In this week’s episode of Freedom Fast Lane Ryan Daniel Moran makes predictions for the future of Amazon. Ryan discusses where he believes major changes are coming, what that might look like and how it will affect you. If you have ever considered starting a business on Amazon then press play and start listening to this podcast right now!
Main Questions Asked
- What are the common misconceptions about Amazon for new entrepreneurs?
- What is the inevitable result of the new wave of entrepreneurs starting businesses on Amazon?
- What are the changes in the Amazon marketplace that you need to be aware of?
- What is the antithesis of short-term thinking in an Amazon business model of buy low sell high?
- What is consolidation?
- What are the indicators of what’s to come on Amazon?
Key Lessons Learned
- Amazon was originally a storefront for people to sell big brands
- Amazon did not set out the be the catalyst for small business and entrepreneurs, however, this has been the most recent trend
- Amazon is one of the best channels for buyers it is essentially a ‘buyers channel’
- Find a market, product, easy competitions go out and wholesale, put your label on it and sell on Amazon and rank for easy to rank keywords. (this white label model will continue to get more difficult.)
- Amazon has fulfillment centers all over USA, here’s how it works: send product to amazon, they store, pack, ship and when someone places an order they ship to customer and Amazon writes you a check (this model is a hands off passive business.)
Considerations & Consolidation
- If you are going to start a business on Amazon, you need to enter with a ‘brand’ in mind and not a ‘product’ in mind.
- If you can’t list 3-5 products off the bat that are complimentary then you are in the wrong market.
- Consolidation – a process that happens in every market place, channel and industry. This is where the big people take over the little people.
- By Sept 2015 you will see a major market consolidation on Amazon and it will be much more difficult just to start a business just on Amazon
- You have about 6-10 months to go ‘balls to the wall’ and have a profitable business on Amazon before the wave crashes
- It you get into Amazon before maturation, then you will be more likely to ‘hack it’ and can have a business around for years
- There will be changes in the Amazon review system due to biased reviews as well as fake negative reviews from opposition sellers on Amazon
- Amazon will crack down on fraud and be more protective in who they let in
- Big companies that are not on Amazon will start to come in and own their market share
- Amazon will open up new advertising channel e.g. roll up its own pay per click advertising platform similar to Google Ads
- If you can get to the $50K a month level on Amazon when the consolidation happens, you may be big enough to be protected
- Amazon will become a hub for real entrepreneurship rather than white labeling
- Two industries to come out of consolidation are Amazon software creation for sellers and businesses taking on Amazon sellers as clients
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Ryan Daniel Moran
Ryan Daniel Moran is one of the most sought after speakers and thought leaders on lifestyle freedom in the world. He specializes in creating extremely profitable cash flow streams and businesses without compromising your lifestyle. Ryan is passionate about inspiring, educating, and empowering people to live extraordinary lives, and he believes that anyone can live the life of their dreams as long as they take responsibility for their results and take consistent action toward getting what they want. When Ryan isn’t inspiring his listeners and readers, you’ll find him at an improv show, a Cleveland Indians game, or traveling the world.