Using Amazon Fulfillment to Grow Your eCommerce Business with Michael Begg
A lot of people who listen to the show are small business owners. Many are Web savvy perhaps maybe even web developers so they can probably build their own e commerce. I'm guessing using commerce. That's generally popular platform. I mean it's like a quarter of e commerce sites commerce so If they are you know if we have a small business owner who wants to get into kind of selling stuff online Maybe their own products. Maybe not right because you demonstrated that it doesn't necessarily have to be your own products. What are some of the things that they should think about. As far as research goes As far as like researching what products they want to sell or you know just kind of understanding how the amazon platform works. Let's let's go with kind of how the amazon platform works rate We had previous upset about drop shipping talked about kind of researching products. But if you have tips you know that was two years ago now and not talk here and there. I know a lot of things have changed. I mean the amazon platform is pretty straightforward. Obviously the consumer customer side is a lot better build out than the actual seller side. You know there's a lot of pain points on the seller side. There's a lot of people get frustrated with amazon. Just part of the process amazon is bill to serve their customers not their sellers. Which is its own thing But anyway you sign up with a professional account cost about forty dollars a month from there you upload your listings you need to have. Upc bar codes for your products. Need to purchase those from a gs. One those are about ten acts like three hundred dollars so it's not that crazy from there you can list your products on the platform and amazon will pretty much handle the entire fulfilment side of the sales if you want to again. If you don't have your own warehouse you fulfillment team or you don't wanna be packaging hundred dollars a day to go ship out yourself amazon's great for that you know using amazon. Fbi you can send all your inventory right in. They'll distribute it across the country closest to the consumers that are gonna probably repurchasing your products and then as the orders come in. They'll handle the shipping mail. The customer service in any issues on that end so super helpful. If you are small business any don't have the capabilities to really deal with the fulfillment and customer service aspects. Yourself if you do. I mean that's great. You don't need to use fbi also florida's directly from your warehouse but fbi deafening. Get you a little more visibility on the platform definitely helps you stand out more. Get the prime badge which is another very big selling point when consumers are shopping on the platform and bats more or less the basic steward. I mean there's a lot of other a specific niche things that we could talk about. That can help you sell more. But just getting set up on the platform is pretty straightforward and following those processes. You can pretty much do it on yourself on your own. Yeah for sure. So the kind of use cases. I'm thinking through right. Now is maybe we have like a maker who's creating their own stuff Or we have somebody who's may be looking into drop shipping or or Retail arbitrage i. Okay somebody who's selling other people's products and it seems like i if i'm making something i can. I can basically send it to amazon for them to fulfil or i assume if i'm doing some If i'm buying someone else's product in bulk i can have them send it directly to amazon is i. Is that how it goes or do i need to do. I need to me then. Intended to amazon. Yeah i mean most of the time we're going to have it sent to yourself or you're going to be seeing yourself in person and then you're going to be sending it to amazon. That's probably about ninety percent. There are some people that will send it directly amazon for you but it's a little bit more difficult to find. I see it really doesn't matter what size business you are having employees. There's there's so much potential. Here on the platform declined. That was literally a one person operation to start with. It started working with us a couple years ago. She was doing about fifteen twenty thousand dollars a month in sales. And you know two years later. She's doing three hundred and fifty thousand dollars a month in sales and now she's actually being able to build a team i mean she's she's making significant revenue. She has a significant team to help her now. And that's just one example of how quickly you can grow on the platform. You know how much you can scale a business. Just through the amazon sales channel. Yeah that's great until and this is Kind of reason we're talking about. This is because as a freelancer as a small business owner. You worry about when you're one big client says we don't need you anymore right like we wanted. Diversify our income and so Selling through amazon is a good way. Now i suspect of the listeners. Like me Do more kind of digital products. You mentioned that. You started selling books on kindle. I wanna ask you about that in the members only show sure But in general amazon. We're talking mostly about physical products. Here right yeah. For the most part the kindle side is just one piece of amazon there's a royalty based business so you create a digital content. And you're making money forever. I mean books. I published eight years ago or still right review royalties every month. So yeah that's just one way to do it but You know physical product businesses are also pretty easy to build platform in not that challenging to do on. It's not a fulltime job. Do it on your own if you have a few products that you're selling so and that's fantastic because the fulfilment is the hardest part. I don't have room in my house to keep inventory right. I've got two kids now. So i don't know that they're toys r. Where my inventory would be Now now the other part of this is that you your personal path has led you to creating amc advisers and you have you say you're running a remote team of thirty right yes. So let's let's talk about kind of how you built that team and then how you moved to remote right as right now. Listeners can see this. Of course. But i'm looking at you in an office with multiple desk but you're by yourself. I assume because we're recording this in the midst of a pandemic yes that would be a good assumption. Actually kind of a funny process that we went through. I mean it started with Definitely working remotely and then coming into his office and now now we're remote again because of the pandemic. Yeah i mean as a business. We started growing. It was myself into other partners in the agency star way than we were handling a lot of things ourselves. We were able to get to about forty thousand dollars a month and grabbing you with us stanley which was nice. I mean that was like ninety percent margin so that was a nice little payday. Then we realized if we wanted to actually take you beyond this build. Something that had some equity value or or something that could provide an exit in the future We really need to build a business. Not just be doing freelance work again. If you're relying on a lot of clients a couple of big clients that are really bringing in revenue. We kind of were It's there's a lot of risk. Hang your business model that way. Just put it that way so we realized that we had to start scaling. We started using. Birds will assistance in the philippines So that was one aspect of our remote worth team. Obviously there's definitely challenges with that time zone. Being one of the big ones we as an agency. We need to respond to clients quickly. We need to provide good customer service in dealing with time zone. Differences created a lot of issues around that sometimes so we continue to grow and i actually came to guadalajara. Was where my girlfriend. Why i'm still here And as we continue to grow we need more people so we started hiring client facing people remotely in the us and content team people here in mexico so doing graphic design content writing Administrative stuff things like that now actually started hiring client facing people here in mexico as well so it's just been a process of scaling like that. Obviously march twenty twenty hits in that kind of all changes The other pandemic comes in. Now everyone's working remotely in mexico now. We have eighteen people completely remote and it was. It's obviously a big change. I mean i know it affects people differently By we had a great offer community prior to the pandemic it was great like how people we worked with really enjoyed. And now i know a lot of people are missing. Adding that interaction with everyone impervious ended up the same talking through slack for example. But it's one of the challenges that that most companies are facing.