I requested Ken Freeman, a former Amazon vendor turned guide, if a model might nonetheless make tens of millions on that market. “It’s exhausting however not inconceivable,” he informed 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 purchasers, ideally $10 million or extra in income per 12 months.
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 advanced right into a bootstrapped FBA enterprise, which advanced 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 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 not too long ago began an Amazon company known 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 executed jujitsu for about 15 years, and I’m very aggressive. I’m not one of the best product or branding individual, however I really like teaming up with people 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 rivals.
Freeman: Black hat ways will be many issues, resembling 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 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 happening 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 similar time.
One among 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 if you’re within the high 10 spots. However till then you definately gained’t get aggressive motion towards you. There are telltale indicators to look at for, resembling advert spend going off the charts or price range operating out. Amazon has some automation to detect click on fraud, and it returns that cash. However it may well’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. You must grasp each facet of the pay-per-click recreation. The quantity of sponsored advert spots on Amazon is insane. It have to be 4-times what it was once I offered my model. Amazon makes a lot cash from adverts. It’s a pay-to-play system. You must 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 do this.
Bandholz: So it’s all about pay-per-click adverts?
Freeman: You must do every little thing to win, greater than PPC alone. evaluate fee and gross sales velocity on a key phrase stage will assist that key phrase rank increased. 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 once I take into consideration Amazon.
It’s all about optimizing your click-through fee by way of pricing and pictures. Titles are essential, too. We analysis each key phrase. What’s the conversion fee for that key phrase by way of the market common and the highest three?
We observe efficiency over time. Say we alter the principle picture to enhance the click-through. As soon as we’re snug with the conversion fee — within the high 10 of the class — we are able to push the adverts.
A correct evaluate funnel is important. Amazon’s phrases of service tackle soliciting evaluations. Primarily you can not pay for them or provide incentives. Some issues will be tastefully executed, 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 at no cost. We’re getting began on Amazon. We’d love your assist.”
You should buy evaluations 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. While you’re getting began, you need to hit the bottom operating by way of PPC. You will get 30 evaluations from Vine for about $250. It’s extraordinarily cost-effective on a per-review foundation.
Bandholz: Can a vendor nonetheless make tens of millions on Amazon?
Freeman: It’s exhausting however not inconceivable. Eight years in the past, you could possibly get wealthy promoting a yoga mat on Amazon. Fortunately, I obtained into Amazon earlier than the most important wave. Many DTC homeowners have a really damaging sentiment round Amazon, which I perceive.
However many customers will solely purchase on Amazon. They may see your Fb adverts and go proper to Amazon and click on or kind your model identify or key phrase. For those who’re not there, probably a less expensive, crappier various will likely be. With out a presence on Amazon, you’re not catching that spillover, which will be materials.
Bandholz: The place can individuals attain out to you?
Freeman: Go to FullCircleAgency.com. You could find me on LinkedIn.
