We argue with 7-figure FBA sellers for an hour about which business model is better on EP31 of TWIDM
Jun 6, 2023
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Join Tom and Alex, co-founders of Honest FBA, as they discuss their journey in the FBA industry, starting a joint brand, reinvesting profits, the future of FBA, maximizing revenue and growth, and the possibility of launching a protein powder on Amazon.
The importance of hiring and leveraging resources to scale a business.
The potential of content marketing to drive traffic and capture email addresses.
The significance of building a reputable brand through unique product development and influencer marketing.
Deep dives
Importance of hiring and leveraging resources
The podcast episode highlights the importance of hiring and leveraging resources in order to scale a business. The hosts discuss how they have reached a point where they require additional help to take their business to the next level. They emphasize the need to hire marketing and supply chain professionals to free up their own time and focus on strategic growth. They also highlight how hiring the right people can help maximize the potential of a brand and contribute to its overall success.
Exploring the potential of content marketing
The hosts discuss the potential of content marketing, specifically creating a content site to complement their Amazon FBA business. They acknowledge the opportunity to drive traffic to their brand through informative and engaging content, as well as capture email addresses for retargeting and potential affiliate sales. While they admit that they haven't prioritized this aspect of their business, they recognize the value it can bring and consider hiring the right people to execute this strategy.
The evolving landscape of FBA business
The podcast episode addresses the evolving landscape of FBA business, including changes in strategies and increasing competition. The hosts share their observations on valuations, black hat tactics, and the importance of playing by the rules in order to build a sustainable and successful FBA brand. They discuss the potential challenges posed by Chinese sellers using aggressive tactics and emphasize the need to differentiate through branding, superior customer experience, and building recognized brands within the space.
Importance of Building a Brand and Product Development
The podcast discussion emphasizes the significance of building a brand and focusing on product development in the Amazon FBA space. The hosts highlight the benefits of developing unique products and moving away from the typical private label model. They suggest customizing products by investing in plastic injection molds to create completely unique items. The hosts also mention the potential value of entering the consumable market and using the subscribe and save feature to increase brand valuation. They emphasize the importance of having a strong presence on and off Amazon to establish a reputable brand.
Leveraging Influencer Marketing and Capitalizing on Existing Traffic
The podcast episode discusses the effectiveness of influencer marketing in the Amazon FBA business model. The hosts share their positive experiences with sending free products to influencers in their niche in exchange for videos and reviews. They believe that leveraging influencers can provide a significant boost to sales and overall brand awareness. Additionally, the hosts mention the advantages of already having external traffic to a website or platform and recommend utilizing both Amazon FBA and a direct-to-consumer (DTC) model via Shopify. They explain that while Amazon offers high conversion rates and immediate access to ready-to-buy customers, a DTC model allows for greater control over customer data and potentially higher profit margins.
Join us as we kick back with Tom and Alex, the cool dudes behind Honest FBA. We chat about everything from how they became business partners, the highs and lows of FBA, and the secrets to their growth game. Plus, they dish out some juicy tips on starting an FBA brand and SEO tricks. Don't miss this laid-back chat packed with loads of FBA wisdom!
