Amazon’s giveaway feature – I tried it for 7 days. Here’s what happened.

An Amazon Giveaway is an easy way to promote your product and get more sales!

A few weeks ago, I decided to test Amazon’s giveaway feature to see if it could work as an oddball way to get more sales.

The thought process was: give away “x” number of a mass-market mug and hopefully the people who didn’t win would still like the mug enough to want to buy it. The general concept has worked well for me in the past, so I was curious to see if we could duplicate the results on Amazon.

I ended up running two giveaways. Each one lasted for seven days and one went significantly better than the other.

Below, I detail the exact process that I used so you can “look over my shoulder” to see what I did and the results that I got.

Here we go…

How to Host an Amazon Giveaway

Part 1:

  1. Inside your Seller Central account, go to the “Advertising” tab and select “Promotions” from the drop-down menu
  2. Under “Giveaway,” click “Create”
  3. Choose the product you want to create a giveaway for
  4. Click “Set up a giveaway”
  5. Setup your giveaway’s details and hit “Next.”

For my giveaway, I made the following selections:

Number of prizes: 25
Giveaway type: Sweepstakes
Grow your audience by requiring entrants to: Watch a YouTube video (I hired someone on Fiverr to create a 30-second long video based on one of my Amazon mug listings)
Giveaway duration: 7 days (the maximum)
Make my giveaway public: My product was not eligible for daily promotion.

Note: your giveaway has to be for a product that you’ve sent to Amazon as an FBA item, unfortunately. It can’t be FBM. If you’re in LHS and want to send mugs to Amazon, we go through how to do that here and I recommend you do this with a mass market mug you’ve had some good results with.

Part 2:

  1. Title your giveaway (between 5 and 50 characters)
  2. Enter your name (or your Amazon brand name)
  3. Upload a customer image
  4. Create Welcome, Post-entry, and Win messages
  5. Click “Proceed to checkout”

For my giveaway, this is what I put in…

Giveaway title: The name of my mug
Name: My Amazon brand name
Customer image: I uploaded a picture of the mug I was giving away
Welcome message: “Thank you for your interest! Enter to win this [my product’s name]!”
Post-entry message: “Thanks for watching our video and entering our contest. Best of luck! Be sure to check out the [my brand name] store for more unique, funny mugs.”
Win message: “Congratulations! You’ve won the [my product’s name]! Be sure to check out the [my store name] store for more funny, unique mugs.”

Part 3:

Select a payment method. Even though it’s your own product, you have to pay for the inventory.

The thing is, the Amazon giveaway feature is meant to give away any item, including ones that aren’t yours. You could use it to run a contest and give away 3 iPads, for example.

If the feature was specifically just for us to give away our own products, we probably wouldn’t have to do the dance of paying Amazon for inventory only to get reimbursed later on. We’d be able to pay the fees and be done with it.

(Side note: I think it’s totally fine to use it the way we are. Customers are still getting quality products and Amazon is still making money, as you’ll see.)

So for 25 mugs, I paid $512 in setup costs ($13.85 per mug X 25 + estimated taxes and shipping costs. I’d been testing prices on this mug).

And while this sounds like a lot, remember 3 things:

1. Amazon stipulates the following:

“Any amount over actual prizes claimed and related shipping charges and sales tax will be refunded. It can take up to two weeks from the original giveaway end date to process your refund. You will receive an email when this happens.”

2. If you’re running the giveaway for your own product, Amazon will pay you back the asking price for every product they give away. So if I gave away 25 mugs, I’d get back $346.25 ($13.85 * 25).

The real “risk”, then, was $165.75 ($512 – the $346.25 reimbursement either way).

3. I made a few mistakes that you can learn from – more on that in the results section.

Once your payment has been processed, you’re taken to the following screen:

An Amazon Giveaway is an easy way to promote your product and get more sales!

Next, you receive an email letting you know your giveaway has gone live. It includes a link to your giveaway, which you’re encouraged to share with your friends and followers via social media. The email also includes some suggested copy for you.

An Amazon Giveaway is an easy way to promote your product and get more sales!

How to Promote Your Giveaway

I decided not to promote either of the giveaways I ran using any of my social media channels because I didn’t want my results to be skewed based on the number of my followers. But posting about your giveaway on Facebook and Twitter is absolutely a great idea for you to do.

Contest Directories

As a way to promote my first giveaway, I submitted it to several contest directories. Here’s a list of a few of the directories I used:

Any Lucky Day
Contest Girl
Contest Listing
Just Sweep

Fiverr

For my second giveaway, I found three Fiverr gigs costing $25, $20, and $5 that said they would promote my giveaway in the following ways:

  1. The $25 gig said it would promote it to 100+ giveaway sites, with the potential to reach up to 200,000 people.
  2. The $20 gig said it would promote it on one social account and place it on the sidebar of the gig creator’s website for one week, with the potential to reach up to 95,000 people.
  3. The $5 gig said it would promote it in the gig creator’s email newsletter to 180,000 recipients.

Here Are the Results I Got:

Giveaway #1

Unfortunately, by the end of the seven days I didn’t have any giveaway entrants and zero prizes were claimed. So my first Amazon giveaway was a total bust!

I got all of my money back within one day of my giveaway ending.

Giveaway #2

This giveaway went significantly better, thankfully. Fiverr proved VERY helpful. By the time the contest ended, I had received 986 entrants!

An Amazon Giveaway is an easy way to promote your product and get more sales!

It took about a week for all 25 prizes to be claimed. Once that happened, Amazon provided a list of all the winners’ names, and I, of course, also earned a bunch of views on the video I had made and included as the giveaway’s entry requirement.

To see what effect my Amazon Giveaway had on my store, I tracked the sales for the mug I gave away compared to other weeks.

I tracked sales of this particular mug for that week, plus two weeks before the giveaway and one week after, to see if I could find any patterns.

Here were the numbers:

June 26 – July 2: 39 sales

July 3 – July 10: 35 sales

July 11 – July 18 – week of contest: 70 sales

July 19 – July 26: 28 sales

If we average out the other 3 weeks, I was averaging 34 sales a week for that particular mug.

While it’s hard to be scientific, I’m going to assume there were 36 extra sales during the week of the giveaway. The jump in sales for that week alone was over double an average week.

On those 36 extra sales, we charged $13.85 per mug with free shipping. We were running some tests on pricing.

We got reimbursed $346.25 gross profit, and then there were fees to take out.

First, if you were to buy a mug via UseGearBubble and use Amazon’s discounted shipping (details in the course), you’d be paying roughly $5.15 per mug ($4.95 on UGB for the mug, then another $6.49 for Amazon (approx .20 for shipping, $2.08 standard Amazon fee, $4.21 FBA fee).  That’s a total of $11.44 in costs.

$13.85 – $11.44 =  $2.41 net profit per mug.

So – womp, womp. We ended up losing money.

But – I made some silly mistakes that could’ve gotten a different result:

Big Mistake #1: I just realized, as I write this post, that I should have lowered the price of the mug on Amazon to $1, “bought” my mugs, then raised the price back up to normal. Changing to $1 would’ve meant I’d only pay $36.88 in giveaway costs (inventory, taxes, and shipping) versus $512. Doh!

It’s a little “grey-hat”, but the way I see it is that Amazon is reimbursing us anyway. We’re just paying less taxes on our own products. And when people buy the mug at full price, Amazon still earns their $6.49 per mug.

Big Mistake #2: – and this one is a head slapper – I should’ve changed the price to $19.95! If you’re in LHS, you may have seen the $54k Mother’s Day case study where I show how I changed a mug price to $19.95 and saw zero decrease in sales. Why, oh why, didn’t I change the price before!? haha.

If I would’ve priced the mug at $19.95 the profit would’ve increased to $7.63 ($19.95 – $4.95 UGB mug + $.2 Amazon shipping + $7.17 fees).

There are also some things to test for the future: 

– It’s possible giving away only 10 mugs (or 5, 3, or 15) versus 25 would yield the same increase in sales results.

– You can test items with healthier profit margin – for example a set of 4 shot glasses, a pricier mug set, a bundle of multiple items, and so on.

– Maybe we didn’t need all of the Fiverr gigs. I especially wonder how useful the $20 one was.

– Maybe more Fiverr gigs would have helped.

– I bet if you had a special holiday mug and synced it around that holiday, sales would increase. It would build in urgency to get the mug now.

Recap:

Total amount spent: $165.75  ($512 laid out for inventory, taxes, and shipping but got back $346.25 as the vendor of the mug) + $5 (Fiverr video creation) + $25 + $20 + $5 (Fiverr promotional gigs) = $220.75

If I had changed the price pre-giveaway:  $36.88 (inventory, taxes, and shipping) + $5 (Fiverr video creation) + $25 + $20 + $5 (Fiverr promotional gigs) = $91.88

Net profit including my mistakes: – $160.5

Net profit if I would’ve changed to $1 pre-giveaway and $19.95 post-giveaway: + $98.87

There’s no way of telling how many people saved this to their wish list, came back to buy it later, or bought other products in my store. I doubt there was that much extra activity, though. :)

If you found this useful, and/or if you decide to run an Amazon Giveaway of your own, leave a comment below and let me know how it turns out for you! 

An Amazon Giveaway is an easy way to promote your product and get more sales!

Surprising Hacks to Boost Your Sales on Etsy

Who wouldn't love to discover Etsy sales tips and hacks to supercharge your sales volume?

Etsy is probably one of the most underrated marketplaces out there.

You can do very well with it – in fact, many people from LHS sell more on there than they do on Amazon.

It’s a different kind of marketplace, for sure – but once you master it you can get lots of sales. Here are some results from LHS Members (which are not necessarily typical, of course):

Etsy sales - want to make some? Here's how.

(You can open that up for a bigger version right here.)

Before you think this is just for LHS members, though – remember that you can actually sell all kinds of digital products on Etsy.

Personally, I haven’t spent as much time on Etsy as I should and plan to change that in the coming months.

Because of that, I did some research and found a bunch of  things you can do on Etsy to send your sales through the roof. Even if you’re a highly experienced seller, I think you’ll benefit from hearing about the surprising and innovative Etsy tips and hacks I’ve discovered. And I know some of these seem simple, but people tell me they add up in a big way.

Here are my favorite nine…

#1: Renew Your Etsy Listings at Peak Traffic Times

With Etsy, recency matters. An article I read said that 72.92% of listings on the first page of Etsy search are 1 week old or less. Some of the listings were from products that were months old, but they had recently been renewed.

Etsy likes it when shop owners consistently add new products to their stores, as each product that’s added gets a boost in its search ranking simply because of its newness. The same also applies to listings that are renewed manually.

When you renew your products, however, you want to be mindful of your timing. If you renew a product at 2:00 am, odds are that not many people are going to see it, and your product’s search placement boost will have been wasted.

You should renew your listings at times when your customers are most likely to be online and shopping. To discover when your shop’s peak traffic times are, check your Etsy stats. Review the last few days and check for times when spikes in views occurred.

Then, renew your products accordingly.

Who wouldn't love to discover Etsy sales tips and hacks to supercharge your sales volume?

#2: Match Your Titles and Tags Exactly

Keywords are one of the most important things to get right on Etsy. And according to Etsy, the title is the most important place to have those keywords.

This particular hack is a big one because it’s something a LOT of people miss.

Many people make the mistake of thinking the more they type, the more traffic they’ll get. This is the common advice for selling on Amazon.

That’s not how it works on Etsy, though.

You want your best keywords (see #3 for advice on this) to be put in the title, and then you want to have your titles and tags match exactly so your listing is consistent. (NOTE: your tags don’t need to be in the same order as your titles.)

One reason that titles and tags end up being different is you have more characters to use in the title than you do in the tags.

The solution? Break it up. Instead of saying…

Sterling Silver Celtic Cross

…say…

Sterling Cross / Silver Celtic Cross/ Celtic Cross

… and so on.

You have 20 characters per tag, so take advantage of that and match them all up.

And speaking of titles and tags… make sure to do what I did above and split the tags up with some kind of divider. I used slashes, but you could also use dashes or commas. Any type of divider is fine as long as it prevents Etsy from reading it as one long word.

#3: Use Pinterest for Keyword Research

Pinterest and Etsy customers have a lot in common. They’re mostly female and they love to seek out – and buy – unique and interesting products.

That’s what makes this hack so cool. It lets you tap into Pinterest’s massive audience to find the best keywords to use on Etsy.

If you’ve ever done a search on Pinterest, you know that if you start typing a word, you get a list of suggested keywords. (The same thing happens on Google and Amazon.)

Say you’re selling hand-made tote bags with floral designs. You might start typing “tote bag” to see what comes up. From there, you can narrow your search.

Who wouldn't love to discover Etsy sales tips and hacks to supercharge your sales volume?

Keep in mind that the best keywords to use on Etsy are long-tail keywords – highly descriptive phrases of three words or more.

Write down the words that fit the best and then you can check them out on Etsy.

Side note: if you’d like to go through a fantastic Pinterest course, I highly recommend this one.

#4: Add Shop Info and Shop Owner Pictures

This next idea qualifies as a hack because it’s a relatively new feature on Etsy and many shop owners haven’t taken advantage of it yet.

In addition to the images you upload to showcase your products, you need to have the following:

  1. A shop owner picture
  2. A shop info image

Who wouldn't love to discover Etsy sales tips and hacks to supercharge your sales volume?

The shop owner picture should be a picture of you. It’s a way of giving your shop a personal look and feel and of letting people know that you’re a real person.

The shop info image is usually your business logo. It’s a visual representation of your business and what you have to offer and it appears in a bunch of places when Etsy lists your shop.

Make sure to use beautiful, clear images for both of these profile elements and you’ll be able to increase your brand recognition.

#5: List Your Products on Pinterest, Too

This is a big one. Why? Because it can exponentially increase traffic to your Etsy store.

I already told you there’s a natural overlap between Pinterest and Etsy and this is where you can really make it pay off.

On Pinterest, upload images of your products that include a live link to your store. Be sure to say in the image description that the product is available on Etsy. You should also include a basic description of the product and as many relevant keywords as you can fit. If you’re not sure on the best ways to do this, I recommend going through this course.

Who wouldn't love to discover Etsy sales tips and hacks to supercharge your sales volume?

You might get a small increase in traffic when you originally post the image, particularly if you already have a big Pinterest following.

However…

Where things really get interesting is in the long run. Pinterest images last forever, unlike posts on Facebook or Twitter. Pinterest images don’t get lost in the shuffle because they stay on your boards where anybody can access them.

This means that three months… six months… or even a year down the line… someone can discover your image, pin it, and just like that, your product appears in front of a whole new audience.

Not only will you get sales as a result, but the increased traffic makes Etsy send even more traffic your way. Etsy chooses which shops to highlight based on perceived interest. And trust me, if you’re getting 100 hits or more a day from Pinterest, Etsy will notice!

#6: Join an Etsy Pinterest Group

In addition to listing your Etsy products on Pinterest, you can join an Etsy pinning board where a variety of Etsy sellers come together to pin each other’s products as a way of increasing their traffic and exposure.

You can apply to the Etsy “Pin it up!” group here.

The group doesn’t have any specific prerequisites for joining; all Etsy sellers are welcome. All you have to do is pin another member’s product at least once a week after you join the team.

Who wouldn't love to discover Etsy sales tips and hacks to supercharge your sales volume?

#7: Partner with Other Etsy Shops

If there’s another store that has a similar look and feel as your shop or one that sells something that complements your products (e.g. if you sell necklace and bracelet chains and another shop sells charms), get in touch via the “Ask a question” button and see if you can form a relationship.

In doing so, you could help each other by promoting each other’s products on social media or offering exclusive deals on each other’s products.

Who wouldn't love to discover Etsy sales tips and hacks to supercharge your sales volume?

 

 

#8: Preemptively Answer Questions about Your Products

Think of any questions your customers may have about your products and answer as many of those questions as you can upfront. A good place to do so is in your products’ descriptions.

This way, you minimize friction when it comes to any potential apprehension your customers may feel about purchasing your products. For example, if you sell jewelry, you should detail things like what the jewelry is made of, how long the necklace and bracelet chains are, et cetera.

#9: Monitor Your Conversion Rates

Etsy monitors each product’s conversion rate and displays the products that get the most sales. Etsy wants to make money, obviously, so it’s in their best interest to display the products that get the most sales.

A 1% conversion rate is considered average.

To calculate your listing’s conversion rate, go into your Stats and divide the total number of sales a listing had during a certain time frame (i.e. 30 days) by the total number of views the listing had during that same time frame, then multiply by 100.

For example, let’s take this mug:

Etsy sales - want to make some? Here's how.

It had 1 order and 5 visits, and 1/5 = .2 *100 = 20% conversion rate.

Your Etsy shop’s conversion rates can be negatively affected by numerous factors. For instance…

  • If your product costs more than the average listing in its category
  • If your product appears for irrelevant keywords
  • If your shop has bad reviews or no reviews at all
  • If your shop and products have lackluster photos
  • If your products are listed in categories that are on the pricier side by default (e.g. engagement rings).

Of course it can be positively impacted by the opposite of these things.

If you’re seeing less than a 1% conversion, it’s worth checking into these factors.

BONUS: Get 40 free listings

I almost forgot to tell you – if you sign up here you’ll get 40 free listings from Etsy.

They’re normally $.20 apiece, so not a huge expense – but hey, you may as well get the free $8 – especially if you plan on following #1 and are going to be renewing your listings frequently. :)

I hope you found value in this post. If you’re an Etsy seller and have another hack or tip you’d like to share, please tell me about it in the comments section. 

Who wouldn't love to discover Etsy sales tips and hacks to supercharge your sales volume?

Don’t make these mistakes! Top FBA sellers reveal their biggest blunders

Wouldn't you love to get top FBA seller tips so you can avoid making sales-reducing mistakes?

Michaela and I recently got in touch with a bunch of top Amazon sellers and asked them to tell us about their top mistakes and to share any other tips they might have.

Here is the exact message we sent:

Hello [first name],

My name is Michaela, and I’ll keep this as short as possible since I know your time is valuable.

I’m writing a blog post about the top mistakes successful Amazon sellers make.

Since you’re a successful seller I was hoping you’d answer this question:

In 250 words or less, what is the #1 mistake you’ve made when selling on Amazon?

Best,
Michaela

Not all of the responses people sent are immediately applicable to Low Hanging System since many of the sellers sell via FBA, but with a little bit of twisting you can see how you could utilize them for the LHS model – and sometimes, any model.

Below are some of the top responses along with a quick note from me about how the info can be applied to LHS.

1. Giving up before you really start

“The #1 mistake I made during selling on Amazon was not committing soon enough. I was aware of the opportunity in 2012, yet I truly [didn’t] start until 2015.

You just have to jump in and do it—you’re going to learn from experience whether successful or not (my first attempt was a complete failure); the key is to persevere and never give up.

The number one way students fail is because they give up before even starting—this means they don’t give it their all, they are looking for excuses.”

Erik Rogne
Amazon FBA Email Course

[Rachel’s note: This is a great point and one everyone in LHS should take seriously!]

2. Not being careful with packages

“I have been selling on Amazon 10 years, and the number one mistake I make is mixing up product packaging and info when I send products to Amazon FBA.

Here is an example:  I do a lot of product bundles.  One of my most popular bundles is a Tomato caper and Tomato Olive spread.  I sell them as a set of one each.

Just last week, a customer complained that her package included 2 of the Tomato Olive spread instead of one each.

I had 8 more of these at Amazon, so I had to recall them.  Sure enough, several of them (not all) had been packed incorrectly.  I had to fix the problem and ship back to Amazon – that was a very expensive mistake.

I am very-very careful to create correct shipments when I ship to Amazon, but no matter how careful I am, I still do this a couple of times a month.”

Skip McGrath
The Complete Amazon Marketing System

[Rachel’s note: You don’t have to worry about sending in product, but what I’m getting in this post is the reminder about BUNDLES! These really increase order value.]

3. Not researching product patents

“I have made several mistakes when first learning to sell products on Amazon. I found that I learn best by simply taking action and learning from trial & error.

But my biggest mistake was the second Private Label product I launched on Amazon in 2014. I was new to importing products from China and still learning the ropes. Everything was going amazing, and I grew my product sales up to around 15 sales per day!

But after around 3 months of selling the product, I received a ‘cease & desist’ letter to immediately stop selling the product. The product was patented by another company, and I was forced to stop selling the product. I lost thousands of dollars on my product inventory since I could no longer sell the product.

So my number one tip for new sellers is to make sure to do adequate research on product patents before purchasing thousands of units of inventory.”

Jason Gandy
Launch Your First Private Label Product

[Rachel’s note: You don’t have a product patent to worry about when you’re doing the LHS model, so consider yourself lucky!]

4. Not creating a brand

“Not creating a brand! When I first got on Amazon, I had just heard of the power of this eCommerce beast that you could sell product on with ease.

BUT, to have long term staying power and brand recognition, we pivoted our various generic/unbranded product listings to highly branded and “Amazon Brand Registered” listings!

Don’t let other sellers hijack your listing and reviews you have worked for (and paid for via gifting)… protect your Amazon listing with BRANDING!

This also benefits you two-fold as your SIMILAR items sold by the same brand will automatically be upsold to Amazon buyers!

Justin O’Brien
Amazon FBA Course

[Rachel’s note: I know, I know – trying to work on getting us all into getting rid of these #&@ hijackers.]

5. Not taking proper financial precautions

“I made the biggest mistake a becoming entrepreneur could make. While I did have some incoming orders from my retail business, I still lived my lifestyle as if I had a regular income and a paycheck at the end of the month.

My one and most important advice would be that you need to account for expenses and you can’t take money out of your business for many months – IF you are planning on doing this full-time.

Your profits need to go back into your company.

Today I am very happy with the products I have created and wanted to give you a little advice on how to build your brand:

Focus on building a brand from the beginning. Keep this in the back of your head with everything you do. The majority just starting out or having a few items running has limited capital and can therefore not play around.

So build better products from the beginning, have A+ photos and listings, great customer service, and if you have existing items, improve those constantly. Also don’t be afraid to invest your money in the future into higher priced and better quality products; be unique in what you do.

Look at this business not as a get-rich-quick scheme but rather see your investment as an opportunity to build your brand and in turn make more money in the long run (do this as opposed to releasing and launching a product every week). Build it slowly, and keep quality and focus in the back of your head.

So save up more than the initial product and shipping costs and don’t quit your job. You still need money to live on.”

Manuel Becvar
Import Dojo

[Rachel’s note: Wow – I hope you’re seeing how lucky you are to not have to save up money for inventory! And there’s also a good point about customer service being important.]

6. Underestimating your competition

“The biggest mistake new sellers make is underestimating competition. A lot of gurus and podcasters treat number of reviews as if they don’t matter, but they do. There is a correlation between number of reviews and sales.

You can’t expect to throw up a product and reach your revenue goals overnight. You have to put in some work to get the reviews necessary to really compete on the platform.

Once you have a review count around those of your moderate competitors, you will find things for your listing improve, like conversion, and you’ll find your ROI improves using Amazon PPC.”

Jon Bowser
“Want to buy an Amazon course?”

[Rachel’s note: I don’t necessarily agree with the needing reviews for the LHS model as my personal experience has been different, but I wonder if ROI does improve with reviews and PPC. If you try it – let me know!]

7. Not differentiating yourself from the competition

“Newbie sellers often fail at the most crucial part of private label business, at the product selection. When I was starting I was guilty of the same mistake. Although back in the day you could get away with bad product choices. Demand for certain products was much greater than supply.

As Amazon got more crowded, the marketplace got saturated with generic products. Basically, everything that can be found on Alibaba with low MOQ got transferred in form of a brand to Amazon.

Now it’s time to differentiate!

Selecting a good product opportunity became the make it or break it part of the business. The more you differentiate the easier time you’ll have launching a private label product on Amazon. By differentiating I mean different design, materials, colors, product improvement, bundles, packaging, etc.

The harder it is to source your product the better chances you’ll have in fighting against the increasing number of new Amazon sellers.

I urge sellers not to think like this: ‘Ooh this French press coffee maker is selling great let me source the exact same one and call it my brand!’ You will have hard time getting it of the ground if it’s IDENTICAL like every other and if you don’t have control over a traffic source off of Amazon. Although it’s possible to make a generic product profitable, it usually requires much higher advertising budget.

Focus on trends, differentiating, improving existing products, controlling traffic source etc.

Building a brand is much more than just slapping a brand name on a generic product and creating a custom packaging. Your job is to build an asset that is going to be recognized in future and bring repeated sales. Keep in mind that not a single brand has succeeded long term without repeated sales.

Because of it’s sheer volume of buyer intent searches, Amazon is the perfect place for customer acquisition and launching physical product brands. Offering quality product with a unique value proposition is prerequisite to success on Amazon!

Luckily, a lot of people are lazy to go the extra mile and uncover interesting products. That is our opportunity!

Amazon is still widely open if you think creatively enough!”

Damir Serbecic
Amazon FBA as a Private Label Business Launching Platform (link goes to discounted course)

[Rachel’s note: I think you can do really well with certain sub-niches in LHS, because you’re not competing with tons of people.]

8. Falling in love with your niche

“When we first started selling on amazon we spent months doing rigorous research on each product. The first product we chose went through a very tough research phase were we analyzed every element of the niche and product. We analysed competition, demand, pricing, competition, keyword searches even the weight of the item and many other small details.

This first product hit it out the park, getting over $10,000 a month. It did so well that we thought we should stick with the same niche and sell a related product. This first product was so successful that we thought a related product would be just as successful if not more.

We had completely fallen in love with this niche.

So we bought a similar product in the same niche, we ordered thousands because we were so confident in the niche, and it turns out that this new product was not nearly as popular as our original one.

The new product never did as well and even thought we got very high ranks on amazon, the demand just wasn’t there.

This niche ended up costing us thousands because we had to pay for long term storage as they were never selling, and we eventually destroyed them because there was absolutely no demand.

#1 Mistake: Falling in love with the niche and forgetting the principles

Lesson: Always research each specific product for it’s potential on amazon and never rely on guessing and ‘liking’ the niche.”

Shimmy & Joshua Morris
The Complete Guide to Your 6-Figure Amazon FBA Home Business (link goes to discounted course)

[Rachel’s note: I agree with this. Trying out new niches is important.]

9. Not creating a website to build a list

“In the Amazon FBA business there are many mistakes we can make. It’s hard to tell you the number one mistake, because to succeed on Amazon everything must be well managed.

One of the mistakes we should never make is about the reviews. You should pay special attention to reviews because success depends a lot on this. Knowing if your customers are happy with your product before they leave a review is super important.

But if I have to choose, I would say that if you do not create a website (with direct links to your product page on Amazon) to generate an email list of your customers, for me it is a big mistake.

In each package you must have business cards with the website of your brand and offer a bonus to motivate the customer to register on your website.

And this to me is the gold of the business, because you get the email from your customers forever and you can create a huge list to do email marketing with new products and promotions. This will leverage your sales and make your customers always buy your products again and again.”

Richard Vicente
How to Build Your Own Brand on Amazon  (link goes to discounted course)

[Rachel’s note: These tips are great, but you don’t need to do this right away. Eventually graduating to having your own store is a good idea, though. When you’re ready, use this link to get 10% off Shopify.]

10. Overlooking product seasonality

“The biggest mistake is starting to sell summer products during fall. Always remember about seasonality of the products, check the trends! A lot of products, for example fun coffee mugs are only selling as Christmas gifts, we would not know that until we check for the trends. Use sells like hot cakes tools to help you identify that.”

Good Guy Mike Sole
Sells Like Hot Cakes

[Rachel’s note: This can definitely be true of seasonal designs, but I’ve found that fun coffee mugs are popular year-round, with a definite spike around the holidays.]

11. Not selling in other countries

“I was lucky with Amazon, I got in early and became a powerhouse seller. I stayed current with the ever changing algorithm to make sure my product was on the first page of the search results. It wasn’t always easy, but I give it my all.

Still, the biggest mistake I made with Amazon is not using it to sell in other countries quicker. If you want to make serious money, why limit yourself to selling strictly in the United States?

There are so many opportunities in other countries where customers are just now starting to realize the benefits of Amazon. These customers, depending on their country, are willing to pay even more for the same products.

They want the purchasing ease that Amazon has to offer. They want their products centralized on one site, easy returns, and great customer service.

I would say to any seller, ‘If you’re not selling in other countries, you’re really missing out.'”

Colton Shuell
ColtonShuell.com

[Rachel’s note: Selling in other countries is a great way to increase your sales potential!]

What do you think of the mistakes these FBA sellers discuss? I hope you’ve found these insight helpful. Leave a comment and let me know what you think!Wouldn't you love to get top FBA seller tips so you can avoid making sales-reducing mistakes?