My Amazon Guy Good Companies get Bigger or Evolve, Great Companies do Both #84
Sep 5, 2020
22:26
Good companies get bigger, or evolve. Great companies do both. Examples of companies that did not evolve Blockbuster, Kodak. Examples of companies that did not get bigger. our neighbor’s startup you never heard of.
- It should be obvious why a company needs to both evolve and get bigger, but this isn’t practiced by many. Amazon is probably the greatest example of a company that successfully did both. Amazon started out selling books. Today they are even opening up their own electrical car division, have their own supply chain, and have their hands on everything from unicorn meat to their own private labels and video streaming services.
- If you don’t evolve you won’t stay competitive, and one day it could put you out of business.
- If you don’t get bigger, you’re not relevant, you’re stagnant, and you may not ever become an industry leader.
- Don’t just grow for growth sake. You don’t want to go out and acquire a random competitor on a dime. That’s not the purpose of getting bigger.
- Why both grow and evolve?
- Market conditions change. Rinse and repeat of same playbook will result in less profit and stagnation.
- “If the CEO has an engineering background, loves the products, and knows the DNA of the company, that firm is going to be focused on internal innovation. A CEO with more of a financial or investment banking background will go after deals. Even a specific type of deal.” Build, Borrow, or Buy: Solving the Growth Dilemma.
- The concept of just in time supply chain management is dead. Companies need to have a year's supply of all stock moving forward. Minimum. In the states ready. That's where the company should be financing right now.
- Fastest way to grow on Amazon is to add more products, advertise, launch on more marketplaces, and more countries.
- #pain is a good teacher. But it is not a necessary one. If you want to be a daredevil 😈 that's cool. But when it comes to business you can avoid many bad situations by having a plan and focusing to it's execution with #perseverance.
Sales can often decrease for a variety of reasons. Here are the most common reasons sales are down:
Common Reasons Sales are Down
- Seasonality - Seasonality of your Product (Weather, time of year, holidays.)
- Stockouts - If your top items at FBA stockout, this has a massive impact.
- Decreased Advertising - If cost cutting was recently done, advertising was pulled back or paused, this will lead to immediate velocity loss.
- Increased Competition - Did a competitor undercut your price by 25% and take the market by storm?
How to Improve Sales Right Now
- Keep products in stock - If this is the issue, send immediate replenishments to FBA.
- If a shipment is already on the way to FBA, what else can I do?
- Activate duplicate Fulfilled by Merchant skus if FBA is out of stock and you can ship direct to the consumer.
- If a shipment is already on the way to FBA, what else can I do?
- Increase advertising - The fastest way to increase top line sales.
- Add Video Content/Video Ads to the Listings - Video ads are hot right now. Please provide us all relevant video content and we can help get them loaded onto Amazon!
- Lower your prices - Decreasing your prices will increase conversion rates, and draw in more traffic. This can be a temporary measure, later reverted back up.
- Can be done through interactive promotion