On today’s episode, Kunle is joined by Isaac Kuhlman, Amazon Brand Developer and Co-founder of REAL Coaching. He started his journey business back in 2013, and since then has set up a successful coaching practice and a 7-figure course on Udemy. The brands he has worked with have grossed over $12 million in sales. He has also been mentoring sellers and businesses for over 5 years now.

Amazon alone accounts for more than 50% of eCommerce transactions in the U.S and U.K. It is the proverbial “Elephant in the room” for most DTC brands. Amazon is almost too big to ignore, even for DTC brands with well established channels of their own. But as with every other channel, not everyone gets it right. In this episode, Isaac sheds light on the inner workings of the Amazon ecosystem and how DTC brands can leverage it as a profitable channel for their business.

We have all seen the Facebook and YouTube ads saying “Start a successful Amazon business with $500”. Many of us might even know someone who is running a successful Amazon business. But how much does it truly cost to get going and make money on Amazon? How do you pick the right product and keyword? How long does it take to start ranking? In this episode, we will cover all this and much more about selling on Amazon and FBA.

Here is a summary of some of the most important points made,

• Selling very low cost products can be profitable on Amazon, but loss making when selling on your own website
• Amazon is a release-focused platform, where it’s easier for new launches to rank
• Junglescout is a good resource for keyword and product research
• Only 4-5% of customers leave reviews
• Most sellers fail on Amazon because of Improper budgeting and keyword research

Covered Topics:

On today’s interview Kunle and Isaac discuss,

• Selling on Amazon
• Evolving with Changes on the platform
• Driving traffic to your products
• Ranking organically
• Reviews: how many are enough and how to get them
• Best practices for DTC brands to start their Amazon business

Timestamp:

• 09:45 – Meet Isaac
  • Built a 7-figure Udemy course in 2015
  • Runs REAL Coaching
  • Follows a Coaching + Mentoring model
• 13:05 – How Isaac’s humble beginnings inspired him to build his amazon coaching business
• 14:50 – Evolving with Amazon annually:
  • Changes are subtle, but can cause major shifts in your strategy
  • This year Amazon has rolled out limits on FBA inventory
  • Have to pivot to using 3PL for fulfilment
• 18:20 – Getting seen on Amazon::
  • Just selling on Amazon can be more cost-effective
  • Your funnel has to be built off Amazon
  • Low cost products can be profitable on Amazon
  • Amazon ad system is good enough to start with for new sellers
  • Sales history/reviews/conversion rate/history all determine your ranking on amazon
  • Amazon is a release-focused platform
  • It is easier to rank on keywords on Amazon than Google
• 29:20 – How to boost ranking organically
  • Use 3-4 channels to drive awareness
  • Always focus on the main keyword
  • Junglescout for keyword research
  • If you don’t get enough sales, you won’t get ranked organically
• 33:50 – Reviews: How and How many?
  • Early reviewer program helps you get 5 reviews for a fee
  • Amazon Vine – a free service allows you to reach top reviewers
  • Do Not Use review service companies!
  • Aim for 10% of reviews of the top seller in your segment
  • The review conversion rate is around 4-5%
• 38:05 – Why sellers fail
  • Not fully understanding associated costs
  • Base expectations on clickbait stories
  • Improper keyword research
• 44:01 – Steps for DTC brands to Launch on Amazon
  • Have a realistic budget to start your Amazon Business
  • Do the keyword research to see if you’re getting into a competitive product
  • Target to do double the sales the 1st-page sellers would be doing
  • Use Email list/PPC to drive the traffic
• 51:00 – So can I just buy reviews?

Takeaways:

• Choosing the right product and keyword is critical
• Sales funnels have to be built off Amazon as well
• You need at least $15-20K (on an average) to launch successfully
• Only 4-5% of customers leave reviews
• Junglescout is good tool for product and keyword research

Links & Resources

• Junglescout
• Facebook Group – REAL Amazon Seller Round Table
• Free Training
• Isaac’s Podcast: Sprint to Profit

Tweetable Quotes:

“Amazon is built like a movie or book business, where new releases get a really good ranking right away.”

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