I’ve just read a really insightful post on Web Retailer by Gary Huang who managed to bring together 20 high-volume Amazon sellers (doing over a million in sales) to learn about the growth strategies they used to scale their business and tap into their mindset.
Here’s a summary of their advice:
1. Drive and hustle to make things happen at all costs.
Most people fail because they get too discouraged by the lows. You must be willing to do things others are not willing to do. You need to put in the drive and hard work to succeed.
2. The ability to learn and teach yourself and start now.
You need to have a desire to learn on your own and be willing to start now. There are lots of resources available to you via Facebook, YouTube and other sites. The longer you wait, the further you fall behind so start now.
3. Build a moat around your business.
Protect sales by making your product hard to copy. Use patents, copyrights and trademarks and build your own audience.
4. Spend 80% of effort on product selection and development.
Two sellers who sold their businesses for seven figures revealed that they spent 80% of their time on product development and 20% on everything else. One seller likes to try out as many SKUs as possible.
5. Start small first, then double down on the home runs later.
Negotiate the minimum order quantity from your suppliers. Placing smaller orders when launching new products will reduce your costs and risk. Spread your bets with different products and reinvest in what works.
6. Sourcing and learning from trade shows.
Many high-volume sellers attend trade shows to source products and meet with suppliers in-person to develop trust that cannot be obtained online. They can also quickly gain market intelligence about their products and industry.
7. Facebook Messenger is the next big thing.
A lot of high-volume Amazon sellers are now using Facebook Messenger for marketing purposes. By using Messenger to build a list you can quickly build relationships with your audience.
8. Know your profit margins especially if you want to sell your business later.
You need to keep a tight leash on your finances especially if you have plans to sell your business further down the line. Valuation of an ecommerce business is usually 2.5-3.5 times annual profit.
Check your profit and loss account every month and look for ways to decrease costs and increase profits.
9. Negotiate, negotiate, negotiate… and not just on price.
There are other variables apart from price that can be negotiated to increase margins, improve cash flow and reduce costs. Things like software costs, packaging and minimum order quantities. Don’t be afraid to ask.
10. The biggest thing you can do is to hire.
Hiring becomes important when you start to grow and launch lots of new products. High-volume sellers know when to hire generalists such as virtual assistants and when to hire specialists.
Final Thoughts
Remember, that all businesses are different. You sell different products, set different prices and have different audiences so what works for someone else’s business, may not work for yours. As your business grows, Amazon repricing software like RepricerExpress will become an essential tool. Check out what real customers are saying on Web Retailer then get your free 15-day trial.
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