[ Ecom + AMZN FBA Journey ] - [Have Fun , Learn a Lot & Get a Nice Side Income ] - [ Already Making $$$ ]

TooCorny

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Hello there Fellow BHWers,

Some of you may know me from my IG+CPA journey back in 2018 when Instagram was still a Goldmine. Didn't go as planned but I did learn a lot of new things which have then helped me to improve in other IM areas.

Since the November 2019 IG Update, I have moved on to more stable & long term projects. Got into SEO quite hardcore for a while which I learned mostly from this forum and some cracked courses I downloaded. This helped me get my part-time job for a startup (3/4 hours a day from home), it gives me a lot of room to breathe since I don´t have to worry about my living expenses anymore.

Apart from this job I do some web design for clients which is some nice extra income every month.

giphy.gif


INTRODUCTION TO THE JOURNEY

Well enough talk let's get straight to the point, 7 months ago with one of my business partners we got serious with 2 things that we were always interested in. Ecommerce and Amazon FBA. I have done many shops for my web design clients so I have good experience in this topic, especially Woocommerce, where I can do basically what you can do in Shopify but for free. Just paying Hosting Expenses, Domain name, and Paypal / Stripe Commissions.

The idea originally was to sell products in Amazon FBA so we started looking for youtube videos and courses on how to become an amazon seller and every single part of the process to start selling in Amazon.

When we had acquired a decent knowledge of the topic we started with the 1st step as an amazon seller. PRODUCT RESEARCH. We bought a license in Helium 10 (Our favorite software for product and keyword research). We spent about 2 months looking for profitable products and we came up with a few nice choices.

As this was our first product we were looking for 3 things: Low investment with Moderate Revenue. The product needed to be small, light, and in the 15 / 20€ mark to save money in amazon referral costs and shipping costs.

We decided to invest 6000€ to stock up and set everything up nicely.

Apart from this, the product is eye-catching enough to pull some profits out of interruption marketing ads. We decided to set up our own 1 product branded woocommerce store and start selling it there as well. This business layout gives us a perfect opportunity to stomp it in this niche since we can also redirect all the sales from our website to amazon to get more sales velocity whenever it’s needed.

EXPENSES:

Recurring Expenses:

  • Accountant + Fixed Tax Payment: 150€ / Month
  • Amazon Premium Seller Fee: 40€ / Month
  • Helium 10: 99€ / Month
  • Amazon Warehouse Fees: 0€ ATM

One Time Payments:

  • GS1 Barcodes: 300€
  • Brand Registry: 150€
  • 12 Month Hosting: 89€
  • 1 Year Domain name: 12€


MARGINS

We have different margin calculations, one for amazon and another for our site.

In Amazon, we are moving around the 35% margin.

On our site, we have managed to increased our average order value to 30€ through upsells and Buy 2 or 3 units offers. So our Margins are way higher since there is only 1 warehouse fulfillment cost for 2 or 3 Units.

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UNTIL NOW...

  • 1200 Units in Stock (Not in Amazon, in a cheaper warehouse a friend works in)
  • 5.600€ Spent in FB Ads with a ROAS of around 2,66.
  • 1.700€ Spent in Google Ads (Shopping Mostly)
  • 500€ Spent in Pinterest Ads

Are we really profitable in our ecom store you may ask, well…

We are but not a ton, we might be getting 5€ profit per sale now that we have an average order value of 30€, all we wanted was to get enough experience and drive a lot of traffic and sales to our site to then be able to list our product in amazon and drive more sales velocity to our listing using 2 Step Urls while we also obtain amazon affiliate commissions.

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We have managed to sell over 800 units through our online store, giving us some nice profits

So far we´ve had 250 orders through Amazon in the last 3 weeks

We are ranking in the Top 1 Spot for some nice volume keywords.

We are still trying to polish our PPC campaigns since it has just been 3 weeks in amazon so far.

We are getting around 10/20 orders a day on amazon.

Also when there´s cashflow we run some daily FB campaigns to our site to get some extra income.

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THE GOAL:

  • Dominate our product niche in amazon and take down our competitors which are getting 1300+ sales every month
  • Build a well-known brand in our product niche to release more products on amazon and our site.
  • Launch 3 more products in different difficulty ranges to get all the knowledge possible.
  • Move on to all the other amazon TLDs once we have enough cash flow to withstand it.


WILL BE UPDATING THIS THREAD ONCE EVERY WEEK AND IF SOMEONE SIGNIFICANT HAPPENS MAYBE EVEN MORE OFTEN.

LET’S SEE HOW IT GOES :cool:
 
That's an impressive journey. I'm not sure if I missed it but where did you source the product from? Is it a generic item or a custom one with your brand name and everything?

Following this and good luck!
 
That's an impressive journey. I'm not sure if I missed it but where did you source the product from? Is it a generic item or a custom one with your brand name and everything?

Following this and good luck!
Hey there! We found a provider in China which is really fast answering and accomplishing our requests. There are more sellers selling this product, what we´ve done is create an attractive packaging and engrave our logo into each product. With those 2 things done and with some nice main listing we think our CTR has improved compared to competitors.
 
UPDATE

Things after Black Friday ended have slowed down quite a lot, we can´t figure out why since we are ranking well on many high volume terms.

We are also placing our bids high enough in Amazon PPC to keep the second spot for the biggest search terms, right after the people with crazily high bids, but enough to appear on mobile devices.

Our ACOS has gone above the roof for some reason aswell, we are testing out different things. First test we will put in practice is create an offer to reduce the price from 19.99 to 17.99 to see if people are not buying because our competitor is selling 1 € cheaper.

We will see How it goes.


WEEKLY SUMMARY

  • Orders on Amazon this week: 53
  • Spent on PPC: 480€

  • Orders on our Site: 47
  • Spent on FB: 750€
  • Avg Order Value: 31€

CAMPAIGNS ACOS:

  • AUTO: 47%
  • BRANDED KWS: 17%
  • MANUAL (BROAD, PHRASE & EXACT): 76%
  • MANUAL MAIN KWS: 79%

As you see these numbers are really bad, I will figure it out though, I am extensively researching for ways to improve my campaigns performance.

Cheers, have a wonderful week people
 
Thanks for keeping us updated on your journey! Good luck with more sales in the future.
 
UPDATE

We are back on track this week, organic sales have increased a lot. We have noticed that applying discounts works wonders apart from adding a coupon code to take up more space on the screen with a bright green color.

We are still waiting to get approved by Amazon to be able to do flash sales as well. For now we can only offer discounts to prime users, so we a bit limited in terms of reach with our discounts. I am certain that when this happens sales will increase even more.

We are also gonna take a shot and launch in more countries in Europe to start getting sales there as well. Since for now, we are only selling in one.

We will see how it goes. We need some good translators to help us do our listing optimization the right way.

WEEKLY SUMMARY

  • Orders on Amazon this week: 80
  • Spent on PPC: 450€
  • ACOS: 55% (Still Pretty Bad, I need to improve the campaigns)
  • Revenue: 1490€

  • Orders on our Site: 53
  • Spent on FB: 550€
  • Avg Order Value: 29.18€
  • Revenue: 1519€

CAMPAIGNS ACOS:

  • AUTO: 58% (19 Orders)
  • BRANDED KWS: 1.97% (3 Orders)
  • MANUAL (BROAD, PHRASE & EXACT): 60% (20 Orders)
  • MANUAL MAIN KWS: Stopped This One Until I get More Data

As you see these numbers are really bad, I will figure it out though, I am extensively researching for ways to improve my campaigns performance.

Cheers, have a wonderful week people
 
great journey
i will start doing *FBA soon
following your path
good luck
 
@TooCorny Do you have any updates? I'm curious to see how everything is going since your last post?
 
Yeah intrested in some update mate
 
I am also coming from Instagram and started AMZN after the big updates, goodluck!
 
Well time to end this journey. We have been fighting to keep going, but the increase in costs in global logistics and amazon fees increase is making it hard to make profit while staying competitive.

Also IOS 14/15 has also fucked everything up when it comes to making big profits in advertising.

Apart from this my partner and I are both working 9 to 5 now, and spending the time we used to before we had jobs is pretty hard considering we have our lifes aswell.

We have just let this run for a year on autopilot and have sold the 2000 units we had in stock.

So the final revenue balance looks something like this:
1663053701745.png
 
Well time to end this journey. We have been fighting to keep going, but the increase in costs in global logistics and amazon fees increase is making it hard to make profit while staying competitive.

Also IOS 14/15 has also fucked everything up when it comes to making big profits in advertising.

Apart from this my partner and I are both working 9 to 5 now, and spending the time we used to before we had jobs is pretty hard considering we have our lifes aswell.

We have just let this run for a year on autopilot and have sold the 2000 units we had in stock.

So the final revenue balance looks something like this:
View attachment 225262

This is still good right? You sold $100k in the last two years on semi-auto pilot. I'm just starting my Amazon journey, do you have any tips or suggestions for those of us just starting?
 
This is still good right? You sold $100k in the last two years on semi-auto pilot. I'm just starting my Amazon journey, do you have any tips or suggestions for those of us just starting?
Hey there,

I mean yes it is pretty decent, the problem comes with the thin margins you get. Unless you can get you PPC ACOS below 20% while still going aggressive it is pretty hard.

Also the lack of time does not allow me to be tracking campaigns as good as I would like to.

Another key factor is distributing risk among some more products incase you get hijacked or some new wild competitors come into scene and start dumping prices like crazy.

I would not consider this a fail at all. If I had the time to fully dedicate to it I am 100% sure I would be killing it.

I am saving some money from my 9 to 5 job and once I have around 60/100k savings I will fully dedicate to all my projects.

So yes, go for it! Amazon is a bit less newbie friendly that other methods but once you get the right product and understand all the types of PPC campaigns available you can make it.

Also you need quite a bit of cashflow to start off and don´t ran out of inventory which takes almost 60 days from china to arrive to Europe.

So yeah definately worth it but you need to have a good plan to start.
 
Hey there,

I mean yes it is pretty decent, the problem comes with the thin margins you get. Unless you can get you PPC ACOS below 20% while still going aggressive it is pretty hard.

Also the lack of time does not allow me to be tracking campaigns as good as I would like to.

Another key factor is distributing risk among some more products incase you get hijacked or some new wild competitors come into scene and start dumping prices like crazy.

I would not consider this a fail at all. If I had the time to fully dedicate to it I am 100% sure I would be killing it.

I am saving some money from my 9 to 5 job and once I have around 60/100k savings I will fully dedicate to all my projects.

So yes, go for it! Amazon is a bit less newbie friendly that other methods but once you get the right product and understand all the types of PPC campaigns available you can make it.

Also you need quite a bit of cashflow to start off and don´t ran out of inventory which takes almost 60 days from china to arrive to Europe.

So yeah definately worth it but you need to have a good plan to start.
Thanks man!

Yea I spent months researching products, finding a supplier, refining the product and getting cost down so I'm waiting for my first shipment. I have the cash flow from my first business to put into my new AMZ business.

I have a launch plan, a PPC plan, did keyword research using tools and put them into my title, bullets and backend words to help ease the need of PPC. I also plan on using Vine along with some friends of friends or friends to help push rank. I also have a website in which I will sell the same product for a few dollars less so I can drive traffic from AMZ.

Are you going to go back to selling what you were previously or will you be selling something new?
 
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