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In his Amazon business, Greg takes advantage of the private-label model. This involves purchasing products straight from the factory, applying his branding, and then employing the most powerful sales channel in the world: Amazon.
His strategy is to make improvements on products that already exist, using the reviews to identify shortcomings in the items already on the market. In fact, this is Greg’s top tip around competing on Amazon. In order to succeed, you MUST differentiate your products, demonstrating how they are better than the others.
The best part is, the improvements you make can be very simple adjustments like thicker material, better assembly instructions, better packaging, or replacing a plastic buckle with a metal one. Call out the upgrade on your listing to make it clear that your product is the best available.
How, then, do you launch a successful product on Amazon? To rank well in search results, the platform takes things like sales velocity, keyword relevancy and conversion rate into account. But your brand-new product doesn’t have any reviews or sales just yet, so what can you do to get those first few conversions under your belt?
Greg suggests using keywords relevant to the product in your listing as well as the inclusion of high-quality images and copy. Then, to get those initial sales: 1) Leverage the Pay Per Click platform on Amazon, and 2) Give out coupons. Greg offers ten coupons per day in the first week, five in the second, and three to five in the third—continuing as long as necessary until there is a solid demand for his new product.
21 Jump Street
How might you get those coupons to potential customers? Jump Send features a marketplace for Amazon sellers giving away coupons, allowing them to connect with shoppers looking for deals. Potential first customers request coupons, and you have the control to give away as many as you would like.
To encourage the coupon recipients to review the product—and boost your organic ranking in search results—Greg uses Jump Send to deliver a follow-up email sequence requesting a review. (Remember, incentivized reviews are against Amazon’s Terms of Service. You cannot give a coupon in exchange for a review).
Yes, you will lose money that first month, but as Greg says, “In return, I’m creating this listing that’s going to make me money for years and years to come.”
Greg offers two other products for Amazon sellers, Splitly and Fetcher. Splitly provides AB testing and a profit-optimization tool. AB testing allows you to try out two different images or titles for your listing and determine which one is more effective in generating sales. The Profit Peak feature uses a machine learning algorithm to adjust the pricing on your products to maximize profit.
Fetcher provides profit analytics and accounting for Amazon sellers, syncing with your account to automatically download sales data. Once you have entered your expense data, the program calculates profit.
If you’re just beginning your Amazon journey, Jungle Scout is a good place to start. Take advantage of the free resources there and continue to learn from podcasts like this one. But eventually, Greg contends, you just have to get in there and get your hands dirty. Once you’ve done your homework, jump in and get that first product up and running on Amazon!