Friday, 9 September 2016

Why most Amazon sellers fail to make the jump to selling information products?

By Dean Sotto


Okay, today we're going to be talking about something that's near and dear to my heart, and that is selling information products. We're also going to be talking about why it's very hard for Amazon sellers to make the jump from selling physical products on Amazon, to selling information products.

First off, what is an information product? An information product is a product that's based around information that you know. It could be information on how to sell on Amazon, how to cook an amazing pot roast, or how to ride a motorcycle backwards blindfolded. It doesn't matter what you are teaching. An information product is based around knowledge that you have, or knowledge that you are able to get from somebody else and put into a productized format. Now there's a lot of mystique that goes into the idea of creating information products, and it's very alluring to think that you could create something that has no cost of goods associated with it, and sell it for a lot of money.
This is especially attractive to Amazon sellers who always have a cost of goods associated with their physical products that they're selling. The problem is not understanding that the two types of products, physical and information, are completely different, and customers see them in very different ways. Why are Amazon sellers so bad at making and selling information products? Well, typically Amazon sellers are not bad at creating the information product itself. Often the courses that they make and the products that they create are very in-depth, they are extremely valuable. The problem is really that they don't know how to sell the actual information.
The key to understanding this whole dilemma is understanding how physical products are sold and seen by customers, as well as how information products are sold and are seen by customers as well. Physical products have an inherent value in them. Somebody can see them, touch it, they can feel it, they can look at it and determine whether or not it's something that they need, want, desire or will relieve their pain. For example, if I have a need for a laptop computer, I'm going to go out and I'm going to go to a website to go and buy a laptop computer. I can see the picture of the computer. I know that when I get it I'm going to be able to touch it, feel it. I know what the speed is going to be. I know a lot about the product because it is physical and has its own inherent value just in the fact that it's physical.
However, with an information product, there is no physicality to it. Everything is based off of whether or not the information that this product has is going to solve a particular pain or pleasure that I have or need. For example, a $5 e-book about how to sell more products on Amazon does not have any type of physical essence to it. The human brain, because it doesn't have that physical essence to it, has to convince itself why spending $5 on this particular e-book is going to benefit them when there's nothing physical about it. It's only the information that's inside of it that's going to benefit in some way.
Now all that being said, you'll notice that when you are an Amazon seller and you're selling a product, you never have to convince your customer. How often have you had an e-mail from a customer asking you questions about a product that you are currently selling? Probably never. You just see e-mails coming in from Amazon letting you know that you sold a particular product. Well with an information product, typically if you're not selling via a webinar or a long-form sales page, you're going to get a lot of questions from customers, even if it is a $1 e-book. They need to know that there is value in the information that's going to solve their particular problem, or give them the pleasure that they need or desire.
I can't tell you how many times I've sold a $697 course and had a ton of questions. Even more hilarious is selling a $20 e-book and getting 10 times as many questions from customers, as to why it will solve their particular need or pleasure. Any time you are selling an e-book or information product or online course, you are going to have to convey a ton of information. That requires good copywriting. It doesn't require good copywriting to sell products on Amazon. Amazon has a ton of [eyeballs 07:57], and by sheer statistics, you are going to be able to sell your product. Whereas with an information product, everything is on you to persuade the customer, to get the customer to the page, and to show them why they need your product.
This is where a lot of Amazon sellers fail.
  • They don't understand sales and marketing.
  • They don't understand copywriting.
  • They don't understand customer needs and desires, and don't know their customer enough to be able to convey why their course, as opposed to every other Amazon course out there, is the one that the customer needs right now, and will benefit from in the long run.
If you're going to sell a course, you need to really understand your customer, as well as you need to understand how sales, marketing, persuasion and copywriting work. It doesn't matter if you're going to be selling a $1 information product or a $1,000 information product, you're going to get questions from customers why they should spend their money on this information.
Yes, I know it doesn't make sense, but that's the way it works... and that's at least some reasons why most Amazon sellers fail miserably when it comes to selling their products.
- Are you selling information products online? Read this to learn more!

Common Acronyms Used By Amazon FBA Sellers


By The Selling Family



If you’re just getting started with your Amazon FBA business (or have even been selling for a long time) you may have noticed that we are an acronym loving bunch. We have acronyms for almost everything. It can become confusing and cause you to feel overwhelmed if you don’t know what these letters mean, but that’s where this list will help you. Heck, we’ve already used an acronym in this first paragraph.  But, hopefully you know what FBA means at this point :)  If not, it’s on the list below.

First, let’s talk about what an acronym is. An acronym is a group of letters based on words that stand for something and usually identifies technology, products, groups and also organizations. Acronyms make it easy to type out common used words without having to spell them out completely.  Sort of like shorthand.  For FBA Sellers, you may have seen these acronyms used in Facebook Groups or on blogs like the one you are reading now.  Alright, let’s go over these commonly used Acronyms by Amazon FBA sellers.
This list will definitely come in handy as you grow in your business.  

Print this out and keep it with you as you learn


  • ABC – Amazon Boot Camp - Ok, so you may only see this if you are a member of our Amazon Boot Camp course, but we think it’s pretty important and our users say it all the time :)
  • ASIN – Amazon Standard Identification Number - This is the identification that Amazon gives to every product listed on Amazon.  Every product page on Amazon has it’s own ASIN.  You can use this number when you are using Amazon seller tools like Inventory Lab, the FBA Calculator and more, to search for the product.  No two items will ever have the same ASIN.
  • ATOP - At Time Of Posting - this is used most often when someone is doing a post relating to a price or deal.  So they would say “ATOP I am finding these products for a great deal”.
  • AZ - Amazon
  • BL - Big Lots - Discount store frequented by many FBA sellers
  • BM - Brick & Mortar Store - Used in reference to shopping at a store that has a physical location.
  • BOGO - Buy One Get One - This is used in reference to shopping deals.  Often used in sale ads.  For example:  “Triscuits are BOGO free this week at Target”, meaning you buy one box you get one free.  Sometimes used BOGO 50% meaning: Buy One Get One 50% Off.
  • BOLO - Be On Look Out - Our friends over at ScannerMonkey are famous for BOLO’s!  These are products that one Amazon seller has found to be profitable and they are saying “BOLO for this item, it will make you money”.
  • BTS - Back To School
  • CCC - CamelCamelCamel.com - A great site where you can see the price and rank history of a product when doing Online Sourcing.
  • COGS - Cost Of Goods Sold - The price that you paid for your inventory items.  Used for tax purposes and accounting purposes.
  • EAN – European Article Number - If you sell in Europe on the European network your products will be assigned a 13 digit code called a European Article Number or International Article Number, IAN by some people.
  • FB - Facebook
  • FBA – Fulfillment by Amazon - This means that the seller has shipped their inventory to Amazon to pick, pack and ship for them. It’s one of the best ways to make more money with your inventory because FBA sellers can take advantage of free shipping and even have the ability to list their own new items if they are a professional seller.
  • FNSKU – Fulfillment Network Stock Keeping Unit - These are the numbers printed directly on your product labels to enable the picker’s scanners to identify this product as yours so that the correct item is pulled for each sale.  Your units will always have a unique to you FNSKU, so if a piece of your inventory was to get misplaced, the FNSKU would link it back to you.
  • HBA - Health & Beauty Aids - One of our favorite niches on Amazon.  Check out our webinar here.
  • HTF - Hard To Find - When a product becomes hard to find, the price often increases on Amazon.com.
  • IL - Inventory Lab - The only service we recommend for inventory management and listing on Amazon.
  • ISBN – International Standard Book Number - You’re probably familiar already with this acronym since it’s on every print book you’ve ever purchased.  For us Amazon sellers, the ISBN is used in the same way that UPC codes are used:  looking up products, using with seller tools, and has to be covered when sending items to Amazon.
  • MAP – Minimum Advertised Price - Now we’re talking about money and prices, this comes to you when you have a type of product with restrictions that the manufacture placed on it not allowing your advertised pricing to go below a certain number.  You will find this when dealing with wholesalers or buying direct from a manufacturer.
  • MF – Merchant Fulfill - This is not a dirty term. This means that the item is being fulfilled by the merchant. If you are a MF seller, you’re filling the orders yourself, picking, packing and shipping straight to the customer on your own. Some people use FBM since it looks nicer.
  • MSRP – Manufacturers Suggested Retail Price - This is the price that the manufacturer suggests their products be sold for.  On Amazon you will find the MSRP shown above the selling price, IF, the current price is lower than the MSRP.
  • OA - Online Arbitrage - Finding deals at online retailers that can be resold on Amazon.com
  • OTC - Over The Counter - When you are selling HBA items you want to make sure they are OTC and never prescription!
  • PB - Profit Bandit
  • Q1 - 1st Quarter Of The Year - January - March
  • Q2 - 2nd Quarter Of The Year - April - June
  • Q3 - 3rd Quarter Of The Year - July - September
  • Q4 - 4th Quarter Of The Year - October - December - The BIGGEST sales quarter of the year!  Where we often make up more than a 3rd of our yearly income.
  • RA - Retail Arbitrage - Buying products locally from retail stores to sell online.  This is the method that we teach in our Amazon Boot Camp.
  • Replen - Replenishable Item - A product that you purchase for regular or sale price that can be purchased again and again to sell online.
  • ROI - Return On Investment - How much money you make on your sold items.
  • SC - Seller Central - Your main dashboard when logged into your Amazon Seller Account.
  • Scouting - Looking for products to resell online.
  • TIA - Thanks In Advance - Often used in groups when someone is asking a question.  They will ask it and end with TIA, as to say thank you for any answers you may provide.
  • TRU - Toys R Us - Retail store frequented by many Amazon FBA Sellers, especially in Q4.
  • VA - Virtual Assistant - Often referring to someone who helps you find products online that you can resell on Amazon.
  • UPC - Universal Product Code - A barcode with 12 digits that can be found on almost all products found in the retail world.  You can use the UPC code to look up items on Amazon.  This is also what is covered up by your FNSKU label when preparing your products to send in to FBA.
  • Wags - Walgreens - Drug Store often frequented by Amazon sellers.
  • WM - Walmart - Retail store often frequented by Amazon Sellers.
  • YMMV - Your Mileage May Vary - Often used when talking about unadvertised deals / clearance.  Meaning that just because one person was able to get it / do it, doesn’t mean it will work for you too.
Now that you know the most commonly used acronyms by Amazon FBA sellers you are ready to hit the groups and forums and no longer feel left out.  And if you are brave, you will even get right in on the acronym speak :) Chat back: 
Have you ever felt left out because you didn’t know what an acronym meant?  Did we miss any that you have heard before?
(SOURCE)    

- Cool! Have to say I learned some new acronyms! How about you?

Thursday, 8 September 2016

Retail Artbitrage Product Sourcing for Amazon FBA




- Is retail arbitrage on Amazon dying? Watch this video to know more!

Amazon SEO: How To Craft an Amazon Listing That Sells


By Gen Furukawa

Why Is Search Engine Optimization Important For Amazon

For digital marketers working in ecommerce, the holy grail is to have the right product appear in front of the right customer, at the right time. If you are an Amazon seller, the urgency of appearing at the right time is magnified: Amazon sellers are purchase-oriented, looking to find their desired product and purchase it. They are lower in the sales funnel. Hence the importance of Amazon SEO.
As Amazon sellers, we do not have the luxury of having a multi-touch sales process. It’s a one and done deal. This is especially true for private label products, which aren’t competing on brand recognition or customer loyalty, but instead on product features. Therefore, it is uber important to create an optimized Amazon product listing, which is optimized from top to bottom with two goals in mind:
  1. Get your product found by Amazon users
  2. Convert a visitor into a customer
So how does a customer who doesn’t know you (and frankly doesn’t really care about you) find your product? The Amazon search bar.
Search is the primary way that customers find products on Amazon. In fact, 44% of consumers start their product search on Amazon, altogether skipping search engines like Google. And you better believe that these are purchase-driven customers, itching to use Amazon’s one click checkout. Here’s a look at how US consumers start their product searches:

How To Get Found On Amazon

Before you put your listing together, you want to spend some time finding the most relevant keywords to target. There is an art and science to keyword research–we covered three helpful keyword research techniques in this post recently.
Once you have selected the main keywords that are relevant to your product, which have significant search volume, you want to incorporate these into your Product listing: Title, Product Features, Product Description, Keywords (on the backend), etc. Choosing good keywords to target will greatly increase your product’s visibility in organic search results, and therefore get you more visitors and sales.
For example, for Jungle Stix, we targeted “bamboo marshmallow sticks”. We focused on this keyword and related keywords in the Product Title, the main product features, and throughout the listing. It looks like we have optimized the listing well, as it is currently the top organic ranking for a user who searches “bamboo marshmallow sticks”:

How did we get there? There are many factors that Amazon uses to determine the organic search results, including price, sales history, sales velocity, reviews, ratings, and more. In this post, we will explore Amazon’s search engine optimization (SEO), and uncover some actionable tips to get your product ranked for the keywords that you want to target.

A9: The Foundation of Amazon SEO

Amazon’s search algorithm comes from a subsidiary company called A9 (any Amazon data nerds who want to get a vague scent of what Amazon is up to should poke around the site—interesting stuff). A9 is the brains behind matching a customer search query with the most relevant products in the Amazon catalog, instantly. A9 is so crucial to Amazon’s business model because it powers the one primary metric that matters the most: revenue per click. Regardless of what the inputs that Amazon uses in spitting out the organic search results, honing in on offering the most relevant product to a customer search query is the best way for Amazon to generate a sale.
Amazon has laid out some of the elements of a product listing that creates a “compelling offer” for the customer. We get a sense for the A9 algorithm in Amazon’s article on Optimizing Listings for Search and Browse:
Factors such as degree of text match, price, availability, selection, and sales history help determine where your product appears in a customer’s search results. By providing relevant and complete information for your product, you can increase your product’s visibility and sales.
These are the underlying elements of creating an Amazon search engine optimized listing. Some of the helpful best practices that Amazon lists, include:
  • Don’t Include Your Competitor’s Brand Name or Misleading Information:Including keywords that are misleading are against Amazon’s Terms of Service, and can lead to product removal and account suspension. Jeff Bezos doesn’t like it when you lie to him!
  • Don’t Keyword Stuff: Amazon calls this “providing redundant information captured in other fields”. With Amazon SEO, more is not always better. Don’t repeat your keywords.
  • Don’t Use Punctuation in Keywords: Only use a single space to separate keywords, no commas, semicolons, dashes, etc. Anecdotally, including punctuation can reduce the number of keywords that your product ranks for.
  • Don’t Add Common misspellings, variants, or synonyms: Amazon captures common related words, so no need to include those in your keywords section. For example, “marshmallow stick”, “marshmellow stix”, and “marshmellos stick” will all be captured with just one keyword.
You can enter your hand-picked keywords in the following places in your listing:
  1. Product Title
  2. Key Product Features (bullet points)
  3. Product Description
  4. Product Picture file name
  5. Search Terms (found while editing the product in Seller Central)
Let’s dig in to some of these sections:
 Product Name (Title):
The Product Name is the heartbeat of your product listing, both to customers and to the Amazon algorithm. This means that you need to appeal to the human reading your title (and therefore aim to get them to click through to your listing) as well as the Amazon algorithm that is looking verify any relevant between your listing and the customer search query.
Amazon suggests including the following in your Product Title:
  • Brand
  • Product
  • Key features
  • Size
  • Quantity
Though it is unstated in Amazon’s official policy, it is an SEO best practice to put your most important keywords (which you have already identified, based on search volume and relevance) towards the front of the title. This helps potential customers get a quick idea of what your product is while scanning through organic search results.
You are allowed to have up to 250 characters in your product name. Jungle Stix title currently has 193 characters. It is important to note that each word in the Title is searchable on its own. This means that you do not need to repeat words in the Title, and it is against your best interest because it uses up characters, and makes the Title appear more text-heavy which is not necessarily a great customer experience. The specifics of what you can include in a Product Title differ by category, so you will want to check for your specific product.
The Jungle Stix title does look long, but we were thoughtful about including all relevant search terms that people may want related to “bamboo marshmallow sticks”. Furthermore, there are no repeating words, or article words (ie the, a, and an).

Key Product Features (Bullet Points) & Product Description

The Key Product Features and Product Description are searchable by customers, so influence your Amazon SEO. However, the text is also an opportunity for you to showcase the features and benefits of your product, to improve your conversion rate. This is where you can share important facts about your product–ideally you have a solid understanding of your customer profile, so you address any pain points or objections that your customers have.
Amazon’s best practices for Key Product Features focus on creating clear and concise bullet points:
  • Highlight the five key features you want customers to consider, such as dimensions, age appropriateness, ideal conditions for the product, skill level, contents, country of origin, and so on.
  • Reiterate important information from the title and description.
  • Begin each bullet point with a capital letter.
  • Write with sentence fragments and do not include ending punctuation.
  • Do not include promotional and pricing information.
This Pet Groom Tool example includes a nicely formatted and descriptive key Product Features:

And the Product Description is also thoughtfully constructed, with some simple formatting and spacing, and additional features not included elsewhere in the listing:

Keywords & Search Terms

Amazon includes several places for you to identify the keywords that you are targeting. In addition to the text and keywords that you add in your Product Title, Product Features, Description, you can specify your keywords in Seller Central’s Keywords Tab:

You want to include additional keywords that you have not focused on in your Title, Description, and Features section. For Jungle Stix, we pulled some actual customer search queries from the pay per click campaigns that we were running. We will cover a few additional places to find keywords later in the post. One point to remember here is that you do not need to include punctuation like commas or semi-colons, and in fact you should avoid doing so as it could limit the reach of your keywords.

Product Images

Including high-quality product images are very important to generate initial customer interest, convey the qualities of the product, and ultimately convert the visitor to a paying customer.
The images therefore are hugely influential on conversion rate and click through rate of a product. Amazon lays out some simple guidelines that should be intuitive as you put your listing together, including:
  • The image matches the product description in size, color, and so on.
  • The image is a photo and not a drawing
  • The product is focused and well-lit.
  • Close-up shots are not obscured by highlights or shadows.
  • The product occupies at least 80% of the image area
  • Backgrounds are simple and clean so as not to distract from the product.
Furthermore, including multiple images, at different angles, is recommended. Amazon allows up to 9 images, so why not use that opportunity to get your customer yearning to own your product.
The most helpful thing you can do with your product images to give a lift to your conversion rate is use images at least 1000 pixels. This will allow your product to have the hover-to-zoom effect that allows users to  get up close and personal with your product.

Improving The Performance of Your Listing

Focusing on crafting the elements above, including the Title, Features, Description, Images, and the keywords you target, will ultimately set you up for success. But what is “success”, beyond just growing sales? There are two important metrics that you can focus on to measure and improve your success: your conversion rate, and your click through rate.
Conversion Rate: Conversion rate is percentage of visits to your product page that result in a sale. It is calculated as follows:
Conversion Rate = Total Order Items / Sessions
In Seller Central, you can see the conversion rate of your product by going to Reports – >Business Reports -> Sales and Traffic  and then looking at the Order Item Session Percentages. This is what it looks like for Jungle Stix:

The three most important factors to improving your conversion rate are:
  • high quality product images
  • competitive price
  • social proof (number, and quality, of reviews)
Click Through Rate – Click through rate is simply the percentage clicked on your product listing.
It is calculated as follows:
Click Through Rate = Sessions / Page Views
In Seller Central, in the same Sales and Traffic report as above, you can calculate your click through rate manually by dividing the sessions y page views. This is what it looks like:

The three most important factors to improve your Amazon click through rate are:
  • High quality product images
  • Competitive price
  • Social proof (number, and quality, of reviews)
Both of these figures, your Conversion Rate and Click Through Rate, can be measured on a daily basis. As you make adjustments to different parts of your listings, you can see changes reflected in these metrics.
For example, if you start testing a different main product image, you may see an uptick in your click through rate, and sessions. Or if you change the main keyword that you are targeting, you may eventually see a dip in sessions, but a lift in sales, as you are targeting more relevant traffic.
Your conversion rate and click through rate are going to be dynamic, changing based on changes in traffic, customer behavior, and market conditions in general. It is tremendously helpful to stay attuned to these changes, and proactively make necessary adjustments. This means consistently running split tests to optimize the keywords you target, the images you use, your price, and much more. Splitly allows you to automate the your split tests and analysis, or just change your listings manually in Seller Central and keep track of the data.

A Note On Pricing

Amazon notes that Price is a primary factor in your product’s organic rankings. They suggest (not so subtly) in this post that your product should be “priced competitively against comparable products”…research the competition as you develop a compelling price point.”
Pricing products can get tricky for private label products. Especially in the very beginning launch phases, the value of a brand is virtually worthless for private label brands. At least it can not justify a significant markup. This forces our hand as private label sellers to fall within the general range of competitive private label products.

LSA: A Helpful Way To Expand Your Reach

Latent Semantic Analysis (LSA) is a fancy way of describing computer-generated synonyms. Basically, there is a rating system (called Latent Semantic Index) that assigns a value between 0 and 1 for words that are similar—closer to one if they are more similar, closer to 0 of dissimilar. Search engines crawl the contents of a page and pull out relevant keywords to identify the content of the page.
This is relevant to Amazon SEO because you can increase the likelihood of your product being found via organic search: by including more LSI keywords, you expand the keywords that trigger your product to be shown.
One nice tool for this is LSI Graph it is a free site that automatically generates relevant keywords. For example, for our main keyword of “marshmallow sticks” we get a list of keywords like the following:

You can get similar results in Google Keyword Planner, however there are some additional keywords that you may uncover with LSIGraph. And if much of your competition is also using GKP, and basing their listing off of the same data, you are not allowing yourself to differentiate and find new keywords.

In Conclusion

If you have made it this far, you have earned the secret to Amazon SEO: create value and offer a quality product (both in the product listing and the product itself), and you will be rewarded handsomely. Amazon summarizes this very succinctly in their Seller Central documentation: “Sales conversion begins with listings that are easy to find and offers that are compelling.”
If you can focus on the basic “blocking and tackling” of understanding your customer’s needs, how your product addresses that, and convey that in a compelling manner through text and images, then Amazon will show your product more often, and visitors will be more likely to convert into customers. Those customers leave you a good review, and the good reviews lead to social proof and increased conversion rate. And the flywheel continues, onwards and upwards!
- Does your Amazon listing need help? Read this and tell us what you think in the comments!