback.

Alternatively, you can cautiously involve friends and family, though not strictly within the terms of service.

By orchestrating various traffic sources simultaneously, you can create a natural flow of sales, kickstarting your journey to become the best seller.

Now, once you've initiated sales, the next crucial step is maintaining consistency and fostering growth.

To achieve this, you must enhance your positions on Amazon.

One effective strategy is refining your PPC campaigns.

By optimizing your advertising efforts, you can secure more visibility.

Another critical factor is your conversion rate.

Services like PickFu and Product Pinion can assist in A/B testing your product images.

For instance, you might discover that an image featuring a guy using the scissors resonates better with 80% of your audience.

Testing these variations is essential for understanding customer preferences.

While Amazon allows testing for titles, main images, and enhanced brand content, external services offer a quicker and often more insightful route.

And here's an interesting tidbit – I wasn't aware of this myself – you can actually test titles and images on Amazon.

I'm not entirely certain if this feature is exclusive to those with brand registry, but it's worth exploring.

The key here is to pay attention to the feedback from the algorithm.

Monitor your conversion rates, session data, and keep a close eye on your competitors.

If you have a brand registry, Amazon's brand analytics can offer valuable insights into the conversion rates of specific products.

High conversion rates indicate successful strategies.

So, stay engaged, bring in more traffic through blogs and YouTube, and steadily accumulate reviews.

Over time, as your reviews surpass those of your competitors, you're on the path to becoming a bestseller.

I've experienced this firsthand with kitchen scissors in the past.

Here's a little amusing anecdote from our journey.

We were still working our nine-to-five jobs when this exciting incident occurred.

We had a lighting deal, a significant discount and promotion on Amazon.

In just one day, we managed to sell over a thousand scissors – impressive, right?

We skyrocketed to number six in the Kitchen and Dining category.

It was a bit crazy, and that moment marked our entry into the bestseller realm.

However, the thrill didn't last long because our base cell rank dropped back to its usual position the day after the promotion.

But, hey, even a brief stint as a bestseller was quite a ride.

We continued to improve our rankings, but eventually, we lost the bestseller badge.

I also had a bestseller with a grill brush product, and having that badge significantly boosts your clicks and conversions.

However, even if you don't have the badge, you can still do relatively well.

Most sellers in the market aren't bestsellers, and they're still making plenty of money.

Lucia: I guess it's the ultimate goal for everyone, right?

Vova: Yeah, exactly!

Lucia: It's like you either make it or not, and that's okay.

Vova: Right.

So, based on our discussion today, what are your thoughts about Amazon?

Does the whole process seem clearer to you now?

Lucia: Yeah, definitely, I'm on board.

Vova: Great!

Is there anything specific that we discussed today that's still unclear for you?

Anything lingering in your mind where you're thinking, "I'm not sure about this or that"?

Lucia: Well, the whole PPC management thing, especially regarding the cost per click.

Maybe that's a topic for another video.

Vova: But yeah, honestly, I don't handle PPC myself; my partner takes care of it for my first shop.

So, I'm not an expert in that area, and I can't provide much guidance.

However, I would suggest watching some tutorial videos.

You know the drill.

Understanding PPC is crucial because it's internal traffic.

When you advertise in the right places, you can undoubtedly boost your rankings.

So, yeah.

And just as a closing note, I'd encourage you to dive into your research.

Begin by creating one product, something highly differentiated in a specific niche.

It might surprise you; sometimes, it's the unexpected that works best.

Start your research.

In my opinion, there are various avenues, whether it's using specialized software or exploring different corners of the internet like Etsy or Walmart.

You can delve into various categories, and if you find the time to invest, I've got that 12-hour video on the channel where I essentially share everything I know about product research.

You can watch it in parts if you prefer.

I believe it's a valuable resource because it opens up numerous ideas.

There are countless methods to discover potential products, but one of the simpler and not-too-bad approaches is leveraging software.

I've also covered this extensively in many of my videos.

Lucia: Well, that's great.

Vova: Yeah.

Lucia: I believe there's a wealth of valuable information here.

Vova: Thanks for joining us today, and I hope you found the discussion useful.

We'd appreciate a thumbs up from those who found value in our conversation.

Now, below, you'll find a playlist containing over 80 interviews with various individuals worldwide.

Interview Playlist With Awesome Amazon Entrepreneurs

They cover diverse topics, share audience questions, and align with our common values.

Lucia, thank you for being my guest, and best of luck to you.

Lucia: Well, thank you.

I genuinely enjoyed our conversation, and I appreciate the invitation.

Conclusion

Wow, what a journey we've had today diving into the world of Amazon FBA!

I hope you're feeling as excited as I am about the endless possibilities that lie ahead.

From finding that perfect product to optimizing your listing, we've covered it all.

The key takeaway?

It's all about creating a product that genuinely solves a problem and resonates with your audience.

Remember, differentiation is the name of the game.

Whether it's your unique product or the way you communicate its value, standing out is crucial.

Craft an irresistible listing, use the right keywords, and let your visuals tell a story that connects with your customers on a personal level.

Launching on Amazon?

Think PPC, external traffic sources, and strategic promotions.

It's about creating a buzz, securing those initial sales, and initiating a journey toward becoming the bestseller in your niche.

And yes, that bestseller badge – it's like the gold star of Amazon!

Achieving it means you're not just selling; you're the best in the game.

But, hey, even if you don't get the badge right away, don't fret.

Most successful sellers aren't bestsellers, and they're still making bank.

So, what's next for you?

Dive into research, find that unique product, and start your Amazon journey.

There are countless possibilities waiting for you, and I'm confident that armed with the right knowledge and a go-getter attitude, you'll carve your path to success.

If you found our discussion valuable, give my video on YouTube a thumbs up.

Thanks for joining us today, and remember, your journey on Amazon is just beginning – let's make it an exciting one!

Best,

Vova :)