How to Build and Scale a 7-Figure Brand on Amazon - AMZ Insiders | EP. #48

On this 48th episode of The E-Comm Show, our host and BlueTuskr CEO Andrew Maff is with Jamie Davidson, the founder of AMZ Insiders a coaching and consulting company that has helped thousands of Amazon sellers to build and scale their business. In this episode, learn how to manage Amazon as a powerful distribution channel and build systems and processes to scale your brand from 0 to millions.

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How to Build and Scale a 7-Figure Brand on Amazon - AMZ Insiders

SPEAKERS

Andrew Maff and Jamie Davidson

CONNECT WITH OUR HOST: AndrewMaff.com  |  Twitter: @AndrewMaff | LinkedIn: @AndrewMaff

Jamie Davidson

Jamie Davidson is founder of AMZ Insiders a coaching and consulting company that have helped 1000 of Amazon sellers build and scale. Jamie and his fellow partners exceeded over $100 million in sales annually on Amazon.

Transcript:

00:02

So really the bigger play for us is actually working with people helping them grow and us actually investing in brands and buying those brands. But that's kind of our interest in like, hey, let's help these guys grow the right way like legitimately.

00:14

Hey everyone, this is Nezar Akeel from Max Pro. 

00:20

Hi, I'm Linda, and I'm Paul, and we're Love and Pebble. Hi this is Lopa Van Der Mersch from RASA.  You're listening to, and you're listening, and you are listening to The E-Comm Show.

00:35

Welcome to The E-Comm Show, presented by BlueTuskr, the number one place to hear the inside scoop from other e-commerce experts. They share their secrets about how they scaled their business and are now living the dream. Now, here's your host, Andrew Maff.

00:54

Hello, everyone, and welcome to another episode of The E-Comm Show. I'm your host, Andrew Maff. And today I'm joined by the amazing, amazing Jamie Davidson, the founder of AMZ insiders, Jamie, how you doing ready for a good show? I am appreciate you having me. Not a problem. Super excited to have you on the show. You are very well known in the industry. You are obviously an Amazon, just expert is an understatement. Let's, let's do the stereotypical thing. Give you a second here. Why don't you let everyone know a little about yourself your background? And we'll kind of go from

01:26

there. Yeah, sure. And I appreciate again, the intro there. So Jamie Davidson, co-founder of AMZ insiders, basically myself and two co-founders, partner Jason and Brad, started selling on Amazon around 2011 and 2012. So now it's kind of like the old days, but But yeah, so you know, I'm sure we'll get into some of that. But we grew really quickly. And it was a different landscape back then. But, and then we started, continue to sell through today. And then we've started doing some coaching and consulting helping people and some big companies around 2017 through through today. So yeah, just passionate about the space and and again, appreciate the opportunity to be here with you.

02:07

Yeah, beautiful. Likewise. So you had your own brand and started that in 2011. You said you're still selling today? Correct? Yeah,

02:17

so that was like 2011. My partner Jason was my next-door neighbor. I was like the CEO of this private equity deal that brought me to Atlanta. And he was selling out of the garage, which, in our garage, we're going back to the beginnings in a garage right now because we're moving. But with that, or we just moved, we're in a temporary space. But anyways, yeah, so he started doing it. Well, we both had kind of corporate jobs. And basically, I didn't take it that seriously. At first, I thought it was kind of you know, a side hustles a little bit until I started seeing the garage filling up with a lot of cell phone accessories. And so it started getting my interest about how legitimate this compared I kind of compared it was just like an eBay or just selling stuff which, frankly himself, Jason would say that he first got an Amazon to replace his wife's income when she was staying home, which was about 90k a year. And then when it blew past there, both Brad and myself got more, took it more seriously. And we got more involved. The following year, with an investment in the company has grown now it's about 220 employees, and about 2000 different skews that we that we sell across across the globe.

03:33

So long, long time since the original garage days. Granted, you're you're in there now. So I mean, to get to that size is not an easy feat by any chance. Now, don't get me wrong, you obviously got in at the right time, right as this was the whole Amazon thing started taking off. What do you think was kind of the thing that allowed you guys to scale to that size?

03:59

Yeah, it's interesting. It's because now like when we help a lot of people, I think it is pretty hard to do both like the scale from like zero to 5 million kind of the skill set. Most people probably don't, it's not the same skill set to try to take that from 5 million to we broke 100 million in like end of 20 2018. Like that skill set was I say it's not typical now that I've been helping enough other people. The good thing is you don't need to be you can hand it off and sell it to someone else and take a big payday. But that being said, you know, there was a couple of things that helps. Surely I'm one of my partner Jason was was a IT consultant. We I'm pretty analytically focused. So we were pretty kind of systems oriented from the beginning. So you know, to go to that scale like to go to zero to 25 million, and in a handful of years, that we had an advantage that we did have kind of structures and systems that we put in place from day one because we kind of knew that from our corporate backgrounds. The other thing kind of mentally we went all in, like once we realized the potential of us, because in some ways it was, it was harder for us to start, because we each had families, we had like high paying corporate jobs. So like the barrier, the opportunity cost of our time was like, already pretty high. So we're kind of it was harder unless we really saw the opportunity. So which, which we did. And once we did, we, we kind of went all in. So one of the things like, a lot of people get distracted with other opportunities and different things, I compare it now the last couple of years I've seen, you know, with, not to say no to no judgment, but a lot of people ran over to crypto, and NF Ts and everything else was kind of like, you know, for better or worse, we stay really focused on kind of one thing, we only sold one brand one category of products for like seven years before we ever ventured out even though we could have. But my partner Brad had the phrase I liked it was was we considered a crime against ourselves not to not to put every dollar we had back into our endeavor, because we saw the return we were getting with what we were doing in this in the Amazon space. So so those were a couple of things you just stayed like pretty, pretty aggressively focused on that that one thing kind of one category for, you know, frankly, a number of years now, you know, people build brands and sell them in a year or two. It can do pretty well. But yeah, that was those were a couple of our things that I think helped us from

06:28

the beginning. The private label, or are you reselling? Yeah, so

06:32

we only do private labels. So our thing is Amazon private label, mostly, primarily FBA; we do have a big warehouse down the road that we do fulfill some of our own products. But primarily, we try to use Amazon, and we sell across the globe. So we're trying to use Amazon FBA as much as possible. So you're

06:52

very catered to Amazon, obviously, because we'll get into AMZ insiders. And that's been the main topic we've gone through so far. Have you ventured out of Amazon and gone the route of starting your own website or going into a Walmart or

07:07

eBay? Yeah, I mean, 100% in our in our size, and when we do sell on, I think it's probably 40 other platforms. Now, we've had our website for the longest time for us because of the value of Amazon. For us to get ranked, for example, in the cellphone accessory space. It's very, very competitive, but can be very lucrative if you rank for the keywords and so that the the good and the bad of this business is that a good is that there's always a new product, right, there's always a new iPhone that's coming out, like in September will be announced. And other, so there are constantly new products. But with that, we also have to re-rank this new product constantly. And so for us, as much as you know, we have our own website, and you know, the margin percentage is good. You know, the profitability is good, but it's still, we still prefer to get the key rank and the traffic over to Amazon because that is so much more important to us. But that being said, you know, different times different platforms do well, we have a whole separate team that kind of manages through ChannelAdvisor through all these other platforms. It's not like Walmart, it can be there's pros and cons, these other platforms. I mean, when you get good enough at the one platform I do recommend, I don't consider it personally my expertise. But I know from our team, like, for example, I think target.com has done really well for us more recently, probably even more so than than Walmart, for example. So, so yeah, there's definitely those opportunities. Just kind of back to my beginning, I would say don't, you know, don't chase too many things at once until you get pretty good at the one platform. But well, yeah, I mean, to that point, though, I really, it's not that I it's not. It's funny, even though we do so much on Amazon. It's not that we're Amazon-centric or believes in Amazon; Amazon's just the distribution channel that allows you to get your products, the most powerful distribution channel, but frankly, there's other distribution channels, and in the future, if that changes in bigger ways. So on these other platforms that you know will migrate to those those other channels as well.

09:00

Yeah. So to be a co-founder of a, you know, an E-commerce brand, that's clear 200 million a year, which is not an easy feat to do. Why get into AMZ, Insider? So what encouraged you to start consulting and offering assistance to other sellers?

09:18

Yeah, that's a great question. It's a wonder we get a decent amount. It's interesting when before, when I was in the private equity space or running these companies it was in the US was like, for-profit education companies, was like a CEO of one I was a CEO of a language learning company. So I was familiar to kind of the training and education space on the profit side, and I was in banking and military. I was a military officer back in the day. So I had kind of this; there was a little bit of my background. So we were in the space. I was like, I was just first of all, I was seeing all of these things pop up, these guys talking about the business, and we're like, Who the heck are these guys? As we know, a lot of the big players in the space are bigger sellers. And when I saw more and more people, I was like, oh, some of these guys are really just marketers that are good marketers, but they don't Don't know much about Amazon. So, from that perspective, we said, oh, we know what we're doing. Let's like leverage our team, we've got a lot of expertise, like we can help people, we've got a 20% 20 person, logistics team and Shen's in China, we can help people coach people, and then if they potentially plug them into our services, like, you know, shipping, for example, is one and potentially account management, but we weren't sure anyways. We weren't sure about the pros and cons of it. So we just thought it was, you know, it made sense. There's a lot of there's a growing community and Amazon itself is, you know, we were friends at Amazon, we spend time at Amazon offices out in Seattle, but they're not really the experts on selling on Amazon, they're experts on their job at Amazon, but they don't know how to, they don't know the sellers perspective. So. But from a business perspective, the one that kind of emerged for us was this opportunity to, we had this idea a few years back, the whole industry kind of blew up the last couple of years, which is counting these aggregators, and investing in brands. So really, the bigger play for us is actually working with people helping them grow. And us actually investing in brands and buying those brands, ourselves. So that's, you know, that's kind of our interest in like, hey, let's help these guys grow the right way, like legitimately. And not everyone gets there, but those that get to, you know, a couple million, 3 million, that, you know, as opposed to throwing them out to whoever, like, let us take an investment in them and help grow. And we'll take a majority stake and if they want to stay on, they can profit from us growing it, you know, using kind of our infrastructure as is,

11:32

yeah, is the thing that I've noticed that your biggest differentiator versus all those others, especially the ones you just mentioned, is like, you know, these coaches slash, quote, unquote, gurus, a lot of them every, you know, I can't go on any social media platform without getting hit by several of their ads. And you're right, they're mostly marketers. And the interesting thing is that I've always found is a lot of them are pitching, you know, start selling on Amazon, and how to make, you know, $10,000 a month or something. I'm like, okay, like, Yeah, but you factor in, like your costs and stuff like that. It's not that much. But you know, not knocking anyone who wants to do it. But you're the first one I've seen who has gotten to this level, and then still offered this consulting side of things. Because once you get even over eight figures, typically, they're like, I don't need to help people, they'll they'll figure it out, and they walk away. So it's very interesting that you chose to continue down that route.

12:26

Yeah, I mean, it's along the lines. And we said, just because it's just, you know, our original Amazon brand. And first of all, it's a different world, and how you build a brand now, in terms of, yeah, first of all, it was like the wild wild west, and my two partners are native Chinese. And it was like. We can run this business the American way or the Chinese way. But it was like, super-aggressive, like cell phone accessories. So like, we had the hardest core Blackhat techniques you would have out there, like, all sorts of, you know, things that we would never recommend doing today. But frankly, that was the word we would tell Amazon if we follow your guy's rules, we wouldn't have, you know, the business, and they were like, we know, but they've caught up over the years. And so, you know, now it's much more about brand building and kind of doing it the right way, which is good because it's hard to come up with all these crazy systems and computers. I mean, it's insane. This type of stuff that, you know, people will come up with, to kind of game the system back then. But it's, it's good. You don't have to do that as much now. But, as I said, the ability to acquire other brands and kind of that's a whole nother level because that's like, Yeah, I mean, you can grow to a billion dollars there and have it's not just us. I mean, I've got buddies in the space, you know, a few other nine-figure. This guy actually Thompson's really successful and just exited last year, and my buddy Carlos Alvarez, really same thing, another nine-figure guy who does a great job in the community. So, you know, there are other people out there, but, you know, people don't realize, you know, some of the bigger opportunities really are, you know, acquiring brands and doing that. And so, for us, the other thing, too, is most of the people like I just mentioned, as I could, you know, for me, guys like Dima Kubrick and a buddy of mine sold five brands. The way I've gotten to know them is actually through this because we go speak at events, and we go there. So in the past, we never did any of this; we kind of stayed in our warehouse, and we went back and forth to China. But now that we've kind of opened it up a little bit, we've, you know, the connections you make at these events and software companies, it's kind of that for us, it helps because that next level to grow because kind of nothing lasts forever, you know, with your brand, so you know, we're always looking for these next opportunities as well. Yeah.

14:31

Do you strictly use AMZ insiders as an opportunity to essentially find these brands that you kind of want to help them build themselves a little bit and then obviously get involved, whether it's an investment or an acquisition, or is it more of anyone who wants the assistance can obviously sign up and then that just kind of happens?

14:52

Yeah, great, great question. It's, it's a little bit the ladder in terms of it's a wide kind of funnel we chose we have people that To start like we have a woman who started with us a year ago, was about a year ago March and she, you know, grew past a million she got started doing to 300,000 by the by like four or five months in, per month. We're like, wow. So this is great. Now what you learn is it's, you know, it's not just, it's not the magic, just have the information and coaching. It's also like, like, Oh, she's a really good executor. She's, oh, you she owns three other businesses. And so she has the ability to take information really quickly and, like, take action. So she's an example, oh, let's partner together. Let's bring her on board. Her name is Joey Roberts for people that know Instagram, I got you to know. We've pulled there more. And just like those the last night everybody, right, other people, it takes a lot longer other people aren't as successful or they don't get going. So yeah, there's a little bit of that there's a little bit of a funnel, but certainly, the people that come through, that gives us access, because these big investors like the aggregators, the hardest thing for them is actually to find, find the deals, they can raise the money, they're really good at raising all this capital, but to actually find good brands. But for us, we kind of get to know the people running the brands, or we're helping them. And, you know, if we think it can make sense for us to partner, then we can't, but in the beginning, we don't really know that. So we just kind of put out there, we try to vet people coming through to make sure that you know, they're serious, but But you know, it's a little bit of a funnel that comes through.

16:23

Yeah. And at the end of the day, it's going to all come down to like the quality of the product. So when you have these initial, you know, Discovery calls or anything like that, with these people you're going to be working with, do you go through and actually like review the product and just let them know, like, hey, I can probably help you get to here, but you may not be able to get further based on the quality of your product, or do you think that there's a way to kind of manipulate that whole process regardless?

16:49

Yeah, interesting. Um, I think it's too one, sometimes people don't have products. They're just like, like, Joey didn't have a product, or she was in the process of figuring it out. And, but we're like, yeah, we can help you, there's, you know, that we can help you get started. And then she was off and running. So we'll help them through that process, like, Hey, give us five, we'll help. You know, my, I got a team of people helps that just using the criteria that we do. And then but you know, as far as people like, yeah, sometimes we have people that let's say they're doing two, 3 million a year, maybe sometimes, you know, a little bit more. You know, we'll just look. So a lot of times those people are like they said, like one pain point, like once a while we'll have, like, let's say it's a family-owned business, but like, they only have that in, they're like, Oh, we want to launch new products. But we've actually we've never done new products and new categories. We sell on Amazon. So it's like, okay, we can help you with that. Sometimes it's like, Hey, I've got this, you know, whatever is makeup brand that's doing really well. And but we're not great with our PPC and how to rank it right. Now. Can you help us with that? So sometimes, those are kind of that it's a lot of fun helping those people because those people you help fix one or two things, you know, their business does really well. You know, when you get kind of more broadly, teaching everyone's a little bit more hit or miss for people that and I say hit or miss. It's more because we don't know the entrepreneur unnecessarily. And again, a big factor in this is you, whether it's Amazon or anything is just what is the self discipline of the entrepreneur? What's the hustle? You know, if they run into roadblocks like everyone does, and these businesses, you know, how do they handle those things? So, you know, we try to help people through that, but that's going to differ by the, you know, by the operator.

18:24

So, I sign up for Ramsay insiders. Great, awesome. Welcome. How, what, what happens next? Like, what's that whole process? Like?

18:33

Yeah, sure. So, yeah, people, you know, basically, there's a, there's a call where we, you know, we do a call and just like we were talking about a moment ago, and seeing just learning about where they're at, where they're, where they're looking to get to, and then we just have a discussion to see if we're a good fit. And people are surprised, like, there are like, there was someone I talked to this week, that, you know, oh, I sold the company for 100 million, and I'm doing this doing that, but there are certain type people where like, I'm like, I don't think they're gonna be a good fit. Because it's our time to like, it's, you want to find people that that genuinely is a good fit. And usually, that means that hey, they're, they're like, hey, they're coachable. They're willing to, you know, learn. And, you know, we think they'll, they'll be efficient along those aspects. Basically, when they get started. It's for us in terms of, like, we got into this in terms of actual people learning the business, I thought, we didn't want to do like a course or whatever because the information is fine. But if it doesn't really help, so we have, we're doesn't help enough in my opinion. So based on hours of the coaching program, we've got a team of coaches, I do I am involved with it. Usually, once a week I'll do like live training, we'll have a different one of the cool things going all these events will go and find like the best presenters or my best peers in the industry, and we'll bring them in because, as you said, it's not about being a guru or you know that no one knows everything. But, you know, we feel we have good access to top people, so we'll bring them in, and but basically people have access like if you were there again, you're working on, you have the ability to reach out to us like on a daily basis for information and questions specific to your business. And then we just, you know, help people and, you know, depending how long they want to work with us, they, we just have different options. So, so yeah, that's really the model is just like, hey, here's the information. Here's some other people's industry. Here's what's good, but then also, let's tailor it to where you're at in need. And, and, you know, we'll help you as much as we can kind of one on one.

20:24

Yeah. So who is a good fit? You mentioned that sometimes there are people that just aren't what; what kind of constitutes a good fit for AMZ insiders?

20:32

Yeah, for us is, it's, you know, it's in the show, there are several different people we've worked with, but Joe is a good example. Because she's just like, you know, self-motivated, she's ready to get after it. And there's, there are several others, like, again, she had no prior experience, but most of the people we work with are probably, I didn't know this, like, you know, being older in my in the 40s. Like, I attract, you tend to tract, I don't get as many like 20-year-olds once in a while, we will, but it's probably someone a little bit more, I say our typical person has been working a job, a corporate job, and maybe they don't want to quit it. Yep. And maybe they have, you know, dreams and the hopes of, of having it so they can still work it and build this business. So it's probably more of those people that are not selling already. But there's a good number of people that are probably, you know, hey, I've been selling for a while was not quite working. I'm doing a few 100,000 Can you help us? So, again, we help these bigger sellers as well, too. I just say it's, it's not as it's far as those are more one-offs, as well, too. But yeah, I mean, the biggest thing that is that same way I view myself like if I want to learn to podcast, right, you're really good at podcasting. Like I would be willing to hire you and pay, you know, whatever the reasonable amount is, so I can learn quickly and do it. You know, I was asking before this, you know, what software is this? So, you know, you kind of have to have that mindset of, of learning, if I'm like, you know, there are some people that kind of have a lot of excuses, and like, this doesn't work, and I need you to show me exactly how to do it. So basically, we want some people with some initiative, and that are, you know, serious about it, that that's the case, then there's no guarantee anyone's going to be successful. But you know, I think the odds are pretty good. If, you know, you kind of get into that circle of people that are that know, it takes some work. And that's it's not easy. But you know, if you can overcome the obstacles, and you're, you know, you think you can be passionate about the space and excited about your product, then, you know, we can, we can help you do pretty well.

22:27

Nice. So a question Amazon specific, they've started to really, you know, their Beta releasing stuff all the time constantly testing new things, a couple of things that came to mind is, you know, I'm always talking about that buy with prime button and how it's interesting how they're trying to take some traffic from Shopify sellers, or obviously, anyone who's got their own site, or they now have the, like, the early release, like invitation kind of thing that they're allowing now or it's almost like early purchasing, allowing for the kind of like, new releases and stuff like that, which I think they were testing with Nike or something or Playstation, I think, Oh, yeah. Where do you see Amazon headed over the next several years? I mean, you've seen it change over the past 10. So what do you think, what do you think's going to happen next? Yeah, I

23:12

mean, I mean, what one of the first things that come to mind is that you know, people see change, especially people that are newer in the space last year, or two, or maybe they've been a couple of years, they'll see a change. And this is a major change. And they're like, oh, no, therefore it's no longer good. And that tends to fight that's more about the entrepreneur that they're like fearful or almost looking for a way out at times, like, or like, almost, almost, it's a little bit of self-destruction for themselves, like, oh, reviews change. Now, I can't know if it's switched. The reality is that's been going on since, like, 2014 1516 on the back used to be getting used to being allowed to have people write like bogus reviews for you, as long as they notated. There, you know, that this in exchange for, you know, I wrote this review in exchange for a product, whatever. So it wasn't realized, like, that's garbage. So things constantly change. So one thing is just, you know, understand that, that's fine. Like, that's why we think we're pretty good ability. And the people I know in the space that do the best are just like very comfortable with the platform changing and recognize it's still relative, it's early, I mean, 30 years from now, we'll look back and go wow, that back in 20, you know, the 2020s That was like the early days of, of the platform. So that being said, Yeah, I mean, Amazon is people don't realize how much Amazon is competing with these other platforms at times they don't think they think of like Amazon is this behemoth. They don't realize that, you know, traffic like things like Instagram and Tiktok and certainly other e-commerce platforms, but these are all kind of threats to them, right? So someone having, you know, their e-commerce, their e-commerce ability on Instagram or on Twitter or if there was talk like Netflix was going to incorporate there's a lot of different angles where you know, there's access to a customer so, with that in mind, I mean, just I tend to see that with Amazon like, for example, Amazon is not great at it. But when you see trends like on the digital marketing side, let's say Tiktok, Instagram, for the last several years, anything live related. So like, Amazon live has been a pretty, pretty good opportunity for last three years because Amazon doesn't want all of this traffic and people's time spent on these other social media platforms that they don't want. They like traffic coming in from these other sources, but they also want to own a lot of that traffic. And so that's why you can look for those things. As I said, Instagram Live, or Instagram post, is kind of Amazon's poor man version of Instagram; although Instagram is now more focused on videos, back when, Instagram was more image-focused. Oh, yeah. So try to take advantage of some of those features. Because just like these other platforms, let's say Instagram is really big on, you know, reels and video because they're competing with Tiktok Well, when you see these things, that these new programs, Amazon is doing it not just because they're trying to be nice, it's like they're trying to compete. So it's just like, internationally when Amazon if you go to sell internationally, Amazon, like they're the nicest people in the world, they're gonna, like help get you started. They're gonna do this for you, that for you because they're trying to compete. Internationally, they're not the big player, a lot of times they're, and they're smaller in these markets. So but yeah, I'll try to take advantage like. Instagram Live is probably a good example of one that you know, I'd recommend people to invest time to understand and realize that you don't have to do it yourself. So you can get like an influencer. But it's a lot of organic traffic that you can drive using these types of services.

26:33

Beautiful. Jamie, really appreciate you having me on the show. I would love to obviously give you an opportunity here. Let everyone know where they can find out more about you. And obviously AMZ insiders. Yeah. Cool.

26:45

Yeah, I appreciate Andrew, this really spent a lot of my try thing I did this one other time on general actually worked, but I'm gonna give my real cell phone number. And this isn't like, why real cell phone number? The best way will be to text me because actually, I don't take the calls typically. Because if I don't recognize it, but if you guys if you have a question, just let me just legitimately have a question and want some help. You can text me or you can try to call tech stocks; they respond that 404-275-8643 is my number. So 404-275-8643 is my actual cell. I like to do that with audiences that kind of I think I trust, and it's good. So I enjoyed this conversation. Yeah, AMZ insiders are probably most on Instagram, so what am I, a Jamie Davidson Don official? So if you want to reach out there, we do a lot of content and stuff there. Those are things we're happy to get people resources we've got a new something called our AMZinsiders.club, which is just like $1 It's just a few bucks that you can get in, and we've got a few 100 entrepreneurs for those that are like, Hey, I can't you know, I don't have the 10,000 to start building my brand yet. But I'd love to connect and work. So a few options. But yeah, feel free to text or connect via Instagram.

27:59

Beautiful. We'll put the number in the show notes too. So make life a little bit easier. But obviously, Jamie, thanks for being on the show everyone who tuned in, of course, thank you as well please make sure you do the usual rate review, subscribe, and all that fun stuff on whichever podcast platform you want, or YouTube or head over to ecommshow.com and we'll all be there for you. But as usual, really appreciate you joining us, and we'll see you all next time we go on.

28:22

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