Productivity and Pareto's Principle Applied to Amazon FBA

JonBattleJonBattle subscriber Posts: 1
The 80/20 rule or Pareto'ss Principle has gained increasing popularity on the Internet's entrepreneurship forums. It's discussed so much because it works so well. It is especially effective, when it comes to product-based businesses.

But here I'm going to discuss it's use for Amazon products when it comes to sourcing and initial promotion of your product.

The first thing you need to do is find your product. (You want to private label, so think of a cool brand name)

I have detailed my process for how I find products here: http://www.reddit.com/r/FulfillmentByAm ... or_amazon/

This is part of the process most people agonize over. Finding this pretty good product took me less than 30 minutes.

Sourcing the Product

This process is also detailed here: http://www.reddit.com/r/FulfillmentByAm ... or_amazon/

You have to remember to do your due diligence on this step. Make sure suppliers can keep up with your business scale and can deliver products to your Amazon FBA warehouse destination in a timely manner.

Have a sample of the product sent to your home so you can test it out.

I advise you to spend a maximum of 3-5 days on this part of the process. (excluding the testing the sample part it could take a while to get to you)

You can speed it up through talking on Skype rather than email.

Create your Product Listing

Spend time on this part of the process as well but don't stress it. You can always change it. You should have your bullets express benefits rather than features of the product.

Spend time looking at your competitor's listings. What questions are frequently asked, what areas is their product weak in according to their reviews, this can aid you in what model of product to source.

4 Shipping Your Product to Amazon

I advise you to have a small shipment (your first) sent to your home, so you can make sure your manufacturer followed all of Amazon's FBA shipment requirements.

Promotion, Part 1: Get friends and family to buy your product (at a discount, you animal) and have them leave reviews. Once this is done some say aim for 10, I prefer 25 to 50 reviews.

Okay, now your product is on Amazon and has a few reviews. It's time to pull out the big guns.

Promotion, Part 2: The Big Launch

The only two things that matter on Amazon are sales and reviews, I repeat sales and reviews.

You can get both these in one shot using a launch service.

Two crowd favorites are Zonblast.com and Viral-launch.com

These services send an email blast of a coupon to an eml list of ready buyers. The more you give away the better. You'll want to follow-up for reviews as well.

A launch of 250 units should secure you a good position. It will at least get Amazon marketing your product for you with no ad dollars spent on your part.

Check out an example of this on the promo image here: gum.co/crush

Sales and Reviews

So, what's left, inventory reordering and you can assign a VA to follow up for product reviews or do it yourself.

To start losing positioning, do another launch or add a new product to your brand.

You can use your manufacturer's photos or yo may want to invest in some photos that highlight your brand.

Once you have a good amount of reviews and consistent cash flow. Then look at other traffic sources like Adwords, FB ads, Bing ads, and maybe even Media buys.

Then build your website and do all that cool stuff wantrepreneurs want to do. (Buy a company t-shirt, you have the cash flow now)

If you'd like to know more about this process, check out this post from a while back [Over 500 upvotes for a reason ]

http://www.reddit.com/r/Entrepreneur/co ... e_you_5000
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