Starting up an Amazon business can be exciting, especially when you’re picturing the money rolling in. But for most sellers, is it really that easy?
Building a brand on Amazon takes more than just picking a product and throwing it on a listing. You need strategy, grit, and the ability to pivot when things don’t go as planned.
In this blog post, we’ll break down what actually matters when starting up an Amazon business, featuring real insights from e-commerce veteran Kevin Strawbridge and Amazon expert Steven Pope.
Amazon Then: Kevin's Early Perspective
Kevin Strawbridge’s journey into e-commerce began in the early 2000s when he joined JCPenney‘s Direct Group. At that time, JCPenney was transitioning from a catalog-driven model to developing a true online shopping experience.
During this period, Amazon was emerging as a significant player in the e-commerce space, despite being heavily in debt. He observed Amazon’s rapid growth and its efforts to expand its e-commerce presence, including powering Target’s website.
Recognizing the potential of online marketplaces, Kevin was instrumental in developing JCPenney’s strategy to join Amazon’s platform between 2002 and 2003. By selectively listing private label brands on Amazon, JCPenney aimed to control the customer experience while acquiring new customers cost-effectively.
Building an Amazon Brand From Scratch
When asked about starting an Amazon business, Kevin made it clear he’s not new to this game. With his experience, he sees two solid options worth considering: buying an existing FBA business or launching something totally new and original.
Both approaches have real potential, it just depends on your skill set, risk tolerance, and long-term goals. What matters most is building something that stands out and actually solves a real customer problem.
High SKU vs Low SKU Business on Amazon
High SKU and low SKU models each have their pros and cons depending on how you plan to reach your audience and scale.
- High SKU
This is what Kevin calls the “shotgun approach”. It casts a wide net, ranks for more keywords, and picks up sales more easily with volume.
- Low SKU
All about precision. Great for niche markets with focused messaging and strong margins, if you know exactly who your customer is.
How to Grow an Amazon Business
Starting is one thing, but growing is where most sellers struggle. Without experience, it’s easy to waste time and money on things that don’t move the needle.
Here are a few tips from someone who’s been in the game long enough to know what actually works.
Test and Validate Your Ideas
Having a great idea can motivate you to build a business around it, but there should be a reality check before you dive in. Make sure the market actually wants what you’re selling by getting real feedback before you invest heavily.
Get Expert Help, Do Not DIY
Instead of wasting time, effort, and money on strategies you’re not sure will work, get help from an Amazon agency. They have the experience, data, and systems to fast-track your success and help you avoid costly mistakes.
Adapting to Black Swan Events
Many businesses are born from chaos. Black Swan events, rare, unpredictable moments, have triggered some of the biggest shifts in consumer behavior.
Some argue it’s wrong to profit from a crisis, but spotting opportunity in uncertainty is part of being an entrepreneur. Solving real problems during turbulent times isn’t unethical, it’s necessary, as long as it’s done responsibly and with consideration.
If you’re selling on Amazon, adapting to these events is a must. When COVID hit, the sellers who pivoted quickly to online platforms came out ahead.
9/11 brought a similar shift as people began nesting and spending more time at home. Companies like JCPenney, which sold basic home goods, saw demand surge because they were ready.
Your Path to Amazon E-Commerce Success
Selling on Amazon may seem daunting, but with the right strategies, expert help, and a willingness to adapt, you can turn uncertainty into opportunity. With these expert insights, you now know how to start an Amazon e-commerce business, so it’s time to take the leap and build something that truly stands out in the marketplace.
Do you need assistance to jumpstart your Amazon business? Contact our Amazon agency and let our experts help you today!
