I requested Ken Freeman, a former Amazon vendor turned marketing consultant, if a model may nonetheless make tens of millions on that market. “It’s exhausting however not not possible,” he instructed me. “Eight years in the past you may 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 not too long ago spoke, addressing heightened Amazon competitors, black-hat sellers, and extra. Your complete audio of our dialog is embedded under. 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 developed right into a bootstrapped FBA enterprise, which developed 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 vp of Amazon at The Ridge, the pockets model. I’ve not too long ago began an Amazon company referred to 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 performed jujitsu for about 15 years, and I’m very aggressive. I’m not the perfect product or branding particular person, however I really like teaming up with of us with unimaginable 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 might be many issues, comparable 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 happening, 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 identical time.
Certainly one of my manufacturers was primary in a aggressive area. It was wild how usually 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 while you’re within the high 10 spots. However till you then received’t get aggressive motion in opposition to you. There are telltale indicators to look at for, comparable to advert spend going off the charts or finances operating out. Amazon has some automation to detect click on fraud, and it returns that cash. However it may well’t detect all the pieces.
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 reducing fringe of what’s going on. It’s a must to grasp each facet of the pay-per-click recreation. 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 crucial key phrases — your “golden key phrases.” Get loopy granular with knowledge. Amazon has offered some wonderful instruments within the final six months to try this.
Bandholz: So it’s all about pay-per-click adverts?
Freeman: It’s a must to do all the pieces to win, greater than PPC alone. An excellent evaluate fee and gross sales velocity on a key phrase degree will assist that key phrase rank greater. Your itemizing has to transform effectively. “A+ Content material” is an Amazon program that’s now free. It was 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 fee by way of pricing and pictures. Titles are necessary, too. We analysis each key phrase. What’s the conversion fee for that key phrase by way of the market common and the highest three?
We monitor efficiency over time. Say we alter the primary picture to enhance the click-through. As soon as we’re comfy with the conversion fee — within the high 10 of the class — we will push the adverts.
A correct evaluate funnel is important. Amazon’s phrases of service deal with soliciting critiques. Primarily you can not pay for them or provide incentives. Some issues might be tastefully performed, even when they violate Amazon’s guidelines.
When you have loyal neighborhood members that love your model, you may entice them by electronic mail lists and group boards. You’ll be able to say, “Hey, love you guys, and thanks for being part of the neighborhood. We wish to give you a product without cost. We’re getting began on Amazon. We’d love your help.”
You should buy critiques by Amazon, too. The service is named 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. Once you’re getting began, you wish to hit the bottom operating by way of PPC. You may get 30 critiques from Vine for about $250. It’s extraordinarily cost-effective on a per-review foundation.
Bandholz: Can a vendor nonetheless make tens of millions on Amazon?
Freeman: It’s exhausting however not not possible. Eight years in the past, you may get wealthy promoting a yoga mat on Amazon. Fortunately, I acquired into Amazon earlier than the most important wave. Many DTC homeowners have a really destructive sentiment round Amazon, which I perceive.
However many customers will solely purchase on Amazon. They might see your Fb adverts and go proper to Amazon and click on or sort your model identify or key phrase. Should you’re not there, seemingly a less expensive, crappier various shall be. And not using a presence on Amazon, you’re not catching that spillover, which might be materials.
Bandholz: The place can individuals attain out to you?
Freeman: Go to FullCircleAgency.com. You could find me on LinkedIn.