We’ve identified 10 reasons why especially new Amazon sellers (or sellers who are struggling) on Amazon should find as many ASINs (new products) to test as possible and they should do it as soon as possible in order to make their odds of success as great as possible.
While this may seem obvious, we’ve observed that many sellers try to find a handful of magic products that will boost them into the business they desire. Rarely is that what happens however. On today’s episode, we dive into the reasons you should find numerous products to test as well as some strategies for doing exactly that.
Here are 10 Reasons you should build a strong foundation as quickly as possible
1. Hard to find averages when going ASIN by ASIN
Book of biz leads to Averages leads to predictability.
Increasing profits and decreasing expenses is much more impactful on a book of business than on a few ASINs.
2. Diversity
A solid foundation allows for branching out while maintaining revenues.
There are so many different categories and subs that we will never run out of new areas to source in.
3. IPI Score
A foundational book of business helps you understand the metrics that make up the IPI Score
Helps keep level inventory numbers.
4. Anything can happen to any ASIN
When you have only a few ASINs, anything that happens to any ASIN can really hurt.
When there are more ASINs, the overall impact is smaller.
5 Keeps risk low
Spreading your risk over many different listings can make the risk of losing all much lower and the chances of profiting overall much higher.
6. Easier to outsource
Putting together a foundational book of business makes it much easier to compile standard operating procedures and best practices.
When you outsource, it is much easier to hand that off.
7. Economies of Scale
AKA Critical Mass
Helps with inbound transportation, purchasing supplies, paying contractors, justifying expenses and subscriptions
8. Account Health Rating
New sellers all start with a score of 200 and anything less than 200 is
Any policy adherence issues deduct points from your score.
Increase score by 4 points for every 200 successful sales in a rolling 180-day period.
Riskiest time is when trying to build that first 200 sales so get it done as quickly as possible.
9. Lifting of restrictions
How many stories have we heard about sellers who had things ungated and they didn’t even know? They were just open one day. This is what happens when you focus on working with what you have available to you.
10. Make more money!
Isn’t this why we’re all here?
Let’s make some car payments, some house payments
Let’s bring moms and dads home!
Special guest at the conclusion of today’s show, Jeff Schick of JeffSchick.com answers the question: What is “section three” and why was it such a big deal a few months ago? What have we learned?
