A lot of people want to start an FBA Amazon business. There are many different coaches and courses on the web to become a 7 figure Amazon Seller. Thus, you can find clear step-by-step instructions in different variations. That’s not a big deal. Still, with all these well-known guidance, 60-80% of sellers, eventually fail, as they lack the core skills of Amazon sellers.
AmazeOwl users statistics demonstrate these failure trends. People write to us: “We really like your program. It helps us a lot. But we could not grow a profitable business on Amazon. Therefore, we have to unsubscribe from your service”. That is not a surprise as many people do not succeed on Amazon. Check out Amazon Seller Readiness Score quiz and find out how to increase your chances of building healthy income on Amazon.
According to the data stats, there are about 8 million registered accounts on Amazon in 2020. It seems a lot, yet more than 60% of them are dead (most of these accounts were created in 2016-2017).
What are the main challenges people face with starting FBA Amazon?
- Choosing high-potential products;
- Standing out among key sellers;
- Gaining product reviews;
- Balancing incomes, losses, and investments.
Despite the difficulties mentioned above, there is a great opportunity behind running a profitable business on Amazon. You are not tied up to any physical location and can work remotely from wherever you want. E-commerce and Amazon are very lucrative and potential niches.
While I was running my Amazon business, I’ve never been to China or the US. I lived in Bali, Thailand, and Vietnam and within 2 years I managed to build a 7-figure business, using my knowledge, set of remote tools, and trials-and-errors method.
All my life I was in IT. When my daughter was born, we decided to travel the world. I was looking for a new activity to make a living. One guy on the beach told me about Amazon FBA and shared some pretty tempting numbers.
Coming from Computer Science, Big Data, I had zero experience in E-commerce. I’ve sold my startup hotel market analysis tool, made all the possible mistakes, and kind of banged my head against the wall. I spent several thousand dollars on coaches to learn how to become a successful seller on Amazon. They gave me all the tools, shared tricks and techniques, yet there was something missing. I lacked these very basic but so relevant skills. Being a smart man and having step-by-step instructions from the best leaders of the Amazon industry were not just enough.
No matter how hard it is, I never give up. Finally, my partner and I scaled to 7 figures. On this journey, I developed 4 core skills of Amazon seller framework that I want to share with you. It will help you reach 7-figures relatively easy and pretty fast.
4 core skills of Amazon seller
Proficiency in numbers
Such people are usually called nerds, and that’s for a good reason.
Why is it the first one?
You have got to be damn good at numbers and analysing data. Many people who want to become Amazon entrepreneurs are surprised by it. They tend to think that everything is plain as a day. Yes, you will be able to estimate and count incomes, if you do the math. But if you want to make a killing, you have to dig deeper into SEO, doing bids, inventory management, forecasting, and hunting for high-potential products. Thus, this is the most important core skill.
What does being “a product guy” mean?
Let’s think of a Steve-Jobs-like guy who can come up with something like an iPhone, which is incredible and really convenient for everyone. Meanwhile in Amazon business, something slightly different matters. You don’t need to create something like Steve Jobs did that will bring you loads of fans around the world. Amazon is more like pop culture. Its customers belong to the low- and middle-class. If they want something exclusive they don’t look for it on Amazon. Still, you’d better stand out from millions of Chinese sellers that everyone is so afraid of. Personally, I don’t have this skill.
I was fortunate to partner with a guy, who had a flair for good products. He liked the things we sold and used them every day. That gut feeling helped him to sense which product was perspective when we should have sold it, which products to bundle and changes to make to attract customers and eventually succeed.
To be a product guy, you must literally sense how to make your customers happy.
This one is crucial. It is an inevitable part of the buyers’ experience.
Based on recent market reports 13% of Amazon buyers write complaints and return their orders. Reviews are the most valuable currency for Amazon sellers. It weighs more than gold. If you keep a stable flow of positive reviews, everything is gonna be fine with your reputation and sales accordingly. Price won’t be an issue when the product has a bunch of good reviews.
I had a case when 10% of buyers left complaints or unsatisfied comments. Eventually, I built a clear communication process to improve this situation. Eventually, none of the customers who got unhappy with our product left negative reviews. And those who were satisfied left only positive.
Having expertise in calculations, product sense, and customer support you’ll be able to launch 2-3 products hassle-free. Soon there will be cash flow, and you’ll be thrilled and tempted to order more and more products from China. At this stage, you have to realize that further growth needs well-established and rigid processes. Neglecting them, you won’t reach 7-figures anyway. Success requires discipline and system.
We faced it. For example, we could sell out everything and didn’t have a chance to place an order on time before Chinese New Year or lost a photo to one of our listings and couldn’t locate the file and so on.
To launch and grow your business to 7 figures you need 4 core skills of Amazon seller:
- Proficiency with numbers to run product research, SEO, PPC bids, inventory management, forecasting, and analysing various data.
- Be a product guy, which means you need to like and use what you sell on Amazon to stand out among millions of sellers around the globe.
- Provide excellent customer support and be able to mitigate conflicts and make your customers happy.
- Management skills to organize everything into the scalable system.
These 4 guys should work as a team. At the very beginning, you need a number guy to hunt for high-potential products. Afterward, you need a product guy to come up with ideas on how to present things and deliver to the audience. To set things in motion you need a number and a customer support guy collaborating. And finally, as you launch 2-3 products you should get a manager to set up and synchronise processes as clockwork.
Is there a chance to master 4 core skills of Amazon seller? There is one, but it will take time and money. The only reasonable solution is to compliment your existing skills with relevant tools or to partner with other professionals. There is always a way out if you want to start a profitable FBA Amazon business.
Customer support – you can find great agencies in the Philippines.
Product research – our AmazeOwl will help you find your best product on Amazon in times of crisis.
PPC management – there are thousands of agencies and software including our ANavigator.
P.S. Stay engaged in all the processes as outsourcing can be tricky sometimes. Remember that the quality of your goods is the first priority.