Here’s a question for you: If you could work hard for 6 months to create a $500 a month residual income, would you do it?
If the answer is yes, then I have good news. Not only is it possible, it’s now easier than ever, using the worlds largest online marketplace, Amazon. Amazon marketing is the new “wild west” of online marketing. yes, it’s been around a long time. But the opportunity is so vast, the product opportunities so diverse, that it is still open season for any ambitious marketer to jump on the band wagon and have success.
Disclaimer: I am not trying to pretend I’m an Amazon marketing guru. I’m not. My expertise is in SEO and general ecommerce marketing, and I’m brand new to Amazon. But, if you will look at the screen shot to the right, you will see the results of my rookie efforts… with one single product I put on the Amazon marketplace just 4 short months ago.
As you can see, my check was $1,934.26 (Amazon pays every two weeks), I sold 56 units in the last 7 days, and did $5,578.85 in the last 30. And FYI, my gross profit margin is 55% on this product. So if you want to learn how to do something similar, or even far better, read on! I am going to share the knowledge I picked up while researching how to tap into the worlds largest marketplace as I created the sales funnel you see pictured.
Now, before we move on, you might be wondering why I, or anybody else, would share info on how to sell on Amazon. Aren’t we creating more competition for ourselves? Well, no. It’s estimated that there are 80,000 items on Amazon that could provide a person a six figure income! That’s a huge number. There are SO MANY products you can do this with it’s beyond count, and more products coming into the marketplace all the time.
That’s a huge opportunity. So here are the major keys I used to create the results you see pictured, and how you can to!
1.Be a student. There are no quick fixes in online marketing. Generally speaking, whoever has the most knowledge, and implements it, wins. So, commit to the process of learning. Watch Youtube vidoes. Buy a course on Amazon marketing. Be prepared to spend HOURS scouring Amazon for unique categories and products you can sell.
2. Don’t quit. Most people quit before they give themselves a chance to succeed. You WILL have setbacks along the way. Your first product will probably fail. Maybe your first 3 or 4 products. That’s OK. Learn to recognize obstacles for what they are: tests of your resolve. Work through them and carry on.
3. Find a great product. Now, this is the hard part, for sure. And nobody is going to hand you a magic list of the very best products to sell on Amazon. And if they did, they would instantly NOT be the best because everybody else would start selling them too! So understand that this is where most of your work will lie. But follow the criteria listed in the rest of this cheat sheet and you will find a great product to sell.
4. Only do one product at a time. Get ONE product selling successfully before you move on. Get your ordering and distribution in place, provide amazing support to your customers, and make sure you have nailed your first product and created a great store before moving on to second or third products.
5. The money is made in the $20-60 price point. Less expensive products take too many sales to make money, more expensive products have fewer sales. Find something between approximately 20-60 bucks. But remember, this is a guideline. Fortunes are being made for products just below or above those points, if you find the right item.
6. High profit margin. You need an above 50% margin on your product. Ideally, 60-80%. Don’t believe this is possible? Not only is it, but with some research you will find many products with those types of margins. And trust me, you are going to need them. Amazon charges 15%, shipping costs a few dollars, your store has a monthly fee, and you will need packaging and labeling. So, you need to find a product with a high profit margin.
7. Private Label Potential. This one is VITAL. While I recommend a “nail it and scale it” marketing plan using an existing product, once you prove you can sell it, you need to private label it so that it’s your own brand and not the exact same widget being sold by a plethora of sellers. (If you don’t know what “plethora” means please watch The Three Amigos for clarification).
8. Long term potential. You are looking for a product that will still sell years down the road. There just isn’t anything like long term residual income. But that will only come if your product is something that will sell far into the future.
9. Potential for repeat purchases. This one is optional, because it just makes it that much harder to find a product people will buy again and again. But if you can satisfy all the previous requirements, plus have a product that people will buy again and again, then you can REALLY crush it! For example, do you realize just how big the knitting market is? People who knit buy new wool again and again and again. Billions of dollars has been turned in the knitting industry, and it won’t stop any time soon. And that’s just one example of one niche on Amazon.
10. Commit to being a premium product provider, at higher than average price points. You may think that to sell on Amazon you have to be the cheapest. But that’s not the case. Don’t forget that the way Amazon makes money is through a percentage of sales. They have no incentive to rank the cheapest products at the top of the searches. In my case, competitive products range in price from $15-25, yet I’m selling my fair share at $29.95, purposely being the highest priced item in my category. This keeps my margins up, and allows me to purchase a more expensive wholesale product than my competitors, thus ensuring higher 5 star ratings and customer satisfaction.