We’re just days away from Christmas and I’m sure many of you are already in a festive mood and don’t want to think much about business right now. But it’s also the end of the year very soon and from my experience, I know that lots of people will have set themselves a goal of starting an online business in 2018 so I think it’s the perfect time to give you more information on my up-coming Amazon Sharks course which will be released in January, so you know exactly what to expect from it.
But I want to start off with an update on my latest Amazon venture which I started earlier this year, in September to be precise. I already covered the first month’s results in a separate video where I also shared some very valuable information on how to start a profitable Amazon private label business.
If you haven’t seen that video yet, please go to my blog – AndrewMinalto.com and sign-up for free & you’ll be given instant access. This will also subscribe you to my blog’s newsletter so you don’t miss out on any future posts and videos.
OK, going back to my new business – in short – it’s been an impressive start! I’m very happy with the results I have achieved so far and very excited to see what 2018 will bring as I’ve really only scratched the surface with this so far.
Let’s log in to my Amazon account and check some sales numbers – as you can see – I started selling on 8th September, there are no sales prior to that as this is a brand new account and business.
There’s a steady growth in sales month over month but last month has been exceptionally impressive! Mainly due to Christmas shopping of course, as I do sell a product which is in high demand during the holiday season. There will be a drop in sales for sure once Christmas shopping ends OR when I run out of stock – whichever comes first! 🙂 (more…)
The story is about a seasonal product I launched for this year’s Halloween. Usually I’m very sceptical about seasonal products as they are risky to deal with – especially if the product only sells for a few weeks or one month max every year – like with Halloween, Christmas, Easter and similar occasions. The reason why such products are so risky is simple – you can never really accurately predict how much inventory you need as you don’t know how many units you’ll sell in that short period of time.
If you under-stock, you’ll run out of stock way too early and miss out on profit and when you over-stock and can’t sell everything, you freeze your money in dead stock for a whole year, until you can sell the item again next season.
Knowing all this, I still wanted to give it a try, mainly because I saw that there’s basically no competition for that product on Amazon – so I thought – easy money, right!?
No one sells that product on Amazon and in my opinion, the product is great and should be quite popular.
But it’s that demand analysis that let me down. As I did not have any Jungle Scout data for the previous year, I had to guess the potential demand. I did check sales on eBay via Terapeak for last season but the specific product type doesn’t really sell on eBay that much and sales data was very low and not reliable (I compared it to similar products).
Obviously I did check Google Trends and as you can see from the graphic below – it seemed like a no brainer! Massive demand in November every year. Well, at least search numbers were good but as it turned out, that doesn’t always correlate directly with sales.
Taking all this into consideration, I decided to “bet” a £1000 – getting 500 units into Amazon FBA, costing me just under £2 each. My net profit after VAT and Amazon fees was planned at around £5, selling the product for £11.99.
So not bad at all! If I sold all 500 units, I would make £2500 NET profit – so I decided it was a risk well worth taking. Plan B was if I “only” sold 300 units, that would still cover the cost of all units (£1000) and leave me with a profit of £500 PLUS 200 more units I could sell next year. (more…)
Here’s an incredibly simple trick on how to save hundreds of pounds when you start selling on Amazon – DO NOT BUY Amazon marketed software and tools! Simple. End of post.
No, seriously – this is something I want to talk about in more detail, as I know there are many people out there who struggle with this and I want to save you time and money on tools and services that you don’t actually need.
So here’s the classic story of how it goes – and this is something I went through few years ago too, when I was starting out with my first Amazon FBA business. What you do is you start watching how to videos on YouTube, you start following blogs and Facebook groups – you probably buy a course or two and just learn, learn & learn! You’re in the research stage and want to find out as much as possible about how selling on Amazon works, how to avoid common pitfalls and so on.
That’s all good! You’re even reading this post because you want to learn more about this whole Amazon business, right?
The problem starts when you see one software being recommended in one YouTube video, then – something else in another video. Then you read on a blog that you definitely need to use this tool for doing X thing. Then you dig deeper and find out that you also need these two services and so on!!!!
There are hundreds of tools and services out there targeting Amazon sellers that “help” with various tasks like:
Sponsored Product Ads (PPC)
And when you’re in that research phase you think that you need to use ALL of them to even have a chance of making money on Amazon! (more…)