Creating a Profitable Amazon Business | Part 2 – A Case Study

Case Study ImageHi guys,

Welcome to part 2 of creating a profitable Amazon business, and although we still aren’t into the meat of the techniques and strategies used I wanted to talk about a case study where someone went from 0 products and 0 experience with Amazon to £2,000 a month in 12 months. Now that may not sound like alot, but that’s without seeing new products and including the steep learning curve. I can see this company doing £10,000 per month if not more by the end of 2017. And that is a profitable business model, when you can scale this quickly, like you can in the Amazon marketplace.

The Case Study

His business was geared around these compression pants, these are leggings women (and men sometimes) wear to the gym. Obviously I won’t bore you with the details of the product but I want to talk about how he launched them as it’s something I think everyone thinking of selling on Amazon should be doing.

So here is the launch strategy.

Launch StrategyHe started by posting on all social media profiles (personal ones) about opinions on specific questions (kind of like a questionnaire to act as “market research” for the business.) As a result he had a number of people that wanted to help, but not really anywhere near enough. So instead of going out and reaching out to people individually he simply offered a free review sample of the product if they “helped with market research” – This same question but re-phrased with a new prize (the free product at the end of the production) made almost 50 people come and help. That’s enough to get 50 reviews on Amazon and a great start to business too.

The best thing about this strategy was although he would have to give a £10 product away for free to 50 people (that’s about £500), the cost was so low as he didn’t have to do it until the product went live. So its not like giving up £500 now with the potential that people might go and buy later on. Instead he carried out the plan so that the individuals would be excited for when the product did eventually go live.

Now there is a lot of psychology behind this strategy but the basic principle is desire to help. People want to help others, but they are lazy. So generally if you see someone that needs help on a Twitter or Facebook feed, your likely to scroll past for 2 main reasons. The first is that you “don’t have the time” and the second is “It will seem weird if I do it.” – Both negative concerns are put to rest when you implement the prize + helping out element in a question. This makes people think a.) They are doing you a favour, and b.) They are getting something back in return. This means they will flock to you and give their opinions whether they wanted the product, wanted to give help, or simply thought it would be something to kill the time.

This (on a large level) could be hugely successful. But the kicker comes with the reviews you gain through Amazon. Instead of just sending people the product once it went live, he made sure they purchased through Amazon. As a result when he followed-up with these people individually. They got back to him and stated they loved/liked the product. He simply then said if they would like to leave a review on Amazon it would really help as …… Explain why it would help etc. Then the majority of people 60% in fact left reviews. That meant that he got approximately 30 reviews for a product that would have previously got none had he just sent these units to the individuals who were promised them directly. That’s smart marketing and business for you!

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