This episode features Justin Ligeri, founder of Yagoozon, an 8-figure Amazon seller. He emphasizes the critical importance for Amazon sellers to control their supply chain, either through owning manufacturing or maintaining strong supplier relationships, to ensure healthy margins and sustained growth on the platform.
Key takeaways
Implement vertical integration by owning manufacturing to gain full control over product supply, quality, and cost, as Yagoozon did with Kangaroo Manufacturing.
Develop and nurture strong, long-term relationships with suppliers if you're not manufacturing your own products; this is crucial for consistent supply and favorable terms on Amazon.
Be prepared for challenges and setbacks on Amazon; cultivate resilience and a willingness to learn from mistakes to navigate the competitive landscape effectively.
Utilize Product Information Management (PIM) systems like Salsify to centralize product data, streamline content workflows, and ensure accuracy across multiple sales channels, especially if you have a large and frequently changing catalog.
Prioritize accurate and comprehensive product content, as it directly drives sales and improves customer experience on Amazon and other e-commerce platforms.
Themes
amazon selling strategiese-commerce growthproduct information managementsupply chain management
March Amazon Seller Success Series (Guest #1): Justin Ligeri is the founder of Yagoozon: the fastest growing online retailers of toys, costumes and party accessories on Amazon.com to date. Here are some figures to give you an idea of the level of scale Yagoozon has been able to achieve over 5 years:
Yagoozon was founded in 2010 with a $50 cash loan;
By the end of 2011, revenue skyrocketed to $4.5m;
Then in 2012 revenue more than tripled at $18.6 million - Inc. Magazine voted Yagoozon #1 fastest growing company in the retail industry, with $18.6 million in revenue and a staggering 16,689% 3-year growth rate.
In 2013 they hit $22 million in revenue and
Then both in 2014 and 2015 grossed $38 million in revenue each year.
More recently in 2015 Justin has gone on to set up a manufacturing firm, Kangaroo Manufacturing – to develop his own-branded items for wholesale accounts and to control his supply chain. Over this interview Justin stresses on the importance of controlling your supply chain in order to sell on Amazon as well as maintain relationships with suppliers if you sell other brands on Amazon.
Amazon is not for the faint hearted...
You need to have a thick skin…learn from your mistakes…and move on
Read the show notes for this episode on http://2xecommerce.com/podcast/ep67/
Message from Our Sponsors:
This episode is brought to you by Salsify.
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Frequently asked about this episode
What does this episode say about amazon selling strategies?
Implement vertical integration by owning manufacturing to gain full control over product supply, quality, and cost, as Yagoozon did with Kangaroo Manufacturing.
What does this episode say about e-commerce growth?
Develop and nurture strong, long-term relationships with suppliers if you're not manufacturing your own products; this is crucial for consistent supply and favorable terms on Amazon.
What does this episode say about product information management?
Be prepared for challenges and setbacks on Amazon; cultivate resilience and a willingness to learn from mistakes to navigate the competitive landscape effectively.
What does this episode say about supply chain management?
Utilize Product Information Management (PIM) systems like Salsify to centralize product data, streamline content workflows, and ensure accuracy across multiple sales channels, especially if you have a large and frequently changing catalog.
What does this episode say about amazon selling strategies?
Prioritize accurate and comprehensive product content, as it directly drives sales and improves customer experience on Amazon and other e-commerce platforms.
