I requested Ken Freeman, a former Amazon vendor turned advisor, if a model might nonetheless make thousands and thousands on that market. “It’s laborious however not not possible,” he advised me. “Eight years in the past you might get wealthy promoting yoga mats.”
Having launched as a bootstrapped enterprise, Freeman now seeks established corporations 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. All the 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 almost 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 known as Full Circle, which focuses on direct-to-consumer sellers.
I really like technique. I’ve performed almost 10,000 video games of chess, I’ve completed jujitsu for about 15 years, and I’m very aggressive. I’m not the most effective product or branding particular person, however I really like teaming up with people 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, similar to 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 occurring, and black hat sellers will artificially inflate their rankings. It’s straightforward 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.
Certainly one of 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 if you’re within the high 10 spots. However till then you definitely received’t get aggressive motion in opposition to you. There are telltale indicators to observe for, similar to advert spend going off the charts or price range working out. Amazon has some automation to detect click on fraud, and it returns that cash. However it could’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 slicing 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 adverts. It’s a pay-to-play system. It’s a must to grasp it.
Scrutinize knowledge for each product. Look carefully on the key phrases and see how your pay-per-click spend performs on a key phrase degree. 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 supplied some superb instruments within the final six months to do 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. assessment price and gross sales velocity on a key phrase degree will assist that key phrase rank larger. Your itemizing has to transform nicely. “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 price by way of pricing and pictures. Titles are essential, too. We analysis each key phrase. What’s the conversion price for that key phrase when it comes to 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 comfy with the conversion price — within the high 10 of the class — we are able to push the adverts.
A correct assessment funnel is essential. Amazon’s phrases of service deal with soliciting opinions. Basically you can not pay for them or supply incentives. Some issues may be tastefully completed, even when they violate Amazon’s guidelines.
When you have loyal group members that love your model, you possibly can entice them by means of e-mail lists and group boards. You may say, “Hey, love you guys, and thanks for being part of the group. We wish to give you a product without cost. We’re getting began on Amazon. We’d love your assist.”
You should purchase opinions by means of Amazon, too. The service is 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 wish to hit the bottom working when it comes to PPC. You may get 30 opinions from Vine for about $250. It’s extraordinarily cost-effective on a per-review foundation.
Bandholz: Can a vendor nonetheless make thousands and thousands on Amazon?
Freeman: It’s laborious however not not possible. Eight years in the past, you might get wealthy promoting a yoga mat on Amazon. Fortunately, I acquired into Amazon earlier than the most important wave. Many DTC house owners have a really adverse sentiment round Amazon, which I perceive.
However many shoppers will solely purchase on Amazon. They may see your Fb adverts and go proper to Amazon and click on or sort your model identify or key phrase. For those who’re not there, probably a less expensive, crappier various can be. With out a presence on Amazon, you’re not catching that spillover, which may be materials.
Bandholz: The place can folks attain out to you?
Freeman: Go to FullCircleAgency.com. You could find me on LinkedIn.
