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Starting out Exporting with Amazon FBA

A detailed account of a Fastlane process...

Hassen

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Hi everyone! Been lurking a bit and in fact started trying out FBA before I found this forum. Almost finishing reading the book as well. This place looks chill, and I was pretty inspired by the progress thread of @BusinessBen so I've decided to make this post.

A bit about myself and my situation: I am a young Manchu woman from China, & currently what I'm hoping to do is to bootstrap selling some generic items in a niche that targets females, and gain some capital before I figure out what to do next. My monthly salary right now is $800 and it's considered a very privileged wage where I live, so obviously I don't have a lot of capital starting out.


In my niche I face a lot of competition from Chinese sellers, some selling identical products as mine, but they usually ship from HK instead of using FBA so I feel I stand a chance, even if they often sell in bundles and frequently at a lower per unit price than where I price my items.
Their listings are also commonly poorly made with lots of misspellings, so I figured that's an area I could improve on as well.
I don't really worry about competition from domestic (US/North American) sellers because lots of my items are quoted as twice the price on Alibaba than the quote I could obtain by dealing directly with manufacturers who do not themselves export. If I'm careful with product selection, I can bar enough US sellers from entry as their margin would be too small while outcompeting the Chinese ones using FBA and optimised listings.


What I've done so far, is I have four different items sitting in my FBA inventory, all on my own new listings, and it's been 2 or 3 days since I put the keywords in and they've started to show up on page 2 and 3 of the search terms, but no sale yet. I didn't have the time or energy to figure out the listings earlier.

I'm probably going to order and send in some more inventory for another product I've been eyeing soon, but right now the sales or the lack thereof are bothering me a bit.


Stuff I'd appreciate some suggestions on:

-Going forward I plan on polishing up the listings as much as possible, as soon as possible; I've realised although the photos are clean-looking, real and zoomable, they aren't all that appealing on a search page. Gotta improve on that and write some more descriptions too.
And then I'm considering throwing some Amazon PPC ads at them, Y/N? How do people usually launch their new listings on Amazon? All the FBA private labeling material I've read make it sound like everything automatically sell out once you get a new listing all for yourself and have no competitors on the same item details page.

-Do I go ahead and send in more inventory for a new product now, or wait until I've figured wth I'm doing and get at least one sale? It's in the same niche, but not the same type of products as the once I previously sent in.
My reasoning for doing that now is my cash sitting around wouldn't have much better use anyway, and the earlier I get one more product in the earlier it can begin to sell, and I can take more advantage of my first month of pro seller status. Penitential downsides would be spreading myself too thin and being too optimistic while I should focus on getting at least one sale to validate the need and buying power of the niche, and to validate this whole FBA thing would work out and I'm not just daydreaming.


So other than fixing the listings and using Amazon's PPC ad, an idea I've got from reading up around here is that I'm going to do some marketing on Tumblr. Not as a company or for a brand or anything, but just interact with people in the niche, maybe post a photo or two of my stuff, and then do a giveaway with coupons to boost my sales rank on Amazon. Since it's a female niche, and Tumblr's user base is skewed towards young females, and doing giveaways is a pretty common practice among them for celebrating events such as gaining a certain amount of followers.

I'm not going to build a website or mailing list just yet, since I'm only selling generic for now.
No Facebook, Google ads or Instagram promotion in the picture, even though Instagram is especially popular with women, because all of these are banned in China and can only be accessed through proxy.


Basically my action points for now:
- fix up listings, including photos, descriptions and keywords for some products
- order new product?
- make a tumblr account and interact within the niche
- once the listings are done, switch to pro seller status, do Amazon ad and tumblr coupon giveaway promotion

One last question: do I throw ppc at my listings now, or switch to pro only after I sell 40 items a month and justify the switch? I feel it's a catch-22 right here.

Anyway, thanks for reading and sorry if my thoughts are too jumbled. I'm both excited, and worried.

Edit: spelling.
Edit: clarity.

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Hassen

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30 days sales went over $2,400.

I lowered the prices of a few products with excessive inventory & put up Amazon ads for them. My recent few shipments seem to be taking foever to be checked in by the FBA locations... I don't know if it's always been this way & I just never noticed, or what.

Had another 17 pics done yesterday & it took only less than $3. I'm going to finish up a few listings today. Ordered some restocking inventory again too.

I'm scheduled to quit my job in 3 months. My FBA adventure is sort of taking over my attention and time, & I make more from it anyway. I think in 3 months' time I can stablize the cash flow a bit more & make sure apart from using the revenue to restock, I'll have enough left to support myself.
 
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Kerin

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Could it be that the reason you aren't getting sales is that people are not actually needing your products? Did you do much research into what people are actually searching for and using this to determine what products to sell, rather than choosing products you think will sell?

When you do find products that are selling, rather than selling them generically try branding them under your made up label - this will help differentiate your products from your generic Chinese competitors and will make your products appear reputable from the customer's point of view.

Good luck.
 
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Hassen

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30 days sales went over $3,100.

Ordered more packing material & ready to restock again. Putting up more listings next week & maybe source one or two new products. Applied to upgrade to unified account to see if I can start selling in Canada as well.
 
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Hassen

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For me, the sales that came from the ads didn't show up in the advertising manager right away. I once had a sale from an ad and it took 3 days until it showed up there because it hadn't been shipped yet.

So maybe your sales come from the ads. You will only know when your order is completed.
oh lol, it turned out they did come from the ads, and for me it doesn't seem to have anything to do with whether the orders are completed (one has been for a few days, the other pending atm) but the ads stats are probably refreshed once a week or something. They now both show up and I'm going to restart the two campaigns that brought these two sales & see how that goes.

I've also found that my manual ads brings in fewer clicks than Amazon's auto ads, but a much higher conversion rate, but it might be just for this one product. I'll experiment with it further.

It seems lowering the price a bit did help with selling though. Looks like (from the "customers also viewed" section on the listing details page) the customer even viewed an identical product that's priced cheaper & then decided on mine! Probably because mine lets them choose the variation they want & is shipped from Amazon. Now I know I do have a competitive advantage!
 

Hassen

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Another sale. It's going really slowly but it gives me hope that I know what I'm doing works & I only need to find higher-demand/entry items.
I'll finish the bundling & hopefully the labeling too this weekend.


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Hassen

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Well, I'm beginning to get the hang of it. After the initial launch which I put up PPC ads, the ads gradually stop bringing in sales but the organic search begins to, once the sales rank has gone up. The product I've disabled ads for is selling more or less at the same rate & the new listing I put up ads for is now getting some sales.

I've made more than $100 in profit by this point, though $40 went to last month's pro seller fee. But keep in mind my salary currently is only $800, so that $100 ($50 of which Amazon has paid into my bank account) is still sort of significant to me & I'm seeing potential here, finally knowing that this model could work, if I know how to work it.

A few more listings that I've never put up ads for are getting the occasional sales too. I'll probably finish the listings this week. I'm working on getting done the listings & the shipments of new inventory, which I hope to finish bundling by this weekend as well.. Progress has been slow because day job has been brutal. Didn't get home until midnight for the whole week last week.

Checking my seller central is now what gets me out of bed in the morning though! lol


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Hassen

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30 day sales went over $500 for the first time.
Translated into revenue it's probably around $200, after the pro seller fee & ads. At least I'm close to breaking even on a monthly basis, i.e. the revenue is close to being enough to support sourcing new inventory & international shipping, so I can save up my salary.


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Hassen

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This thread is a perfect example of how persistence will eventually pay off. Some people would quit or find a new product after they get no sales for a week starting off...

Glad to see you went from doing no sales to over $500 in sales a month.

What's the BSR (best sellers rank) on your top competitor's product?

Uh, 728? That's the rank of the product that's similar to my newest listing, at the top of the search.
I don't really consider this particular one my "competitor" per se... There are really tons of similar listings & I'm happily taking my share in the pool instead of actively competing against one or two specific listings, so to speak.

I did find new products. In fact that it's part of my strategy now that since finding one best seller is difficult, I currently have around 50 active listings (variations included) & don't expect all of them to be flying off the shelves all the time. Most of my products are cheap (I don't compete against other Chinese sellers by low prices though, I have prices higher but still reasonable & win over customers through using FBA & better product photos & writing the listings in better English, it's just the items themselves aren't overly valuable, so they are cheap) & many have prices below what regular FBA sellers consider worthwhile, since American domestic FBA sellers have the barrier of entry: they cannot get products or shipping for as cheap as I do, because I purchase inventory only from manufacturers who don't export & then arrange for international shipping separately myself & the minimum quantity of order I face is very frequently only 1 item.

So now I put up a bunch of listings, buy & send in only a few of each, replenish whatever sells in larger quantities & drop whatever doesn't.

I was suspecting that the old products were not getting sales for a week because they were targeted at students, who were all out partying during summer break instead of shopping on Amazon. Now it seems I was right on that speculation. The new products I got were targeted at the partying crowd/summer theme, now only if I got them in earlier - I had a friend in the U.S. to ship the inventory to Amazon warehouses after the shipments are sent from China through a courier agent company that doesn't do customs clearing & that time the forward shipping was delayed due to friend's family having stuff coming up.
Now I've found a freight forwarder who can clear customs & handle taxes beforehand through Hong Kong so my shipments goes straight to Amazon warehouses, and so the shipping time from my house to Amazon went from a month down to 10 days.

Currently I got some new products again, small items targeting students & some others at young professionals, plus some family-oriented stuff. Trying to vary the kind of products so sales don't get that seasonal again.
Still need to finish up the listings for this shipment of new inventory, which just got in last night.


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Hassen

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30 days sales went over $4,400.

Ordered some new inventory, still need to work on getting the listings up. Some of the packaging material I ordered still hasn't gotten shipped, so need to ask suppliers about that as well.

I feel.. pretty worried about things. Currently I keep tabs on how much money I take in from Amazon and how much I spend on restocking & ads & other stuff, but it's still sort of difficult to figure how much I am actually making since the monthly figures of the above two aren't directly related, and I avoid recording inventory as assets, bc they are debts if they just sit there & accumulate storage fees. In short, I don't really know how much per month that I can extract from the whole FBA cash flow in order to pay for my own living expenses, once I quit my job. I wish to save up a bit next year as well... Idk. I guess if I were to make 3k a month from FBA, half of it I would use on restocking, and the other half I would split between spending and saving... We'll see.
 
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Hassen

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30 days sales got stuck a bit over $6,200.

Even though I know it's Christmas & all sales stop, I'm a bit worried. What if the sales plummets from this point & never climbs back up?
Well, I guess I'll deal with that when it happens. Whatever.

5 shipments of my bestsellers on the way to the FBA centers & ordered lots more inventory of similar nature.

Had a bit of dispute with the Ayi - my mother insists I'm paying her too much to package the products, while I feel I pay too little; the Ayi's grumpy about it bc she misunderstands & miscalculates her pay. I feel it might be a bad idea to try & hire my grandfather's caretaker since she seems to have no ability to prioritize. She forfeits her afternoon nap to do the packaging that's meant for idle times like watching TV in the evening, & then is unhappy that she earns 1 dollar for her time instead of the 5 she thought. The paying scheme I'm using with her is flat rate for every item: some requires taking pieces out of packaging & assembling into one bag, while some are just slapping a label on. She's complaining that the former takes too much effort.

I'm sort of prepared to go back to packaging things myself until my aunt comes back from vacationing in the south.


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Hassen

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Got another click yesterday, and another after I tweaked the ads a bit, raising the bids. Added another product to the ads. It does look like the demand was the problem: I am getting the ads shown hundreds of times a day & clicks happen about once for every 150 times the ads are shown. I figured the search traffic is not that high, and I should look into more popular stuff to source next time. It turned out fun to monitor the ads stats though haha.
I'm going to increase the bids further since the search traffic isn't so high. The estimated first page bids come out too & they do turn out to be fairly low, so this category is not terribly competitive when it comes to ads. As I do believe my products are of the higher quality in this category, I'm going to continue to run ads to hope they sell.

Created a coupon promotion, now waiting for it to become effective so I can ask friends to buy & essentially get them for free. I'll try asking for positive reviews if they do like it.
 
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Hassen

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Have a few items in reserve right now, not sure what that means. Guess just have to wait & see.

One friend liked the product & ordered one through the coupon. Also promised to leave a five star review.

Finding target audience & interacting with them on Tumblr have proved to be much harder than I thought. I have 4 followers on my account now. It is also difficult when so many of Tumblr's users are based outside of the US & therefore not very helpful to my goal, which is to host giveaways through coupons to boost sales rankings. However I do come across some Tumblrs set up specifically for brand promotion & I am trying to learn from them.

Working on gathering material to apply for the gated category & polish up existing listings.

Ordered new inventory good for selling generic.

Edit: grammar.
 
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Hassen

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Looks like I got one sale (other than from my friend) finally! And it's a different product than the one I got my friend to purchase. Now both have high sales ranks. Not sure if that one sale came from the ppc ads though, the system appears pretty slow when it comes to showing data.

Added all my products to my ads, because why not?
Also the product receiving fewer clicks got a sale, so I lowered the price of the other product a bit to see if that would help it sell.

Still polishing up the listings, especially the images, to make them look more appealing and legitimate.

Now that I have an order pending, I've also signed up for automatic customer communication, to ask for feedback from the buyer.

Working out the shipping with the suppliers for the new inventory...

Gathered material for applying for the gated category, will wait for Monday to use the scanner at work since the one I have at home is a bit faulty at times & harder to operate.

Have 14 followers on my Tumblr account now.
 
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Have a few items in reserve right now, not sure what that means. Guess just have to wait & see.

Make sure to check the box "Include pending orders" under Orders -> Advanced Search. That way your pending (reserved) orders will show up as well.
 

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Wow, goodness, my mind is blown by my own stupidity.

I just realized as I updated the listing through the parent listing, the children listings (variations) weren't updated. I just fixed it, and am still working on improving the listings. There are a few that obviously still need a little write up & better pics.

Got another sale. Still it didn't come from the ads, so I stopped the ads altogether for now.

For me, the sales that came from the ads didn't show up in the advertising manager right away. I once had a sale from an ad and it took 3 days until it showed up there because it hadn't been shipped yet.

So maybe your sales come from the ads. You will only know when your order is completed.
 
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This thread is a perfect example of how persistence will eventually pay off. Some people would quit or find a new product after they get no sales for a week starting off...

Glad to see you went from doing no sales to over $500 in sales a month.

What's the BSR (best sellers rank) on your top competitor's product?
 

Hassen

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30 days sales went over $800.
Shipped out new inventory.

I think sales is slowing down a bit today though.


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Hassen

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Hey Hassen,
I'm glad you're having success!

Where are you selling your products? only in the Usa or also in the european marketplace?
have you considered to open your website or You think that is still earlier?
Only in the U.S. Haven't considered other marketplaces... I guess I'll think about that.
I've no idea how I'm even supposed to open a website at this point. I don't have a distinct brand or niche.

My plan is to simply keep doing what I'm doing until I can quit my day job. Then I'll go from there.


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Hassen

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30 days sales went over $2300.

Paid someone to do the product pics for the first time & it's so damn worth it. Spent less than 4 US dollars & got 12 pics that I can upload to Amazon right away, though I'll quickly adjust one or two to be closer to my liking anyway, but it costs so much less time.
 
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Hassen

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30 days sales went over $2,500.

I'm out of my best sellers & my restocking shipments have arrived at the FBA centers a few days ago, but they just wouldn't start to become checked-in!

I'm losing my mind here waiting for the f@%$#!g centers to process my inventory.
 

Hassen

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What monthly sales are you hoping for before you quit your job in 3 months?

I'm hoping to make 3k a month, which translates into... About a bit more than 5k in monthly sales.

I'm not too hopeful I'd hit it, but I'll quit my job anyway. 3k dollars is a rather privileged income in Beijing & gets one living comfortably. I live at home so I pay everything for myself other than rent, besides I currently make $780 at my job, which is already pretty nice in Beijing for a recent graduate.
 

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