**WARNING: Contains a bit of swearing & A Lot of Truth!**
How did you come to be selling on Amazon?
Entrepreneur since age 4 when resold bubble gum to friends! Not had a job as an employee since age 17. Direct marketing background not SEO. Sells calendars directly to consumers, also wholesale.
Been selling on Amazon since late 1990s - e.g. old CDs, DVDs etc.
Also in calendar business signed up for Amazon Advantage - media only e.g. CDs, DVDs
In Q4 gets purchase orders. Start of season 3-4 a week; end of season say 1000 a week.
That alone pulls in six figures - and everything else on top of Amazon orders is 100% profit.
So Kevin has seen the power of Amazon grow.
2 years ago he looked into the PL model but didn’t jump on it, which he regrets.
Started doing it May last year - doing some Retail Arbitrage - see how shipping and systems work. He realised RA is too much work and not scaleable. Race to the bottom.
Why do PL?
Calendars are seasonal. He had pay-per-view TV revenue stream but the internet had killed that off. Plus Kevin’s Background matched all the skills needed, including:
developing packaging, product development, online marketing -plus sourcing from China and Korea. So he went for it.
Kevin's philosophy is to prove a product on Amazon then take them into retail on other channels.
Amazon is the bulk of his revenue. This is problematic long term because they could in theory shut your account down or suspend your best selling product at any point.
Recent example: Amazon wrote to Kevin saying they’re suspending his best selling product because of an image violation. They didn't even tell Kevin what the violation was!
Kevin worked out it could be cartoons or extra elements in the images that he had put in. So he was able to deal with the issue. But it was a reminder that you're vulnerable to some robots or some employee doing things by the book.
Where would you get started as a newbie with Product Selection?
How much money do you need to start in Amazon PL?
Product selection depends on how much money you have to start with.
Even Scott Voelker and other people say unrealistic things about how much you need to start. Kevin says you need a lot of money. There are stories of someone who started with $300 and made a lot of money. Some of the stories are untrue, some are true. But what’s missing: five days later that person took a loan from the uncle for $10,000 & 10 days later put $20,000 on the credit card. etc.
It paints a false picture. Some people get lucky, but it's very rare. It takes a lot of work and a lot of money. If you just want a bit of extra holiday money you could do one of two products. But to make a living demands serious money, determination and hard work. Even Kevin didn’t realise how much money it takes even with his product.
Do you believe in staying in one Amazon category and building a brand? Or do you pick each product on its own merits/just follow the numbers?
In Kevin's case, he started five brands because he came from a product background so he was a aware one might not work. So he wanted to increase odds of success.
Launching second product won’t double sales unless it's just an add-on or extremely complementary. So he's not so worried about potential complementary sales.
However, if you can, do get them. An example is that Kevin started in the makeup category. The problem was massive competition because it was easy to get into. Now for example he sells makeup tools instead of makeup itself, and many of those are complementary [cross sales potential].
How do you go about picking products? If you had $5000 to start out but potentially use credit card later?
If it’s capital intensive, what’s your approach to finance?
Kevin will make use of available credits.