Tired of Making a Few Hundred Bucks on Amazon?
According to Web Retailer, nearly 16.7% of sellers on Amazon make over a million dollars in revenue every year. An elite group of sellers – the top 2.1% – make over 10 million dollars every year. If you work hard enough, you can be one of them, too.
There’s a host of different ways you can make a million dollars on the Amazon Marketplace. Let’s check out what a few members of the amazon millionaire’s club are doing.
The 12-year Plan to $1 Million
Freedom Fast Lane has laid out a 3-step plan that spans over a year for highly selling products.
- Step 1: The first step is where you pump in money to get going, adding fuel to make the million dollar fire. The steps highlighted here will allow you to rank higher in Amazon’s Search Results with the help of an increase in sales and reviews, aided by AMZInsight.
- Step 2: Once you’re done with the cyclical pumping in money and increasing sales, you move on to actual growth. By this point, you must have over 20 sales/day. The goal here is to release new products and produce new revenue sources. Whatever you choose to sell, you must serve the needs of your already established customer base.
- Step 3: Things get a bit technical here; you’ll need to customize your product to make sure it suits the needs of your customers. Collect feedback, customer data (follow-ups, emails, AMZ Insight stats etc.) and think of new ways to get traffic. Once you score 100 sales/day, you can pay yourself from the money you’ve made.
Read the complete, detailed guide here.
Selling A Huge Product Line
In March 2016, Inc. covered an Amazon seller that made #70 million in 2015 and is expected to make double that this year. An interview with the staff revealed their secrets.
- Competing on Price: The guys from this company bought their products in bulk, based on projected sales (instead of stocking up just for the sake of it). The main way they bought in sales was by winning the buy box by offering a comprehensive price that was somewhere between too high and too low.
- Low Margins: They owners of the company claimed to have over 4000 products listed on Amazon. They sell products no one “wants to buy at a store” and with a huge line of well-known products (like Dove shampoos, for example) that all sell well, they are able to make a gigantic cumulative revenue.
Amazon Data Insights
All the methods highlighted above can’t be achieved unless you’ve got an eye on customer and competitor stats.
- Track Prices: If you’re planning to go the huge product line way, you’ll need to know the price being charged by the Amazon Buy Box winner. AMZInsight presents Amazon price trends in carefully laid out, visually appealing graphs that tell you how prices of the product/keyword have changed over time.
- Track Products and Keywords: If you plan to stick with the same products over the 12-month period, you’ll need AMZ Insight to keep an eye on its marketplaces, price, estimated sales and revenue, review summary and the like.