I requested Ken Freeman, a former Amazon vendor turned guide, if a model might nonetheless make hundreds of thousands on that market. “It’s laborious however not unattainable,” he advised me. “Eight years in the past you may 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 not too long ago spoke, addressing heightened Amazon competitors, black-hat sellers, and extra. The 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 developed right into a bootstrapped FBA enterprise, which developed right into a seven-figure firm I offered in 2019 to Thrasio, an aggregator.
Since then, I’ve began many extra Amazon companies. That’s my specialty. I 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 not too long ago began an Amazon company known as Full Circle, which focuses on direct-to-consumer sellers.
I like technique. I’ve performed practically 10,000 video games of chess, I’ve achieved jujitsu for about 15 years, and I’m very aggressive. I’m not the very best product or branding particular person, however I like teaming up with of us with unbelievable merchandise and types. The concept 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 could be many issues, reminiscent of opponents 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 happening, 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 acquired some loopy tips. It’s each spectacular and horrible on the similar time.
One among my manufacturers was primary in a aggressive area. It was wild how usually 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 prime 10 spots. However till then you definately received’t get aggressive motion in opposition to you. There are telltale indicators to observe for, reminiscent of advert spend going off the charts or funds working out. Amazon has some automation to detect click on fraud, and it returns that cash. However it could actually’t detect all the things.
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 reducing fringe of what’s going on. It’s a must to grasp each facet of the pay-per-click sport. The quantity of sponsored advert spots on Amazon is insane. It should be 4-times what it was after I offered my model. Amazon makes a lot cash from adverts. It’s a pay-to-play system. It’s a must to grasp it.
Scrutinize knowledge 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 knowledge. Amazon has offered some superb instruments within the final six months to try this.
Bandholz: So it’s all about pay-per-click adverts?
Freeman: It’s a must to do all the things to win, greater than PPC alone. A superb overview charge 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 once loopy costly. It helps your itemizing convert higher. I’m data-oriented. I see ones and zeros after I take into consideration Amazon.
It’s all about optimizing your click-through charge by way of pricing and pictures. Titles are vital, too. We analysis each key phrase. What’s the conversion charge for that key phrase by way of 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 charge — within the prime 10 of the class — we are able to push the adverts.
A correct overview funnel is essential. Amazon’s phrases of service tackle soliciting critiques. Primarily you can not pay for them or supply incentives. Some issues could be tastefully achieved, even when they violate Amazon’s guidelines.
When you’ve got loyal neighborhood members that love your model, you may entice them by electronic mail lists and group boards. You may say, “Hey, love you guys, and thanks for being part of the neighborhood. We need to give you a product at no cost. We’re getting began on Amazon. We’d love your assist.”
You should buy critiques 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 a list. Whenever you’re getting began, you need to hit the bottom working by way of PPC. You will get 30 critiques 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 laborious however not unattainable. Eight years in the past, you may get wealthy promoting a yoga mat on Amazon. Fortunately, I acquired into Amazon earlier than the most important wave. Many DTC homeowners have a really unfavorable sentiment round Amazon, which I perceive.
However many customers will solely purchase on Amazon. They might see your Fb adverts and go proper to Amazon and click on or sort your model title or key phrase. In the event you’re not there, seemingly a less expensive, crappier different will probably be. With no presence on Amazon, you’re not catching that spillover, which could be materials.
Bandholz: The place can folks attain out to you?
Freeman: Go to FullCircleAgency.com. You could find me on LinkedIn.