30m Per Year On Amazon With A 60% Hit Rate

Richard Morgan
June 17, 2019

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Nick Young is back with us a $30m per year target this year and a 60% hit rate on products, he talks through how he uses pixelfy as a tool, the importance to his model of rebates plus the funnels that are powering his repeat buys from product specific tagged audiences

An eight figure seller
Been selling on Amazon for 5 years
Hit $2.5m in revenue in year one
Constantly launching products
This year looking to do $30m
Have 70 people in the team total – 2 in USA and most others in Philippines

Product Development

General approach to product development has not changed
Still focused on expanding
Testing products extensively
Just doing straight PPC is no longer enough
Really important that you create a system for full price rebates (whether rebate key or manychat)
Building out funnels
- Pre-launch list to target for full price purchases
- Post-launch for collecting customer details and lead them to a post-purchase review funnel off of AMazon toward the listing

Pre-launch

Utilise manychat as a funnel to reach target audiences
Generate an ad that sends to the Messenger funnel
An automated email feedback drip campaign lead to buying the product
Only do full reimbursements
Use pixelfy to run the rebates
Use an optimised super URL to target keywords
Hit 3-4 keywords out of the gate
Two higher volume keywords
Then two medium to long tail keywords that know they can win
Then see the results and adapt

Keywords

Go hard on the keywords to start
Then once seeing the results look to change the keywords
Have a breadth of different keywords that you’re shooting for
The more longer-tail keywords that you’re ranked for give better results
Higher conversion rates with longer tail keywords
Easier to rank for the primary keyword as you’re not being drowned out by the competition

Funnels

Creating an ad that sends to a landing page or a manychat that leads to information on the product
This then leads them to buying after that information
Been focusing on lead magnets for target buyers too

Custom Branded Insert Feedback

Inserts by domains
Been selling since 2014 and now the tools are much better
Had exact same inserts and URLs in the products since then – same URL
Couldn’t segment which buyers were coming from where
Used Pixelfy to do a custom branded domain
Each product has its own branded URL
Send them to manychat funnel that knows what they bought
A more interactive manychat script that relates to the buyer
Get lifetime warranty can we double check your email address
Asks if they want to enter a raffle to get a gift card and then tell them about the product
Then send them to the listing page
You now have their email and also they have been pixeled
Now you can have a target audience per product

Retargeting

Retarget them for reviews
Now something more useful than an email list
You can target people who’ve bought before, and left positive reviews and more active

New Products

Prep people before the product comes down the line
Getting them excited to purchase
14 days people are committed
And then when ready we can hit the button to buy
14 days after start hitting them up for reviews
Add rebate keys if the sales are not going well – pepper them in
Want to maximise AMazon seeing the product
Once seeing some success with keywords, will double down on those keywords
Do everything to maximise the product and see if it works
Two weeks in increase the PPC
The PPC AcoS will tell over 2 months if it’s working
Success with products is about a 55 – 60% hit rate currently

ROI

Don’t lose money on launches where the product doesn’t go well
ROI want 30% net net contribution margin, after amazon fees, COGS and after ads (don’t forget the 60% hit rate)
Don’t spend more that 8% revenue on Ad Spend
Factor in 10% off product development analysis for Ads
Minimum 100% ROI and usually target 150% to give protection to the product from competition
Looking to buy time with amount of margin
Good to hear of a $30m revenue even with a 60% hit rate on products – uplifting for smaller sellers to be able to share this info