2 Key Factors to Understand Before Starting on Amazon

There’s a lot of information to digest in this report so let’s skip the usual preamble and dive right in…

The purpose of this report is to provide you with the recipe required to build and scale your Amazon business to over 6-figures per month.

Without making the critical mistakes that sink the ships of novice sellers.

You’ll discover the fundamental pillars that you need in place to hit 6-figures p/m.  Then we’ll weave it all together in the latter pages. Plotting out how to execute it in reality.  

You’ll put this report down with a brain fizzing with fresh ideas.

Along with a plug and play blueprint that you can replicate to build and scale your business to new heights.

No black hat tactics.

No bullshit strategies.

Just straight up value.

Sound good?  Let’s get straight into it.

Turnover…

STACKING THE DECK

Did you know the American baseball player, Ty Cobb, finished his career with a batting average of .367?

Basically, every time he stepped up to the box he’d hit 4 out of 10 shots.

Which considering the average baseball players batting average is 30%, makes it pretty impressive.

You’re probably wondering why I’m banging on about baseball batting averages?  

Stay with me and I’ll explain….

You see if Ty ran a retail store, it would be the equivalent of letting 10 people through the door knowing that he was going to sell something to 4 of them.

Which is impressive.

But the real reason I’m writing this is because there is a striking similarity between baseball batting averages and generating sales on Amazon…

After working alongside multiple 7-figure sellers, we’ve observed that there are really only two factors at play when it comes to moving your Amazon business (both forwards & backwards):

  1. TRAFFIC
  2. CONVERSIONS

That’s it.

These are the two biggest dynamics that move the sales needle.  If you can control both of these, then you’ll pretty much write your own monthly pay cheques.

Yet, every week we jump onto calls with sellers and get hit by this….

‘’I only sold 30 items last month. Something is wrong. How do I get more?’’

After a bit of digging into their metrics we establish that they are suffering from one of the following problems:

PROBLEM #1

Their listing is been flooded with traffic, yet they simply aren’t converting these visitors into paying customers.

They’ve therefore got a conversion problem.

To try and fix this they crank up their ad budgets or add in random new keywords, incorrectly thinking that if they increase the volume of visitors then they’ll increase sales.

Which is true (in theory).

Yet, their conversion rates are still so low their margins will get eaten up in ad spend and fees, leading to sky high ACoS scores and wafer thin profits.  

Worse still, Amazon’s algorithm will quickly notice that visitors are bouncing off the listings and will actually punish the seller by decreasing their sales rank.

This quickly escalates into a downward spiral.  A spiral that gains speed the longer it falls.  Eventually stalling when it hits rock bottom.

PROBLEM #2

Their conversion rates are decent (average on Amazon is 9.47%) but the volume of traffic landing on their listings is so low it’s hardly worth the effort.

In this scenario, the seller simply doesn’t do anything.

Clutching at the handful of straws they have, hoping that one day the tides will miraculously turn and a tsunami of traffic will come their way.

Spoiler alert… it won’t.

To win, you must control both of these factors.

And when you do succeed at doing this, you’ll not only increase sales, but in a lot of instances you can actually raise the price of your products.

Leaving you more margins to re-invest in this beautiful cycle to continue growing.

Want to find out how?  Let’s break it down and show you….

Firstly we need to solve problem #1 (conversions) before we crack problem #2 (traffic).

Why?

Because it’s counterproductive (and very expensive) sending high quality traffic to a listing that isn’t what we deem ‘retail ready’.

Yet this is one of the biggest mistakes sellers are currently making. Day in. Day out.

HOW TO INCREASE YOUR CONVERSION RATE

You’ve got 3-seconds to grab a visitor’s attention.

If you don’t do that, they’ll bounce off and buy off your competition.

Ever walked into a bar on a night out, had a quick look around, not liked what you saw, before turning around and walking straight out again?  Well this follows the same principle.

Potential buyers who land on your listing have clicked on it for a reason…

They’ve put their hand up and said, ‘’I’m in the market for X product’’, and have a huge sign on their chest saying:

PLEASE CONVINCE ME TO BUY THIS!

I CAN’T MAKE MY MIND UP,

SO PLEASE HELP ME!

You’re role is to engage them and effectively prove to them that your product is not only superior than your competitors, but more importantly will…

SOLVE THEIR PROBLEM.

As I’ve already said, the average conversion rate on Amazon is 9.47%. Which is massive considering the average e-commerce website converts at a painful rate of 1.33%.

Some brands we work with have currently got batting averages in excess of 30%.

They therefore know that for every 10 visitors they can drive to their listing, they will make at least 3 sales.

This allows them the freedom to go full throttle when it comes to driving traffic to their listings.

If they want 300 orders per month, they know that they’ll need 1000 visitors to land on their listing.

3000 orders per month? Simply get 10,000 visitors. And so on.

All they need to master is how to control the flow of traffic (I’ll show you how to achieve this later).

Yet, what separates their listings from the competition?  How are they achieving 30% conversion rates?  How can they keep stacking the deck in their favour?

By FULLY OPTIMISING their listings.

Which is the key to converting ice-cold browsers, into piping hot buyers.  

Want me to breakdown the ingredients that go into a fully optimised listing, so you can go away and work on improving your batting average?

Good.  Here goes….

2. Title

The sole aim of the title is to pull the prospect into the body of the listing.

The title must therefore pass the ‘glance test’.

Which means it needs to be short, sharp, punchy and RELEVANT.

Ideally around 60 characters long so it’s optimised for mobile and easy on the eye.

The potential customer must know exactly what the product is, what it does, and its main benefit within seconds of viewing the title.

Enough information to spark their curiosity and get them to explore further.

You can then sprinkle in high performing keywords to ensure it ranks highly within Amazon’s A9 algorithm.

2. Images

In a recent survey 65% of buyers revealed that they make a buying decision based on images alone.

You must have professional, flawless images on your listings.  Nothing else is acceptable.

Different angles, in-action shots, lifestyle images, infographics.

All of these captivate the attention of the potential customer.  Which keeps them engaged for longer. Drawing them in closer to the sale.

Take the cheap, easy option here (like most sellers do) and you will crash and burn.

3. Bullet Points

Focus on the BENEFITS not the features.

No one gives a shit about your product features.

In fact, no one actually wants your product.

What they want is a solution to their problem.

So give it to them.  By creating benefit rich, captivating copy that drags the reader in and FORCES them to hit buy.

I’ll let you in on a secret…

The greatest skill a business owner can possess is the ability to write good copy.

Copy that alters your prospects vision, whilst building a burning desire for your product – and everything your product can do for them.

Execute this with military precision and your conversions will skyrocket.

Don’t sell drills. Sell holes.

4. Description

If you have access to Enhanced Brand Content / A+ (trademarked brands only) then you MUST be using it.

It’s insanely powerful and has proven to increase conversion rates.

You can drill into the product benefits in more detail, push your brand message and keep the visitor engaged for longer.

Which as we know, the longer someone stays engaged…the higher the chance of them converting.

EBC also allows you to build an emotional connection with your customer, differentiate yourself from your competition and cross sell other products.

It’s key to building credibility with potential customers whilst drawing them deeper into your brand.

It’s also free and pretty simple to create.

You just need to know what nerves to tap on to build that burning desire for your product.

HOW TO INCREASE YOUR REVIEWS

In a recent survey by Fan and Fuel, 97% of online shoppers said reviews influence their buying decisions. Yet…

Based on our research, only about 3% of customers normally leave them. Especially since customers have auto-opted out of follow up emails.

Which is bleak.

So what can you do to increase your reviews and consequently make more sales?

Scroll down and I’ll tell you…

Ever heard of RYP?

It stands for Review Your Purchase. And here’s how it works…

  1. Customer receives your product in the post.
  2. Inside is a product insert card.
  3. On that card you’ve thanked them blah blah, before asking them to leave a review (DO NOT ask for a positive review).
  4. You direct them to the following URL: www.amazon.co.uk/ryp
  5. They click on it and boom…leave a review.

One of our client’s has QUADRUBLED the number of reviews he receives since implementing this strategy.

As a consequence, his conversion rates have increased, which has seen his ACoS scores drop, leaving him with more profit to re-invest.

There is a more advanced strategy…

Pretty much you install a QR code on your product insert that links directly to your Chatbot.

After the customer connects with your bot, it automatically starts a conversation with them, solving any problems, making sure they are happy, requesting a review etc.

It’s insanely powerful. And something every seller should be exploring. Especially as consumers want human-like communication, where brands communicate in a tone that resonates with them.

It not only mitigates the chance of getting negative reviews but you can also cross promote your other products through the Chatbot.

This increases their customer lifetime value, which decreases you ad costs, leaving your with more profit.

Strategically smart? Yes.

Easy to implement? No.

Now that you’re listings are fully optimised and you’ve got a strategy in place to gather reviews, it’s now time to concentrate on driving high quality traffic to your listings.

HOW TO INCREASE TRAFFIC

There are two forms of traffic:

  1. Organic
  2. Paid

We’ll start with organic.

By optimising your listings, you should see a spike in traffic volumes from organic search results…

Why?

Amazon’s search engine will now be factoring in the high volume keywords you’ve embedded in your copy.  Which means your products are more likely to show up when people search for them.  

Your listings will also be relevant to search results, which is something the A9 algorithm is picking up on these days.

Every time you generate an order, Amazon will rank your product slightly higher in the search engine.

This results to a FLYWHEEL EFFECT, which in turn leads to more sales, which leads to a higher ranking, and you guessed it…more sales.

It’s a win-win situation.

Ranking is about relevancy.

Relevancy is made up of traffic, conversions and sales for a search term.

Yet it all begins by optimising your listings.  If your listings aren’t optimised, then Amazon’s algorithm won’t rank them highly.  Which means you won’t generate organic traffic.

The downside to organic traffic is that you are at the mercy of Amazon’s highly sophisticated algorithm.

At any point they can tweak something, which can throw everything out, and ultimately see your listings drop down the seller rank.

There’s therefore little point in paying an agency £250 to optimise a listing for you. Why?

Because in a months time, you’ll have to re-optimise it again with fresh, relevant keywords to ensure you’re always ahead of the curve.

Which brings me nicely onto…

…paid traffic

Unless you’ve got margins thinner than Kate Moss on a juice diet, you’ve got to be leveraging paid advertising to scale up your business.

Why?

The simple answer: Scale requires systems.

Systems that YOU can control.

If you can control the volume of traffic landing onto your listings (whilst been confident that you can convert them) then you’re effectively printing your own lottery ticket.

Obviously you know what ‘’profit’’ is and all that…

But, profit comes from proper advertising.

And as a business owner you must understand and deploy proper advertising if you’re serious about building a 6-figure per month business.  

Agree? Good.

Let’s outline the two fundamental paid advertising streams that can drop your listings into a raving river of buyers…

AMAZON ADVERTISING

Reality is Amazon is now a pay-to-play platform.

And if you want to drive HIGH QUALITY, laser targeted traffic to your listings 24/7, 365 days a year, then you’ve got to be leveraging Amazon ads.

Yet the problem most sellers are facing right now is that Amazon are releasing new ad features EVERY SINGLE MONTH and sellers simply cannot keep up.

  • New sponsored display ad types
  • New product targeting ad features
  • Sponsored brand videos
  • New keyword match types
  • Re-targeting tools off Amazon

The list goes on…

This is why we advise our clients to simplify their ad campaigns into test and performance groups.  

Test different combinations in small budget ‘test’ groups.  Find the winners. Move them into a ‘performance’ group.  Pull the trigger on ad spend.

This ensures you’re maximising your ROAS (return on ad spend), without having to burn thousands in ad spend to find winning campaigns.

But relying solely on Amazon Advertising isn’t going to maximise your sales.

The marketplace has evolved.  Which is why you must be controlling the flow of traffic from…

3RD PARTY ADVERTISING PLATFORMS

Facebook and Instagram.

Insane platforms where your customers are hanging out every single day.

Customers that you can target with pinpoint precision thanks to the amount of data these marketing platforms have.

Yet hardly anyone (apart from the top sellers) is using 3rd party platforms such as Facebook to drive traffic to their listings.

They rely solely on Amazon to do the legwork for them, leaving thousands in revenue on the table month in month out…

Plus paying way over the odds for uber competitive clicks.

Why not use both?

The upside being floods of traffic from different streams.  Traffic that YOU CONTROL.

The difference between say Facebook and Amazon is that people on Amazon are in buy mode, whereas people on Facebook are in social mode.

You can’t therefore send Facebook traffic direct to your Amazon listings. Why?

Because they aren’t in buy mode, they need warming up first. Then (and only then) can you try and secure the sale.

Do it too early and your conversion rates on Amazon will get shot to bits, resulting in a decreased sales rank (remember: relevancy is impacted by conversion).

So how do you warm them up first?

One strategy we’re executing right now is to drive FB traffic to a pre-sell page.

It’s there that you highlight the problems your audience may be experiencing, before revealing how your product can solve their problem.

From that pre-sell you can drive them to your listing (via a 2-step URL so you gather ranking juice) and convert them into a customer.

You can then re-target anyone who landed on that pre-sell page.  Effectively stalking them around the web, until they eventually give in and buy.

At the end of the day, the opportunities available to you when it comes to using Facebook/Instagram etc to drive traffic are endless.

The difference is, the top sellers are unlocking these opportunities and using them to take their sales to the top floor.

They are gathering DATAon their customers.

Building up mailing lists off Amazon, which become ASSETS

Assets that can be leveraged over and over again to maximise their sales.

They then have the ability to horizontally scale by positioning similar products in front of these audiences, knowing that they are relevant to their interests.

Strategically this is one of the most advanced, cost effective and quickest ways to scale your business.

You just need to have the skills to execute it correctly.

‘’FAILURE TO HIT THE BULLSEYE IS

NEVER THE FAULT OF THE TARGET’’

Most Amazon sellers are behind in a race they didn’t even know they were running.

The marketplace is evolving so fast that the majority of you simply cannot keep up.

Which is why the main reason your businesses lose relevance, go broke, or fade into the sunset is because you continue to grow, yet fail to evolve.

If your dream is to build a profitable, sustainable 6-figure p/m Amazon business, then mastering business skills relevant to selling on Amazon is compulsory.

You could have the greatest product on the planet, yet if you don’t have the skills required to sell it to the masses through the greatest platform on the planet then you will fail.

There are no secrets….just stuff you haven’t learnt yet.

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