November 16, 2017 by Andrew Minalto - 14 Comments
How to Save up to 50% on Sponsored Products AD Cost
When you launch a new product on Amazon, you have to have a plan in place for how you’re going to promote it. It’s usually not enough to just create a listing, unless the competition is very small, so you need to drive traffic to your listing on your own, to get those first sales & reviews in.
The fastest and easiest way to do this is via Amazon’s own Pay Per Click advertising system – called Sponsored Product Ads, where you can quickly create paid advertising campaigns and start driving highly targeted traffic to your listing.
Some people recommend that you don’t do sponsored ads from day one and that you should first get at least 3-5 product reviews in. I can only partially agree to that as from my experience, you can successfully run ads, make sales and even make ad campaigns PROFITABLE with a brand new listing, with no reviews in place.
It will depend on the product’s price though as if you sell something more expensive, you can expect to have very low conversion rates if you run ads to a listing with no reviews. But if your item sells for less than £20-£30, you should definitely start running sponsored product ads from day one! As with such cheap items, basically impulse purchases, people are obviously more open to making that purchase compared to products that cost say £100+.
Here’s the thing – you have to accept that your ads most likely won’t be profitable for at least the first few weeks as it takes time for Amazon’s system to optimise your auto ad campaigns and it will take time for you to optimise manual campaigns too.
If your listing/product is really good and the conversion rate is high, you can aim to break even! If you can break even on ad spend in the first week or two (meaning you don’t make any profit nor loses), CONGRATS! This means that when you optimise your ads, you will be in for a healthy profit.
But you can do even more! Here’s one little trick that I used to save almost 50% in sponsored product ad costs when I recently launched a new product…
So I launched a product and created both Auto and Manual campaigns (for the most obvious keywords), just like I usually do. Then of course, as with any new product, I constantly checked sales throughout the day as well as the ad spend to see how it was performing. (more…)
November 9, 2017 by Andrew Minalto - 2 Comments
One SIMPLE Trick That Increased My
Amazon Sales by 30% OVERNIGHT!
This week I want to show you one simple but really effective trick that increased my Amazon sales by 30% – yes, 30%! And it didn’t cost me a penny!
I know that I haven’t covered any of the basics of selling on Amazon on my blog yet but I really needed to get this out so people who already sell on Amazon can implement it asap.
It’s all about your main product image – the one that shows up in search results. Usually I will use square images for my Amazon products as that is really the format most places go for now – like eBay, Instagram or even Facebook. Square format for images (and even videos on Facebook) is the new default standard.
But the problem was that my product is not actually square, but more “tall”, so with this format it looked very small in the search results on mobile devices and even on the desktop version. I sort of saw it from day one but didn’t think of it as a big problem.
However, I knew that I had to at least try it out to see whether it would make any difference or not. So, what I did is create a new MAIN image for my product with a size of 1500 pixels in height and 1000 pixels in width and zoomed in to the product so it takes as much of the space as possible:
Now, if you ask me – from a photographer’s perspective it did not look very good BUT that doesn’t matter! What matters is that my product is now shown MUCH bigger in search results on both mobile and desktop devices.
And this essentially increased the click through rate from search results to my listing by 30%+ as more people noticed my product and clicked on the listing. As a result, I now get all those extra sales.
And this doesn’t only apply to search results of course as products are also featured in many other places on Amazon – on competitor’s listings, cross-selling blocks and other places. (more…)
November 2, 2017 by Andrew Minalto - 24 Comments
How Much Money Do you
Need to Start an Amazon FBA Business?
So the question is really simple – how much money do you need to invest in stock to start an Amazon FBA business?
The short answer is £1000.
The longer answer – it depends…
Let me cover the budget issue in detail in this blog post so you know for sure whether or not your situation is suitable for the Amazon business model.
First of all – when I talk about starting an Amazon FBA business, I’m referring to private label products, imported from China (in most cases). This means that you create your own brand, source products from China, brand them, import them into the UK (or whatever country you’re in), send your stock to Amazon’s warehouse, and start selling. This is what I have always been doing and in my opinion it is the BEST way to build a profitable business on Amazon.
But obviously there are other models, like:
- Retail arbitrage – where you look for heavily discounted items online/offline from popular retailers with the aim to buy and then flip them on Amazon for a profit.
- Wholesale – where you buy from local, UK based wholesale companies, like Pound line wholesalers and others.
- Liquidation & Clearance – where you buy liquidated/clearance stock from specialist companies. This can also include tested or untested customer returns.
With these models you can start selling on Amazon for as little as £50 or even less! As all it takes is for you to find good deals on products already selling on Amazon, then you can buy them in small quantities (retailers don’t have an MOQ!) and start selling!
The problem with these models is that they’re not real businesses in my mind – they are more like a hobby type of business or second income business as you will find it very hard to constantly look for good deals and at the end of the day it still all comes down to who can offer the lowest price on Amazon for that particular item.
This can be a good training model though for people who don’t have enough money to start importing – to get used to Amazon’s platform, Seller Central, rules, how it all works etc. But to be perfectly honest, even with a £100 budget you can actually start importing from China and that’s the way I would recommend people go, even with super small budgets.
Going back to the main private label products model – the question really is not that much about how much money you have to invest but what product you’re trying to source with the money you have! I have talked about this a lot on my blog and I usually refer to it as the BUYING POWER you have. (more…)