You founded SPACEGOATS together with Manuel and Dimitri. What motivated you to found this company back then? Tell us something about your vision.
We ourselves used to be sellers on Amazon and quickly realized how complicated the whole thing is. From company formation to taxes - not all topics are fun. This gave us the idea to take over sales for manufacturers and brands that had hardly dealt with Amazon before. We soon found out that we - with our experience as sellers ourselves - understand Amazon sellers and their wishes very well and finally started to solve problems of this target group as well.
The vision of our idea: through our software the worldwide management of an e-commerce business via a single account.
With an account at spacegoats.io, sellers of physical products can freely control where they want to run their business. SPACEGOATS takes care of the registration and bureaucracy of the respective country.
But not only that: We also want to use the synergy effects of our customers to expand, for example, to create industry-relevant product catalogs and offer them to online shops, wholesalers and retailers. In addition, we want to add more features to our software in the future so that our customers do not need to subscribe to other service providers or the like. So they really have everything at a glance.
Anyone who wants to sell products on Amazon is often confronted with a multitude of instructions, tips and tricks. Which topic would you take particularly seriously?
I could write a whole novel about how to properly sell on Amazon. But if I really had to commit to one topic, it would be the launch of a product.
The launch is ideally well planned and timed, because the first days and weeks have an important influence on the success of the product. Especially directly after the launch, the Amazon algorithm perceives the product better and gives it a boost in the ranking (keyword: "Honeymoon"). Therefore, the following should be considered:
- When uploading the new product to Amazon, the launch date should be in the future to avoid it going online unchecked.
- The listing should be cleanly prepared and flawless at launch. If legally required information is missing, such as ingredients for dietary supplements, Amazon automatically deactivates the product. This means that the launch is unsuccessful and the "honeymoon" phase is over.
- It is best not to rank the listing in irrelevant keywords and to indicate to Amazon with the listing what the new product actually is not. Otherwise it harms not only the ranking in relevant keywords, but also PPC campaigns.
- You should not skimp on the quality of the images. Professional product images make the first impression and are one of the biggest factors of conversion. Especially at launch, the conversion rate is particularly important to achieve a high ranking through the Amazon algorithm.
- High-quality product reviews are a must. Ideally, these take away the last doubts of the customer and put the advantages of the product once again in the limelight.
Sellercentral is a very comprehensive and not easy to understand software. Do you have any tips that readers can implement immediately to avoid problems later?
Very important: The default settings in Amazon Sellercentral.
- The option "Worldwide sale of my products through Amazon" turn it off. Otherwise Amazon will list its products abroad without the seller's knowledge. If he receives a bad rating, he does not get it. The result: There is no real launch and the honeymoon phase is irrevocably lost.
- Check the export settings (product labeling requirements) carefully. Should not export their products to countries where they cannot comply with the legal requirements. This could result in warnings and blocked products.
If anyone feels lost or stuck here, we at SPACEGOATS are more than happy to help.
Once the products are available for sale on Amazon, further tasks arise: At regular intervals, the inventory must be checked and, if necessary, price adjustments must be made. What should sellers be aware of?
In general, everything that could have a negative impact on the Amazon ranking should be avoided. As an FBAer, you should always make sure that you have enough stock to sell on Amazon.
Many sellers often make the mistake of raising prices when stock levels fall, which leads to falling sales. The result: the product loses rankings. Even if the product is available again, the previous poor performance still has an impact. Therefore, I recommend simply stating that the product is no longer available in order to hit the ground running again when stock is replenished.
But even under normal circumstances, price adjustments should be handled with caution, as they have both a direct and indirect impact on rankings.
The product sold is doing well on the German Amazon market, the sales figures are steadily increasing and the product ranks high in the search entry. What next steps can be taken to further increase sales?
This is, of course, a situation that every seller would like to have. To achieve it, there are several recommended strategies. I would like to share one as food for thought:
First, I would source and launch another product for Amazon Germany. Since I have already achieved success on the German Amazon market, I also have a feeling for the market and know its culture and language. So I know what I have to consider for a success of the new product.
In parallel, there is of course always something to optimize. Whether it is the further development of my products, the optimization of the listing and advertising or the optimization of other processes. These include the sourcing of products, cash flow and budgeting or the outsourcing of various tasks.
After the successful launch of two or three products, it is worth expanding to other European Amazon marketplaces. Because with Amazon's pan-European shipping (PAN EU), I only need one stock, as Amazon itself distributes my goods to warehouses all over Europe. Don't forget here, however, that tax registration and the corresponding sales tax must be paid for each country.
I do not recommend opening your own online shop or expanding to other marketplaces such as Ebay. Because that costs again a lot of effort to set up everything correctly and the achieved yield is usually very low at the beginning.
Tax problems, VAT regulations and other difficulties related to internationalization - these and other problems can be solved. How can SPACEGOATS help sellers with Pan-EU sales?
As briefly mentioned above, there are a lot of things to consider and a lot of effort involved in pan-European sales. As a seller, I not only have to register for tax in each country and keep the appropriate accounts, but also provide end customer support in the local language.
Since SPACEGOATS sells the customer's goods and is on the invoice itself at the end, all this falls away. Sales via Amazon are therefore also possible without an own Amazon account, which eliminates time-consuming and costly tasks. Only the creation of listings, product launches and advertising are up to the retailer. Whereby we can recommend a competent partner for each part of the value chain.