Volume 1,

#73: Part 1/3 Amazon Series – Finding A Product And Getting Started

November 17, 2013

Welcome to Part 1 of 3 in the Amazon E-Commerce series. In this episode, we’ll go over how the Amazon ecosystem works, finding products, being a good merchant, and the key metrics you need to be aware of to succeed financially on this 800-lb e-commerce gorilla. Ty Roney runs a 7-figure business selling specialty toys on Amazon and reveals his niche selection process, how he estimates profitability, net margins of the business, and what it ultimately takes to remain focused and profitable.

Topics Discussed:

  • 04:00 – Getting started selling toys on Amazon
  • 06:00 – Advantages of having domain knowledge within an industry
  • 08:00 – Using industry agents and understanding supply chain
  • 10:00 – Investing in inventory and starting out with $5,000 USD
  • 11:00 – Behind the scenes of how Amazon Prime works for sellers
  • 12:00 – Fulfillment By Amazon (FBA) packaging guidelines
  • 14:00 – Sending products to Amazon’s warehouses
  • 16:00 – FBA revenue calculator, product margins, and profit targets
  • 18:30 – Starting with 20 SKUs and scaling to over 500 SKUs
  • 21:00 – What is Amazon’s “Best Sellers Rank” and what does it mean?
  • 23:00 – Finding products that have good sales rank and momentum
  • 26:00 – Keeping a pulse on your inventory and managing holiday sales
  • 30:00 – Amazon account sales reps and customer service as a merchant
  • 31:30 – Do you need to worry about search rankings on Amazon?
  • 36:00 – Repricing software and the competitive landscape
  • 40:00 – Minimum advertised price and how it affects the marketplace
  • 41:30 – Bundling as a way to create new product listings
  • 43:30 – Why your conversion rate doesn’t matter at all
  • 47:00 – Sales rank with overlapping product merchants
  • 51:00 – Customer service, product returns, and restocking products
  • 53:00 – How sustainable is the Amazon merchant business model?
  • 57:00 – Repricing tools and software you should be aware of

Mentions in the Episode:

Episode Length: 60:41

 

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