Scaling Amazon FBA Brands So Fast It Feels Illegal

How to scale your Amazon so fast that it feels illegal. And you're not going to get theories in this video. You're going to get actual substance, stuff that I do in my Amazon FBA businesses that allow me to purchase Amazon FBA businesses and scale them from there. And if you guys don't believe me, this is one of my brands called Maverick. And as you can see with Maverick, these are numbers over the last 3 months. And you can see I'm very open as far as how much revenue I go ahead and make from a month-to-month basis and how much profit that actually goes ahead and hits our actual bank account, our P&L sheet. So let me go ahead and move myself out the way just a little bit here. As you can see in the last few months, back in April, we went ahead and did $74,000 in profit. And you can also see that in May we did $92,000 in profit. And last month, We have been in and out of stock on our best products, our best sellers. Right. And with that, you can see that on Prime Day, which was yesterday, when I'm going ahead and filming this actual video, we have sold a total of 683 units in a single day, because you can see on the date ranges here, I'm not playing with the date ranges. I'll go ahead and refresh this for you guys as well, but 683 units. Sold on a single day, regardless if it's Prime Day or not. That is an absurd number, especially considering that our best-selling ASIN has been out of stock for over a month now. So that means that in June and in July, we could have had way bigger numbers so far. But enough of me going ahead and just discussing this. Let's actually go ahead and get to the substance of this video, and that's basically how to scale your Amazon FBA brand so fast, just like we did with Maverick. Um, and basically it feeling illegal and it's not illegal, but it feels like it because the systems work while others are stuck guessing. And again, I'm the operator. I am the owner of these businesses. This is not an agency that I go ahead and run. I'm actually running businesses where the P&L sheet actually matters. What we have in our bank account every single month, actually matters. Because basically people that make YouTube videos like this are one, not selling on Amazon, 2, don't have the amount of scale that I have with my Amazon FBA businesses, or 3, they're just agencies, right? Going ahead and just giving you frameworks that might or might not work in your actual business. So what are we going to be discussing today are a lot of different things. This video is about scaling strategically and not just throwing money at ads, right? Because the thing is, not every single brand or every single product can actually scale with ads, and we'll get to why in just a second. But let's kind of go ahead and get a sense of my actual, you know, products on Amazon. As you guys noticed, I went ahead and guys, I showed you guys Maverick, right? One of my, my actual biggest brand right now that I go ahead and sell. But I also own Factory Lace, and I also own Nudery Labs. And if you guys read the notes there, is that Maverick is built for performance and scale. We run that business as far as we can go ahead and run it because we have healthy profit margins, our COGS are low, our Amazon fees are low. So it gives us the opportunity to actually try and scale as much as possible. And then we also have Factory Lace that I started from scratch back in 2018. But this type of brand is actually going ahead and optimized for cash flow and personal profits. You see, when it comes to Maverick, yes, they're big, big numbers, but I'm constantly going ahead and coming out with new products, constantly buying more inventory because I'm still trying to go ahead and be in the growth stage as far as I can. Because eventually I want to be able to sell this business for multiple 7 figures, right? Selling this for $5, $6, $10 million at some point, right? So I'm trying to go ahead and scale that and reinvest every single dollar. So with that, Factory Lace is used as me going ahead and trying to pay myself every single month. You see, I can't scale Factory Lace. I can't grow this actual business if my goals aren't aligned with that. And Factory Lace right now is just aligned as a goal as far as paying me basically a salary every single month and year, right? And then Nudery Labs, it was a recent acquisition a month ago. Basically, it's just going ahead and using the test and proven system to scale this brand out just like Maverick. And again, I put here that every single business, right, has its own different strategy and not all are built to scale aggressively like Maverick. And I'll go ahead and get to a second why that might be. So before you try and scale your actual brand, you have to know your fundamentals, right? So I don't want you to go ahead and take this video and say, all I need to go ahead and do is throw money at ads or launch new products. Or use these type of scaling techniques, I want you to kind of look inward and see what is your ultimate goal. This is why I offer one-on-one services, because every single Amazon FBA seller has different goals in mind. Some have goals to scale out their business. Some goals— some people's goals are just to go ahead and do like factory lays where they're going ahead and getting consistent cash flow. And other people have goals as far as exiting their Amazon FBA business. So if you guys are interested in learning from me one-on-one go ahead and DM me the word brand on Instagram. That's the only place I actually go ahead and communicate with a lot of people that are interested in going ahead and joining the one-on-one program. So if you guys are interested in that, go ahead and DM me, but you must understand your metrics, right? And the most important metrics when it comes to Amazon FBA are impressions, click-through rate, conversion rate, right? And what does this basically mean? Impressions, how much traffic are you funneling into your actual listing? After that, what is your click-through rate and what is your conversion rate? If you have no impressions, That's an easy fix. Let's go ahead and start running more traffic to your actual listing page. If your click-through rate sucks, okay, they can be fixable. Main image, reviews, and price. That's the only reason why people aren't going ahead and clicking on your actual listing. So if one of those things are flawed, that means we can go ahead and improve on those actual things. And lastly, conversion rate. Are you actually speaking to the actual person that is purchasing your product? And this is what a customer avatar is for. Right. So basically you have to have the fundamentals in line. You have to basically have stability on this actual table that we're running, which is Amazon FBA, where impressions, click-through rate, and your listing is basically the actual legs that hold that table together. So you have to know this and have to go ahead and have this understanding before we can actually get to scaling with Amazon FBA. So understanding your profitability as well, right? Is your COGS too high? Is your Amazon fees too high? The people— and if they are, right, then PPC won't work. So if you have basically 70% of your expenses coming from COGS and Amazon FBA fees, there is no room to grow with Amazon PPC, right? So you have to understand that, that if you go ahead and did all your numbers and you're only running at a 30% net profit before ads, there is no way you can actually scale your Amazon FBA business. You have to have enough of a healthy profit margin to actually go ahead and leverage growth with Amazon PPC. So you need to, you need enough contribution margin per unit to be actually scalable, right? And sometimes it's okay if one of your ASINs isn't as profitable as the others. You just have to go ahead and make sure to drive all your ad spend to what is actually profitable and try and get impressions different ways than just Amazon PPC. And that might be by going ahead and running defense campaigns where you're going ahead and advertising your products on other listings, right? Which comes at a cheaper cost per click. So as mentioned before, not every business is even worth scaling. And I mentioned it a little bit with Factory Lace, right? It's built for cash flow, not top line growth. So all I'm focused on is actually the bottom line net profit that I'm going ahead and taking home every single month, because this business doesn't really matter as far as what my revenue figure is, is what actually I can go ahead and take home from a month to month basis. Because again, my goal is to have a salary with Factory Lace. So scaling, it's a higher risk, involves more capital, and has thinner margins. As we take a look at like my, my P&L statement with Factory— I mean, with Maverick, you can see that these net— the net profit every single month look very, very hot. But at the same time, I'm paying myself a salary. I'm paying my partner a salary. I'm also going ahead and reinvesting anything left over to go ahead and still try and scale the actual business. So you have to go ahead and keep that in mind that these margins are a lot thinner than you might think because I'm continuously investing and coming out with new products. And sometimes your goal is to pay yourself, right? Not an 8-figure exit, and that's valid. So literally it really depends on what your goals are. I don't want you to go ahead and get fixated by that top-line revenue that Amazon has basically trained us to be focused on. And every single time you see a red bar on your actual sales figure, panic and say, what is going on? You have to focus on what your actual goals are, right? So focus on Amazon first. Ignore any external distraction. Let's go ahead and get to the nitty-gritty as far as what's really important when it comes to scaling on Amazon FBA. Because people try and scale with Facebook ads, TikTok Shop, UGC influencers, Google ads, Walmart expansion. The thing is, you are an Amazon brand. All of this stuff is cool, right? It's really, really go ahead and try to build a brand outside of Amazon. But remember, you are an Amazon brand first. Try and focus all your time and effort into becoming an expert in Amazon before you try and become, you know, an expert in Facebook ads or TikTok Shop or UGC or Google Ads or Walmart expansion, because all of those other platforms are great. But if you're trying to be a jack of all trades, you're a master in none. So build consistent cash flow from Amazon before exploring any type of external channels. The only reason why you should go ahead and get to these stages is that you maximize all your growth on Amazon. You have enough of a war chest of money. Now it's time to actually go ahead and start expanding off of Amazon and trying to make more money. And trust me, I know this from experience, right? Like I tried to go ahead and do this with Maverick and I just fell on my face every single time because it's just wasteful spending. Where there's so much more opportunity on Amazon, right? So next thing, what people like to go ahead and hear is scaling with PPC, but doing it the smart way, right? Don't— do not assume that keywords will work. Test first. So what I mean by this is that I have students sometimes that have like a keyword master list and they go on Data Dive, they go on Helium 10, they go on Jungle Scout, and they have a list of keywords that they think is going to go ahead and convert for their actual product. There's 2 different things as far as Amazon FBA is what you think and what's actually going to go ahead and happen. And what do you think is more valuable information, a keyword list from Helium 10 or a keyword list from Amazon with proven keywords that are going to convert? And every single time, Amazon's data is going to be way more important. You have to understand that Helium 10, Jungle Scout, and all these other types of software systems are out there to pitch you and sell you on the idea that you need their actual software, where in reality, most of the time, the only type of information you need is from Amazon. So I mentioned before, so going ahead and instead of spending all that money on Helium 10 and all these other subscriptions that go ahead and just burning you dry, run auto campaigns more frequently, run broad match campaigns more frequently, especially with long-tail keywords, right? So if you have, let's say, a top 5 keywords of like Um, let me go ahead and think for an example of like washing machine, um, you know, detergent, right? Well, let's say you have a long keyword of washing machine detergent for white clothes, right? I'm going ahead and using that because I can just see a washing machine right here in my corner of my eye, right? So washing machine for white clothes, right? So we can go ahead and use that type of long-term keyword and put that into a broad match campaign. What Amazon is going to go ahead and do is match up that broad match keyword, the long tail keyword, match up your actual listing information, and based on that, it's going to give you really good data as far as what actual customers are typing in to convert on your keywords. So I'm a huge fan of always, always, always keeping auto campaigns on and always, always, always going ahead and keeping broad match campaigns on, right? So once you have that data, go heavy on converting keywords and cut any type of wasteful spending. And why do I say this? I'm very aggressive when it comes to cutting keywords as well, because the 80/20 rule, right? 20% of keywords will drive 80% of your sales. And you might look at your Amazon campaign builder right now, or campaign manager right now, and you'll see that it's maybe 1 or 2 or 3 campaigns that are actually driving 80% of your spend. But then you have a keyword list of myself as well, right? Like I have campaigns that are over 300, 400 different campaigns running. These are just for testing type of different things. I know that there's only right about 10 different campaigns that I'm currently running right now that are bringing me 80 to 90% of my sales. So again, you don't need to go ahead and be an expert on this because of the 80/20 rule, right? So always keep that in mind. And people are not a huge fan of like broad match campaigns. And I have no idea why. Broad match campaigns are cheaper cost per click, even if you're targeting the same keyword, And you're going to go ahead and get relevant data. And what I mean by this is Amazon search trends can change overnight. And I'll give you an example. So with my shoe cleaning kit or the shoe cleaner kit, I was dominating in this keyword called shoe cleaner sneakers kit, right? And for 2021, 2022, I was absolutely ripping Amazon bestsellers. I was going ahead and getting Amazon's Choice badge. And then all of a sudden overnight, Amazon shoe cleaner kit wasn't a suggested keyword. So I literally lost sales basically overnight. So by going ahead and having broad campaigns on every single time, you start noticing different trends that Amazon is going ahead, going ahead and suggesting for keywords. So keep that in mind. If you guys want more information on that, let me know, because that's very important where maybe one month or for a full year, there's a certain keyword that gets hundreds of thousands of searches every single month. And the very next month, Amazon can go ahead and change that suggested keyword. And now that same keyword basically gets 200 searches per month, right? So it happens more frequently than you might think. So broad match keeps your funnel wide, and that's kind of what we want, right? Like we want to be able to go ahead and get keywords that we never even thought about. The keywords that, you know, resonates to our customer avatar because Data Dive, Helium 10, Jungle Scout might have a list of keywords with a lot of search volume, but maybe you're converting like crazy on a search volume that is 100 keywords per month. But because you resonate so well with that customer avatar, you're getting that sale every single time. And that's way more valuable and way cheaper than going after a high search volume keyword. So keep that in mind as well, right? So an example, $100,000 keyword can drop to $5,000. Don't depend on it. Like I mentioned before with that whole shoe cleaner sneakers kit, Really killed my actual business. And until this point, like I've been trying to go ahead and search for a different keyword to be profitable like I once was. So the next thing is maximizing before expanding, right? Do not rush on launching new products. And this is another thing that when I talk to students, they're fixated on like, what is the next product I should go ahead and come out with? When in reality, that shouldn't be the case. It's milking what is currently working right now. First is optimizing conversion rate. Then is launching child ASINs. Then is testing bundles and small variation. So what I mean by bundle or optimizing conversion rate is trying to see like this, this actual product is doing well already. You're making a lot of money on that. Can we go ahead and make the conversion rate 1 percentage point better? Because 1 percentage point better might not sound like a lot, but that's the difference of you going ahead and making $10,000 a month to $12,000 a month. Right. It could be that drastic if you go ahead and focus on conversion rate. And the great thing about it is that you can fix conversion rate by going ahead and launching child ASINs, right? So instead of you going ahead and having a black color, you can come out with a white color, a gray color, a green color, right? And that gives you— that gives the customer way more options. That's going to go ahead and heighten your conversion rate. And the thing is, the whole Amazon algorithm is based on how much you can go ahead and make them. And basically this, this, this is how the A9 algorithm works. So Amazon sees that you're spending money on PPC, but they're also seeing that your conversion rate's really high. So Amazon sees that not only are they making money off of you based on ads, they're also making money off of you based on Amazon FBA fees and selling fees as well. So they're going to, they're more likely to go ahead and promote your product because your conversion rate's higher than the competition. And every time they show you, they make more money. So keep that in mind. that the Amazon algorithm is legit based on just conversion rate. So if you understand that and you try and target the right keywords, Amazon will reward you in the long run, right? So squeeze all value from winners before chasing the next ASIN. And I made a mistake with this with Maverick when I first started out, was that I tried to throw spaghetti at the wall and just come out with every single random type of product, hoping I found another home run product. And in the reality of things, I should have just started launching child ASINs way earlier. Because you saw the difference, right? Like it's safer to go ahead and launch. It's actually cheaper to go ahead and launch. And my conversion rate basically doubled, right? So always keep that in mind. And final thoughts here that I have is that there is no one-size-fits-all when it comes to Amazon FBA. And we, and we saw that based on my 3 different brands that I currently own right now. Scaling basically equals the tools, the time, and the clarity. And it's all based on what your goal is. So if you guys are interested in going ahead and getting one-on-one coaching with me, go ahead and DM me the word brand on Instagram. Go ahead and follow me there. I'm always posting content, personal content as well. Um, so you guys will enjoy it. But again, what is your goal when it comes to Amazon FBA? And based on that, that's how you know if you should go ahead and scale strategically. But if you guys appreciate anything I said in this actual video, all I ask for in return is go ahead and consider subscribing to this YouTube channel, like this video, leave a comment. But until next time, guys, peace.