From: "Saved by Internet Explorer 11" Subject: How to scale your (Amazon) business Date: Wed, 9 Nov 2016 09:04:05 -0800 MIME-Version: 1.0 Content-Type: multipart/related; type="text/html"; boundary="----=_NextPart_000_0000_01D23A68.38E75460" X-MimeOLE: Produced By Microsoft MimeOLE V6.1.7601.17609 This is a multi-part message in MIME format. ------=_NextPart_000_0000_01D23A68.38E75460 Content-Type: text/html; charset="utf-8" Content-Transfer-Encoding: quoted-printable Content-Location: http://www.globalsources.com/NEWS/SIC-how-to-scale-your-amazon-business.HTM =EF=BB=BF
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Path: Sourcing News & = Advice=20 >> Smart=20 Sourcing >> How=20 to scale your (Amazon) business
By Manuel Becvar
A=20 lot of people ask me how to scale their business. They get to a point = where they=20 have 2, 3 maybe 5 products online and are either facing cash flow = problems or=20 don=E2=80=99t know what to do to grow to the next magical number. =
When=20 I have calls with them to find out what can be done it is often one = thing that=20 they overdo =E2=80=93 optimizing. Be it their listings, backend keywords = or PPC=20 marketing.
Don=E2=80=99t=20 get me wrong this is important and you need to optimize to grow from 2 = pieces a=20 day to 10 pieces or more. But it doesn=E2=80=99t mean that=E2=80=99s = what you should be doing=20 all day.
Second=20 reason I find is that they are obsessed with numbers, hijackers, copy = cats or=20 their competition. Again, you do need to look at these things but = honestly I=20 have better things to do than obsess about my numbers or competitors.=20
When=20 I put my French Press case study out there in public I didn=E2=80=99t = worry about copy=20 cats. Because if I would have decided not to do it I would have missed = out on a=20 product that=E2=80=99s making me good money for over 6 months. First of = all I wanted to=20 document on a generic product how the process is done and second if I = make good=20 money for 6 months with that product and then the competition comes so = be it. In=20 those 6 months I will already have developed my next products or built = further=20 passive income. Yes it is frustrating when someone copies you but that = happens=20 in every business. Move on.
I=20 understand that if you have 1-2 products online it=E2=80=99s very = exciting to look at=20 your growing numbers by the day. But you can only grow that much if you = try to=20 optimise all the time and not look into developing new products, your = brand,=20 your company or your idea.
I=20 am sure most of you heard of guys like Will Tjernlund (24 year old Multi = Million=20 $ seller or was it 25?) or Ryan Moran (Freedomfastlane). Yes they do = perfect=20 their listing, photos, keywords and such but they don=E2=80=99t obsess = over it. They=20 rather take action, develop the next product or make a call to a = wholesaler or=20 factory and land another exclusivity deal that will make them thousands = of $=20 while we review our keywords for the 50th time.
If=20 you recall in my last blog post I was in Hamburg at a = conference=20 and Will was also there. After the conference sitting together on the = last day=20 before everyone went home while most of us were discussing strategies on = optimising, Will found another product online, picked up the phone, = called the=20 sales rep of the company in the US then and there, offered them to = purchase and=20 list for them on Amazon exclusively and landed another deal that will = make him=20 (hopefully) thousands of $. I wasn=E2=80=99t there in person but I was = told by my friend=20 who organised the event. Reminds me of a famous saying from Scott = Voelkers (The=20 Amazing Seller) podcast =E2=80=9CTake action=E2=80=9D. I know easier = said than done but it=20 really is just that =E2=80=93 pick up the phone, make the call, = negotiate and place the=20 order. Don=E2=80=99t over procrastinate and optimise =E2=80=93 go for = your next product.=20 Obviously research and product validation has to be done but hopefully = you don=E2=80=99t=20 fall into paralysis/analysis.
All=20 of these guys also outsource many parts of their business. That could be = virtual=20 assistants for your customer feedback, letting professionals handle your = sourcing and=20 manufacturing in China or copywriting for your listings and=20 products.
Why=20 is optimizing your listings less important than developing new ideas and = products?
I=E2=80=99ve = touched on this in the last blog post also:
Constantly=20 re-inventing yourself and focusing on the direction of your company = =E2=80=93 because=20 there is no one there to tell you what to do. You are responsible for = the=20 success of your business.
If=20 you only focus on optimising who is going to develop new products and=20 strategies?
Scaling=20 up with more products means you need more cash.
Which=20 brings me to the second issue why people stagnate =E2=80=93 cash = flow. Yes Amazon=20 makes a nice income after a while but what most people forget is that a = lot of=20 your cash will be tied up in inventory and re-orders, especially in the=20 beginning.
Therefore=20 diversify your income and don=E2=80=99t put all eggs in one basket.. At = least at a point=20 where you are making 2-3000$ profit a month on Amazon to support your = lifestyle,=20 pay your bills or put even more money into the business. As I explained = in my=20 last blog post I made the mistake myself taking out money of the company = in the=20 beginning. Today I put nearly every $ made back into my business. = That=E2=80=99s how you=20 scale up. Because what is the money good to you in your savings account = when you=20 can re-invest it into your business and double it at a much much faster = rate=20 than the banks interest rates. Yes of course I put money aside for the = rainy=20 days and save up a bit of cash but its less than 10% of my monthly = income. If=20 you want to scale up you need to invest in yourself and trust your = abilities.=20
Therefore=20 to generate more cash flow and pay your bills diversify your income = stream as=20 soon as possible. Or maybe you are doing this on the side and still have = a full=20 time job? Also good but there are still ways to generate extra income.=20
1)=20 Your own eCommerce store
Ok=20 not the ideal way because you will need more cashflow but you can start = by=20 adding a small quantity to your next Amazon order placed in China and = send it to=20 your warehouse/garage/fullfilment center selling trough your own = eCommerce site=20 (Shopify for example). This can be a trial and test and if it works out = you can=20 decide whether to continue the eCommerce lane or not.
2)=20 Teaching your knowledge
Have=20 you heard of Udemy.com? It=E2=80=99s the largest website where=20 instructors/teachers can offer their knowledge in the form of an online = course=20 and over 5,000,000 students can view your (paid) content. The downside = is that=20 Udemy takes 50% of the cut (unless you send the traffic there). But you = could=20 also set up your own site and offer your course trough that way, all the = money=20 goes into your pocket. If you aren=E2=80=99t familiar with setting up = websites and=20 online courses you can try teachable.com=20 which offers people templates and ready made landing pages for your = course for a=20 3% commission.
3)=20 Starting a blog=20
I=20 never was much of a writer or blogger. I started my first blog in 2006 = with a=20 few entries now and then. I had no idea what I actually wanted to blog = about or=20 how this whole blogging thing works. So the blog kind of died down until = I=20 started my first actual blog (ImportDojo) in 2015. There are so many = ways you=20 can make money through a blog and while I don=E2=80=99t recommend you = start the next=20 cooking or travelling blog (very competitive) there are still so many = niches=20 people like to read about or make money in. That could be a small niche = like=20 home brewing, diving harpoons or whatever. Just making things up her as = I=20 go.
Check=20 out this excellent resource on how and what you should do when starting = a blog:=20 onestep4ward.com
Ideally=20 the blog is somewhere in the nature of your physical products that you = are=20 selling. Say I sell a French Press I should naturally start a blog about = coffee,=20 coffee machines and such. Good thing is the sooner you start a blog or = social=20 media presence and the more followers you get the more traffic you can = bring to=20 Amazon or your eCommerce store. On top of that you create authority = among your=20 readers. People trust you and are willing to purchase your product. Key = to=20 blogging is (I find at least) is to give a lot of value. You can also = integrate=20 a eCommerce shop (or direct people to your Amazon store) at some point = in your=20 blog to create extra income trough physical products on your blog. =
4)=20 Consulting
You=20 can put up your skills for sale. Be it through a course or through a = personal=20 one on one phone call. You can either integrate coaching calls through = your own=20 site/blog or even list your skills on sites like Clarity, UpWork, Fiver = etc.=20
5)=20 Writing eBooks
As=20 I said already I was never much of a writer but I just put my knowledge = on=20 paper. Plain, not very entertaining and fact/experience driven. People = need that=20 especially if you are in a niche where you have experience and people = can rely=20 on your knowledge. Information and knowledge equals money. Start writing = a 15,=20 30 60 pages eBook and put it on Amazon or your own site. Even if it = =E2=80=9Conly=E2=80=9D makes=20 you 30$ a month.
6)=20 Approach retailers
I=20 started the other way around. I went to retailers first and then onto = Amazon.=20 But that=E2=80=99s because I have 17 years of experience and contacts in = retail. If you=20 have a well selling or unique product on Amazon, retailers, brick & = mortar=20 stores will approach you. Believe me, it happens eventually. And even if = not =E2=80=93=20 walk down to your local retailer and speak to the Manager if they are = interested=20 in buying stock for their store. You can also do this online and = approach=20 retailers that you think may fit with your product. Do your research, = prepare=20 yourself properly put on a suit and try to get a meeting with the = purchase=20 department.
Every=20 dollar counts, ESPECIALLY passive income. I don=E2=80=99t care if = I work 2 weeks=20 non stop on a new project and it =E2=80=9Conly=E2=80=9D brings 50$ a = month extra. Thats 50$ I=20 didn=E2=80=99t have before and ideally I don=E2=80=99t need to do = anything for it anymore and I=20 still make that every month. Imagine if you have 10 projects or = side/passive=20 income that make you 50$ each. Thats 500$ a month for a few weeks work. = The key=20 word to diversifying and building passive income is hustling and = grinding.=20 Passive money takes a long time to build up but believe me the sweat and = tears=20 are worth it.
Key=20 points today to scale your (Amazon) business:
1. = Don=E2=80=99t over optimize=20 your listings =E2=80=93 spend the time on developing new products =
2. Build = more income=20 streams, especially passive money.
3. Use your = passive=20 income to pay the bills. The profits from Amazon go back into Amazon (or = other=20 businesses) creating more products up to a point where you either sell = it all,=20 retire on a beach, keep working or just spend time with your kids at = home.=20
Pheew=20 another motivational post, didn=E2=80=99t plan on that. I hope = there=E2=80=99s something in it=20 for you nonetheless :)
All=20 the best and happy sourcing,
Manuel
http://importdojo.com/importdojo-masterclass/=
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Manuel Becvar is the founder of = "Mandarin-Gear Ltd=20 Hong Kong" a sourcing company based in Hong Kong. Previous to founding = his own=20 company Manuel had been working with large retailers as a buyer in Hong = Kong for=20 over 10 years. Apart from Mandarin-Gear, Manuel runs a blog: http://www.importdojo.com/ that = focuses on=20 helping buyers to import from China; especially for Amazon FBA buyers. = He has=20 also written 4 best sellers books about importing from China that are = available=20 on Amazon as well as in his online course on www.importdojo.com/
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