#587 - How to Scale 6, 7, & 8 Figure Amazon Brands
Serious Sellers Podcast: Learn How To Sell On Amazon FBA & Walmart
The Significance of Continuous Product Development
This chapter highlights the significance of continuous product development in e-commerce, advocating for simultaneous development of multiple products to reduce launch risks. It also addresses challenges like supplier issues and shipping delays, while celebrating the value of industry connections and shared insights.
What if you could replace your corporate salary with millions in e-commerce sales? This inspiring episode brings together Robert Gomez, a former senior finance manager at Microsoft turned successful e-commerce entrepreneur, and Kseniia Reidel, an aspiring Amazon e-commerce star. Robert reveals his transformative journey from the corporate world to achieving over $10 million in sales on Amazon and Walmart brand called Kaffe. Kseniia, on the verge of hitting her first seven-figure mark using Project X methods, shares her innovative strategies and experiences in scaling up an Amazon business.
From facing the challenge of declining sales due to over-dependence on a single product to launching new product lines in Walmart, Robert and Kseniia provide invaluable insights into the world of e-commerce adaptability. They discuss the critical importance of diversifying product offerings and successfully managing logistics during peak seasons. The conversation underscores the significance of strategic retail placement and the rewards of being flexible in the ever-evolving online and retail marketplaces.
We also delve into the game-changing benefits of hiring Virtual Assistants (VAs) for essential tasks like product research. Learn how effective VA onboarding can propel business growth and the impact of diversifying sales channels beyond Amazon, including Walmart, Faire.com, and even TikTok Shop. With strategies for maximizing profit margins and leveraging social media for brand growth, this episode is packed with actionable insights for anyone looking to thrive in the competitive Amazon, Walmart, and e-commerce landscape.
In episode 587 of the Serious Sellers Podcast, Bradley, Kseniia, and Robert discuss:
- 01:08 - Amazon Seller Stories - Catching Up with Kseniia Reidel & Robert Gomez
- 10:17 - Dependence on Declining Kitchen Appliance Sales
- 10:24 - Navigating Brand Pivots and Retail Success
- 20:32 - Walmart Retail Expansion Success Story
- 22:52 - Product Expansion and Virtual Assistant Hiring Success
- 26:17 - High Margin Product Strategy Growth
- 29:01 - Product Launch Strategy at Walmart
- 36:55 - Amazon Seller VA Time Management
- 40:01 - Exploring TikTok Shop for their E-commerce Business
- 41:12 - Retail Expansion and Product Development
- 44:04 - Brand Expansion Strategy Discussion
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Bradley Sutton:
Today we've got two guests back on the show who've never met each other, but they've both been on here before Robert, who's generated over $10 million of sales with his brand on Amazon and Walmart, and Kseniia, who used Project X strategies to launch her first product, and now this year she's about to hit seven figures for the first time. How cool, is that? Pretty cool I think. Not sure on what main image you should choose from. Or maybe you don't know whether buyers would be interested in your product at a certain price point. Perhaps you want feedback on your new brand or company logo? Get instant and detailed market feedback from actual Amazon Prime members by using Helium 10 Audience. Just enter in your poll or questions and, within a short period of time, 50 to 100 or even more Amazon buyers will give you detailed feedback on what resonates with them the most. For more information, go to h10.me/audience.
Bradley Sutton:
forward slash audience. Hello everybody and welcome to another episode of the Serious Sellers Podcast by Helium 10. I'm your host, Bradley Sutton, and this is the show that's completely BS-free, unscripted and unrehearsed organic conversation about serious strategies for serious sellers of any level in the e-commerce world. And we've got a couple of serious sellers back on the show Robert for the second time, Kseniia for the third and a half time. We had her on a little Prime Day special here. But welcome back to the show, guys, your first time meeting each other was today. Right, you had no idea who each other was.
Robert:
No idea.
Bradley Sutton:
I love doing that. I love bringing different sellers who maybe under other circumstances, might never have known each other. So it's really good to see that people from all walks of life have success on Amazon. Now, if you want to get the backstory of Robert, his first episode was on 448. So we're not going to go too much into his backstory here. Maybe we'll touch a little bit on it, but 448 is a good one to see his episode. And then Kseniia has been on. I think her first was episode 320. And then she was back on episode 441. So we're really close to Robert's episode there, talking about how she 10X her sales from that first episode today. I'm not sure what we're gonna completely know about. We're gonna catch up, completely know about. We're gonna catch up with them might be up, might be down, but hey, we keep it real here. We're not here to make it seem like, uh, everybody who comes on is gonna 10x their, their, their sales. That's not why we brought her on the last time. But uh, let's see, let's see what happens. So, first of all, Robert, you know, like, like I, you know, the one thing that maybe people who listen to your episode, uh, that stood out was how you were still working at I don't remember it was like Microsoft or something like that for years and years, even though you were already a successful Amazon seller and that you had just around. That time finally was like, all right, I'm going to quit the day job. So you know, you have a couple of years maybe under your belt not working for the man, as it were. So how has that been?
Robert:
How's that transition been from so long being like the corporate world and stuff and now being your own boss, kind of I think last time I was on was around that time that I had just quit or was about to quit or something. But yeah, I was at Microsoft for a few years. My background is in corporate finance and I started Amazon, kind of like a side venture, back in 2017, 2019. I launched the current brand that I have, but I sort of held on as long as I could, had a whole team and everything, before I finally quit. And around that time was when we were going into physical retail and we had got our first sort of big contract. So you know, it was kind of just time. The amount of time it was taking, the amount of efforts it took to execute that program just had to do it.
Robert:
And it's now been a little under two years and it's amazing, I mean just the fact. I mean I love I was there for a reason, you know, and corporate served this purpose. You know, I think I'm always able to say that I used to work for Microsoft and that's kind of level setting very easy to tell somebody. But at the same time, obviously it just wasn't for me. From the day I joined Microsoft, I already knew that I wanted to quit. I already had the Amazon business and everything. It was just, you know, really just the golden handcuffs, as they call them. But yeah, haven't thought about going back any single time in this past year plus. So, yeah, thankfully, you know, any day that I get to do this has really been a blessing. It really doesn't feel like work.
Bradley Sutton:
What would you say were the effects of it as far as on your Amazon business? Like having more time to focus? Like, did it stress you out more? Was it the opposite? Were you able to take care of things that might have slipped into their cracks? Were you able to scale faster? You think? What were the differences on that part of things?
Robert:
It's hard to quantify it in that sense. But basically you know the role I had at Microsoft. I was a senior finance manager. My team was in the west coast at the headquarters, but I I'm based in the east coast, so it wasn't the amount of necessarily time it was taking. Quite frankly, you know, I had a pretty sweet sort of setup where I didn't take a lot of time right, and that's what made it even harder, because the more you get paid and the less you kind of work.
Of course that just sounds like a dream, right, if I just, you know, mentioned it to friends or just talk to people about it, like what are you doing? What are you thinking of putting it for? But it was just the mental sort of real estate, the real estate it took in my mind, even if I only had one meeting that day or two meetings that day. It was just kind of thinking of like oh, I have that meeting coming up, or just like I have to do this, or the feeling of like not giving something.
Robert:
My all you know I'm kind of like all or nothing type of guy and so like just having to, like almost feel fake in the way that I showed up to work and it's. They still thought I was doing a good job. You know we had reviews and I was kind of doing OK and good on them, but internally I just felt terrible, you know, and then I just felt like if I could focus all the time, you know, on Cafe, it would unlock a lot of other things and it has, you know, like it has allowed me to get the team into more of a rhythm in the way that we run meetings and run cadences for certain product development, for sales, et cetera, whereas before it could have been interrupted at any given moment, right, because basically I had a job so I could always take that backseat.
Bradley Sutton:
So yeah, it's been a ride, All right. Interesting. I think that's something that Amazon sellers out there, once they hit a certain level if they were working, you know is like a universal question All right, at what point do I do I, you know, give up the steadiness of income and the reliability and the insurance and things like that and go, you know, you know, focus solely on my, my Amazon business? For the people who already are out of out of the, the people who already are out of the corporate world once they start their Amazon business, well, they're just all in from day one, kind of, so they don't have that option. But I think the answer is it's different strokes for different folks. You're probably waiting the longest, more than anybody I've known, wasn't it like, even after you started your, your amazon business? Like a good three, four years um?
Robert:
yeah, it was about ready to get multiple seven figures at that by that time yeah, yeah, um, we had sold a total of uh, maybe like 12 million or so, um, before I quit, and we rolled, I quit, we rolled out 4,000 Walmart stores and then I quit, basically yeah he was still rolling out 4,000 Walmart stores with his product.
Bradley Sutton:
He's like you know what. Yeah, I think it's time now, but that just shows you that's not the wrong choice.
Robert:
There's other people who wait after one month, and they're ready.
Bradley Sutton:
That's not necessarily the wrong choice. It's whatever works for you.
Robert:
There was no room for error. If I messed any of that up, not only would I need a job I would be way in that way, so there's one way to look at it but also the focus was there. That was my full time job. You know, I always say Amazon was my full time job, and then I had kind of a side side job in corporate.
Bradley Sutton:
All right. So now going back to Kseniia, first of all, I'm not sure you know I don't remember the kind of things we talk about all the time. My memory is so bad. But then you know, Mhel gave me some notes this wasn't on there but before you started on Amazon like I do have in my notes here that you were doing like selling collectibles on eBay from Russia and things like that, but at any point, while you were doing Amazon, did you also have a day job or you were 100% your e-commerce business from day one?
Kseniia:
100% e-commerce.
Bradley Sutton:
A great contrast I didn't even plan that, but is perfect. It is to have a. To have the contrast here now. I remember one thing that was, you know, kind of like the highlight of your old episodes is is the way that you discovered uh and launched some of those first products that brought you success was like using the project x uh method. So that brand that you started back in you know 2021, 2022, whenever it was uh are you still selling that brand today, the successful one?
Kseniia:
Yep, still selling. I've had to change a little bit the product line and expand it but, yeah, the first product since from which one it started still there, still selling. It was exactly three years ago, actually, in August 2021.
Bradley Sutton:
Wow, okay, perfect, perfect. Now, the last time we talked back, in 2023, uh, I think some of your closing comments about your goals was hey, you wanted to kind of like focus on, on building the brand a little bit more. I mean building the brand in the figurative sense, not, you know, not just expanding their products, but like actually building a, a brand. And how, what did you do to try to do that and how has that, those efforts, worked out?
Kseniia:
Well, the first thing I want to talk about is what happened after last we talked. Is that in 2023, I lost like 40 percent of my sales? Wow, let's keep it real here.
Bradley Sutton:
Let's keep it real Well, what was it an attack or just you know the competition? Did you make a huge mistake or what? What happened? Uh, did you make a huge mistake or what? What, what, what happened?
Kseniia:
yes, I made a huge mistake, totally my fault, because when I started building this brand, this brand was focused on accessories for a kitchen appliance, and what I didn't think about is that my sales are going to be totally dependent on the sales of that kitchen appliance. Under no, no, no circumstances I can sell more accessories than the appliances sold. And so what happened is, in 2021 and 2022, the appliance sales were growing and they were doing a lot of social media, so my sales were growing, with me not really doing anything, like I didn't do any social media for my brand. But in 2023, from the beginning of 2023, for whatever reason, their sales started dropping like every month, less and less and less, and by the end of the year, I think they also lost like 40 or 50 percent of their sales and your sales were 100 reliant on theirs, yeah, the same. And anything I was trying to do. I tried to do social media, I tried to do Google ads at an agency, but nothing really was just a waste of money, basically because their product wasn't selling, so my products were not selling and my brand was 100% focused on accessories around that kitchen appliance. Wow, okay, so like I had eight products, I think, by the end of 2022. And they all were related to that kitchen appliance.
Bradley Sutton:
Interesting, interesting. And so then you're like how do you pivot from something like that? It's like you know, your whole concept of your brand is around this one thing. And here you are trying to build your brand, but then like, wait a minute, this is not the direction I need to keep going, or else I'm going to keep going down yeah, I spent several months on trying to think about what to do about it.
Kseniia:
I was like, oh, do I just dump it all and just start it all over? But then, like I had a patent pending for two of the products because they were selling really well and it was really my like design idea that I totally made from scratch, I was like I don't really want to dump it because, who knows, maybe like next year, their sales will go up again, you don't know. So I was thinking about it and I just decided to expand into the products that not a hundred percent related to this kitchen appliance that but can be used by the same people but also can be used by other people as well. So kind of exit the sub niche and get in a little higher niche. So they're still all related, but now I'm not tied to that kitchen appliance.
Bradley Sutton:
Now, did it help at all that you were in that niche already to launch these other products? Were you able to market to your existing customers at all, or was it almost like starting from scratch again?
Kseniia:
No, the first product that I launched after that was not 100 related to the other brand um was made for I actually got the idea from the customers of that brand, but it was also being bought by all other people. So and sometimes I see that the um, some of the purchases that are made, they're made like two products bought together yeah, the one for the brand and not not for the brand. So the first one kind of easy, and then I started expanding a little bit more outside of the something totally not related to that brand.
Bradley Sutton:
Okay all right. All right, we're going to come back to you because I want to uh, double click on a couple of those things you're talking about. But now back to Robert. You know you had mentioned how, in in around the timing of the last episode, you're launching Walmart and there are thousands of stores. Um, I would assume you know we're here in in august that it's been over a full year now of Walmart store sales. So how would you, how would you say that that's gone? Like what kind of gross sales we talking about just in in stores on Walmart, and are we only talking one skew?
Robert:
Yeah, so we launched, uh, maybe, yeah, 16 months ago or so, with two skews uh right away. Basically, one of those items was the intro offer. What they call that at walmart is basically the the cheapest option of that product at walmart right, in this case a coffee grinder, and from the time it went live it just started really selling. Just basically, we could see from the data like Nielsen data, which is like official retail data, not counting Amazon and e-commerce we could see that our product was the best-selling grinder in the us, like across all retail points, just because of that walmart placement, right like. So, imagine walmart being, you know, the kind of highest volume retailer and you're the cheapest in uh or the intro uh pricing there, so that that, you know, had what was kind of like a big boom.
Robert:
Uh, struggle to kind of just make sure you know, basically keeping up with their projections were a lot lower than we actually did end up selling. Uh, and you know I kind of had already predicted that we would sell, about you know, more than they predicted, just cause that product did well in any other channel that we put it Um, and so, yeah, just kind of stabilizing that right, so making sure that through the holidays.
Bradley Sutton:
I would always remember your uh, remember your Instagram post.
Robert:
You would be going around to Walmart’s all over the country you're on vacation stuff and go to the shelf where your product is and look it's empty, like we're sold out, like it's a fly, literally flying off the shelves yeah, so that's what was happening, you know, and so because it had one facing, meaning it's on the shelf once, instead of like having two, two of them and it would sell kind of fast enough that basically it wasn't. It wasn't able to maximize what it could do, right, because it wasn't available fully right. So we were missing, you know, maybe 20, 25 percent of sales there until, like, the Walmart kind of system catches up with it, like, uh, their forecasting system, um, but yeah, it's basically uh, it's bigger than an amazon business, uh, it's a high seven figures kind of deal and we're counting wholesale costs, so like not the actual retail, so it kind of would be bigger. And the thing with Walmart there is, you know it's compared to amazon it's huge. You know, like it's guaranteed you're a vendor, there's no middle sort of person there and just you know they place every week orders for 42 distribution centers, so like, basically every week we get 42 orders and it goes to other distribution centers, and then this May, so basically a year later or a little before that, they launched one additional item, so they added one more to the two and now there's three. And I also went to another line review for next May to hopefully add a couple more items. So it's just kind of working on the retail side there, but separately.
Robert:
I was actually in Puerto Rico yesterday. I was, as I was telling you, meeting with the Walmart Puerto Rico team because they're rolling out, uh, basically a whole section of like 15 items, um, like they're, they're actually like taking up a whole section, um, and that, you know, even though there's not that many stores in Puerto Rico, it's a, it's a huge kind of way of proving it out, like you know, hey, you know, we did this over there. How about, you know, over here, right, right, two other retailers in the us, and that's kind of where the strategy is. So certainly ups and downs, you know it's not always, uh, rainbows and butterflies, as they say. Uh, that side of the business is great. That's what we've been focusing on for a while. But, uh, there's amazon as well. Not such a pretty picture there, but we're still going at it strong, obviously we're gonna want to uh, you know, uh listen to your story on amazon.
Bradley Sutton:
But just going back to the Walmart you might have said this in the last episode but, like I said, I forget things how was it that you even got into Walmart before? Did you start to sell on Walmart.com? Did a buyer at Walmart take notice of you because you were crushing it on Amazon, amazon? You know that's probably the hardest thing for somebody who's interested to get in Walmart brick and mortar is getting on the radar of the buyers and actually getting you know in a media unless you'd, like you know, win a contest or do that uh open call or something like that. But how was it that you were even able to get your foot in the door with Walmart?
Robert:
Yeah, so a little combination of a couple of things you mentioned, but essentially we have a broker, okay, and a broker, what a broker does, and it wasn't the first broker we had, by the way, and we have one for Target we have. You know, these brokers kind of charge a single digit percentage of sales if they ever sort of get you in the door. Some charge a monthly retainer. In my opinion I wouldn't go with those. You know, the ones that are like serious in my opinion more are the ones that charge you a percentage only if they ever get you in the door, right, um, and so we had tried one. It didn't work out. I mean, it's the same as us reaching out to the buyers, which we had also done, you know, and they don't really reply. You know, like all these retailers at least the, the biggest retailers they have once a year kind of reviews, right. So if you kind of get invited to the review, then maybe you they'll review your product, but that has to do with whether they're wanting to change whatever they have on the shelves, whether they're open to whatever you have, just like a lot of different things. Like the most common thing to happen is that they don't change anything on the shelf Right If it's kind of working or. You know, their jobs depend on the performance of what's on the shelf Right. There's not unlimited amounts, so they're very picky on what they select in. So that's why it's kind of like an uphill battle to get into the retail shelves, and more nowadays that everyone's pushing for conf right. If anything, they'll tell you oh, go try conf first. That's just kind of like a cop out to say like we don't want you on the shelf at the moment.
Robert:
So how it worked with us is basically we had worked with a broker. It didn't kind of work out, just no motion there, and not to their fault. But another broker reached out and said hey, you know I can try to reach out, and he did, and it was regarding our coffee grinders and they basically said you know, you can come to Venville to present it at our line review in June of that year and they had seen the product on Amazon. So yeah, I think we were bestsellers or just doing really well compared to other things they had on the shelf and they invited us for that one product and of course when we went I presented other products Right. So you have like 30 minutes. You set up on a table and it's like go, go, go, and after that just kind of I thought it would be like a lesson learned sort of like. You know, maybe come back next year like a good job. You know, at least I learned how to do this thing. But they came back with, you know, questions that led me to believe that they were really interested, like, hey, you know, would you be able to like fulfill a large number of stores if we allocated you that? And, and you know, I just said yes, you know, I never.
Robert:
Even that was our first retailer. You know, usually they try you out with a hundred stores or you maybe get into another independent retailer and then you kind of work your way up. But it was one of a weird case where our first retailer was, you know, every Walmart. So it's kind of like you have to learn how to execute the biggest one first, and so now we feel confident that any other retailer, it's kind of like it'll be okay. You know, capacity, volume, just processing the orders. It was a beast at first but yeah, that's how it worked out. Okay, cool, a long sales cycle.
Bradley Sutton:
Yeah, Interesting, interesting. Now, switching back to Kseniia, you know, like in the old you know I remember some of your other products the way you would kind of find and or launch was, you know, like through Facebook groups and things like that. Like, are you still using that method to like? You know now that you kind of are going a different path, like, is this Facebook play a role, or how are you finding where the needs are to launch these new products? And then, how are you getting the initial eyeballs on your product once you do launch?
Kseniia:
Yeah, the first one that I launched after switching of being the accessories for other brand that was also from a Facebook group. That also was from the same people. But then after that I realized that I need to find a VA finally, because it was only me before that and it got kind of hard when I got to like almost close to seven figures.
Bradley Sutton:
Remind everybody what you did uh, you know to do that so they can kind of have a for those who didn't hear the last episode, so they can have a picture of your strategy here so before, uh, I was finding product ideas, I was on the Facebook groups for that kitchen appliance and I would just see what customers say.
Kseniia:
Sometimes, a lot of times, because it was a new brand and it was like, basically no accessories for this kitchen appliance they would just say, oh, have anybody, anybody seen this product or this product that we can't find anything like this on amazon? We really want it and I would go like Esty or eBay, I don't know. I check Pinterest and I would see people try to make it themselves from, like I don't know, pieces of wood or something like that. So I realized, okay, well, it's great, then you check the search terms and people actually searching for this product, but there is no options available on Amazon. So that's how all the other products before were and then.
Bradley Sutton:
So what did you hire the VA to do? Just start, you know, just be in all these Facebook groups and Reddits and stuff like that trying to get information, or what are they doing?
Kseniia:
no, the first thing that I did when I hired her, I told her she needs to learn the Project X.
Bradley Sutton:
Nice.
Kseniia:
I gave her the Project X because I told her that's exactly how I learned how to search for products. So the first thing we did is that she watched the whole Project X Love it. Because I wanted her to learn how to find products, the way how the Project X was done. Not starting from the product itself, but let's say starting from the product itself. But I'll say started from the keyword. Yes, so searching for the opportunities and not searching for something that already exists, and you'll be surprised. I think it's in two months I don't remember how many she actually found, but the one that we're actually going with in two months it's like 10 or 15 products, something like that that's already passed, like we're getting the samples.
Robert:
Oh, wow.
Kseniia:
So that's just not the product ideas. That's actually what we will be launching.
Bradley Sutton:
That's awesome.
Kseniia:
So yeah, she's really great Okay.
Bradley Sutton:
How did you find her? I think that's another thing that people wonder about is hey, how do I find good VAs who are actually going to produce, Like, did you go to a service? Did you just put a notice up, or?
Kseniia:
I just went on a website. I forgot how it's called like jobsph or something like that. And yeah, I just did a post that I'm looking for a VA with like a specific requirements and I actually did like a an attention test, let's say so. I put it a note and in the middle of the resume and tell them that's how they should name the email when they reach out to me. And you'll be surprised, out of maybe a hundred people or more that reached out to me, maybe like five only actually read yeah the joke post and they put it the and that was like the first test and then they did a task trying to find a product.
Bradley Sutton:
So hey, there you go, Robert. There's a tip for your, your next hiring thing. Like uh, dude, that's a good test to weed out half of the applications right there. I like it. I like it, okay, cool. So now you know, now that You've launched some products that kind of are not reliant on that one appliance, what do you project? Is your sales going to be by the end of this year on the trajectory you're going now?
Kseniia:
Yeah, I think we will definitely hit the seven figures this year, so it should be better than so. So far, the best year was in 2022, when we got very close. I think it ended with like nine80,000 or something like that, and I think we should be more. Yeah, it should be more this year.
Bradley Sutton:
Awesome, awesome, awesome Congrats.
Robert:
You got to buy $20,000 worth of goods at that point. Yeah, just at the end of the year just like buy your own product.
Bradley Sutton:
Come on, I mean you got to hit that number, but hey, that's good, you're going to do it without having to game the system like that this year. Awesome, Robert. Amazon. Let me look at my notes here. In your first year I saw you did $2 million on Amazon. You had grown it to like $4 million, which was pretty much Amazon.
Robert:
Only If we were just to take the Amazon, not the Walmart. Are you up down? We're probably slightly down. I would say maybe 15% or so, 10 to 20. Part of that was our own doing. We had to prioritize. If we ran out of stock, it's not going to be at Walmart stores, it's going to be at Amazon, and it's happened a couple of times and know, and that's kind of affected. We had a really kind of high margin sort of products that we've launched and one of them did extremely well and we just haven't been able to keep it in stock because it is a new item to our supplier. But, like as an example, we launched it basically like month one, with no reviews, you know, just like our branding and running ads. We did almost like a quarter million dollars of sales and it was profitable, which is crazy. You know, usually we're used to losing money, you know, even after a while sometimes, uh, but you know that kind of like margin. There's certain like we're basically focused more on things that make margin, you know, or things that will basically help us push sales through our website, through other products, or things like that, like our hero, where we include an insert card and they're able to buy other accessories from us. But yeah, certainly, strategy slightly changed.
Robert:
Within Amazon, advertising basically just kills a lot of the margins, but we see it as a brand awareness exercise as well. We have a lot of products on the roadmap that are higher margin and just kind of like uh, you know, complementary products and stuff that you know I think it's a survival of the fittest on amazon. You know, thankfully, we have always tried to open new channels. You know it wasn't just Walmart stores, you know, for a while we've done all the dot coms, you know, even as vendors like Target dot com, Walmart.com, Macy’s Home Depot, fair dot com If anyone out there listening, maybe I'll save it for the 60 second tip. But Fair dot com, yeah, just, you know, all the channels start adding up, you know, and those are higher margin than and where you don't have to run ads and stuff.
Bradley Sutton:
So how are you dealing with the year of the fees? It seems you know Amazon, you know 2024 new inbound fees and low inventory fees, which it sounds like you probably hit because you keep running out of stock, you know, on some items and refund fees and stuff like that. Like how have you been able to maintain your profitability? Or have you been able to maintain your profitability, you know? Have you had to raise prices or what's going?
Robert:
On no, we just, we have not maintained the profitability, it's just straight. But not on amazon wise. You know, thankfully, the retail side for us just, you know, pays the bills and more. You know thankfully. But uh, we see amazon, as hey it's, it's tough for everybody. You know, thankfully we have another side of the business that it's actually our priority and you know we're still focused on Amazon. But we didn't keep the profitability. Necessarily we can't always just raise prices because we are basically selling on a lot of other channels, so it disrupts a buy box potentially and it's just one of those things where we just have to optimize on the ad side and just straight up, not focus on some SKUs that are, you know, kind of loss leaders or could be loss leaders.
Bradley Sutton:
Now I'm looking, I'm just looking with Helium 10 here on your store page with X-Ray, and I see actually you know there's a number of products here that you've launched in the last year. Like I see it, says March of 2024. I see another one here, June of 2024, this coffee scale with a timer. Why, somebody, that's gotta be a serious person. You're weighing your coffee and you got a timer on it, but whatever. So there's all these unique products.
Kseniia:
It's at Walmart.
Robert:
So that product is at 3,000 Walmart stores. Wow so wait, hold on stores. Wow so wait, hold on, hold on.
Bradley Sutton:
It just says you launch this in June. So does that mean that you actually launched a product on Walmart before Amazon? I love that. You see, I keep trying to tell people that exists. Some people say, oh no, Walmart is the opposite. You can expect less sales unless you get into the stores. But there are definitely people out there who launch on Walmart first. But anyways, my point was I see at least four or five products here that were launches here. So obviously you're actively, you know um, trying to expand the brand, you know. I asked Kseniia the same question how are you finding these, these new opportunities, like? What are you doing to, like, do your market research to say you know what? This is the next product we're going to try.
Robert:
Yeah, so a lot to do with I mean doubling down on what works, for example, the categories that are working. We introduce either variations or new models if we see fit, and then we get a lot of feedback from retailers and pitches that we do to retailers. So we're in line reviews all the time with different retailers and they tell us we like this product, we don't like this product, or potentially, I think we launched maybe like 20 or 15 or 20 espresso sort of accessories, the scale being one of them this year, and that was from, basically, feedback from a Walmart buyer saying, hey, you know, it'd be nice in the future if we have some espresso tools you know that's kind of a trending category, or whatever. And we sort of said tools, you know that's kind of a trending category, whatever. And we sort of said you know, yeah, we have those kind of coming anyway. Yeah, you know. And then we went and looked for those. So we you know I have a lot of products that I've already tested and stuff, you know, every, basically everything. We're a coffee brand, so anything around the coffee categories, you know, are sort of constantly keeping my eye out and our factories also like innovating with us. Um, but yeah, it's, it's.
Robert:
It's a lot of prototyping for retailers, rather than launching on amazon and seeing if it works and then sort of uh, then going to pitch to the retailer. So it's a lot more capital efficient, just sort of prototyping things or final sampling and then uh, sort of having them available on your catalog and then if a retailer wants it, then of course you go to mass production, you go kind of bigger on that and double down on amazon um, but yeah, on the amazon side for us, you know one thing that you probably wouldn't see on the numbers there, but we're we've been working with a 1p partner where we basically have a lot of margin on but we don't necessarily account for the sales through our account, you know. So, like our item wouldn't necessarily show that but it says sold by amazon. So there's some. We just started that as of like a month and a half ago or so, uh, and it's been kind of working really well, um, certainly making a lot of profit, and they're selling uh as dot com, as amazoncom. So that is sort of how we're mitigating the risk, just sort of looking for ways where we're able to keep profitability, because you know categories that need our products. You know our brand fits in well.
Bradley Sutton:
Now one thing. The last question for you, before I go back to Xenia, is I don't know the specifics, but I used to supply Walmart to other companies I've worked at. But it's not like they pay you a month in advance or even they pay you up front. There's different terms that Walmart needs and then when they're ordering what? 50 units for 4,000 stores or 20 units for 4,000 stores everybody can do the math out there. We're talking a sizable chunk of change. How do you manage cash flow when you're almost having to front Walmart and some of these other things like and have such a big business with so much turnover? How do you have the capital to sustain, to keep it, to keep it going?
Robert:
yeah, that's the part that hasn't been easy for sure. You know, financing environment altogether has gotten, you know, tougher for everyone. You know, obviously, the higher interest rates and stuff. I just bootstrapped this so of course even harder right, and I'm in a sort of categories that are, you know, some would say commoditized, unless you have like strong brand but you definitely are competing against legacy brands that are sold by amazon. So basically a lot of competition in that way. Um, so, to scale it, it's not like I had extra sort of profit margins to just dump around and make mistakes and sort of, you know, go everywhere. So it definitely took some, you know, strategic there, partnering with the.
Robert:
I would say the biggest lever is our supply chain terms. You know our supplier terms are almost unheard of when I tell even you know bigger, much bigger sellers. Obviously I've taken on debt, you know, um, and that's been helpful, you know. You know decent amount of debt, but the largest chunk that allowed to scale at that point has been the supplier term. So think of uh, you know, usually you pay your suppliers maybe like 30 deposit and then the 70 maybe when the goods goods arrive at the US. You know if you're lucky, you know if not when it left China. We pay 15% deposit and then we don't pay the 85%, sometimes until 90 days after the goods arrive in the US. So basically, we sell it to Walmart.
Robert:
Walmart pays us in 55 days and then we go and pay our supplier essentially. So at any given time we owe our supplier so much money that it also makes a relationship so that we basically don't have to. We do, uh, at least once for all we don't have to do inspections on containers because they're not going to mess it up. You know, if they mess it up, we owe them so much money that it's in their best interest to not. You know, uh, so it keeps that relationship always kind of lopsided in in this way and, quite frankly, is the cheapest financing.
Robert:
You know that that one can get right. It's just basically your supplier taking on the brunt of it. So at some point earlier this year, yeah, like because of the terms with Walmart, basically Walmart owed us like maybe a million and a half dollars or something, which is crazy. You're like, okay, in the next 55 days every they're going to be paying some amount. But then we also owe the supplier like hundreds and hundreds of thousands, and then over there, this and then you have to order another container because you know Walmart's going to reorder and they're not telling you that, but if it's on the shelves they're going to start reordering as soon as it starts trickling in. So it's just a huge risk really. But when it's Walmart stores, I mean you just have to take it. You know I always said I'm either going to make this thing, you know work kind of do it big or leave a huge hole in the ground of where it was once. But it's business. You know, I try to remove the outcome from me. You know me, or my sort of self-worth, I guess
Bradley Sutton:
Now, Kseniia, a similar question to you is you, as a smaller up-and-coming seller, how have you been able to deal with all the new fees? Have you changed your strategy about how you send stuff to Amazon at all, or anything else like about how you send stuff to Amazon at all or anything else, or are you just kind of like you know, just taking the new fees and raising prices, or how are you dealing with it?
Kseniia:
Well, generally when I did the product research before and now we look only for the products that look at like 40% profit and obviously that was the profits that I had in 2022. And after all the fees, it just dropped to like 23, probably percent, 23, 25%. I'm very careful with PPC right now. I'm not trying to overspend on it Plus on the storage, so I'm basically storing for free the products in China after they're being manufactured, so I'm saving money on that.
Bradley Sutton:
I think this is interesting. A lot of sellers are kind of like maybe in your shoes right now, maybe just by themselves, or maybe they have one or two VAs. Tell me, how many hours a week are you putting to your Amazon business? How many hours a week is your VA doing? And then what are you guys doing? How does your week look? How do you break apart the responsibilities?
Kseniia:
So actually I hired the first VA in April, I think and I liked so much that I hired a second one, like a month ago. But she's only responsible for like social media because we started doing TikTok, uh and a lot of like UGC content, um. So the first VA she does a full time, so 40 hours um a week, and the second one is a part-time for now because I don't know how it's gonna go, because I don't think all the products are fit for like TikTok are you doing TikTok shop or just like promoting?
Bradley Sutton:
yeah, TikTok shop. Okay, how's that.
Robert:
How's that working out for you?
Bradley Sutton:
I'll go back to the employees or the time management one, but how's TikTok?
Kseniia:
Well nothing really. Yeah, we just we just started like three weeks ago, I think four weeks ago ago. So she's reaching out to a lot of influencers and through the affiliate program, through TikTok, so I don't know how many she probably reached out to like 200 a day or something like that. So some reply, some don't. So we've just been sending out some sample. I think we only got like one video or something like that yet posted, so not much yet.
Bradley Sutton:
Okay, one employee is specifically doing social media for you, including TikTok shop, and the other one is she just doing the product research, like you mentioned before, she has other tasks for you as well.
Kseniia:
Yeah, so the first one. She initially was hired specifically for product research, but then we got to the point where we got so many products that we found but there is not too much money, even though I've taken out the loan, but still there is not enough Like. But there is not too much money even though I've taken out the loan, but still there is not enough like. I don't feel confident yet to get like a huge loan. So we still have to launch like one or two products at a time. I can't do like go and launch all 15 at the same time, because the problem I ran into maybe six months ago is a launch product and it became. It started selling a lot better than I expected to.
Bradley Sutton:
So cash flow. Same thing we're talking about with uh, with Robert there, yeah yeah, of course.
Kseniia:
Well, at the moment where I started losing sales, obviously I didn't have any profits. So that's the moment when I had to decide what I'm gonna do if I'm just closing it all down or am I taking a loan. So I decided to get a loan and start launching new products, and then it got better. But also I use a lot of credit cards just because I get points. I figured out the right credit cards to use because I travel a lot. Then I honestly don't remember last time I paid for a ticket. It's all always done through points.
Bradley Sutton:
So how do you, how are you paying your suppliers with a credit card? Cause not all, not everybody, knows how to do, how to do that.
Kseniia:
Uh, so I just do it through Alibaba, but I negotiated a terms with them where they covered Alibaba fee, so I'm not worried about that. Okay, cool, but that way I get a bunch of points every month.
Bradley Sutton:
Yeah, because I know you and your husband like to travel a lot too. So you're saying all those are. Are you business class on everything too? Most of the times, but not for the short flights.
Kseniia:
Okay cool, cool for the longer ones.
Bradley Sutton:
So, Robert, as I'm talking to Kseniia, she was talking about TikTok shop. Here I'm looking and I see you're on TikTok shop too. So how, how long have you been on there and how's that been working for you?
Robert:
yeah, I think we maybe, uh, earlier this year or something like that. Um, again, we have, uh, there's certain products that we know work a lot better for TikTok shop and we see it. You know, there's a concentration on a few products basically that work very well there. You have one of them pulled up. We just had inventory issues on those products. Basically, those products are really hot, kind of everywhere we put them and we really haven't been able to push as hard as we can on TikTok shop, but certainly everywhere we put them and we really haven't been able to push as hard as we can on tiktok shop but certainly are gathering a lot of affiliate content.
Robert:
Um, and sales are starting to come in. You know, uh, we see it as a big kind of big potential there. Um, certainly so. We're. We're reloading on inventory on those and, and for those that didn't know, uh, fulfilled by tick tock, I think basically, and for those that didn't know, fulfilled by TikTok, I think, basically they're subsidizing shipping. So you essentially make more margin on certain products as long as you get them above a certain threshold. So, yeah, it's one of the channels that we're focusing on. That's newer, okay.
Bradley Sutton:
You know we talked before about your goals. So, like what are your goals now for the future of your brand, now that you have like a different direction than the last time we were talking? Like what are you trying to accomplish at the end of this year other than hitting seven figures? What's next year look like for you?
Kseniia:
We're just going to try to launch as many products as we can. Our goal is probably two to three products every couple of months, so like a product a month. So that why we try to develop um. At the same time we're developing like five products, because you never know how it's gonna go um and, of course, do more social media, do more content, just to, you know, to get the, the brand name out there. Uh, we just started doing Shopify, like a month ago or no, a week ago, I think. I just started working on a website um.
Bradley Sutton:
Are you launching any other platforms? Obviously you're on amazon. You're on TikTok shop. You just said you're on Shopify. Are you on Walmart?
Kseniia:
or other places. Not yet, not yet.
Bradley Sutton:
But yeah, I'm thinking about going there too, as well, now you've got an inside connection at walmart if one of your product takes off somebody who can help you out here, Excellent. What is your favorite? Helium 10 tool, Kseniia or function of a tool.
Kseniia:
Probably the audience. That's the one that I use all the time. Is it called audience?
Bradley Sutton:
Yeah, the split where you ask the questions to the people and say, how are you using that Like for your images, or just for product ideas, or what are you using that?
Kseniia:
honestly for everything, for both for the product ideas, for the images, because I just think it's so easy. You know, when you're thinking about like the product we find, then I usually do um, like the drawing and uh, 3d you know the 3d image of the product that doesn't exist yet. Then usually all my products are like, really designed differently. That's what's on the market right now and I just upload the image there and I see what people say and ask them would you buy this product? And if you wouldn't buy this product, why not? Or what would you change in this product? And sometimes I see the things that I didn't even you know, I didn't even think about that.
Bradley Sutton:
So you're launching just the 3D rendering and just asking a question on that image, or you're launching it like, or you're launching it, you're putting it in a poll next to like existing products and asking them, or which one are you doing?
Kseniia:
I'm doing both. Actually, the first I just do the rendering and ask them would you buy this product? And if you would not buy this product, would you change like, how would you make it better for you? And then sometimes I also compare it to the other products that on the market and ask them which one would they buy? Interesting and a lot of times I do the changes on the product based on what the people say.
Bradley Sutton:
Yeah, yeah, I think it's important. I mean helium 10 audience, which is, you know, uh basically pick fu inside of Helium 10. I think is slept on by a lot of people. But that's, that's uh glad to see somebody's similar questions. To close out, uh, before we get to our final 30 second tips to Robert, like what's, what's your goals for the brand this year, next year and beyond?
Robert:
Yeah, so we're. We're really just doubling down on retail. We have a line reviews with different retailers. We're attending different trade shows, not like Amazon trade shows but like actually exhibiting. We did our first one in Chicago this year that had brought a lot of leads to basically regional retailers and all these new doors where we can just increase our distribution Within Amazon. Just continue to execute our roadmap. You know, basically double down on the products that are working and like higher margin products, but basically just doubling down on what's working. The brand, the angle of like being a go-to coffee brand versus legacy brands, that kind of just focus all over home, all over kitchen yeah, it's really, you know, seems to be really hitting a nerve with retail buyers. So that's kind of where we're going.
Bradley Sutton:
Nice, nice and your favorite Helium 10 tool for you or your team.
Robert:
Keyword Tracker. I use the Keyword Tracker a lot, market Tracker the original one. So those are my top two and that's because I have a lot of customization there. And I would say, to answer your other question on what could have maybe some improvement, although I like the interface a lot, is the profits. I think I talked to the team already but maybe there was some delay there with the advertising numbers being posted and so, like you know, profit being a tool that you want to look at almost like real time, you know, as opposed to like a few days back. But overall, you know, I love Helium 10. We use a lot of the tools the follow up tool, the you know I hadn't heard of the audience one we use PickFu from time to time, same thing.
Bradley Sutton:
It literally is PickFu just inside of Helium 10.
Robert:
Yeah, I didn't know that you guys had integrated like that. But, yeah, a lot of tools that help us keep an eye on the business, a lot of the notification stuff, the daily like keyword tracker emails that we get. You know, we really do use all those things Awesome.
Bradley Sutton:
All right. So now you know. Robert and Kseniia have been on this podcast for a while, so they know what's coming up next. What is your 30 or 60 second tip? Let's start with Robert.
Robert:
So my tip revolves around retail or going into retail. But first I want to talk about a channel called Faire like fair with an E at the end, dot com. To those who haven't heard it, especially if you're selling on Amazon or already on e-com, it's essentially a marketplace for independent stores all throughout the US, Europe, whatever, just sort of mom and pops, coffee shops, just any sort of stores that wants to source goods for their store, and it does really well for us. We've sold six figures through there, high margins, and we get pictures all the time from random friends and things like hey, how is your product that's in a random coffee shop in the middle of random city? Or just like in this little store, I saw your products. So you get actual feedback on what your products look like on the shelves and which products actually sell, Because those products, even though it's going to be a little store, it's going to be on the shelf, so you're going to see which products turn and why they do or do not turn, and that will kind of build up your first book of customers that are actual physical retails. Right, there's a lot of reorders on there and it's just a great way to get your feet wet into going to retail go ahead, you know, into going to retail.
Bradley Sutton:
So that's my tip there. Okay, cool, all right now. Now over to uh Kseniia. What is your uh 30 or 60 seconds? Uh tip or strategy for the sellers out there?
Kseniia:
I want to talk about the product development. I want to say that never stop product development. Uh, always have multiple products and a development at the same time. Um, even if your budget allowing launching only one at a time, because there is always going to be something that's going to go wrong, like the samples might not be made according to the drawings, suppliers might take a lot longer time to make the sample, or your packaging can get lost in the mail. So, and if something goes wrong with one of the products that you're developing, you always will have another options what to launch.
Bradley Sutton:
Cassini in the past. I know she kind of flies under the radar here, and that's why I love having people on the show. They don't come here with agendas, they're not trying to. You know like I'll have professionals, no problem. You know people who have agencies, people who do want to make a name for themselves no problem with that at all. I get good stories. But I also like having people on here who, who, hey, they're not on here for promotion, they're just trying to help other sellers out here. So, Kseniia, I know I don't even have to ask that that that she doesn't even have a you know any website or LinkedIn for people to reach out to. But, Robert, I think you do so like, if people want to, you know somehow find you on the interwebs out there. How can, how can they locate you?
Robert:
Gladly, we'll connect. I love just talking to sellers and helping in any way I can. I always learn as much as I give away at least. So gladly please reach out. LinkedIn would be fine, Robert Gomez, just search for me and glad to chat.
Bradley Sutton:
Awesome, awesome. Well, Robert and Kseniia, thank you so much for coming on and sharing what you guys have been up to, and we definitely want to reach out maybe in 2025 and maybe not together, because I like introducing people to new ones, but maybe we'll connect you with other sellers out there. But thank you so much for coming on and wish you the most of success in your e-commerce journeys.
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