I requested Ken Freeman, a former Amazon vendor turned advisor, if a model may nonetheless make hundreds of thousands on that market. “It’s onerous however not not possible,” he informed me. “Eight years in the past you possibly can 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 yr.
He and I lately spoke, addressing heightened Amazon competitors, black-hat sellers, and extra. The complete audio of our dialog is embedded under. 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 yr 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 the very 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 opponents.
Freeman: Black hat ways may be many issues, akin to opponents clicking in your sponsored advert listings or taking down your listings — through 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 simple 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 received some loopy tips. It’s each spectacular and horrible on the identical time.
One in all my manufacturers was primary in a aggressive area. It was wild how typically we skilled takedowns, the place opponents 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 whenever you’re within the high 10 spots. However till then you definitely received’t get aggressive motion towards you. There are telltale indicators to observe for, akin to advert spend going off the charts or finances working out. Amazon has some automation to detect click on fraud, and it returns that cash. However it may possibly’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 a must to grasp each side of the pay-per-click sport. The quantity of sponsored advert spots on Amazon is insane. It have to be 4-times what it was once I bought my model. Amazon makes a lot cash from advertisements. It’s a pay-to-play system. It’s a must to grasp it.
Scrutinize information for each product. Look carefully 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 an important key phrases — your “golden key phrases.” Get loopy granular with information. Amazon has offered some superb instruments within the final six months to try this.
Bandholz: So it’s all about pay-per-click advertisements?
Freeman: It’s a must to do every little thing to win, greater than PPC alone. A very good assessment price and gross sales velocity on a key phrase stage will assist that key phrase rank greater. Your itemizing has to transform properly. “A+ Content material” is an Amazon program that’s now free. It was 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 through pricing and pictures. Titles are vital, too. We analysis each key phrase. What’s the conversion price for that key phrase by way of the market common and the highest three?
We observe efficiency over time. Say we modify the principle 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 advertisements.
A correct assessment funnel is vital. Amazon’s phrases of service deal with soliciting evaluations. Basically you can not pay for them or supply incentives. Some issues may be tastefully completed, even when they violate Amazon’s guidelines.
In case you have loyal group members that love your model, you may entice them by e mail lists and group boards. You’ll be able to say, “Hey, love you guys, and thanks for being part of the group. We need to give you a product free of charge. We’re getting began on Amazon. We’d love your help.”
You should buy evaluations by Amazon, too. The service known as 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 by way of PPC. You may get 30 evaluations from Vine for about $250. It’s extraordinarily cost-effective on a per-review foundation.
Bandholz: Can a vendor nonetheless make hundreds of thousands on Amazon?
Freeman: It’s onerous however not not possible. Eight years in the past, you possibly can get wealthy promoting a yoga mat on Amazon. Fortunately, I received into Amazon earlier than the most important wave. Many DTC house owners have a really damaging sentiment round Amazon, which I perceive.
However many customers will solely purchase on Amazon. They might see your Fb advertisements and go proper to Amazon and click on or sort your model title or key phrase. For those who’re not there, possible a less expensive, crappier various shall be. And not using 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.
