This Issue's TLDR...

• More (slightly more difficult) strategies to launch products in 2024.
• Steal this affiliate marketing process and strategy.
• How to prevent customer-damaged returns from leaking into your FBA inventory.

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SPONSOR Melio Payments I've been an on-and-off user of Melio Payments for the past 18 months. And I owe that to Kevin King, because I first learned of Melio Payments through one of his "Hacks" contests. Melio Payments is a great way to create more "float" in your business by paying overseas suppliers with credit cards. (I use credit cards with a 12- or 15- month interest only promotional period) It's also a great way to get credit card rewards for your other big expense as Amazon sellers. Try it out today! Use Melio for Your Next PO​

BEST from Me

Last week, I wrote about how to launch products in EASY mode in 2024.

The 3 "EASY mode" strategies that I proposed were:

1. Borrow An Audience
2. Make $100M Offers to Affiliates
3. Make it a GAME

This week, I want to offer some strategies and resources for launching products on INTERMEDIATE mode.

Now, why anyone would choose a more difficult path when there are easier trails that get you to the same place is beyond my comprehension.

But, some people like to push their limits and take more risk.

So, I guess this newsletter is for them.

Strategy #1: Catch Waves Early

In theory, I like the idea of finding emerging trends and getting in early. Especially when there's evidence to suggest that those trends have some staying power and durability.

But...it's hard.

You not only have to be nimble and bring a product to market fast, but you also need to the capital to quickly size up your buys to keep up with rapidly growing demand.

And, on the other side of that, you need to watch your buys closely relative to market competition to avoid over-extending yourself and holding too much inventory as competitors enter the market and take a slice of that consumer demand.

That said, if spotting trends and getting in early is something that you can do well, the "market" can make up for a lot of other mistakes you might make along the way.

It sort of reminds me of this Warren Buffett quote:

Being in a growing, uncompetitive niche is sort of like selling on Amazon circa 2015. You only needed to do 1-2 things right and you could make money hand over fist.

How can you spot trends?

I think the default answer for most people is Google Trends.

It's too macro though.

You need to know specific products that will sell well on Amazon.

For that, I recommend turning to Exploding Topics. (There's a featureless version that's free, or you can get a 14-day trial for $1).

Again, I don't build brands or products around trends myself (I put it on the "too hard" pile and move on). However, I do keep watch in Exploding Topics for trends related to my existing catalogs.

I do this to:

1. Identify any easy line extensions (e.g., if I'm in the supplement space and already have a protein product, I'm going to tap my manufacturer to make a caffeinated protein blend and launch as a variation); and
2. Inform my marketing efforts (e.g., if I already have a product that maps to a trend, I'm going to dial up my off-Amazon advertising and try to bring those newly-interested customers over to my store).

Other useful trend-spotting resources that I like:

• ​Ecom Trend Finder: This one is purely based on Amazon Brand Analytics > Top Search Terms, which can be a massive amount of data to manipulate and analyze on your own. I use ETF mainly to save myself the time and cost of storing data and querying a large database.
• ​Trending Terms: Again, this is Amazon Brand Analytics data, but in digest form, and hitting your inbox every week. So it's a nice, effortless, "push" resource.

Strategy #2: Low For Longer

My good friend Chad Rubin published a banger of a case study on how Zulay Kitchens launches products to #1 Best Seller status in a crowded category (Kitchen).

The TLDR of Zulay's strategy: Keep your price lower, for longer.

Chad Rubin @itschadrubin Based on my estimates and analysis👇, @Aaron_Cordovez will make $1.3M this year on 1 ASIN. He's maintained the #1 Amazon Best Selling Badge on Garlic Press since 2020. His launch strategy caused him to lose more than $327K but now makes $110K monthly. Here's how to replicate… https://twitter.com/i/web/status/1747639879117443458 9:19 AM • Jan 17, 2024 19 Retweets 78 Likes Read 20 replies

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Incidentally, this is the strategy that most China-based sellers employ. Though, arguably, they never bring their price up and simply are content to make pennies on every sale, and dollars through large volume.

Anyway, this type of strategy should NOT be followed unless:

1. You have the personal capital (and wherewithal) to endure prolonged losses; or
2. You have outside capital, and an expert level ability to manage cash flow; or
3. You have cash cow products in the rest of your catalog, which get positive, quantifiable, and reliable spillover (Halo effect) from the awareness that your money-losing product is generating.

To be clear, I'm not saying that this is a BAD strategy. Clearly, it CAN work, and it can work quite well.

But, it's on my personal "too hard" pile, and maybe INTERMEDIATE in difficulty for others.

SPONSOR Prosper Show I'm excited to report that I'll be speaking at Prosper Show this year! My topic is The Miracle of Negative Working Capital -- And Other Ways to Improve Your Cash Flow (big surprise) and I'll be presenting at 10am on March 6. If you're attending Prosper in March, drop me a note so that we can get together! Use promo code SANAR1100OFFSPEAK to get $100 off an all-access pass.

BEST from Everyone Else

Best from the B@A Community

Any takers from the B@A community for this?

IDEA: Rather than sell these 500k Pillow Pets, open an indoor play place for kids where, instead of ball pits, you have Pillow Pets Pits.

I'm only half-joking about this, and it may in fact be a good idea. Kids play places are massive money makers (see: FUNBOX, which, through it's FDD, I know averages $320k EBITDA per location) and think of how unique (and Gram-able) it would be to have a massive Pillow Pets Pit.

If you run with this idea, I don't need a finders fee or other kickback. Just hook me up with a day pass for my kids.

Best from X

I am going to figure out affiliate marketing in 2024.

At least, that's what I tell myself.

And, in my experience, the best ways to learn things in this digital realm are:

1. Try a bunch of sh*t, see what works, discard what doesn't (i.e., learning through feedback loops)
2. Copy other people's homework (i.e., learning through mimicry)

Well, the guys over at Obvi seem to have figured out affiliate marketing -- at least, more so than I have -- so I'm voraciously consuming their content.

If you're focusing on affiliate marketing this year like I am, this 6min video from Ash (CMO of Obvi) is well worth a watch.

Ash @ashvinmelwani Steal our affiliate marketing process and strategy from A to Z! A lot of people ask us how we’re managing thousands of affiliates at Obvi & Coffee Over Cardio So, that’s what I’ll show you in this video-breakdown of our entire process👇👇 PS: Do you like this style of… https://twitter.com/i/web/status/1719391890250862867 11:32 AM • Oct 31, 2023 10 Retweets 216 Likes Read 25 replies

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Best from LinkedIn

In case the 3 trend-spotting tools that I shared weren't enough for you, my friend Andres Fernandez has a few more.

FWIW, I'm seeing more and more people rely on TikTok Creative Center.

OK, it's mostly Dropshippers that I see talking about it. But before you categorically dismiss things that Dropshippers do (I'm guilty of doing this in the past), consider what it takes to be a really good Dropshipper: Opportunity Spotting and Marketing.

Do with that information what you will.

Best from my Inbox

This is the FBA Damaged Opt Out program.

It was rolled out ~15 months ago, and I got early access my largest brand through SAS Core.

Now, it looks like Amazon is rolling it out more broadly, as this email from Amazon hit the inbox of my smallest brand ($300k annual revenue).

If you have issues with customer-damaged items being incorrectly graded by Amazon and returned to your FBA stock, then check your settings and disable returns evaluation.

If this feature isn't showing up in your account, first of all, make sure that you're logged in as the Primary User. If you're logged in as the Primary and you still don't see it, open a SeSu case and send them the screenshot below so that they know what you're referring to.

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Updates to the Amazon Private Label Pathway

No updates to the Amazon Private Label Pathway this week.

But, I'm working on something.

Which reminds me...If you, or someone you know, has been impacted by the "Frequently Returned Item" badge on one of your ASINs, reply to this message.

I've been able to get it removed in two cases so far, but that's hardly a large enough sample to conclude that I've figured it out.

If you share your ASIN, I'll not only work on your case for FREE, but I'll also share the SOP with you once I've figured this out.

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Back Story on the Amazon Private Label Pathway, ICYMI...

A few months back, I had a small group of coaching clients that were at the same point in their Amazon seller journeys.

I found myself answering the same questions, and pointing them to the same resources, so, in true Amazon fashion, I asked myself "What's the 1-to-Many solution here?" and built a Notion page of helpful resources, which I've called "Amazon Private Label Pathway."

You can get access to it here: https://auxo.gumroad.com/l/amazonpathway (it's free; but if you want to buy me a beer, I won't object)​

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Amazon Questions? Amazon isn't easy. Everyone needs a little help from a friend sometimes. If you ever have a tough Amazon question, I'm only a phone call away. Let's Chat

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