Mike Begg of AMZ Advisers talks about all the different aspects from setting up a listing on Amazon to Advertising and to having him fulfill your orders for you. He and his company specialize in assisting retailers, brands, and suppliers to achieve greater success on the Amazon Platform. He assists them in navigating and increasing their revenues over time by handling their Amazon Platform account.
AMZ Advisers is a full-service eCommerce & digital marketing consultancy with extensive experience in creating high-growth strategies for brands and manufacturers on the Amazon platform.
For Mike, Amazon is just a sales channel within eCommerce. The great thing about Amazon is that it’s where everyone’s going to find products now. When people are looking for a new product, the number of searches that are actually starting on Amazon is about 69%. People that are getting online either don’t pay enough attention to the Amazon platform and don’t take it seriously enough or haven’t seen the results in the past to justify a big investment on their end to get into selling on Amazon.
A standard referral fee for selling on the Amazon platform varies between 8% and 20%, depending on your product, but for most products on the platform, it’s about 15%. It’s a requirement on the platform, and there’s no way to avoid that. After that, you have the option of using Amazon FBA or Fulfillment by Amazon, and you can send your inventory to Amazon. Every time you get an order, Amazon will send the product out for you that has an additional fee, which typically comes out to be about another 15% of your sales price.
Amazon might be a lost leading sales channel, but the idea is to continue to build that brand awareness and hopefully leverage that onto other platforms or increase overall brand loyalty and hopefully get customers to come purchase from the website in the future.
What services do you offer that make you guys better than anyone?
Starting with the content, they make sure that they have everything is perfect. They focus on the content, which is the imagery because attention spans are short. If they don’t capture the buyer’s attention immediately while they see the images, they will probably move on. The main feature points or unique feature points that the customer has compared to other competitors are important in those images. When buyers come to the page, they can see it, and they’re going to know whether they want to buy your product or not.
Mike and his team help their customers set the fundamental things properly so they can accomplish their goals.
How many times have you encountered customers that use Traditional Digital Marketing Agencies?
Mike says it happens fairly frequently. A lot of larger agencies are starting to hire starting to acquire a lot of other agencies to get those types of skills that they need. There’s still a big lack there, and it’s also a shift in certain aspects, at least the way that we help their clients from a traditional ad agency.
Mike has had plenty of clients that have blown through $100,000 on ads and only generated $20,000 in sales. It takes that intimate understanding of what the fundamentals are and how to leverage the advertising with those fundamentals to actually achieve the growth they need.
What is the percentage of selling from a standalone website versus Amazon alone?
In Mike’s case, it’s 100%. He says it’s extremely important to have more sales channels. A lot of the brands that are achieving more success have some online presence and understand the concepts that are involved with selling online.
Most of Mike’s clients have their own website, and some of them are more successful than others with their own website or just understand that they need to pay to play on the Amazon platform to generate those sales.
What other platforms do a lot of your clients use, and which ones do you find are the easiest to work with?
For Mike, the most common platforms that his clients use are Amazon, Walmart, and then depending on their products, they may be on Etsy. When it comes to the ease of the platforms, Amazon is definitely the easiest.
Mike says that you need to focus on what platforms are right for your niche and where your target audience is going to be.
When it comes to just building an online presence or advertising online, there’s a ton of options. Amazon is now the largest advertising platform in the world, and the ad demand is going to continue to grow. The ability to reach customers is only going to continue to improve as Amazon attracts more customers, collects more customer data, and makes retargeting or targeting audiences even better.