This is the BIGGEST Mistake I have made on AMAZON, plus I talk about the top 5 mistakes I see other sellers making, and I share my income report.
There are a lot of people that sell on Amazon and most people make the same mistakes over and over again. In this video, I will share with you the top 5 mistakes that new sellers make and how to prevent them.
Niching Down
The first mistake I see that new sellers make is not niching down enough. Whatever product you have, you need to niche down the branding. You need to niche down who it’s for. It is wrong to think that your product is for everybody. Think about the most niche market you can and create a perfect product for them.
Creating a Tribe
The second mistake is not creating a tribe before they launch on Amazon. You want to create a group of people that absolutely love your product before you even create it. The idea is to get people that are going to help you develop your product.
Launch Strategy
By far, my most favorite way to launch a product on Amazon is to have a Product Launch Group. I like to get a bunch of people on Facebook. Aside from them helping me create my product, they will also be the first ones in line to buy the product when I launch it on Amazon. What happens is you get a spike of sales and reviews the day that you launch your product. Amazon will see this and most likely put it on top of search results, making it snowball into more and more sales.
Other ideas for your launch strategy is to build an email list, interact with people on Facebook Messenger, and send direct messages on Instagram. You should have a proper launch strategy before you launch your product on Amazon.
Private Labeling
The fourth mistake I still see people make over and over again is private labeling. This is no longer working at this time. If you’re doing that strategy, you are going to get other people coming in and competing with you. This includes manufacturers over in China.
The old school way of private labeling is dead. What you need to do is create a unique product, something that does not really exist yet. This could also be like taking an existing product and making it better. Also, I recommend highly that you brand your product properly. I also firmly believe that whatever product you are selling, you should be passionate about it. If you’re selling a product just to make money, someone else will come along who is actually passionate about it and will out-market you. That is why I believe that you should create a Passion Product, something that you wish existed in the world. It is something that you really believe in and are excited about.
Amazon Numbers
The fifth mistake is not understanding the numbers of how Amazon works. You can see on Facebook, YouTube, or Instagram a lot of gurus that say things like they made a million dollars on Amazon. What they are not telling you is that it’s the revenue and not the profit. They could make $100,000 in revenue, but may only have $10,000 in profit after taking out the expenses.
Below is my income report for last month:
Revenue: $35,967.15
Actual Product Cost: $9,548.80
Amazon FBA Pick-and-pack Fee: $5,137.11
Amazon FBA Selling Fee: $4,803.16
Advertising Cost: $2,990.84
Other Random Amazon Fees: $299.91
Other Fees: $1,000.00
Profit: $12,187.33
Personally, the biggest mistake I made on Amazon by far is waiting. I’ve been waiting and waiting to launch my second Amazon product which the Performance Nut Butter Cacao. If I would have launched this product a year ago, I would have made all that profit in the last year.