2 BIGGEST Hurdles Amazon FBA Sellers Must Overcome for Long-Term Success

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– So, Mark, first of all,
thanks for asking this question. I want you to comment below,
let me know what you think is the biggest hurdle for people starting businesses on Amazon. (jazzy music) – [Man] Mark F asks, what do you believe is the biggest hurdle
for a new entrepreneur entering into the Amazon FBA business? – I'm gonna give you two specific answers that are gonna be addressing your point, one that directly answers it and one that goes even beyond that. So, the first one that directly answers it is the biggest hurdle with people starting a business on Amazon. It's not the process, it's
not about leveraging Amazon as a platform to grow
an e-commerce business and gain that initial
traction with the audience.

It's not even about the
marketing or the ad dollars you need to spend to be
able to drive traffic to your listing on Amazon and be able to convert those into sales. The biggest thing that holds you back is understanding what
is the right pain point and the audience that
you're selling it to. So, there's so many different
products on Amazon right now. They get a ton of traffic,
people buying their product. And, also in the same space, since there's like the
Amazing Selling Machine, there's all these people
selling business opportunities on how to grow and start a
dropshipping business on Amazon which is the biggest thing
that's gonna hold you back is actually the competition, right? There's so many different
products on Amazon. How do you decide the
right product to be able to sell it to your target audience and actually build a
successful business around that doesn't actually hinder your success in the long term? So, that's one of the things
that you wanna decide on, not just on the short-term
selling on Amazon, but you wanna find the
audience that you're selling to and what problem you're solving for them.

You wanna find a product
that solves a problem. Do not sell a commodity-based product. I have an entrepreneur, now that I recall, a friend that actually sell,
he does about, I think, $15 or $20 million and he
sells glow sticks on Amazon. He dominates that entire space. He got into it really
early, he does dropshipping. His margins are really low,
but he does extremely well selling glow sticks. Now, right now, at this point in time, he's actually trying to
pass off the business, he's trying to sell the
business because he himself is knowing that Amazon is
changing the algorithms, it's all dropping right now. How can he stay competitive
with glow sticks when there's all these
different other products that people basically use to party, right? People buy glow sticks
because they're either camping or they're using it at a
rave or some kinda party or some kind of event that involves, like, doing flashy glow sticks and stuff. But, he's built a successful
business around it for a couple years.

And, now he's transitioning out because you can't stay
competitive with something that's a commodity that
people can get for a few cents off China and bring it
back to Amazon to fulfill. So, that's the first thing
is what is the audience who you're selling it, what is the problem that you're solving? Pick a product that actually
solves that specific part, that's not as competitive to
what everyone else is doing. Because there's people entering
the space just like you. So, you gotta be able to figure out what is that differentiator
for you and your business to your target audience,
the copy, the images? And, this goes into the second
point that I wanna tell you is going beyond that. If you're doing Amazon FBA,
if you're doing e-commerce, don't focus, understand that Amazon is just a distribution channel.

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It's just a way for you to leverage that so you either build a bigger brand or use it to sell their product. The long-term goal is
how do you build that to your own platform,
whether that be on Shopify, on WooCommerce, or on Pure Shopping Cart or whatever the other name was. But, all these different
e-commerce shopping carts, which I recommend Shopify,
how do you actually build a brand around that? What are the values that you associate with your target audience? How do you drive traffic to your website, how are you able to convert those and start the communication process with your target audience, and then how do you convert
those into actual sales both in the short-term
and also in the long-term? Because you gotta keep
in mind, doesn't matter what business you're in,
60% to 80% of your audience is never gonna transact
with you on the first month or the first few weeks that
they discover about you.

They need multiple different touch points. So, you gotta consider
what is the long-term brand for your e-commerce business? Don't look at just this part. Understand the whole roadmap
and then reverse engineer and use Amazon as the
launching platform for you. Which a lot of people who
have started FBA on Amazon, created a small brand using one product and then a few complementary products and then they expand it outside of Amazon. Because Amazon right now, it's extremely competitive on there. They control the whole process. It's very hard to compete,
so you wanna make sure that you think outside of Amazon as well in the long-term. So, that's just give you some context into answering your question. I wanna give you some
more additional stuff. If you got value from that, I want you to comment below first and let me know what insights or value that you got, what questions you guys have related to e-commerce.

And, I hope you got value
(jazzy music) from this and I look forward to seeing you guys in the next video. So, make sure you also like this video and also subscribe and
click that bell icon because if you guys click that bell icon, you'll be able to get
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gonna be recording for you guys. So, thanks again for watching and I'll see you in the next one..

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