George Reid

 What I Learned About Amazon This Week
To: LaunchPod Readers

JANUARY 20

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🚀 Examples of how to be good at Amazon

1. 75% of new Amazon sellers are from China. Sometimes you have to be honest with yourself, stay with me…do you deserve to be ranked on page 1? George, what the fuck are you talking about, how is this related to China? Well, my fury friends let me explain a little more here.
Take you primary search terms, you should have roughly 3-5 of them, that your gunning to be on page 1 for. Look at the existing competitors on page 1. Ask yourself, is my product offering. The big term is offering by the way. Is my offering deserving of page 1 position for this term. Are you offering a great solution to the prospects problems and charging a fair price for it. If you’re a transactional company, like many Chinese sellers tend to be, then it can be very difficult going head to head with all of the other products on there. The differentiation is minimal, and if you do find something that makes you stand out from a product perspective, it’s only a matter of months before you’re copied. Which is where the brand moat comes in a little, if you’re playing defensive. You’ve ultimately got to OFFER more than just a transaction. For arguments sake, you sell deodorant. Wild Deodorant are an upcoming brand in this space and what I particularly like about them is they’re working really hard to provide increased value to customers with things like a close knit community on Facebook (FB group). Now, when they look at themselves side by side with the competition on page 1, perhaps they do just sit with the others on price and face value offering, but their total offering is so much more. It gets a little more complex, obviously, but at the forefront of my argument is, do you deserve to be there? If you don’t, then you won’t have any sustainability there, particularly given the meteoric rise in Chinese sellers.

2. Amazon is working on a new Alexa device to help with your sleep.

3. Are videos on Amazon a complete waste of your time? Shoppers who watch your video are 3.6x more likely to buy, according to Amazon. But an interesting discussion going on in this post shows that the # of people viewing…is very low. So does it make more sense to take the creative budget and double dip on your images?

4. Here’s an interesting overview of Amazon Live, including the app you need. I don’t know much about this to be honest, other than the fact if you’ve got capacity it’s always good to jump on new things first with Amazon. Take video ads, jumping on them first last year has been very beneficial for clients we’ve worked with!

5. Here is an example of a great sponsored video ad. Remember, I share examples of great content I see each week in this Facebook group. Sorry, it’s paid (£3.50).

6. An excellent example of how to get a customer to pay 7x more for your item. The lesson: storytelling is incredibly powerful. As is email marketing. If you’re shit with emails, I recommend this guy: Rockpool Consulting.

7. A good example of how to play defensive with your Amazon Advertising. You can’t sustainably win in sport just being offensive, you’ve got to have a defense. The same principle applies with advertising. Don’t work super hard to get a customer onto your listing, only to have some tosser advertise all over it and steal them away.

8. Chris Mole said this in an article recently, I’m sharing it because I agree: “Investment in on-site optimization goes down the drain if the supply chain is not primed and the stock is simply unavailable. A recent report (paywall) by Profitero called “The Costly Penalties of Going Out of Stock” found that brands could lose up to 42% of sales when their stock rate drops from 90% to less than 30% and that it takes three to four days to regain full sales volume after being out of stock for just one day.”

9. Amazon UK dominates warehouse space. SHD Logistics reports that Amazon leased one-third of all warehouse space in the entire UK last summer. What’s also mad is the rest of eCommerce occupied 33% of the 40% leased to all eCommerce players during the period. Which means the rest of UK eCommerce only leased 7%.

10. Ben Timmons hopped on the pod for his second episode. I grill in on why he hasn’t quit his job yet given the success of his Amazon hustle. Listen here. We also natter about how to drive your value up ready for a sale and the fear when running an Amazon business.

11. Your sales typically go up 108% when you go from 1 review to 2-50. Message me if you want the link digging out, I’ve ran out of time on this email.

Thanks,
George

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