Ask me anything about eCommerce (Ongoing)

[Blackman]

How cool!

I’ve been doing google shopping ads too. I have about 3 products and I check mine weekly in a spreadsheet. The scale is too small and I feel like the data isn’t fair doing it daily. Eg Weekends are always worse, Thursday’s are always best. Then I’ll make adjustments after doing the numbers and check how the adjustments went the next week.

Are all your products in the same niche? The same store? I’m wondering if you have a product research strategy.

Mine are all in the same niche so it’s been obvious what to add. But I’m going to run out of things to add shortly and I’m thinking of creating another store in another niche to scale that way. Once products are up and running it’s so easy to manage so the plan is to just spent all my time adding more.

My research strategy so far is very basic, I google the search term and check out the competition. I figure if my products better, aov higher, conversion rate higher etc that I’ll be able to outbid them. Not very sophisticated but it works.

Also do you have any ads course or strategies you recommend? I did a bit of Charlie brandts which I may revisit. And a udemy course. My strategy is classic shopping with max cpc bid strategy, and search with the same bid strategy. I’ve tried other things but had no success. Oh and target impression share for branded search.

The symprosis google shopping app for shopify has been great to use too.

I've watched loads of Sam's videos from Key Commerce on YouTube, which were very helpful, you can find them here > https://www.youtube.com/c/MrSamBaldwin/videos

There's also tons of Google Adwords content here on the forum from Andy Black, which he's been posting over the last few years. Here's the thread with a full list > HOT! - MARKETING - Andy's AdWords Posts

Some of those posts/threads are old, but all the basic principles still apply, so definitely worth reading.

 

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[Arithen]

Alot has changed since my Ask me about Ecommerce AMA from 2012, so I thought I'd do an updated AMA as some of the answers in the previous thread are now outdated. The online marketplace has shifted greatly in the past couple years. Some examples of what has changed:

• Google Shopping is now at the top of your search results, so ranking #1 for a specific term is not as valuable as before. I don't do anymore SEO.
• Big box stores like Amazon, Walmart and Target now dominate the results whereas before smaller niche stores did.
• Amazon is now the place to be in Ecommerce.
• A huge shift has happened from dropshipping to importing and branding.

So go ahead and ask away!

Hello Biophase,

Firstly, thank you so much for your incredible insight into eCommerce and all the value you've provided and will continue to provide. I've finally read through all 67 pages of this thread, and it's clear the eCommerce space (as far as selling on Amazon goes) has changed radically since you made your first post.

Although the entry has changed, I still believe that your focus on consistently improving design and providing greater and greater value to your customers is absolutely the way to succeed.

Over the last few pages of the thread you've reiterated that it's not as easy as finding a single product and building a brand from there, but rather, building a brand then launching a series of products that supports that brand's solution to problems.

I recognize this question has been asked several times now, but, considering the current competition in the market what would you say is the new entry point in regards to capital?

I have several ideas on new products as well has a host of improvements that can be changed to existing ones, but, now that there are so many giants in the space, I'm not certain my capital can compete with theirs and their experience (I have approximately $40,000 to start with).

Previously, you've mentioned you prefer to launch a product with around $10k-$15k; this was several years ago when you mentioned these numbers. Have those values changed now? Also, is that only possible because you already have an established, effective brand?

 

[biophase]

Hello Biophase,

Firstly, thank you so much for your incredible insight into eCommerce and all the value you've provided and will continue to provide. I've finally read through all 67 pages of this thread, and it's clear the eCommerce space (as far as selling on Amazon goes) has changed radically since you made your first post.

Although the entry has changed, I still believe that your focus on consistently improving design and providing greater and greater value to your customers is absolutely the way to succeed.

Over the last few pages of the thread you've reiterated that it's not as easy as finding a single product and building a brand from there, but rather, building a brand then launching a series of products that supports that brand's solution to problems.

I recognize this question has been asked several times now, but, considering the current competition in the market what would you say is the new entry point in regards to capital?

I have several ideas on new products as well has a host of improvements that can be changed to existing ones, but, now that there are so many giants in the space, I'm not certain my capital can compete with theirs and their experience (I have approximately $40,000 to start with).

Previously, you've mentioned you prefer to launch a product with around $10k-$15k; this was several years ago when you mentioned these numbers. Have those values changed now? Also, is that only possible because you already have an established, effective brand?

I would think that $40,000 is enough to launch a brand.

Any product that I have launched on Amazon within the past few years have been attached to my brand. So I don’t know how hard it would be to launch a whole new brand without any type of following.

I still would assume that your first order of product is going to break even after you added your Amazon ppc cost. Basically your first order of product is going to establish your Amazon listing. Hopefully your second order will begin to make a little product because it has organic sales and reviews.

 

[AlfaStream]

Alot has changed since my Ask me about Ecommerce AMA from 2012, so I thought I'd do an updated AMA as some of the answers in the previous thread are now outdated. The online marketplace has shifted greatly in the past couple years. Some examples of what has changed:

• Google Shopping is now at the top of your search results, so ranking #1 for a specific term is not as valuable as before. I don't do anymore SEO.
• Big box stores like Amazon, Walmart and Target now dominate the results whereas before smaller niche stores did.
• Amazon is now the place to be in Ecommerce.
• A huge shift has happened from dropshipping to importing and branding.

So go ahead and ask away!

Is it worthwhile to dropship high ticket items, or luxury merchandise with higher margins. That being said, is with worthwhile to use a financing partner, and push that as the primary method for payment to make higher ticket items more affordable for consumers in terms of a luxury brand, or expensive items like say electric motorcycles/bikes is one example, lets say you have a partnership with a supplier.

Thank you for your insight.

 

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[Saad Khan]

It's crazy how fast Amazon launching strategies have changed.

In 2020, people were doing Giveaways.

In 2022, PPC isn't an option anymore. It's a necessity. So you will have to factor in the PPC cost as well.

Sellers are taking advantage of Pinterest now. And many other advertising types and updates Amazon is rolling out every day (SQP report, Product Opportunity Explorer).

It's better to launch in other markets (Spain, Italy, France, Australia, and Japan) than to fight against Chinese sellers in the US for a first-time FBA seller.

 

[biophase]

Is it worthwhile to dropship high ticket items, or luxury merchandise with higher margins. That being said, is with worthwhile to use a financing partner, and push that as the primary method for payment to make higher ticket items more affordable for consumers in terms of a luxury brand, or expensive items like say electric motorcycles/bikes is one example, lets say you have a partnership with a supplier.

Thank you for your insight.

What would you do with returns if you dropshipped these? When I was dropshipping kayaks, the CC fees and returns killed me. If you sell something for $600, CC fees will be $18. Maybe you are paying $500 to the dropshipper, so you think you have a $100 margin. Now your profit is $82. One return and you are either keeping the kayak or paying a 15% restock fee plus shipping. So you will be losing money. Of course, you can offer no returns or charge the customer the restock fee and shipping, but you will drastically reduce your conversion rate if you do that now.

I don't know what margins you think you will get dropshipping, but there will always be someone undercutting you on price because everyone dropshipping thinks a $100 margin is good enough.

 

[Stefan.was.here]

Do you guys have a Telegram of any kind of group for amazon FBA?

 

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[Saad Khan]

@biophase how much emphasis do you put on the R&D of a product? USPs are critical, how do you develop a strong USP that your competitors can't beat? I read your progress thread about how you had the money for a McLaren but grew an FBA asset and bought it off the FBA cash flow.

 

[Bones81]

If you were looking to buy an E-Commerce business off a marketplace like Empire Flippers etc what are the top qualities you'd look for in a business? What would make one jump out to you compared to the others?

 

[Stefan.was.here]

Hi @biophase, this thread is a gem.

I need some advice on a product I want to sell.

The product's an improvement in utility and design of an actual product in the market.

Let's call the original product "Product A" and my idea "Product B".

Both products are made of PU Leather and have stitching.

Product A costs GBP 12.99 on Amazon because it has none of the features I want in Product B, so it's much cheaper to manufacture.

I've talked with a manufacturer in china to produce Product B and they ask for a MOQ of 100 pieces at GBP 4 each. If we add UPS air shipping, the total cost would be GBP 8, and that is without packaging. Let's add GBP 2 of packaging and the COGS would be GBP 10.

Also, Product B is listed on Etsy and it's worth GBP 120 because it's made of real leather.

I was wondering if it would be worth selling the PU leather version of it on Amazon and Etsy for half the price.

Here's an image of the AmazScout calculator with all the numbers:



I'll list the differences between Products A and B to make it easier to understand:

The niche: Productivity
Buyer Persona: users that are more into the productivity side rather than the gaming side

Product A:

- Doesn't have the improved feature of Product B
- It's way cheaper
- Also looks cheaper

Product B:

- It's an improved version of Product A
- It's better looking
- You can only find it on Aliexpress for GBP 15 but they don't have a black color with white stitching and it takes 30 days to arrive home
- If you want it with black color and white stitching you have to buy it from Etsy for GBP 120

My solution:

To sell Product B made of PU leather on Amazon and Etsy so people can get the improved version of product A without having to spend GBP 120 on a real leather one.

I hope you could understand my post while I've tried to not reveal the product.

PS: Product B sells on Amazon US for $33

PS 2: I came with this idea because it's a problem I have. I can't find Product B anywhere and I don't want other color from Aliexpress or to pay GBP 120 for a real leather option.

 

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[ygtrhos]

Hi @biophase I think I have already thanked you before for creating this thread and maintaining it. I do it again.

Do you still think that amazon is the place to start in 2022 & 2023 ?

 

[mikecarlooch]

This is the process that many people follow. But I don't follow this process at all because you are not adding any value. As an example, say that you found that kitchen knife sets sell for $50 on amazon and that you can get them for $15 in China. You look on amazon and there are 15 people selling these kitchen knives at $50. You find the supplier making their kitchen knives and you put a red handle with your logo on them and sell them for $50 on Amazon. So what did you really do? Nothing. You created another kitchen knife set on Amazon that looks like 15 other ones except with a different color handle.

What I would do is see what I can change about the kitchen knife set. Here are things that you can do to improve the kitchen knife set:
1) Use a better quality blade
2) Use a better quality handle
3) Improve the knife block
4) Use a different combination of knives
5) Add more knives
6) Add a butcher block cutting board
7) Add a money back guarantee
8) Change the blade shapes

Imagine if you did 2-5 of these things. How do you think your listing will stack up compared to the original 15 listings? What if your cost ballooned to $25 and you still listed your knife set at $50. Do you think that you would sell more units? Do you think that you need to giveaway sets for free reviews? No, in this case, people will find your knife set and buy it because it is better when compared to the other sets out there.

Hey Bio - I have a basic question I'm trying to figure out.

When you get the idea for the better blade, handle, etc (any material that could make the product better), are you simply going from manufacturer to manufacturer on alibaba asking "hey, can you make this?"

Or is it a combination of suppliers providing different parts?