Shipping optimization — When creating your package size, ensure you make it as small as possible so you can fit more units in a master carton and more cartons on a pallet. By doing this, you create more margin by spreading your shipping costs over more units.
As a part of my interview series about “Five non-intuitive things you need to know to run a very successful Amazon business, I had the pleasure of interviewing Michael Fenech. .
Michael has gained extensive business experience in both tech and e-commerce across the globe. He has successfully raised capital in the US and Australia, run successful e-commerce sites, and has partnered with some of the biggest companies in the world. Michael is also fortunate to have been mentored by some of the biggest names in tech.
His e-commerce experience has come from having over 700 SKU’s being sold in the US via Facebook and Google shopping.
Michael then ventured into selling on Amazon and by using his incredible product research skills, he found products that were instant winners.
Michael and his partner now have a range of products being launched under their well-respected brand.
Thank you so much for doing this with us! Can you share with us the “backstory” about what brought you to this specific career path?
I suppose my appetite for business models that can operate while I sleep was a significant factor when it came to how I ended up in this career path. I remember I was surfing the net late one night while on a business trip in Los Angeles and came across an ad about eCommerce and that one ad led me down so many rabbit holes that I found myself deeply entrenched in eCommerce daily.
Can you explain to our readers why you are an authority about selling on Amazon.com?
Well, first of all, my wife and I have a very successful brand on Amazon. We have four products selling very well under the brand, and we have the 5th product in production which will be shipped soon.
On top of this, my business partner and I decided to start an Amazon Facebook group, and our intention was simple. We wanted to share ALL our knowledge and make it the most valuable Amazon seller Facebook group in the world.
Our member numbers have grown so much and to top it all off; we recently got voted the best Facebook group for Amazon sellers in the world by Seller Poll for 2020.
It’s a massive achievement when you consider the other groups we are up against. We made a huge impact in a short space of time. I am proud of the impact we made on people’s Amazon businesses.
Can you share the most interesting story that happened to you since you started this career?
I’ve connected with some incredible people. In our Facebook group, we conduct live zoom calls every fortnight designed to help our seller community achieve their goals.
We have interviewed ex-Facebook executives, Olympic gold medalists, world surfing champions and other awesome people.
So the most interesting thing is the people I have connected with from the intention of wanting to help people.
Can you share a story about the funniest mistake you made when you were first starting?
The funniest mistake I made was assuming that every product I’d launch when I was drop shipping, would be a smash hit and I would make lots of money. I think it was just blind optimism.
I laugh when I think about it now, because in reality, selling products online doesn’t work like that.
Can you tell us what lesson you learned from that?
I learned that when you launch a product to sell online, you can’t guess. You have to base your launch decision on data, the amount of opportunity there is as well as looking at the competitive landscape.
Are you working on any exciting projects now?
Yes. The way our group is growing at the moment, we have so many exciting things to implement. From educating people on Amazon selling best practices to private student groups.
How do you think that will help people?
Every decision we make with our group is designed to help people raise the waterline of their businesses. So some of the plans we want to implement will do this at scale.
Ok. Let’s jump to the core of our discussion. You are a seasoned Amazon expert. Can you share with our readers five, non intuitive, insider tips, in order to be as successful as possible on Amazon? Please share a story or example for each.
When creating your package size, ensure you make it as small as possible so you can fit more units in a master carton and more cartons on a pallet. By doing this, you create more margin by spreading your shipping costs over more units.
Images — 3D renders
Images are everything on Amazon as shoppers purchase with their eyes. Having great images is mission-critical. In order to do this, consider getting 3D renders drawn up of your product. 3D rendering makes your product look amazing as it is digitally drawn and yet it looks incredibly realistic. Using this technique means you can get the light and everything in the image perfect.
Keyword master lists
Amazon is one big search engine, and to be successful; you need to build a keyword master list of all the keywords you’ll target when you launch.
To get this list, you do a thing called a “reverse ASIN search” to find out what keywords the top competitors are ranking for.
Make money when you source the product
When you source the product and negotiate with your supplier, this is the change to maximize your profit.
Make sure you understand precisely what you can sell the product for on Amazon and work backwards and have a definitive target price in mind that you need to buy the product for.
Searching on Alibaba
One fear people who sell on Amazon have is the fear of dealing with a trader and not the actual factory. If you deal with a trader, they are a middle person and will make a cut which means you pay more for each unit.
How to double-check if you are dealing with a factory is to go to Alibaba. When you land on a suppliers page, go to the drop-down menu called “Products” and check the list.
If they are all completely different products, you know this listing is a trader. But if all the products are the same using similar raw materials, you can be confident that you are dealing with the factory.
Amazon sellers have a reputation for being great guerilla marketers. Do you use any clever and innovative marketing strategies that you think large legacy companies should consider adopting?
I believe becoming members of Facebook groups which match your product niche and customer avatar is super powerful. First of all, you can understand the problems your avatar face as well as potentially weave into your posts, links to your products which can increase sales.
When you are entwined with your target customer, the stuff you can learn about your product niche is invaluable.
Because of the position that you are in, you are a person of great influence. If you could inspire a movement that would bring the most amount of good to the most amount of people, what would that be? You never know what your idea can trigger. 🙂
I would start a movement which would involve teaching people how to become entrepreneurs, how to look for ideas, how to solve problems and build businesses.
The reason I would do this is that everyone would win. The entrepreneur would win by having the tools to start a successful business and the customers win because they are having their problems solved.
Can you please give us your favorite “Life Lesson Quote”?
“Let everything be ok.”
Can you share how that was relevant to you in your life?
I became really good friends with my favorite author, who taught me this life lesson. It is so powerful because when we want something bad, we end up forcing things to happen.
But when we let go, there is an ease about life that develops and I find that things flow much more smoothly in life which helps me reach my goals.
Some of the biggest names in Business, VC funding, Sports, and Entertainment read this column. Is there a person in the world, or in the US with whom you would love to have a private breakfast or lunch with, and why? He or she might just see this if we tag them 🙂
I think the Rock is successful because of his attitude. He is upbeat and is always in a constant state of gratitude. He really is an extraordinary human being.
Meeting him would be amazing, and I would delve into his thoughts around attitude and helping others.
Thank you so much for these great insights. This was very enlightening!