Tom Wang comes from a hard-working Chinese immigrant family, and just a few years back he was an account manager. His job entailed cold calling people all day, trying to sell them ads. Even after being a diligent worker, he soon realized that this job was not where his business acumen was and wanted to do something else with his life.
He was introduced to the Amazon business by a friend who was an early seller on Amazon. Tom soon realized that selling on Amazon only looked easy on the surface, but there was much more to it. With no specific courses, workshops, and orientation, he had to figure things out as he went along.
Birth of the brand Sdara Skincare
Wang planned all the operations on his part, and the first order was a Vitamin C serum. He initially planned on relying on reviews, but right before they could roll the dice, Amazon announced that they were banning the method where sellers could buy as many reviews as possible and get ranked accordingly. Keeping the spirits up and being swift with counter approaches to sustain himself and his business goals, in 2017, Tom and his girlfriend started a skincare company by the name of “Sdara Skincare”. He considered all the previous learnings and experiences and planned his business model and sales tactics accordingly.
Power of Direct-To-Consumer (DTC)
Tom understood that a product has to be good inside and out, and with the prices going astronomical in the retail business, it’s time to bring Direct-To-Consumer (DTC) sales by storm. With the internet democratizing small-scale businesses and allowing them to leverage the e-commerce landscape, Tom bootstrapped his business by understanding how the Amazon algorithm and consumer psychology worked.
Along with the right product, the next crucial factor, according to Wang, is its reasonable pricing, strong copywriting, branding – impressive product images, and descriptions. These factors are to attract and subliminally persuade consumers into ‘wanting to buy’ the product.
As Tom Wang explains, “to start a lucrative business that makes you a decent profit margin, sourcing the product for cheap enough rates without compromising quality is extremely important. Every step takes a chunk from the cost of the products to the ship-ping. As a smart seller, one must make sure that there’s enough in the pot at the end for you to make money as a business owner.” He appreciates the ease of selling on Amazon because it does everything for the seller.
Amazon FBA- a lucrative business model
Tom believed in the scope of Amazon businesses for being a sustainable business option. He decided to invest back into the Amazon FBA community, Amazon founders, and their brands, along with his own Amazon brands. This investment helped him build a strong community of Amazon sellers called ‘FBA Masterclass,’ who support each other. With a new generation of start-ups rising the DTC revolution wave, and the media comprising of major publications highlighting their stories, more than 2,000 brands in the FBA Masterclass benefited from this movement.
Wang has now sold close to $10M in products in 3 years on Amazon with Sdara Skincare; he bootstrapped his brand Sdara Skincare & sold the brand for a staggering 7-figures. As a result, Tom became a self-made millionaire by age 27. He helped hundreds of people achieve at least $10K/month on Amazon with their brands and continues to do so.
The one piece of advice Tom always gives to young entrepreneurs is, “Surround yourself with winners. What I mean by winners is the people out there all around you, people who are trying to be the best version of themselves.”