Recently, one of my newly enrolled students brought up a question regarding to Amazon PPC to me.
She’s an online seller trying everything she could since she started her business this January.
She was coming from a different “Amazon expert” class.
The “Expert” taught them to max up the Amazon PPC budget to win the keywords, and also to give out products for free in exchange for good reviews..
After 6 months of working real hard, she didn’t make any profit….
WHY? Her product is on the first page on Amazon and there are 50+ good reviews for her product.
But at the end, she felt frustrated because she’s not making any money…
Does this sound familiar to you?
Then you should keep reading…
The REASONS she didn’t make profit:
- She spent too much money on PPC, her spending on PPC is more than her profit on selling.
- She did too much giveaways in exchange for reviews
I understand many startup online sellers are experiencing the same issue because most of the “Amazon experts” are teaching people to do Amazon PPC and giveaways for reviews… And we know it’s NOT WORKING…
So I gave her FOUR tips to turn this around:
- Turn off Amazon PPC immediately
- Don’t give up.
- Do not underestimate eBay (Currently, eBay takes 43% of all my sales) – See my article “3 Reasons Why You Shouldn’t Selling On Amazon Only”
Also, for products that you’ve trying so hard to sale on Amazon, they could be your best sellers on eBay because they use different algorithms. IT IS EASIER TO SELL ON EBAY THAN AMAZON for niche products.
- See if you can list on Jet.com, it’s blue ocean as there are not many sellers in Jet.com yet.
And if you don’t want to fulfill the orders yourself, you can check with your local fulfillment center or check out Amazon’s Multi-Channel Fulfillment service. (I fulfill the orders ourselves, because we have many customization products.)
The student didn’t understand how can she make money by turning off the PPC, because how will her product stand out from the crowded marketplace?
So I explained to her.. It’s all about branding… Bring in more related niche products like I taught in the class, bring in at least 20-30 different SKUs, and just carry 10 pieces each… And each one of them will have your brand name in the product title. This way your store/brand will look like a specialty store/brand to customers. That’s why most startup sellers fail because they only get to know the technical part of selling online, instead of the whole business concept. Building a brand name, not just selling products…
She’s confused and asked “How can you run a business with 10 pieces in inventory for each product? I still need to do the giveaways for reviews.”
I replied.. “No, you don’t do any giveaways anymore. You let the product sell for itself by using the hidden keyword hack like I taught in the class. Don’t expect all of the 30 SKUs will sell well. Some of them will sell well, then you bring in more quantity; some of them don’t sell well, you discontinue them. This is how you test the water in the crowded marketplace. “
Now Let me Show You An Example:
If you go to Amazon and search for the keyword “Pole Spear,” you can see 3/4 of the listings on the first page are mine. And let’s take a look at this product specifically:
There are only 3 customer reviews, but it’s on the first page… How did it happen? It’s not a PPC product, and I never do any product giveaways in exchange of reviews. How did it get to appear on the first page?
The truth is… If you picked a niche product like what I taught in the class, you don’t need any PPC nor giveaways.
In fact, I sold 42 units in the past 30 days.. That’s $2,057,58/mo. Not a lot, right? But imagine if you have 50 SKU’s of this type of product.. You’ll be making $102,879/mo.
“Oh… That makes sense now.. but where can I get find a vendor who has such low MOQ?”
I replied.. “Try Taiwanese vendor, and you can also filter the MOQ quantity when you trying to find vendors in Alibaba”
“Thank you for the great info, appreciate it!”