November—a record month for my Amazon FBA business with almost £30,000 in combined sales from the Amazon UK and US platforms! If it were 31 days in November, I would have safely reached that magic £1000-a-day or £30k-per-month mark. Arghh!
The vast majority of those sales came from the UK side of the business, which makes me even happier because last year, around this time, I set a goal to reach £30k in sales per month by the end of 2018, and now I have achieved it!
Well, not really. I know that these sales numbers are not sustainable and will go down after the Christmas shopping spree ends. We’ll talk more about that later in the video as it’s an important talk to have now, right before the New Year starts.
Things on Amazon.com took a big turn too. For several reasons, I’ve decided NOT to continue my aggressive ad spend and instead use the situation to test a different approach, something that may be more useful for those of you with limited budgets. We’ll get into the details of this in the Amazon US results section later. (more…)
Jingle bells, jingle bells, jingle all the way!!! Too early? I don’t think so! Judging by my November sales so far, it’s clear that people are already shopping for Christmas! Yes, the magical Quarter 4 has finally arrived, and hopefully, sales are booming for everyone!
However, this post is about October, and while this month is technically included in Quarter 4, I didn’t see any signs of that Q4 magic. In fact, compared to September, sales in October took a dip. This was partially my fault because I ran out of stock for a popular variation of my product for roughly ten days, which affected sales considerably.
Plus, it was the school holidays in October, and I always see sales decline during school holidays. Since the majority of my buyers are women—and many of them are mums or stay at home mums—when kids are at home, there’s not much time left for shopping.
Another factor is that I was on holidays too! I spent almost two weeks in sunny Tenerife, and that’s probably another reason why my sales took a hit. Why would that matter? The truth is: I don’t know. There’s no clear explanation to this theory, but I often find that when I take some time off, my sales go down. When I get back to the office, sales increase again. I know, I know. It shouldn’t be a contributing factor at all because I don’t actually do anything on Amazon when I’m in the office, but this is a trend I have noticed over the years. Call it karma or whatever you like—I still need to work to get those results!
Don’t get me wrong, I’m still very pleased with the sales in October, so I’m not complaining at all! Almost £22k is not a bad number. I’m happy as long as the monthly sales are higher than the previous year’s because I know that progress has been made. Plus, I’m even more excited to share the latest news on my Amazon US launch, so without further delay, let’s get straight into the numbers—and we have lots of them to cover today! (more…)
So, I bought a 3D printer! 🙂 Yes, after several years of thinking about it, I finally purchased a small, budget-class 3D printer. I wanted to thoroughly investigate this technology that everyone seems to be talking about, check out how good it has become, and figure out how 3D printing could affect the global business scene in the future.
A few years ago, when 3D printers were starting to become more and more popular, I instantly liked the concept a lot, and I could see that the potential for this technology would be massive in the future. At that time, I checked out a lot of YouTube videos on the print quality—and it was AWFUL! The individual layers of plastic were very visible, and the final pieces looked like they were handmade by melting plastic layer by layer.
In my mind, the quality of the final printed object is the NUMBER one thing the 3D printing industry needed to fix, and as you will find out later on in this post, they have done an excellent job in this regard over the last couple of years. Apart from quality, there are other essential factors to be considered—like speed of production, use of materials, complexity of models, etc.—but without a high-quality output, everything else is pointless.
Speaking of high-quality 3D printing, it entirely correlates with the current state of the VR (virtual reality) industry. I don’t own any VR devices, but the other day I stopped by Samsung’s demo for their Gear VR device and tried it on. I honestly didn’t know whether to laugh or cry. I can’t understand HOW so many people are currently using these devices…
The QUALITY and resolution of the output are HORRIBLE. So much so that I could not stand it for more than 20 or 30 seconds. It was THAT BAD! I haven’t seen a screen so pixelated and graphics so bad since my teenage years with my first Sega Mega Drive games (those actually looked better, as far as I remember).
I know that many people won’t agree with me, but the current VR technology is totally unusable. The resolution and technology are simply not there yet. NOT EVEN CLOSE! Plus, a large percentage of people who use VR in its current state suffer from the motion sickness when using it—and, unfortunately, I’m one of them. (more…)
Another month of EXCELLENCE has been achieved! 🙂 This was another record month for me with sales of more than £22k on the Amazon UK platform recorded for my FBA business. In my August income update, I shared my thoughts on how excited I am for the 4th Quarter, and it seems that, for me, it has started early since I’m already experiencing this boost in September!
It was like magic. Once August hit, my sales started to pick up, and by the first days of September, I could see that the month would be a good one for me! In fact, in the second week of September, it looked like sales of £1k per day would become the norm. Unfortunately, later on in the month, that momentum dropped off a bit…
Aside from sales, September was no ordinary month—it was also my one-year anniversary! Last year, on September 7th, I started selling this new product from a brand-new Amazon account and began sharing my journey with you via my monthly blog posts and videos. I’m very happy to report that the progress made throughout the year has been amazing! It could have been even better if the Amazon US selling experiment worked out, but, hopefully, that can still be fixed with the updated version of the product. We’ll talk more about that in the Amazon US segment later in this post.
Unlike other Amazon FBA bloggers and course sellers, I use my REAL-LIFE business as an example. It’s the exact same business that I openly share with my Amazon Sharks students. This is not a hypothetical business and it’s not an invented example of what could be possible—it’s a real business, selling real products on Amazon using FBA. I think it’s important to highlight this point of differentiation.
I don’t try to impress you with rented Lamborghinis and exotic holiday shots; I share an everyday, down-to-earth approach to the FBA business. The results I share can be achieved by anyone using my Amazon Sharks system since they are based on the reality of my business—not a fantasy! NO fake screenshots or photoshopped sales numbers from YEARS ago! All the information I share with you is factual, actual and 100% genuine. (more…)
Let’s talk about product packaging! Packaging is something that may sound super simple but actually carries many different challenges, rules and knowledge that you, as an Amazon seller, should be aware of if you want to create outstanding packaging for your best-selling Amazon product!
However, before we dive into the technical aspects, you might be wondering why custom packaging is so important? Is it important at all? Can’t we just go with plain, brown boxes that suppliers offer by default? Can’t we just skip using packaging at all?
You can, of course, do that. Many sellers don’t pay attention to this; they don’t think it’s important or they don’t want to invest any extra money on top of their product cost and everything else. But, if you ask me, that is a BIG MISTAKE!
I am personally a HUGE fan of custom packaging, and I always, always put extra work into creating the most attractive packaging for the product in a niche I’m working in—as well as making sure it’s practical, of course!
And it’s actually NOT that difficult to do because you will be outsourcing most of the work to a professional anyway. There are no good excuses to avoid doing this, so let’s take a closer look at WHY Amazon sellers with custom product packaging have a much HIGHER chance of winning that sale over someone who hasn’t put in any effort.
Why Does Custom Packaging Matter?
There are many important reasons why you SHOULD DO custom packaging for your product, including (but not limited to):
1) Visual Presence
I’m sure you’re already aware that people who shop online buy with their eyes. Logically, until we have more advanced virtual reality technologies, people shop online primarily by looking at images. They search for a product on Amazon, VISUALLY pick the one that looks the best (in their perception) from the search, click on that listing, and then possibly make the purchase. It’s all a visual experience, and it’s mostly based on product images.
Oh, don’t you just LOVE this time of the year!!! 🙂 The time of year when the kids go back to school and you’re lucky that you’re old enough to just be the driver or sandwich maker in the morning. YES! I don’t know about you, but for the most part, I hated being in school. I didn’t like it at all—well, apart from the partying and hanging out with friends. I was lucky enough to be born “smart”, so I didn’t have to put in much effort at all to sail through those school years. Looking back, I almost never did any homework and still, somehow, I magically made it through.
Anyways, back to the present day with my own kids, and I obviously look at the whole situation from a completely different angle. Still, in my mind, September is the clearly defined line when summer ends and the real work begins. These next four months in the lead up to Christmas are always the most productive for me—and the most exciting, of course! Anyone who is in the retail business is excited for the 4th Quarter because we all hope to break new sales records and end the year with tons of profit to splash out on unnecessarily expensive Christmas presents.
And this is the first FULL 4th Quarter for my new Amazon business—the one that I have been covering in these monthly posts throughout 2018, which makes me super excited! If you haven’t been following my earlier posts, you can find them all here.
There are three big reasons why I’m excited:
Starting from October, I will have the previous year’s sales data for comparison, so I can see whether or not I have made any significant progress with this business.
I have been extra careful this year. I have prepared double the stock amount I had last year. Hopefully, unlike last year, I will not run out right before the busiest shopping days!
I have two new Christmas variations of the product prepared, so I am hopeful that this will also help with sales and reaching a wider audience of Christmas shoppers.
And, of course, there’s ongoing work on the Amazon.com site too. The new product is in production right now, and I plan on starting to sell it in October. Even though it’s not a product directly related to the holiday season, I do hope that I have finally managed to crack the correct version and price point, but more on that in a moment. (more…)
I wanted to write a post about 3D printers this week, but we’ll have to leave that to another time. There’s something much more important and urgent to cover this week: Amazon’s brand-new Inventory Performance Index, the new storage limits, and some additional inventory-related news.
Judging by the latest inventory rule changes (like the introduction of long-term storage fees) and the other changes we’ll cover today, it seems that Amazon doesn’t want to be fully involved in the fulfilment game—apart from their own—or Amazon seller needs.
Why else would they introduce all these new rules and limitations, right? If they wanted to, they could just continue to build warehouse after warehouse (or continue to let their fulfilment partners do it), and then cash in on the storage fees. Then they wouldn’t have to worry about how much stock we send in or how long we keep it there, right?
Amazon’s storage fees are already several times higher than what you would pay to a standard fulfilment company, so the business should be very profitable, right? I mean, they currently charge more than £50 a month to store a pallet of goods! With standard fulfilment companies, that costs just £10 to £20! You could build a profitable business solely based on storing those pallets, regardless of whether or not the actual stored goods sell.
Anyways, based on these new inventory storage limits and the inventory performance index, it’s clear that Amazon doesn’t want to be purely in the fulfilment business. They want us sellers to be as efficient as possible with our inventory! The new stock management principle is, basically, Quickly In and Quickly Out! Which means that:
We should only send stock to the Amazon warehouse that we know we can sell quickly.
Using Amazon as a long-term storage facility is no longer a viable option.
And quickly doesn’t mean months anymore. Yes, as you will soon find out, in order to maintain a perfect score, Amazon actually wants us to turn over inventory in under 4 WEEKS! We’ll get to that detail in just a moment, but for now, just realise that the inventory game is changing. You will have to make drastic decisions in the very near future to stay compliant with these new rules and be able to use FBA services. (more…)
It has been a super busy week for me, so, today, we’ll have a short and to-the-point post about a little-known feature/Amazon rule that not many people are aware of: Seller Feedback Removal! Yes, you can quickly and easily remove most of the neutral and negative feedback you receive on Amazon simply by filling out a short form!
Before we get into that, I just wanted quickly to share some news about my Amazon FBA US journey. If you’re not familiar with my monthly posts, you can read more about it here. I’m starting to regret the decision to begin development of a new version of the product. Why? Take a look at today’s sales data for the existing version of my product:
30 sales TODAY alone! With no ad spend whatsoever!
That’s obviously a record day, but I wonder what is going on here? Will it continue growing like that? Will days like these become the norm? That wouldn’t be bad at all because 30 sales a day means I’m netting $100 a day or $3k per month. The problem is that I probably won’t find out because I will run out of stock very quickly at this rate! At the same time, I have already started working on my new, bigger version of this product. Arghhh! So many decisions to make! I will put more details and results in my August 2018 Amazon FBA update post, which will go live early in September.
I don’t know exactly how this will work out, but, once again, the whole situation just reminded me to be more patient when it comes to results, rankings and sales on Amazon. To some extent, my monthly update posts put an unnecessary pressure on me because I want to share new things with you, make good progress, show that sales are improving, etc., but you often just have to sit it out and wait a few months to see whether something will work or not. (more…)
I have some really good news to share with you—some REALLY good news! I have been waiting for this moment for years now and it has FINALLY become a reality. Transferwise is now supporting USD payments to China! BINGO!
This means we no longer have to overpay our banks for sending USD to our suppliers in China, and don’t have to use shady online currency exchange places, etc. It’s all gone, forever! We can now make simple, quick and cheap international USD payments to Chinese suppliers (and many other countries), and all for a very low fee with guaranteed currency exchange market rates!
If you have been importing your products from China, you will know that banks can charge £20 or even £30 for international bank transfers to China—even if the amount is very low, like £1000. Plus, they never use actual market rates for exchanging GBP to USD (the market rate is basically the BEST exchange rate you can get, which gives you most dollars for your pounds). That means that you’re overpaying twice:
1) The high fee for making the payment
2) The bad currency conversion rate (which can be as much as a 2% difference)
Combining these two, you can actually lose 5% (or more!) on a GBP to USD conversion and transfer to China, which is SHOCKING! Obviously, the more money you send, the lower the percentage because the transfer fee per £1 decreases as the sum increases. Still, why pay even 3% to a bank when you can put that money in your pocket? Exactly!
As small business owners, we are always looking ways to save money and efficiently cut costs, and bank fees and transfers are an area where you can cut costs with absolutely no impact on your product quality or customer service. You should never be overpaying on fees and you should always seek out the cheapest, most efficient cost-saving processes for services that don’t affect your customers. (more…)
Another month has come and gone. While the majority of people are enjoying their summer holidays, since mid-July, I have been spending most of my time in the office working on various business-related tasks. Of course, I could opt to extend my time off, but as I explained in my June update post, it does not bring out the best side of me. I feel so much better now that I’m back in my routine and making consistent progress on my business every day.
Also, there’s that great feeling inside that comes from knowing that I’m working while everyone else is holidaying. Maybe that sounds weird and maybe you feel the opposite way? Why should I work when everyone else is partying in Ibiza? It probably depends on how you look at things. For me, this feeling is magical—it seems to me that I’m getting ahead and will eventually be rewarded for doing this in the future.
It’s a similar feeling that I experienced 15 years ago when I was spending ALL my free time—evenings, weekends, holidays—learning about online business and e-commerce while my mates were hanging out, binge drinking every weekend, and basically living through the best time of their lives (probably). Back then, it also felt like I was doing the right thing. Even though it was hard work and I was missing out on some fun, I knew that I would eventually be rewarded for my sacrifice, and I have definitely enjoyed the fruits of that for many years now.
I really like how Gary Vee talks about this concept. He explains that TRUE success is created in July/August. While the majority of people are taking off time, you take this time as an opportunity to work even harder towards your dreams! And then, by the time Christmas comes around, you can relax and enjoy the fruits of your labour.
Nothing could be more true when we talk about Amazon businesses. Now is the perfect time to work on planning your sales for the holiday season, do your market research, find new suppliers, etc., so that you are months ahead of everyone else and don’t have to panic to get your stock in on the last week of November!
What am I trying to prove with this? Nothing! Just that working during the summer months can also be very satisfying if you look at it from the right perspective. Making progress while everyone else “sleeps” is a GOOD THING, in my opinion, and if you’re doing the same: congrats and well done! (more…)