Amazon Finances: Do you REALLY know your Amazon Numbers?
Managing your Amazon Business Finances with Henson Wu
Kris Gramlich and Dustin Kane are joined again by Henson Wu from FeedBackWhiz. Henson breaks down what’s new at FeedBackWhiz and talks about Amazon finances!
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Amazon Finances: Do you REALLY know your Amazon Numbers?
– Hello, everyone and welcome to episode 88 of Two Amazon Sellers and a Microphone brought to you by Sellozo. Today, Kris and I have a great guest. He’s coming back, we’ve had him on before. Henson Wu from FeedbackWhiz. Henson, how are you doing?
– I’m doing great. How are you doing?
– We’re doing good, thanks for coming back.
– Yeah, thanks for inviting me again.
– Absolutely, so well, real quick just for everybody. You wanna give a little, anyone who didn’t listen to the last episode or doesn’t know who you are, a little background on you and FeedbackWhiz?
– Sure, yeah. Background for me, I’m currently the co-founder and CEO of FeedbackWhiz. And for FeedbackWhiz, we’re a Amazon software company and in a nutshell, we help Amazon sellers increase reviews, brand reputation, profits, a bunch of tools that we have, including email automation, requesting review, profit analytics, review management, analytics alerts. We have a lot of really good tools that help Amazon sellers. I, myself, I was a Amazon seller in 2014, started pretty much where Amazon started to boom. I’ve been actually doing e-commerce way before since I was in high school. I’ve always been selling products starting from eBay and stuff. So I’ve been doing e-commerce for a really long time, but my main, I guess, background was electrical, computer engineering. So I worked in that field for 13 years and then I started this company in 2017. So that’s where we are today.
– Yeah, we had you on episode 12 which was way back in October. And around that time, October, 2020, around that time, there was some kind of shift going on with messaging. Amazon was coming down on some type of like, I can’t recall but there was some type of a messaging restriction going on. Touch base on that to get what was happening there?
– Yeah, so I think it was September of 2020 where Amazon came out with some buyer-seller messaging policy guidelines and they weren’t particularly really new guidelines. They were just basically saying, hey, we’re gonna come out and start enforcing people who are trying to incentivize reviews or manipulate reviews. And most of it was really, sellers not understanding how to ask for reviews through emails. And then at the same time, Amazon did introduce a new request to review button, which is a way where sellers can have a peace of mind on clicking on button and then Amazon sends an email in their behalf to request a review. So that’s kind of what it was. I mean, I think most sellers that have been for a long time are aware of the policy changes. They’re all hosted in Amazon communication policies. I mean, it’s basically just have to understand that you can’t manipulate reviews or send stupid messages to buyers harassing them. They just wanna kind of cut down the communication between the seller and buyer. And as we see, Amazon is solely trying to break apart the bond between the seller and buyers. They’re removing even the internal customer data for the sellers now they can see with the customer buyer information. So I don’t know if it’s good or bad thing. I mean, for sellers, most sellers don’t like it but I don’t know for buyers, maybe it’s a better experience since they don’t have to constantly get harassed with a bunch of emails and messages. So, yeah.
– Yeah, the landscape’s always changing. That’s that’s what we say a lot in here is you gotta stay on top of it. Messaging that used to work doesn’t work now. What are you seeing though, just real quick. ‘Cause I know we wanna focus this episode a lot more on managing your Amazon business. Finances, which we’re going to talk on. But right now, in terms of messaging, what are you saying that is effective? I know we touched on a little bit this on the last episode, but what’s a good message to be sending out just to buyers right now?
– Yeah, if you read the communication policy closely, there’s a few things Amazon still allows you to send. It has to be something pertaining to the order. It can be like a thank you message. A lot of people, a lot of sellers like sending a message saying, thank you for your order. If you have any questions, like emails but you can’t send that anymore. Like if it’s just that message, they don’t want you sending that. So what a lot of sellers are doing now is they’re creating like documentation for the product like PDF files, product constructions, something of value to help the customer making sure that when they get the product, it’s somewhere like I would say like in between like making sure that you know how to use it versus making sure that it’s necessary to complete the order. Like, for example, if I had a product where it’s gonna sit on a porch for a day or two and it’s gonna spoil or something, they need to know like, hey, you need to take it out or after a special handling instruction or something like that. So what we’ve seen is like, seller’s been sending those kinds of, they’ve been generating their own PDF file or some kind of custom message to send out. And that’s just generally okay. And you know, within that message, of course, you wanna still follow the communication guidelines, not violate any things like incentivizing them to leave you a review or trying to bait them to find out there’s something wrong with the product and contact you, things like that. And then, you could still send the review request email. That’s still definitely allowed. So one of the great things about the communication policy update was that Dave came out and specifically said that, hey, you are allowed to ask for a review using by buyer and seller message, which was kind of a question that a lot of sellers were questioning for quite a while. But it’s in there, you can send it, you just have to follow guidelines. One of the other things I would say is important is that the software you’re using or however you’re using it right now, they’re kind of like dumbed it down where it’s pretty much like you can’t add like images or like tracking things or things like that. It has to be pretty much almost plain texts in a way where you have a few ways to change the font and size. And then one of the things that we’ve seen a lot is a lot of sellers copying and pasting templates from let’s say, random stores and they’re just pacing it into a program. And one of the things that Amazon has done now is they’ve restricted the amount of HTML that you can send through the system. So there’s certain HTML tags they allow that can go through and there are certain tabs that they don’t allow. So what ends up happening is some sellers don’t even know they started copying weird stuff from different types of sources and then it doesn’t go through and then they think that they can’t send it. So we also noticed that within the Amazon buyer-seller messaging platform, they have these messages now that display after you send a message. They’ll either tell you, it’ll tell you if your message goes through or not. And it also tell you the reason why it doesn’t go through. So it’s getting better on the Amazon side but yeah, that’s kind of how where are we at today with buyer-seller messaging. It’s still definitely effective. Amazon’s letting you do it so there’s no reason why you shouldn’t do it. You still send a message. But then you also have the option of using either buyer-seller messaging or the Amazon review button. And in my opinion, both of them work really well. So you can choose which one to use. You just can’t use them together in terms of sending multiple review request per order. So you can stagger them and say, hey, some products, I wanna use buyer-seller messaging. Some products, I wanna use the review request button. And yeah, we’ve seen a lot of sellers are still getting great results, still getting a lot of reviews.
– Yeah, you can’t use both. I’m a victim. I used both and I got shut down for the messaging part. So definitely be sure you choose one or the other, ’cause if you do use both, I mean, Amazon will send you a little email. I think they suspended me for like a month or something for as far as messages go. But now, I just fully do just the rating, the Amazon review rating. It seems to get a lot more attraction from what I’ve seen. And it’s coming directly from Amazon, which is nice. And people just click on it, click a review and off they go. But either, yeah, we’re here today to talk about the finance. You guys have shifted a little bit out of the new tool or new new tools here, your arsenal. Talk a little bit about what you guys have done with this profit and loss tracking tool that you’ve added.
– Yeah. So yeah, we’ve been just trying to build a lot of interesting tools that sellers, at least based on the feedback really want to have. And one of the first things that we’ve created is the profit and accounting tool. And what this tool basically does is it’s like any other profits software. Pull all the data in from Amazon whether it’s your, either fees, your PPC, your sales orders, all that information. All that information comes in. However, what we try to do is make that data more relevant to the seller. Meaning like you have a lot more functionality on how to use that data to help you identify trends. So for example, like having different trend line data, like in one dashboard you can see like all your ASINs and then you can see all the turn lane graphs for any period you wanna customize, right? So like at a glance, if you’re selling 100 products, you can kind of basically identify which products are trending in the right direction, which ones are not doing so well in any of the metrics, not just sales and orders, but PPC, it could be fees, all that data. And on top of that, we also allow sellers to customize products and group them together. So one of the problems with Amazon is that you either see the data for your entire business or you see the data for one of your listings, right? There’s a way to like say, I wanna grab product A, B and C and group them together compared to product D, E and F. That’s what we allow sellers to do is that you can come in and customize and label your own products and say, I’ll call this variation A or I can call this category electronics. And I wanna compare category electronics to category toys, right? So this gives you even more visibility in how your products are performing in a category or your customer categories. And then what we’ve also done is the ability to aggregate all the data from different marketplaces. So if you’re selling in Europe, you have five different marketplaces. You might wanna compare how electronics in Europe doing versus electronics in US. Things like that. There’s a lot of really, I’ll say powerful stuff like in terms of cost of goods and even Amazon expenses, we allow you to import insight too. So you can set start and stop dates, put notes. So it’s a really robust tracking system, not just to display your Amazon profits but it’s to help manage your entire profitability and accounting for Amazon.
– Yeah, it’s really interesting. And I’ll be honest. The accounting, the finances part, that’s not my strong suit. I get so excited about launching your products and that’s my focus goes in. And the ability to really dig down into the weeds and see what’s happening, like you’re talking about, like in product segments is really important in terms of what your next decisions are for your business. What are some common mistakes you see sellers making in terms of just managing their finances? What are you seeing?
– I would say the common mistakes is that sellers either don’t know or not tracking their finances properly. And they don’t calculate, let’s say, business expenses. They kinda look at more of a product-related expense where they’ll say like, all right, I paid my supplier. This is my money. This is how much it costs to ship to get here. And this is my net profit right after I sell the product after all the fees and stuff. But there’s also a lot of other expenses like running a business, right? You need electricity, rent. There’s employees and stuff. And they don’t really break that down in a way where you can kind of come back into end of year and say okay, this is my true costs. If I’m selling one product, this is how much I’m really making per product. And I think having a way like either a spreadsheet or tool to help you break down the cost and integrate it into your total business is something that our sellers are not really doing. The other thing I would say is a lot of sellers are not tracking the trends of their sales of their product. Or their orders. A lot of times you see products that they do well in the beginning and then they kind of die out and sellers don’t really go back and try to figure out what it is exactly. Whether it’s the price, there’s more competitors. Is the product just not so popular anymore? Is it seasonality? So I think identifying trends is something that’s very valuable and being able to notify, being able to see that trend change either in a positive or negative way in a very early stages is gonna really help you drive more profits.
– I just like how you can put everything, you’re able to see everything in one marketplace. Like if anybody’s on Amazon and they sell multiple marketplaces, it’s hard to find this data. It’s hard to find these metrics. And especially juggling through different marketplaces, going over to Europe and maybe down in Australia for over there and trying to figure out all your financial stats. I think that the way you have it laid out, I’m on your site now kind of looking through it. The way you have it laid out and the way it looks, it’s just easier for sellers to make a decision. Do they need to focus more on this marketplace? Or do they need to focus more or do they need to go back to the US and focus on that marketplace? What other things are you seeing with that? Are you seeing growth in the European marketplaces or Australia marketplaces or is it mainly just still US now? Where are you seeing growth that’s as far as people using your tool?
– Yeah, that’s a great question. I mean, we still have growth in all markets but however, I would say like in general, there’s a lot of international marketplaces that recently released marketplaces such as like UAE and Netherlands. These are big marketplaces where they haven’t, these consumers haven’t really adapted to buying e-commerce or there’s no like dominant e-commerce site like Amazon is. And I think these marketplaces have been showing like a tremendous growth just because a lot of sellers are coming in and say, oh, Amazon, right? And say, hey, now we have Amazon and so we can come by it. So I think a lot of these international marketplaces are growing a lot. To answer your question, I would say a lot of this. I think the trend that we’re seeing right now is there’s a lot less US sellers, new sellers coming in these days. I think just because the competitiveness of the US market is not that easy. And the profit margins are dwindling, just because cost and inflation, costs of producer, cost, shipping logistics right now. It takes forever to get stuff or sees. There’s a lot of problems and a lot of headaches and all the different things you have to deal with selling on Amazon. I think it’s kind of, it’s not attracting new sellers to come and sell on Amazon anymore. It’s not like that dream that everyone was talking about, like a few years ago, it’s much harder. So what we’ve seen is that there’s a lot more Chinese sellers and many factors that are starting to kind of take up more of the space and they’re just, from China, they’re just either creating accounts or just directly sending FBA to the United States. And they’re predominantly selling in US and Europe, European countries. And there’s definitely a huge growth there. And I think even not not our data but I think marketplace pulse or something. One of those websites, they reported that the Chinese sellers are now more than 50% of the worldwide Amazon sellers now. So they’ve definitely made a huge jump in the last year.
– Yeah, it’s definitely gotten way more competitive. But that’s what, I mean, this is kind of like the game we signed up for, right? We’re in this to compete and just gotta keep moving forward.
– Yeah, definitely. And I think, for sellers that are selling right now, there’s a lot of opportunity outside of the US. These other marketplaces, these foreign countries, if you can find a good product and you can make the numbers work, they’re like five or six years behind the US marketplace. Meaning, when you search for a product, you’re not gonna find 20 of the same listings, you might find one or two or even nothing. So if you can identify what kind of products are hot or in different countries, culturally different but there’s a lot of opportunity right now to start building those listings and reviews and growing that brand.
– Yeah, I think you’re exactly right. I mean, you mentioned that you started in 2014 selling. It’s interesting. A lot of people that’s sort of when they started, that’s when Kris and I started was right around that time. And it seems like a lot of these other marketplaces, that’s sort of the stage they’re in. You can launch products sort of with the, I wouldn’t say the ease but it was easier to launch. And interesting in that time period in 2014, the rest of the world, that’s where the entrepreneurs were opening their stores in the US, their Amazon accounts in the US. So there’s opportunity now, I feel like for us that are in the US based to do that now. We can go into emerging marketplaces and take up that real estate. I think you’re right on that there’s a lot of opportunity there. I wanna talk about, I wanna shift gears a little bit and go back in sort of the managing the profits and everything of your business, because there’s another thing and I’m looking on your website again where you talk about how your tool can help break down sales, taxes, promotions, refunds, all that. That’s so critical because if you’re selling a product and you’re running coupons and then you’re running a lightning deal every other week, to get all of that, all of those expenses allocated to your product. So you can know are you profitable or not, is very difficult. And so it seems like your tool can really help out with that.
– Yeah, definitely. That’s why I mentioned is like, we pull all the different data metrics from every little thing that you sell on Amazon. It’s recorded, right? Every part of like, you have to realize there’s like 40 or 50 different types of Amazon fees that could actually be imposed on you. And the way that Amazon does it in their settlement report, it’s like, as a seller, you just get, you get a high level category, say, you have an FBA fee of this. You have a storage fee of this. But it doesn’t really break down like what the fee entails. And sometimes, there’s products where you sell them, you don’t know they have a special fee, right? And some countries, they have a special fee that you have no idea what it is. And the great thing about developers is the Amazon API breaks that fee down. And it gives us that information. There’s like a table of hundreds of different fees that they can pull in and give us. So we give you that visibility too. And then you have the ability to download our reports, which is a lot more sophisticated than the Amazon ones. And then from that report, you can upload it to QuickBooks or what other other accounting software you have. And eventually, our goal was to integrate with some accounting softwares at the end of the year. All the data is just nice and easy to see, and it’s all laid out. You don’t have to worry about like messing around with Excel files or things like that.
– So we touched on a few of these tools. Or a few of these sections inside this new tool that you guys have, or newer tool you have. The profits and analytical tools. What one do you really like the most? Which one that when you’re creating this tool, which one were you like, we have to have this. I mean, obviously there’s some that are really required but which one did you really get behind and think that this is a good feature to have that kind of separates us from other schools?
– Yeah, that’s a good question. I really like our graphing interface. So we built a very sophistic graphing system which basically like any metric you want, you can click on it and it allows you to plot it against any timeframe and you can plot it against other metrics too. So and then it has an ability to scale either linearly or by percentage. So if you’re like hardcore into data analytics and like, let’s say you trade stocks and stuff like that, like you need that kind of graphing data to really see how your products or what’s each metric is performing. So we have that mechanism in there that allows you to plot every metric, every fee against each other. And even with the labeling system, let’s say you have seven categories you wanna compare data against each other. That graphing functionality gives you the ability to see line graph, bar graph, that data right in front of you. Even seeing the data from the previous period. It depends on what kind of seller you are. That’s that’s what we were trying to do is we’re trying to create tools where I think we’re trying to take it to the next level. Where sellers, they might want first order data but we’re trying to give them a second and third order data. And I would say the second best thing I really love about this tool and what we really wanted to build was like a top products and worst products, worst performers. So this gives you the ability to automatically, there’s a whole page on it where it just sorts in pulls all the information of what’s your best performing products in any timeframe and what’s your worst performing products. You can sort it by sales, you could sort of by fees. You could sort by any metrics. So really quick, you can at a glance, you could see like my top 20 products are doing really well in the month of April. And then I could see what’s the worst product I didn’t get any sales, or let’s say I got one or two sales only. I think this kind of data being able to access it like on the fly is really important. It just saves a lot of time and time is something that sellers don’t have. We don’t have time to dig around and waste. There’s just too many things to do, so.
– Yeah, you’re exactly right about that. There is way too many things to do when you’re running your own business and you don’t have time for it. And it’s also I mean, like you mentioned, to be able to see sort of a comprehensive look at what’s going on and to drill down and see what products are doing well, what is not doing well, is so critical. I’m very guilty of having a product where I did not see the trend going down. And if I could have seen that I could have, like you talked about, dug in, implemented, figure out why. Is it competition? Is it something that made the right decision? I wasn’t invested in that data enough to see that. So when you talk about trends for products, how are you recognizing that okay, this product is trending downward just in general? Is it just because your sales are decreasing or the amount of people viewing your page is decreasing? How are you seeing these trends to where you can identify, hey, this is a product that is on a downward trajectory or upward, either way.
– Yeah, so usually, the best two ways to look at it is by orders and by sales amount. Orders is probably, the amount of orders you’re getting in a certain timeframe is probably the best way to judge it. By impressions. Impressions is a thing that the Amazon API doesn’t give us. As seller central, you can log in and look at the impression count but the API doesn’t give you that impression count. So unfortunately, we don’t have that impression data which would be awesome to have. I don’t know why I don’t give that up. However, we’re trying to find a solution around that. And that’s something that everyone’s asking for. Can they see my impression rate? Now I would say, it’s really what timeframe you’re looking at. ‘Cause everyone has a different timeframe. Some people, like they have a product cycle of a year where they need to establish some kind of trend at least a baseline to see like, this is how it works. In June and July, have a peak and then maybe in September, October, it falls down. So I think it’s really just depending on how you set up your timeframe, what you’re looking at. Repeat customers is also a big one, I would say. A lot of sellers, established sellers with products I’ve been selling for years on the market. They actually, I’ve seen 30 to 50% of the sales is generating repeat purchases. Which is huge because it’s easy for them to get that purchase coming back from customers that like it versus trying to like spend more money on PVC and gain new customers. So sometimes, they track repeat purchases and see like how many repeat purchases are coming back and if that’s trending up or down. And that’s a huge way to determine if your product is doing well. Sometimes, product is phase out, you might need like a second vision. Build something better. But there’s some products that are just, they just last forever. So it’s something that simple people need. There’s no need to build a better version of that. So I would say those are probably the three biggest trends that people monitor. One of the cool things that we actually are currently developing is going to be released really soon is our business analytic alerts. So what this does is it allows you to set your own slope and trends on what you wanna measure. So for example, if I wanna say like, if my sales increased or decreased by 20% in three weeks or two weeks timeline, send me an email for ASIN whatever. So this gives you the ability to figure out what you wanna track rather than going in, logging in and looking at things every day. Like you can set your own metrics on what you feel like. ‘Cause every product is different. Every product has a different slope and trendline. And you know your product the best. Now we’re giving you the ability to set these business analytics alerts. So that’s one thing I really excited about and I think it’s gonna help sellers tremendously. I wish I had back in the days I was selling clothing. So I had like thousands of variations and colors and stuff like that, it’s impossible to track. So I wanna know like what colors are in the best like which ones are dying. Which season is color like red doing better than yellow? What sizes are better? So it’s really for like power sellers are selling a lot of products and they really need that data to them take their business. So that’s all.
– I love that idea. I was just thinking like, dang, that’s an awesome idea. Like being able to just to get an alert if my sales dropped 20 or 30% or whatever percentage I set and then I can go in and like, look at it. That I lose a main image or lose star rating or did my product price go out a sale price that I had set or something like being able to just like get that alert and then I can go find out what’s going on. That’s huge, that’s big. Especially a lot of products.
– On that note though, you were talking about just repeat purchases. This is something that is fascinating to me. Is there a way to break down and see the lifetime value of a customer or the average revenue that comes in from a customer? Because one thing that I think with repeat purchases that is important is your ability to know what are you willing to spend on advertising to acquire a customer? And a lot of times, you can be more aggressive if you know what that value is or how much the average customer is spending with you. Can you break that out?
– Yeah, it’s definitely doable in our software. Actually, we had this data since day one is we have an owner’s manager page, which basically, it’s like, we pull in all the order data that comes in like who bought it from you, how much they paid, et cetera. They left a feedback, all that good stuff. And then within there, there’s a filtering mechanism. This is a massive search engine. So let’s say an order comes in. We will flag an order and say there’s a repeat customer. We’ll have a little R symbol icon on site. So we click on that, it’ll pull up all the orders that same customer bought from you in the past. So from that information, you can see exactly how much they bought from you, when they bought from you, what they bought from you, everything. So that data is readily available inside the FeedbackWhiz.
– And that data is critical. I mean, Kris and I talk to sellers all the time, that are in very competitive categories that are selling either consumables or something where there’s repeat purchase pattern. And unless you know that, it’s hard to be comfortable being like really aggressive on your advertising. Potentially, two, 300% ACoS if it’s super competitive. But if you know that, you know you’re gonna be profitable longterm. It can help make those decisions. So that’s really nice to be able to see that data.
– Yeah, 100%. And that page is actually, we have a free plan too for new sellers that first come on board. And let’s say they don’t really send too many emails. That page is actually free for everybody. So, if you just started selling or you never use FeedbackWhiz, like you don’t even to pay to get that data. That orders pages is something that we allow everyone to use and hopefully help benefit by grabbing that information.
– If you just started selling it, I mean, be a no brainer, go over use feedback. What does it mean, for free, you’re gonna get access to all this information? Definitely worth trying.
– Yeah, I agree. And for anybody who’s new to selling, when you get on there, you’re gonna find Seller Central is a mess. It’s very, very difficult to get any sort of comprehensive picture of your business. Maybe if you’re selling one product, then it’s a little easier. ‘Cause all that data is for that one product. But as soon as you start to grow and evolve your business, it’s really critical to start paying attention to data and using tools that clean that data up. Hence, and you guys have built something really cool over there.
– Yeah, thank you. Yeah, one other really cool thing I think I forgot to mention is we have this like, on the fly currency conversion. So for example, if you’re a Chinese seller and you’re not used to like US dollars or British pounds or euros, you can convert everything into CNY, and then you’ll see all the data in CNY and vice versa. If you’re a US seller and you’re selling in other countries, you can convert everything to US dollar. So not only do we aggregate the data for you but we also convert it automatically. So that way, you could see your true profitability. You don’t have to like dig around different marketplaces. Like, aw man, what does this mean? How much does that cost? It’s all there.
– Then your exchange rate, the live exchange rate?
– Yeah, we have a live exchange rate we use. I think it’s like 15-minute delay or something. So I mean, I don’t think currency doesn’t move that fast these days but you know, it’s accurate enough.
– That’s big. I mean, that’s the challenge all the time selling on other marketplaces. If you don’t convert it back to your home currency, you don’t even know hardly if you’re profitable or not. So that’s fantastic. That’s really good. Well, real quick, for anybody who’s listening right now, you wanna tell them how they can get in touch with you or what they need to do if they want to get started with FeedbackWhiz?
– Yeah, you could just go to our website feedbackwhiz.com. And if you have any questions, we have really good support team. We have a full support, sitesupport.feedbackwhiz.com. Has all the documentation videos for the entire tool. So any questions you have within the tool, how to use it, how to set it up, it’s all there. You have any questions, you can also email us at firstname.lastname@example.org. And then we’ll be happy to answer anything you have. Usually, we try to answer every type of email even if it’s outside of them. Like outside of our tool, like some people just randomly ask questions about Amazon, we’ll do our best to find you the right answer or at least we’ll find you the help to find the right answer.
– Just send them our way. We’ll take care of it.
– I’ll send it to you guys
– Real quick, we actually got a question that popped up from YouTube. And we’ll throw this at you, Henson, just to see your thoughts on this. This question came up. What are the three things you think are important for someone who’s starting now? I throw that at you. If you were starting right now, what are the three most important things, Henson?
– Three most important things? Well, I mean the most important thing is product research. You gotta make sure you find the right product. And you research the crap out of it. Making sure that you’re not selling it for a loss. Two, making sure that whatever you’re selling, I would say is not what everyone else is selling. It’s gotta be better in a way. It could be the same type of product but figure it out from your competitors, what’s wrong with the product and how can you make it better? And if you can make it better, are you still making enough profit margin? So figure that out. And I would say, yeah, profit margin would be the biggest other thing. You don’t wanna be selling products and wasting all your time and not making any money. So you gotta make sure you have, I don’t know, everyone has different metrics, but I would say you wanna make at least 30% after everything, if you can. To make it worthwhile. Otherwise, there’s just so many headaches with selling an Amazon. And then maybe one more thing is finding a product that has a low return rate. Like for example, clothing is crazy. People return all the time. They buy like all the sizes and then return everything but one and then you end up losing money. It’s like, that’s horrible. So you probably wanna stay away with something like that. Maybe selling something where I don’t know, like a kitchen sink, for example. They install it, they’re never gonna return it ’cause once it’s in, it’s in, right? So finding products where you have a very low return rate’s gonna definitely help you in the long run. So that’s my opinion
– That was good answers.
– You hit the nail on the head. It all starts with product research and you can save yourself a lot of hassle if you do that part right. Then hopefully, when you log in and you start looking at your profit and your business analytics through your platform, everything looks good. ‘Cause you did the product research. So that’s good stuff, Henson. You’re spot on those three tips. Thanks for the question on YouTube out there. We’ll have to have you back on again, Henson and you guys are hard at work over there. I know you’re launching new features and new products all the time. So we’d love to stay up to date with what you guys have got going on. And thanks again for spending the time and talking to us today about how important it is to track your business in detail and what you do.
– Yeah, absolutely. It’s been a pleasure and yeah, I’m happy to come on any time you guys wanna just chat and talk about Amazon, always happy to do that.
– Yeah, you too. Well there’s always good stuff to talk about. That’s the fun thing about being in this business. There’s never a shortage of things to discuss, but yeah, thanks again, Henson. We’ll get you back on. Thanks everyone for tuning in today to this podcast. As always, if you’re listening to this podcast right now, please make sure you subscribe so that you’re notified when we do these. We do them almost every single day. If you’re watching our live stream on Facebook or YouTube, make sure you subscribe to our pages and our channels, turn on notifications so you’re notified when we do go live we’re doing this all the time with great people like Henson. So it’s a lot of fun. Talking about product research, Kris and I are in the middle of a project right now called operation launch where we’re live launching a product from scratch on Amazon. So that will be coming to YouTube very soon. We’re in the process of filming that right now, which is a lot of fun. So we’re in the product research stage right now, Henson, that you just talked about. It’s a blast there. But anyway, thanks everybody for listening in. Henson, thanks for joining us and we’ll be back at this again tomorrow.