62. Selling the Idea, Not Just the Product with Alex Nyezhnyk

https://www.youtube.com/watch?v=MDFUGHCfLXc

Our host Eitan Koter, discussed with Alex Nyezhnyk, the CEO of Profit Whales, an e-commerce growth agency, on product launches and the challenges involved in launching new products on Amazon.

Alex explains that the private label model is no longer effective due to increased Amazon commissions and expensive Amazon PPC. Instead, he recommends launching brands outside of Amazon and using platforms like TikTok and Instagram to drive traffic with influencer marketing.

Alex emphasizes the importance of researching and developing unique products and selling the idea rather than just the product features. He also mentions the need for a higher profit margin to cover advertising costs.

Another key insight is that driving traffic from outside platforms to Amazon can improve organic ranking and CPC costs.

We also discussed the role of influencers in driving traffic and the need to create authentic and engaging content. Alex highlights the significance of understanding customer preferences and adapting your product and branding accordingly. Additionally, he advises against relying solely on Amazon and suggests diversifying sales channels.

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Guest: Alex Nyezhnyk, CEO of Profit Whales

LinkedIn: https://www.linkedin.com/in/nyezhnyk/

Profit Whales - https://profitwhales.com/

Takeaways:

• The private label model is no longer effective on Amazon due to increased commissions and expensive PPC.
• Launching brands outside of Amazon and using existing platforms like TikTok and Instagram can be more successful.
• Innovative products or ideas and selling the idea rather than just the product is crucial.
• A higher profit margin is needed to cover advertising costs.
• Bringing traffic from outside platforms to Amazon can improve organic ranking and CPC costs. Prove your idea before investing in manufacturing and marketing.
• Utilize influencers to drive traffic and create authentic content.
• Understand customer preferences and adapt your product and branding accordingly.
• Diversify sales channels and don't rely solely on Amazon.

Chapters:

00:00 Introduction and Weather in Los Angeles

04:07 Transition to Google AdWords and Script Development

09:03 Selling the Idea, Not Just the Product

13:20 Changes in the E-commerce Landscape

26:03 Harnessing the Power of Influencers to Drive Traffic

33:23 Diversifying Sales Channels for Long-Term Success