Five Amazon FBA Mistakes New Sellers ALWAYS Make

Five Amazon FBA Mistakes New Sellers ALWAYS Make Speaker 1: Which is now to talk about the top five Amazon FBA mistakes. Now there's some important things that I see folks regularly making as errors. Some errors I actually made myself when I first started because there's a lot of unknown when you step into something like selling on Amazon. So it's really important that you have a good idea of what to keep in mind. We're going to go over analysis paralysis, not branding, FBA over FBM, product research and reviews. The first is analysis paralysis. Analysis paralysis is when you find yourself in a position where you cannot launch your product. You can't even make a decision on which product you want to sell because you're so overwhelmed by all the different analytics, all the different search results, everything seems a little bit overwhelming. So that is what analysis paralysis is and it's something that you just have to get past. You have to commit to something that makes sense. I always see folks saying, well, do you think I should sell this product? And I always have the very simple answer of, well, does it make sense? Is the search volume there? Are the competition levels low that has the opportunity to be on the higher end of the price spectrum? Is there the advancing capacity? Can you develop the product to make it better? Can you upsell other products to compliment that product? If you can answer all those questions and feel good about it, then absolutely, you should move forward with that product. The next is branding. Now we talk about branding. This is the A plus content. This is a precious web browser real estate that the customer is going to be captivated by. They're going to see big colorful pictures and it's going to incentivize them to want to make the purchase. There have been many studies on the Amazon platform that show that customers are much more likely to convert on a sale when they are enticed by colorful, very captivating pictures rather than something that's maybe in black and white or doesn't have great imagery, right? You want to make a purchase that you feel good about because it looks professional. The next big mistake that I see folks making is trying to choose FBM over FBA. You know, we talked about the differences and FBA is going to pick, pack and ship your product for you. And FBM, you're responsible for everything, storing your product, putting it in the box, shipping it to your customer, excuse me, in a timely manner. And it can be extremely overwhelming. And again, a lot of folks will try and say, well, I'm just going to use the advantage of not paying for it, but then they end up not making nearly as much money. So use the opportunity of the well-oiled machine that is Amazon. They will take care of it. Now, we talked about product research in the beginning and I think the biggest thing I see folks make the mistake here is they think they can get away without having some form They don't want to use a tool, right? They're like, I'm not going to sign up for any of the product research softwares. And then they find themselves in a position where they're unable to identify the search volume, the sales volume, the competition level, the average price, the average amount of reviews, the average niche score. There's all these variables that are very important. To establish whether it's worth investing in that said product, right? So make sure you do your due diligence by using a product research tool like the AMZScout Pro AI extension. It is the best, the only one that I use just because it is extremely user-friendly. It's very accurate with the information that it provides you. So make sure to use a product research tool. Next, we're going to talk about reviews. Now, reviews are one of those things that I see folks really kind of skip over because they're not really worried about it. They're thinking about that first step, which is launching their products on the Amazon platform. And yet, that is very important to launch your products, but you need to think a few steps ahead and reviews is very important. So number one, Gaining reviews is going to help push your ranking on the Amazon platform, which is going to just make you higher in the search results when a shopping customer types in any keyword associated to your niche. So if you have zero reviews and you're selling the dash cam, You're going to rank very low within the search results. Comparatively to someone that has 80 five-star reviews, they're going to show up first. And this is outside of your advertising budget, right? So gaining reviews helps you organically rank higher. It also helps you build trust with the customer. As a shopper myself, any single time I see someone that's established with reviews, I always go through and see what are the five-star reviews and I see what are the one-star reviews. And I can always tell right away, maybe some of the one-star reviews are something small that I'm not worried about and then I'll normally go through with the purchase, especially if the five-star reviews are talking about the customer service and things in and outside of what's important to me. So now that we know that it's important for your rank, it's important for building trust, there's a few methodologies to obtaining reviews that I want to talk about. And you have to be careful because Amazon has some strict rules here. Now, one of them is inserting a product insert, which can be a little card, That has a few sentences that really talks about what the brand identity is and thanking the customer for their purchase. This is a good opportunity to just use ChatGPT, make it very simple for yourself. Say, I'm selling a dog ACL brace on Amazon. I need a product insert that will prompt the customer to leave an honest review. Make it three sentences and have it something catchy, something funny. And ChatGPT is going to whip up something amazing. That's going to say something along the lines of, we appreciate your business and also would love you to bark back with a honest review of what you feel about our products, right? So incentivizes the customer to take that extra step. And what you can't do is you can't ask Amazon themselves to say, Hey, Our customer on Amazon, leave me a five-star review. You cannot do that. So there's a difference between having a product insert, asking for an honest feedback rather than you saying, give me a five-star review. Now, before we get to the gig, which is going to talk about all the things that are offered through AMZScout and myself, because we have some goodies, I wanted to do a quick little demonstration for you guys on some of the tools that I use on a regular basis. So now that we're on the AMZScout We are going to go into some of the important things, some of the important tools that I really like. And the first one is the AI review analyzer. What you do is you just take in the ASIN, you pop it in here and you click get review. And I've already done so, so it's already popped here. Give me a second and we will exit out of this, cancel here. Once you press search, it will open up and you're going to get some really valuable information In regards to some of the different aspects and it will give you top suggestions to improve the product. So it goes through all of the reviews and it will show you improve app usability, make the app more intuitive and responsive. So that's something I would reach out to my supplier and say, hey, more than 30% of folks using this are saying that the app is not working well. What can we do to improve its responsiveness, right? Is there an upgrade? Is there a different chip we can use? Another example would be include hardware kit and purchase. 20% of the negative reviews say that there is the parking mode can't be used without the additional cost, right? So go through this and On your product, on the ASIN, you can see that we have the dash cam here. Go through this on your product to establish what are things that you can improve on. I personally would ask to improve on every single one of these. I would go to my supplier. I would literally just copy and paste and say, hey, these are problems that people are having. How can we address them? Then what I like to do is to the key insights and reviews. Buyer's top advantage, easy to install, clear instructions and includes required components. 25% of people said this. So I would advertise that easy to install would be one of my photos. The buyer's biggest complaints. Again, this is what you're going to talk to your supplier about. And top reason people buy, safety, desire to have proof in case of accidents. Now that again is another opportunity for me to market to potential customers. Listen, you have the opportunity to show what happened to the police, to your insurance, if there is an accident because you're using this product. And the best product feature, high resolution recording, 35% of folks said this. So this key insights from reviews categorizes, then it gives you more in-depth bullet points here of why it's easy to install. And then again, what is not as great about and why people buy. This is great marketing opportunities for you to know why people are converting on sales. Why are people converting on sales should be exactly why you market the product and what feature buyers like the most. Again, another opportunity for you to market. I find yourself on a product. I've just typed in dash cam here. You're going to have the pro AI extension, but you're just going to click on, it's going to open up on your product. We have it just on one product. You can do it if you were just to type it in a niche, but you can see right here that the average monthly sales. So of this dash cam, they're selling over 10,000 units with 1.3 monthly dollars of revenue, which is huge. And their average price for the product is $120. They have 2,820 reviews. Now, from here, you have some really interesting tools that I always like to add, to use. I'm going to add the tracker, so you can just click this button here. It's going to add this product to your AMZScout account for you to go through and look at some of the different metrics when you're using it on the fly. Now, the profit calculator is honestly probably one of my favorite tools because it allows you to, on the spot, calculate your profit margins. Let's just say that this product is going to cost $25 from our supplier to manufacturer. The additional cost, I always like to put $5 for what it's going to cost to sell said product. And you can see here, The different total FBA fees, the profit per unit and the net margin. So that profit calculator, again, right on the Pro AI extension, super helpful. Next, we can take a look at some product history. It can be a little overwhelming when you open it up like this, so I like to focus on what is really important. I am focused on sales, I'm focused on rank, not as much focused on price because it stays relatively the same as much as reviews and revenue, right? So you can see here that as sales increase The rank went down, right? When your rank goes down on Amazon, you actually become more visible to the customer. It's not like the more sales you get, your rank goes up, it actually goes down. You want your rank to be as low as possible. So this graph right here looks really good, indicating their level of sales is very high, their rank is very low, and they're doing a good job capturing those sales. Outside of the product history is the AI product analysis. Now, the AI Product Analysis has two different sections here. It has the AI Product Insights as well as the AI Product Improvement. Now, between both of these, you're going to get some different things. For the AI Product Insights, you get the strengths, weaknesses, opportunities and threats. So you can see the weaknesses, opportunities and really calculate our products and monthly profit. I mean, it's just super, super easy. You also have the AI Product Improvement tab. Once you click on this, let this load for a quick second. It has to gather a ton of data. And what it does is your rationale. Since the dash cam includes a feature for fast download speeds with the app, ensuring a smooth and intuitive app experience is crucial, right? So it's telling you what to focus on. Super, super important. All of these things on the pro AI extension are things that you absolutely need to ensure your success and without are literally impossible. So make sure that you guys take into account how important these are.