For every Amazon seller, in order to ensure the long-term stability of operations and the continuous growth of sales, the following 4 things must be done.
1. Ensure account security
Stay away from infringing goods. Staying away from infringement starts with product selection. When selecting products, you can use your own experience, ask suppliers, or consult experienced seller friends to avoid choosing infringing goods as much as possible. Try to exclude products with potential infringement risks during the product selection stage. On the issue of infringement, don’t have any fluke mentality. There are many products to choose from. There is no need to choose products that may infringe and bury hidden dangers for your own operations.
Don’t follow sales to avoid infringing on other people’s trademark rights
Similar to product infringement, trademark infringement is also something that sellers must treat with caution. Compared with product infringement, the way of registering your own trademark and creating products by yourself to publish products generally does not involve trademark infringement, while sellers who want to rely on following sales to operate are often prone to complaints due to trademark infringement. According to past experience, trademark infringement caused by following sales is the main reason for account restrictions. If you want to ensure long-term and stable operations, you must stay away from following sales.
Use echelon accounts to reduce unknown risks in operations
As a third-party seller, no matter how hard we try, there is no way to ensure that the account is 100% safe. For sellers who rely on a single account to operate, they are always at high risk. As the operation progresses, sellers begin to form their own teams, and various costs begin to rise. If there is only one account, once the sales authority is removed, there will be only expenses and no income in an instant. This blow is fatal to most entrepreneurs. At the least, it will consume a large part of the original accumulation, and at the worst, it may directly exhaust all the funds, and the profit will turn from positive to negative. It will take a long time to recover, and the funds will be lost, time will be wasted, and the opportunity will be missed.
In order to avoid this situation, sellers should prepare the second and third accounts after the first account has started to have stable revenue after the initial stage. Different accounts have different tasks. The large account is used to create profits for the company, the medium account is used to share part of the company’s operating costs, and the small account is used as a substitute, which can be used at any time to deal with unexpected events. Such a layout can minimize the risk and avoid the situation where the entire team is disbanded due to problems with one account.
Prevent account association
With multiple accounts, it is necessary to prevent the association between accounts. It is necessary to use independent computers and independent network cables to operate independent accounts. At the same time, it is also necessary to do a good job of team training and instill the awareness of preventing account association into the hearts of every employee. Only in this way can we ensure that multiple accounts assist each other and fight side by side.
2. Pay attention to product selection
The operation of Amazon stores is “70% in product selection and 30% in operation”. The quality of product selection largely affects the success of the operation.
When selecting products, sellers should insist on choosing just-needed products. On the basis of just-needed, combined with their own financial situation, try to choose light and small products. At the same time, you can consider products with relatively single functions, low frequency of use, and easy to form a combination of differentiation.
3. In terms of operation, refer to the “spiral explosion method” and make the creation of explosions the primary goal of operation
The operation on the Amazon platform pays attention to the explosion model. The profit created by an explosion can even exceed the profit of a distribution store. There are many ways to create a hit product. Referring to the experience of creating a hit product in the past, the “spiral hit product creation method” is the most efficient method. It has relatively low investment, high output, and fast pace. If applied properly, it can quickly make a profit. This method has been verified in the practice of many sellers.
Of course, in the process of using this method to create a hit product, we must also grasp two details.
Price from low to high. In the price adjustment process, we must grasp the amplitude and rhythm of the price adjustment, focus on the three elements of sales increase, ranking increase and price increase, and ensure that they can rise synchronously in each price adjustment cycle. We must attach importance to the role of in-site advertising in the “spiral hit product creation method”. In the early stage of creation, in-site advertising can bring traffic and orders. At this stage, we only need to pay attention to the number of orders. When the price of the product is equal to the cost or has a small profit, we must start to adjust the goal of placing in-site advertising, from pursuing the number of orders to pursuing the conversion rate, and finally achieve the ACOS value close to or lower than the gross profit margin
The sales brought by advertising account for less than 30% of the total sales.
4. Cost Control
In operation, saving costs is relatively easy compared to making money. Therefore, we must save costs as much as possible. To save costs, we can start from the following aspects.
Commodity cost. Compare prices of multiple suppliers and purchase from suppliers with the highest cost performance.
Commodity packaging. Commodity packaging should be designed according to actual needs. On the basis of ensuring the safety of the goods and not being damaged during transportation, it can be appropriately simplified and simplified.
FBA first-leg logistics. For sellers who use FBA to ship, the first-leg logistics fee is a large part of the cost. When shipping, you should try to reasonably match various shipping methods such as commercial express, air and sea transportation, while
ensuring timeliness, and reducing freight costs as much as possible.
Office cost. Don’t pursue high-end office space excessively. The environment and area of the office space should follow the principle of being enough.
Our goal is to make money, not to find a high-end empty shelf to intoxicate ourselves.
Staff cost. Small teams rely on relationships when hiring people. When hiring people, they should follow the principle of “5 people’s work, 3 people to do, 4 people’s salary”. It is useless to talk about ideals and visions. On the basis of reasonable personnel allocation, wages and commissions should be given as much as possible. Only when employees are happy can they be efficient.
Whether it is operation or entrepreneurship, it is an endless advanced course. I hope that sellers will be open-minded, learn more, grow quickly, and become big sellers as soon as possible.