March 2019

March 2019

THE 3 BIGGEST MISTAKES WHEN STARTING ECOMMERCE BUSINESS.

THE 3 BIGGEST MISTAKES WHEN STARTING ECOMMERCE BUSINESS.

Your host today: Craig Connelly, Conversion Optimization Nerd with Tim Goodwin Ecommerce Marketing Expert

Get Tims training here 

http://conversionplus.club/smo

Been having conversations lately with a number of people about getting started with ecommerce

On the surface ecommerce seems to have so many moving parts compared to affiliate marketing or selling information products. It certainly can get complicated, but the essentials are the same.

A good friend was staying with me a few weekends back and he tells me about the product he's had created to sell on Amazon.

He's done his research, found the keywords people are searching for, but currently underserved on Amazon.

He's sourced a manufacturer for the product.

Had samples created and signed off.

Ordered an initial quantity. And they're currently about 5 weeks out from arriving in a US port ready to be dumped in to an Amazon warehouse.

Unfortunately it's likely the product will sit gathering dust, costing my friend long term storage fees 90 days down the line.

He'd forgotten one vital step.

Ecommerce Essential Step #1

Audience.

Who is most likely to buy your thing and do you have a mechanism to reach them?

Despite the "Amazing Business Opportunity" that all the guru's would have you believe there is on Amazon, most people fail because they mistakenly think Amazon is going to gift you traffic to your product listing.

And perhaps in 2012, that might have been the case.

Today, it's likely your product will nestle in the deepest darkest recesses of page 324 in your product category.

So the fix, build your own audience. Invest in growing your Facebook business page, for your new brand.

Run like campaigns, identify with the pain points and challenges people have in their lives, where your product solves the problem in a unique and interesting way.

Capture this audience off facebook too, email lists, facebook messenger lists etc etc.

When you have control over your own traffic, you are no longer at the mercy of Amazon's algorithm, or price wars with similar products... You get to set the rules of your own game.

--------

What Type Of Products Would I Recommend

The second mistake my friend made with his new product on Amazon was the TYPE of product he's selling.

Whilst I'm sure it's a great product, once you've sold the product to a person, they have absolutely no reason to buy from you again.

This makes the game really hard to play unless you have massive profit margins.

Say you have a spatula that you're selling on Amazon, the reality is the person buying is only going to buy 1, perhaps 2 at most. Then maybe in about 3-4 years time they'll be ready for a new spatula, they'll have forgotten about your brand, the logo will have worn off the old spatula and they'll buy a different one.

This means the lifetime value of that customer is the price of the spatula.

After all the cost of selling your product on Amazon, shipping, COGS, taxes and all that lovely stuff, not forgetting the cost to acquire the customer through advertising... You're likely to break even or lose money on that transaction.

Ecommerce Essential Step #2

Sell a naturally recurring product with high margins.

It's the one reason I sell supplements. If the customer consumes the product as directed, they'll be back for more in about a month - 6 weeks.

Consumables are a great business to be in, but ultra competitive. You can't just sell any old fish oil supplement and expect to crush it.

BUT, if you take note of Step 1, you can carve out a nice niche.

I have a set of basic rules for products we create.

- Minimum of £20 Retail price

- Minimum of 100% mark up on the cost of goods (normally looking for considerably higher margins)

- Must be consumable, or have a natural reason why a customer would come back to buy more.

This could be supplements, dog food, clothing, cosmetics, toiletries etc etc.

The lifetime value of our customers are considerably higher than trying to sell a spatula. And because we're building an audience as per step 1, we're creating brand loyalty and the ability to continue promoting the same products and new products to our customers.

---------

So I Should Start An Amazon Business Then?

No.

Don't get me wrong, Amazon is an amazing platform for selling your products, but it's not the only show in town.

My friend (now growing his audience, and looking at consumable products in his niche), made one more mistake. Putting all his eggs in the Amazon basket.

Yes it captures over 50% of all ecommerce transactions in the US (which is a crazy stat). But I know of plenty of Amazon sellers having their product listing closed, because of copyright infringements or quarantined in customs, or quarantined by Amazon requiring HAZMAT certificates, or having a listing hijacked by a counterfeit seller... amongst other issues.

When that happens, your business stops, you have no revenue.

Ecommerce Essential Step #3

Become Technology Agnostic.

This means you sell your product in at least 2 different places.

We sell our products on Amazon, through our Shopify store, ebay, as well as offline to small retailers!

Shopify is our primary place for transactions, processing approximately 70% of our revenue.

But don't get hung up on the tool.

Essentially all these tools are ways to process a transaction, that's all.

You could sell through a simple paypal link, on kickstarter, a clickfunnels page, ThriveCart, Amazon, Shopify, Ebay... it's just a way to take an order!

When you're starting have two simple ways to take an order.

ThriveCart is a brilliantly simple cart solution, and Amazon is just a mornings work to get set up.

Once you've got beyond a few £1000 in sales, you can start to get fancy with Shopify or a funnel solution.

Before you start investing money in tools, build your audience first (aka Step 1)

---------------

So there you have it, now it's over to you.

You know what you're going to do first... My recommendation is build the audience first BEFORE you even think about creating and buying product.

You're not here to hawk product. Instead sell solutions to actual people.

Your host today: Craig Connelly, Conversion Optimization Nerd with Tim Goodwin Ecommerce Marketing Expert

Get Tims training here 

http://conversionplus.club/smo

Been having conversations lately with a number of people about getting started with ecommerce

On the surface ecommerce seems to have so many moving parts compared to affiliate marketing or selling information products. It certainly can get complicated, but the essentials are the same.

A good friend was staying with me a few weekends back and he tells me about the product he's had created to sell on Amazon.

He's done his research, found the keywords people are searching for, but currently underserved on Amazon.

He's sourced a manufacturer for the product.

Had samples created and signed off.

Ordered an initial quantity. And they're currently about 5 weeks out from arriving in a US port ready to be dumped in to an Amazon warehouse.

Unfortunately it's likely the product will sit gathering dust, costing my friend long term storage fees 90 days down the line.

He'd forgotten one vital step.

Ecommerce Essential Step #1

Audience.

Who is most likely to buy your thing and do you have a mechanism to reach them?

Despite the "Amazing Business Opportunity" that all the guru's would have you believe there is on Amazon, most people fail because they mistakenly think Amazon is going to gift you traffic to your product listing.

And perhaps in 2012, that might have been the case.

Today, it's likely your product will nestle in the deepest darkest recesses of page 324 in your product category.

So the fix, build your own audience. Invest in growing your Facebook business page, for your new brand.

Run like campaigns, identify with the pain points and challenges people have in their lives, where your product solves the problem in a unique and interesting way.

Capture this audience off facebook too, email lists, facebook messenger lists etc etc.

When you have control over your own traffic, you are no longer at the mercy of Amazon's algorithm, or price wars with similar products... You get to set the rules of your own game.

--------

What Type Of Products Would I Recommend

The second mistake my friend made with his new product on Amazon was the TYPE of product he's selling.

Whilst I'm sure it's a great product, once you've sold the product to a person, they have absolutely no reason to buy from you again.

This makes the game really hard to play unless you have massive profit margins.

Say you have a spatula that you're selling on Amazon, the reality is the person buying is only going to buy 1, perhaps 2 at most. Then maybe in about 3-4 years time they'll be ready for a new spatula, they'll have forgotten about your brand, the logo will have worn off the old spatula and they'll buy a different one.

This means the lifetime value of that customer is the price of the spatula.

After all the cost of selling your product on Amazon, shipping, COGS, taxes and all that lovely stuff, not forgetting the cost to acquire the customer through advertising... You're likely to break even or lose money on that transaction.

Ecommerce Essential Step #2

Sell a naturally recurring product with high margins.

It's the one reason I sell supplements. If the customer consumes the product as directed, they'll be back for more in about a month - 6 weeks.

Consumables are a great business to be in, but ultra competitive. You can't just sell any old fish oil supplement and expect to crush it.

BUT, if you take note of Step 1, you can carve out a nice niche.

I have a set of basic rules for products we create.

- Minimum of £20 Retail price

- Minimum of 100% mark up on the cost of goods (normally looking for considerably higher margins)

- Must be consumable, or have a natural reason why a customer would come back to buy more.

This could be supplements, dog food, clothing, cosmetics, toiletries etc etc.

The lifetime value of our customers are considerably higher than trying to sell a spatula. And because we're building an audience as per step 1, we're creating brand loyalty and the ability to continue promoting the same products and new products to our customers.

---------

So I Should Start An Amazon Business Then?

No.

Don't get me wrong, Amazon is an amazing platform for selling your products, but it's not the only show in town.

My friend (now growing his audience, and looking at consumable products in his niche), made one more mistake. Putting all his eggs in the Amazon basket.

Yes it captures over 50% of all ecommerce transactions in the US (which is a crazy stat). But I know of plenty of Amazon sellers having their product listing closed, because of copyright infringements or quarantined in customs, or quarantined by Amazon requiring HAZMAT certificates, or having a listing hijacked by a counterfeit seller... amongst other issues.

When that happens, your business stops, you have no revenue.

Ecommerce Essential Step #3

Become Technology Agnostic.

This means you sell your product in at least 2 different places.

We sell our products on Amazon, through our Shopify store, ebay, as well as offline to small retailers!

Shopify is our primary place for transactions, processing approximately 70% of our revenue.

But don't get hung up on the tool.

Essentially all these tools are ways to process a transaction, that's all.

You could sell through a simple paypal link, on kickstarter, a clickfunnels page, ThriveCart, Amazon, Shopify, Ebay... it's just a way to take an order!

When you're starting have two simple ways to take an order.

ThriveCart is a brilliantly simple cart solution, and Amazon is just a mornings work to get set up.

Once you've got beyond a few £1000 in sales, you can start to get fancy with Shopify or a funnel solution.

Before you start investing money in tools, build your audience first (aka Step 1)

---------------

So there you have it, now it's over to you.

You know what you're going to do first... My recommendation is build the audience first BEFORE you even think about creating and buying product.

You're not here to hawk product. Instead sell solutions to actual people.

Home    Contact    About    Courses

Home    Contact    About    Courses

Today I have a very very special guest on conversion plus.  This is Tim Goodwin all the way from sunny Scotland.

The reason Tim is on conversion plus this week is that he is the master of good margin ecommerce products  in competitive markets. You can get his training on the link below

 http://conversionplus.club/smo

Today I have a very very special guest on conversion plus.  This is Tim Goodwin all the way from sunny Scotland.

The reason Tim is on conversion plus this week is that he is the master of good margin ecommerce products  in competitive markets. You can get his training on the link below

 http://conversionplus.club/smo