DAY 1: Getting Started On Amazon - 2021 Product Research & Launching with Kevin King & Brandon Young

Summary

Helium 10's content series kicks off with experts predicting a promising 2021 for Amazon sellers despite challenges. Kevin King emphasizes the importance of treating Amazon as a serious business, focusing on product selection, differentiation, and leveraging tools like Helium 10 for success. He predicts increased sales, the rise of Fulfilled by Merchant (FBM), and the necessity of a strong brand presence. Brandon Young highlights the need for precision in product launching, given Amazon's inventory restrictions, and the use of data for optimizing listings for higher rankings.

Takeaways

• 📈 **E-commerce Growth**: The growth of e-commerce has accelerated due to the pandemic, and Amazon is expected to continue expanding its market share.
• 🚀 **Opportunity for Sellers**: Despite challenges, the opportunities for Amazon sellers have improved, with increased barriers to entry benefiting those willing to adapt.
• 🛂 **Amazon Inventory Restrictions**: New restrictions on the number of units sellers can send in for new products have changed launch strategies, requiring more precise inventory management.
• 🔍 **Importance of Data Analysis**: Sellers need to analyze data meticulously to optimize listings and ensure high click-through and conversion rates for better ranking.
• 🔑 **Keyword Relevancy**: Utilizing relevant keywords is crucial for product visibility and sales, and tools like Helium 10 can assist in this research.
• 🏆 **Competitive Advantage**: Understanding and manipulating Amazon's ranking algorithm gives sellers a competitive edge in a more challenging marketplace.
• 📹 **Video Marketing**: Video content is becoming increasingly important for product listings and advertising, offering a significant boost in visibility and sales.
• 💰 **PPC Emphasis**: With a predicted decrease in organic listings, there is a growing need to master Pay-Per-Click (PPC) advertising to maintain product visibility.
• 🛍️ **Fulfilled by Merchant (FBM)**: The growth of FBM is expected to continue, as Amazon's warehouse capacity struggles to keep up with demand, impacting seller strategies.
• 🏦 **Investment in Amazon Businesses**: There is significant investment capital available for buying successful Amazon businesses, presenting an opportunity for sellers to sell and potentially retire or reinvest.
• 🌟 **Brand Building**: Establishing a strong brand identity on Amazon is vital, as it provides additional benefits and can significantly increase the business's value for potential sale.

Q & A

What is the main theme of the Helium 10 content series?

The main theme of the Helium 10 content series is 'Predictions, Plans, and Preparations for Sellers in 2021', aiming to help sellers get on track for success in the upcoming year.

Who is the host of the Helium 10 content series?

Karen Thomas is the host of the Helium 10 content series.

What is Kevin King's role in the Amazon selling community?

Kevin King is a lifetime entrepreneur, a successful Amazon seller with multiple brands, an industry thought leader, the lead trainer and creator of Amazon's training course Freedom Ticket, and the lead trainer of Helium 10 Elite Group.

What is the significance of product selection and differentiation for new Amazon sellers according to Kevin King?

Product selection and differentiation are crucial for new Amazon sellers as they are key factors that drive the chances of success on the platform, along with keyword demand and competition level.

How has the COVID-19 pandemic affected Amazon sales according to the transcript?

The COVID-19 pandemic has led to an increase in Amazon sales by over 40 percent, with some sellers experiencing even higher growth.

What is the acronym 'TACOS' mentioned by Kevin King, and why is it important for Amazon sellers?

TACOS stands for 'Total Advertising Cost of Sale'. It is important for Amazon sellers to focus on TACOS because it represents the overall cost of advertising per sale, which is critical for understanding profitability and managing ad spend effectively.

What changes in Amazon's FBA policy does Kevin King predict for 2021?

Kevin King predicts that Amazon will likely maintain the limit of 200 units for new product shipments due to warehouse space constraints, which may require sellers to be more strategic with their launches.

What is the potential impact of the new U.S. administration on tariffs and margins for Amazon sellers?

The new U.S. administration may repeal or reduce the tariffs imposed by the previous administration, which could increase margins for sellers. However, China may adjust the RMB, potentially leading to increased costs.

Why is video content becoming increasingly important for Amazon listings in 2021?

Video content is becoming more important because it occupies a significant amount of space in advertising, is equivalent to multiple listings, and performs exceptionally well in attracting and retaining customer attention.

What is the significance of building a brand on Amazon according to the transcript?

Building a brand on Amazon is significant as it goes beyond having just a logo and trademark. A brand represents the emotion and connection customers have with the product. It is crucial for long-term success and can increase the value of the business when selling.

What advice does Kevin King give regarding the selling of Amazon businesses?

Kevin King advises sellers to plan for the sale of their business from day one, as there is a growing market for buying and selling Amazon businesses. This strategy can lead to significant profits through the sale rather than just the operation of the business.

What is the role of Brandon Young in the Amazon selling community?

Brandon Young is an eight-figure seller on Amazon, the owner of Global Imports USA Inc., and the founder of Seller Systems, which offers private label selling courses to teach entrepreneurs how to succeed on Amazon.

What challenges does Brandon Young highlight for Amazon private label sellers in 2021?

Brandon Young highlights the challenges of Amazon's inventory restrictions, which require sellers to be more precise in their product launches, focusing on relevancy, optimization, and managing launches effectively.

What strategies does Brandon Young suggest for overcoming the challenges of Amazon's inventory restrictions?

Brandon Young suggests using the best software for data analysis, focusing on optimizing listings for maximum credit with every sale, and being precise in managing product launches to overcome inventory restrictions.