In this episode of the Marketplace Blueprint podcast, Robyn speaks with Gary Huang regarding his experience interviewing over 20 Seven Figure Ecommerce Sellers and Experts.
Here is what Gary learned:
#1 Successful Entrepreneurs Get Around Excuses.
One of the key takeaways that I got was that these successful entrepreneurs find a way to overcome roadblocks. I think that is one of the things that separates them from the average seller. They are creative and relentless.
#2 Get off Amazon to find profitable products.
Product selection is one of the biggest challenges, especially for new sellers. Seven-figure sellers are looking away from Amazon to find cost-effective products. If you’re using the same tools, the same criteria, and sourcing the same product as your competition, what makes you different?
“looking on Amazon alone can lead to very saturated niches.” Tim Jordan
Seven-figure sellers use external sites such as Pinterest and also subscription sites like Cratejoy to find profitable product ideas and keywords that can be months or even years ahead of mainstream demand found on Amazon.
#3 Apply the 80/20 rule to save time and increase profits.
One of the top takeaways about big seller time management is to apply the 80/20 rule. Manage your time efficiently, really focus on working smart to gain more profits. Value your time and use it on smart-tasks that make money and outsource the tasks that move money.
#4 Build a superstar team.
Do not try to be a one-man-band; the top sellers develop teams around them and hire to compensate for their weaknesses. Most successful sellers will agree that they would not be where they are without their team.
Keep in mind hiring is not a one and done process; it is essential to continually follow up and motivate your personal.
#5 Building a brand is more critical than ever to rank products, get reviews, and sell your business for a higher multiple.
The Amazon landscape is a lot more competitive than ever. That is why building a brand is crucial nowadays; it is a buyers’ market, so if your end game is a big exit having an established brand of products can help you get there. Having a company rather than a product will facilitate selling in today’s eCommerce world.
#6 Keywords for PPC campaigns – need to balance data with common sense, so you do not pay the “idiot tax.”
Focusing on high ranking keywords is the way to go. Diluting your budget across less relevant keywords with low conversion rates is wasting your money.
Seven-figure seller, Dave Bryant, increases profitability in his business by cutting out about 80% of potential keywords. And then, he focuses on two to three keywords for his PPC campaigns. This strategy helped him get a higher ROI and increase his profitability.
#7 Whatever gets measured gets managed.
Know your numbers! Seven-figure sellers keep track of all their company’s metrics, not just when a crisis occurs but every day. Measuring and analyzing your data allows you to make better decisions based on current data; in turn, you can get a foot up on the competition by foreseeing and seizing opportunities before they do.
#8 Split Test ideas cheaply and quickly.
Split testing takes the guesswork out of the equation. Do not jump the gun and commit to a purchase order with a Chinese supplier and tie up your money with no data to back it up; you can shortcut this process by split testing online very cheaply. For example, one seller registers a domain cheaply on GoDaddy to build a simple website. And then, he uses Facebook ads to drive people to the page to determine his conversion rate and validate his idea.
#9 Focus on the BOTTOM line, not on the Top Line.
The biggest mistake sellers can make is trying to grow their business only by increasing their sales. Top-line revenue does not necessarily mean that you are profitable. For example, there is one client that is a seven-figure seller, and she’s actually in the red. So, she’s selling a lot but still losing money. Do not go down that slippery slope, hire a bookkeeper and accounting services, know your numbers, manage your expenses, and always keep your eye on the bottom line.
#10 Selling a business – need to be smart to get a higher multiple.
Again, you need a very tightly focused brand portfolio of products. So not just a hero product and some scattered lesser products. The products should be appealing to a general target audience. And the products should complement each other. Next, buyers like to see net margins, 30% or higher. Thin margins are not attractive and may cause your business to be skipped over by potential buyers.
Additionally, buyers like to see at least 30% of sales away from Amazon, so it’s less risky for them because you don’t have all your eggs in one basket. And finally, you want to give the buyer something that they can improve on by having some upside to your business.