Thanks For Inquiring About Our One-Of-A-Kind B2CMasterClass, Designed for Businesses Selling On Amazon Who Want To Sell Much More OUTSIDE Of Amazon And Enjoy Even Bigger Profit Margins.
Let’s face it, Amazon can be great for some, average for others and downright difficult for most. There are numerous pitfalls and minefields too… Hackers, copycats and cut-throats abound more in this one place than anywhere else on Earth.
Why? Because it’s so easy to get started.
It attracts anyone and everyone – especially newbies who may stealing your sales through their ineptness… The REAL winner is, of course, Amazon itself. Always.
They’ll have you believe it’s their customer that wins, and that may be true, but it’s their customer that wins, not yours. Therein lies the rub.
As you know, Amazon doesn’t allow you to email or call the customer that just purchased your product. Amazon claims their customers belong to them, period. Good luck trying to work around that. There ARE work-arounds, but they’re time consuming and costly and will probably break the Amazon rule book, possibly leading to your account being delisted.
Did you know that Amazon is constantly under threat of current and future lawsuits by Vendors, Suppliers, Customers and the U.S. Government. As of this writing there are 14 class action lawsuits and over 75,000 individual cases outstanding.
Any one of them could threaten the way Amazon does business and your profits could quickly and irreversibly go down the drain, if Amazon was legally forced to change the way they conduct their business.
By the stroke of a pen or the tap of a few keys, everything could change…
So we all know we should diversify.
But how? By selling on eBay or Walmart? These platforms present almost the same issues. You don’t do the marketing. Yes, you purchase long-tail keywords. You’re an Amazon/Walmart/eBay marketing expert. But so what? You are not in control of the customer you just sold to.
We’re not knocking Amazon – or the others… We’re not asking you to leave and stop selling on Amazon.
We’re recommending diversification, but in a very tightly controlled way… for maximum growth and a much bigger EBITDA, with less cost per sale than you would spend on Amazon.
So why do almost all of us gravitate to Amazon? Again, because they make it so easy to get started. Amazon does all the “heavy lifting” for us, providing us with an environment that has millions of customers and gazillions of eyeballs.
Easy peasy. Sales, here we come…
Then the reality sets in. It’s not as easy as it seems.
There’s the all-important Buy Box. There’s competition. It’s fierce. It’s brutal. It’s cut-throat.
Then there’s the expensive keywords you almost HAVE to buy to stay competitive.
And after all of this, Amazon wants the sale and they will do almost ANYTHING to get the sale REGARDLESS OF WHO THE SELLER IS.
Yes, you need the Buy Box, Yes you need 5 star reviews, Yes you need FBA (Fulfilled By Amazon), and on and on and on.
Their rules. Their game. Sound familiar?
So AMAZON makes most of the money – not you or your business. That’s their business model. It works for them better than it works for their millions of Vendors – including your business – who are all selling their products on the Amazon platform.
Think about it for a moment. Amazon charges you 15% just for having your listing on their platform. If you use their “Fulfilled By Amazon” (FBA) service which you almost HAVE to do to remain competitive and WIN the Buy Box, then you’re paying about 13% in additional costs to them for fulfillment and shipping.
Now you’re at 28% in costs and fees and you still have to purchase keywords and marketing expertise. Then there’s the wholesale cost of the product itself. This could be 25% to 40% or more of the retail selling price.
You’re now at approx. 68% and this is without your keywords and marketing costs! Pretty soon you’re left with 10% to 15% for re-investing in your growth. Oh, and that 10% to 15% includes any net profit left over AFTER you pay yourself and your people.
Amazingly, this may be considered good by some, great by others, as there’s really not much marketing or selling to do to earn that 10% to 15%. You just show up with your products and go where the eyeballs are!
Yes, Amazon has the eyeballs. And if you can “turn” your inventory every 30 days then you’ll earn 10% to 15% per month which equals 120% to 180% per year.
Again, most businesses would consider this good to great and quite profitable!
Amazon businesses can be sold too… You can list your Amazon “business” for sale and perhaps get a fair valuation and a decent price for it. What’s your Amazon “business” really worth? Will you get a top-notch multiple of 6 to 8 times your Earnings Before Interest, Taxes, Depreciation, Amortization (EBITDA) for it? Maybe. Maybe not.
So looking at this whole scenario again we see that relying on Amazon business is ok for some sellers, not great for others and profitable for a select few.
If you’re happy with your current Amazon “business” then please stop reading now. We do not want to waste your time. Seriously, just stop reading now.
On the other hand, if you want much, much more for your business than solely relying on Amazon sales, if you want your business to be worth so much more to a savvy investor by NOT RELYING solely on Amazon, if you want to REALLY GROW YOUR EBITDA, (Earnings Before Interest, Taxes, Depreciation, Amortization) then discover our breakthrough event…