TAS 120 How BIG Amazon Businesses Choose and Launch Products (employee shares details)

There are very big companies that have made private labeling on Amazon their sole source of income and revenue. Wouldn’t it be great to get a behind-the-scenes look at how these big companies that create multiple brands go about doing business on Amazon? Well in today’s episode of The Amazing Seller that’s exactly what we have. Scott’s guest is Jason Brunson. Jason is not only an Amazon Private Label seller himself, he’s also worked for one of those large companies for a number of years and walks us through the step by step process of how these companies go about doing everything, from product research, to optimization of their listings and product fulfillment. It’s a great episode with lots of tips and encouragement. Be sure you give it a listen!

Getting started on Amazon with Arbitrage through used book sales.

Jason and his wife heard about the possibility of selling products on Amazon and decided to give it a try. Their first venture was using the arbitrage model. They chose to find good used books to sell on Amazon and actually made a decent amount of income each month. That’s when Jason saw an advertisement on Craigslist that was offering positions to people to work for a company that sold a variety of products on Amazon. He applied and was hired. At first he worked in the customer service area but very quickly was moved to marketing, where he worked on Amazon listing and product sales. He eventually took what he learned at his place of employment and started applying it to his own Amazon business and now is doing his own private label sales. As usual, Scott’s got lots of questions so be sure you listen so you can glean from Jason’s experience.

How does a company with 8 brands and 1500 SKUs operate on Amazon?

Believe it or not, the larger companies appear to do their product selection and research as well as their marketing and product sales very similar to what the “little guy” Amazon sellers do. The main variables have to do with the company’s willingness to try products and order larger batches to find those winner products. But in the end, the result is the same. They eventually find products that will sell consistently and use them as a basis to build a new brand. From there, you guessed – they add products to the product line and build out the brand. What do they do with all the products they’ve tried but haven’t turned out to be good sellers? You’ll have to listen to the episode to find out, PLUS hear lots more tips and insights Jason gives us, on this episode of The Amazing Seller.

Filling in the income gaps during slow times of the year.

One of the things Jason Brunson shares with Scott on this episode of The Amazing Seller is that the larger companies are pretty strategic at making attempts to balance out their product sales throughout the year. That means, for example, that since fall time is a slow part of the sales cycle, they’ll intentionally search for products that sell better in the fall time to add to their product line. This enables them to start generating income during a time when sales are usually down. Naturally, that balances out their income stream. Can you do this in your business? Scott thinks it’s not only possible, but necessary. You can hear his comments and Jason’s insights from what his company does by listening.

How can you find gaps in a market that you can fill?

Today’s guest, Jason Brunson, has worked for a company that has over 1500 SKUs in their Amazon account. They’ve worked hard to choose products that fill gaps in their existing markets. This enables them to get sales that others are missing by offering something unique but potentially in demand. Jason said that in order to figure out what those products are they look at a number of things going on in a particular product niche. What are those things? Well, they’re too many to list right here so set aside some time to listen tot his episode and you can find out. Grab your pencil and paper, you won’t want to miss any of them!

OUTLINE OF THIS EPISODE OF THE AMAZING SELLER

  • [0:03] Scott’s welcome to this conversation about Big Amazon businesses.
  • [1:48] A quote shared inside the TAS Facebook group.
  • [3:37] Introduction of today’s guest, Jason Brunson.
  • [4:44] Jason’s first moves on the Amazon platform – selling books – how it worked or him and why they chose that path.
  • [7:15] The margins to expect in used book selling on Amazon.
  • [8:14] Jason’s job with a larger company – handling over 1500 SKUs.
  • [11:08] How the company operates – 5 brands – broad niches
  • [11:47] How this big company does product research.
  • [15:09] How does the company determine the number of units it should start with?
  • [16:25] Using seasonal items to fill in sales gaps within the year.
  • [17:47] What does a launch process look like for this company?
  • [19:16] The use of Amazon PPC for this company’s strategy.
  • [20:26] Jason’s move into Amazon Private Label on his own.
  • [21:42] The things Jason has done in his own company that he doesn’t do at the big company.
  • [22:42] Jason’s product launch process.
  • [24:09] How long does it take Jason to see consistent sales?
  • [25:31] Jason’s business currently runs on 8 SKUs.
  • [26:45] Finding gaps in a market.
  • [28:32] The importance of ranking in Jason’s mind.
  • [29:42] Jason’s thoughts about the new Amazon PPC.
  • [30:24] Is bundling a good way to make more sales?
  • [32:01] Is Amazon becoming too saturated?
  • [34:00] Jason’s thoughts toward the future.
  • [36:11] The importance of reinvesting of your business.
  • [36:56] How do you get rid of products you’re not selling?
  • [38:29] What is Amazon Marketing Services – and how does it work?
  • [46:47] The best place to connect with Jason.
  • [47:80] Scott’s summary of the conversation.

LINKS MENTIONED IN THIS EPISODE

Scott and Chris’ free workshop  – http://www.TheAmazingSeller.com/workshop

www.TheAmazingSeller.com/FB – the TAS Facebook Community

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15 comments
  • Hi Scott, another great podcast. Would you say then as a seller on Amazon you’re better off selling items with a $30+ price point?

    Thanks, Tony

  • Hi Scott,
    first I want to apologize that I am asking you a question in the podcast which is not about the topic I am asking, but I hope you will be able to answer me anyway . Here`s my question : have you ever experienced with an issue – hazmat review. I listed a product and i want to create the document for my supplier to ship the goods, in the section “manage fba inventory” but it says your product is under hazmat review and I am not able to use option fulfillment by Amazon either,because of that .
    And I also have an issue,i kind of can not switch sell as individual on to sell as professional. I believe you can help me with that,because i am stuck right now,and the Xmas are coming so you know what it means. Thanks again for your amazing podcast,it really helped me through the process,you are bringing priceless value to our businesses.

    Have a good one,Ludo.

  • Hi Scott & Jason!
    Small question about Amazon Market Services & Vendor Express :

    Do I HAVE TO cut a wholesale deal with Amazon in order to appear in those small under-the-buy-box ads Jason mentioned? Or is it a program that once I get approved to be a part of, lets me bid for these spots?

    I wasn’t really sure, and would appreciate if you could make this clearer..
    Thank you!

      • Hi Scott!
        So from what I understand, the process would be:
        1) Apply
        2) Send them units, for them to review them.
        3) Get approved
        4) Agree on markup

        And only then do they let me use the marketing services?

        Thank you!

    • Ron,

      It is currently closed to everyone except Vendor Central or Express partners. Vendor Express is really easy to get into though and once you are in AMS you can run ads for any of your products.

  • Hi Scott, sorry to comment on wrong podcast, I just watched TAS 26 and realized that I kinda have fallen into popular product trap. This is my first product and been live just about 8 weeks now and really want to get it to work. What would be your suggestions? Thank you.

    • Hey Man T, I replied to your comment on the “ask scott” page, but I’ll drop a line here as well. The biggest thing is to keep moving forward. As long as you know there is demand in the market, you can make it work. In more competitive markets, it will just take more patience. I KNOW that you can start getting things headed in the right direction, even if it’s more slowly than you’d hoped.

      • Hi Scott, thank you so much for taking time to answer my question. This is exactly kind of answer I wanted to hear, at least it gives me the ground to keep pushing..

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