I requested Ken Freeman, a former Amazon vendor turned advisor, if a model may nonetheless make thousands and thousands on that market. “It’s exhausting however not unattainable,” he instructed me. “Eight years in the past you could possibly get wealthy promoting yoga mats.”
Having launched as a bootstrapped enterprise, Freeman now seeks established firms as shoppers, ideally $10 million or extra in income per 12 months.
He and I lately spoke, addressing heightened Amazon competitors, black-hat sellers, and extra. Your complete audio of our dialog is embedded beneath. The transcript is edited for readability and size.
Eric Bandholz: Give us your elevator pitch.
Ken Freeman: I’ve been within the ecommerce area for practically a decade. I began with bootstrapped drop-shipping companies, which advanced right into a bootstrapped FBA enterprise, which advanced right into a seven-figure firm I bought in 2019 to Thrasio, an aggregator.
Since then, I’ve began many extra Amazon companies. That’s my specialty. I really like exploring the Amazon market. I created a number of companies, and for the final 12 months and a half, I’ve been vice chairman of Amazon at The Ridge, the pockets model. I’ve lately began an Amazon company referred to as Full Circle, which focuses on direct-to-consumer sellers.
I really like technique. I’ve performed practically 10,000 video games of chess, I’ve completed jujitsu for about 15 years, and I’m very aggressive. I’m not one of the best product or branding particular person, however I really like teaming up with of us with unbelievable merchandise and types. The thought behind Full Circle is to merge these with cutting-edge methods on Amazon.
Bandholz: Many sellers like me are cautious of black hat rivals.
Freeman: Black hat ways may be many issues, similar to rivals clicking in your sponsored advert listings or taking down your listings — by way of people or robots. The worst is the place there’s a transparent battle occurring, and black hat sellers will artificially inflate their rankings. It’s straightforward to get tons of Amazon accounts in China, for instance. It’s a matter of 1 account taking place and switching to a different. It’s not a long-term technique. However they’ve obtained some loopy tips. It’s each spectacular and horrible on the identical time.
Certainly one of my manufacturers was primary in a aggressive area. It was wild how usually we skilled takedowns, the place rivals would falsely allege a violation from us, and Amazon would then take away our listings till we proved in any other case. Competitors is intense once you’re within the high 10 spots. However till then you definately received’t get aggressive motion towards you. There are telltale indicators to look at for, similar to advert spend going off the charts or price range working out. Amazon has some automation to detect click on fraud, and it returns that cash. However it might’t detect every little thing.
Bandholz: How do you succeed on Amazon legitimately?
Freeman: Obsess over studying and surrounding your self with others doing the identical factor. I’ve been in a seven-figure mastermind group for 5 years now. Keep on the chopping fringe of what’s going on. It’s important to grasp each side of the pay-per-click recreation. The quantity of sponsored advert spots on Amazon is insane. It should be 4-times what it was once I bought my model. Amazon makes a lot cash from adverts. It’s a pay-to-play system. It’s important to grasp it.
Scrutinize information for each product. Look intently on the key phrases and see how your pay-per-click spend performs on a key phrase stage. What’s your return on advert spend? Use that to spice up a very powerful key phrases — your “golden key phrases.” Get loopy granular with information. Amazon has supplied some wonderful instruments within the final six months to try this.
Bandholz: So it’s all about pay-per-click adverts?
Freeman: It’s important to do every little thing to win, greater than PPC alone. A very good evaluate price and gross sales velocity on a key phrase stage will assist that key phrase rank greater. Your itemizing has to transform nicely. “A+ Content material” is an Amazon program that’s now free. It was once loopy costly. It helps your itemizing convert higher. I’m data-oriented. I see ones and zeros once I take into consideration Amazon.
It’s all about optimizing your click-through price by way of pricing and pictures. Titles are essential, too. We analysis each key phrase. What’s the conversion price for that key phrase when it comes to the market common and the highest three?
We observe efficiency over time. Say we alter the primary picture to enhance the click-through. As soon as we’re comfy with the conversion price — within the high 10 of the class — we are able to push the adverts.
A correct evaluate funnel is essential. Amazon’s phrases of service handle soliciting opinions. Basically you can’t pay for them or supply incentives. Some issues may be tastefully completed, even when they violate Amazon’s guidelines.
If in case you have loyal group members that love your model, you’ll be able to entice them by e mail lists and group boards. You may say, “Hey, love you guys, and thanks for being part of the group. We need to give you a product totally free. We’re getting began on Amazon. We’d love your help.”
You should purchase opinions by Amazon, too. The service is named Vine. I like to recommend it relying in your product. There’s the “honeymoon interval,” which lasts for roughly 45 days from the launch of an inventory. If you’re getting began, you need to hit the bottom working when it comes to PPC. You will get 30 opinions from Vine for about $250. It’s extraordinarily cost-effective on a per-review foundation.
Bandholz: Can a vendor nonetheless make thousands and thousands on Amazon?
Freeman: It’s exhausting however not unattainable. Eight years in the past, you could possibly get wealthy promoting a yoga mat on Amazon. Fortunately, I obtained into Amazon earlier than the largest wave. Many DTC house owners have a really unfavorable sentiment round Amazon, which I perceive.
However many shoppers will solely purchase on Amazon. They may see your Fb adverts and go proper to Amazon and click on or kind your model title or key phrase. When you’re not there, possible a less expensive, crappier different will probably be. With out a presence on Amazon, you’re not catching that spillover, which may be materials.
Bandholz: The place can individuals attain out to you?
Freeman: Go to FullCircleAgency.com. You will discover me on LinkedIn.