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#411 – The Key To Explosive Sales In TikTok Shop with Josh Coleman

Introduction

Welcome to episode 41 of the AMM Podcast! This week, our guest is Josh Coleman, a Helium 10 Elite member who recently attended a Helium 10 Elite quarterly meetup in Q4 2023. During the event, he learned from a speaker who shared her success story of making seven figures a month through TikTok and how it positively impacted her Amazon business. Inspired, Josh returned home and, within weeks, successfully launched his brand on TikTok with his wife, finding tremendous success. In this episode, we unpack Josh's journey and insights on thriving in the TikTok shop environment.

Introduction

The AMM Podcast is dedicated to exploring opportunities in e-commerce, helping listeners dream big while discovering what strategies are effective right now. Tune in as we discuss the ever-evolving landscape of online sales, particularly with emerging platforms like TikTok.

I’m your host, Kevin King. A common question I receive is how people can connect with me for advice or mentorship. The best way to connect is through Helium 10 Elite, which provides advanced training sessions and live masterminds. It’s only an extra $ 99 on top of the Helium 10 membership. Check out h10.me/Elite for more details.

Getting to Know Josh Coleman

I’m excited to introduce Josh Coleman to our audience! He’s a member of Helium 10 Elite who actively participates in our calls and events. It's great to have you here, Josh!

Josh shares that before attending the Helium 10 meetup, he and his wife had no presence on TikTok. However, inspired by the stories shared during the event, they decided to take the plunge. Launching their first product on Amazon in July 2023, they aimed to diversify and sought opportunities beyond just the Amazon platform.

Diversification is crucial for any e-commerce business. By attending events, learning, and networking, Josh and Jenna were able to explore new avenues, leading them to TikTok.

TikTok: A New Frontier for E-Commerce

Many people believe it’s too late to start an Amazon business, especially in 2023. However, Josh's experience contradicts that belief; they've already seen significant success with their brand, hitting seven figures in revenue this year.

However, Josh emphasizes the importance of understanding revenue versus profitability. He mentions that the goal isn’t solely to attain high revenue numbers; it's about managing costs effectively and ensuring profitability.

The duo’s launch on TikTok was all about leveraging trends. Many businesses can now benefit from influencer marketing. Josh reveals he initially set commissions for creators around 30%, which incentivized them to promote their products. He emphasizes transparency in communication with creators about profit margins and long-term partnerships, which helps build trust and long-term relationships.

Advantages of TikTok Shop

Josh notes the power of TikTok in driving sales. TikTok’s environment caters well to impulse buying due to its engaging and entertaining content. He describes the platform’s ability to create a flywheel effect, where everyday sales are no longer driven solely by TikTok shop but also by direct traffic to their Amazon listings.

He highlights how TikTok's commissions and shipping subsidies offered initially allowed for higher margins, granting them the flexibility to experiment with marketing strategies and gain valuable insights about their audience's preferences.

Setting Up for Success

If you're considering joining TikTok Shop, Josh recommends focusing on just one product — your "hero product" — rather than spreading efforts thinly over multiple items. Starting with your best-selling item will allow you to allocate the right resources for marketing to creators, hence increasing the odds of a successful launch.

In addition, working with agencies that specialize in influencer marketing can streamline the process, allowing for greater reach without the hassle of contacting creators individually. Understanding the influencer landscape is crucial as many creators now operate through agencies that foster collaboration between brands and creators.

Conclusion

As we wrap up our discussion, Josh acknowledges the rapid changes in e-commerce and the opportunity that creators present. The landscape continues to evolve, and the future looks bright for influencer-driven sales.

To connect with Josh, you can reach him through their brand, Graceful By Design, on Instagram or TikTok shop, where both he and his wife share their mission and connect with customers directly.

Thank you for tuning in to this week’s episode of the AMM Podcast! We hope you found valuable insights that can propel your e-commerce journey.

Keywords

  • TikTok Shop
  • Influencer Marketing
  • E-commerce
  • Helium 10
  • Revenue
  • Profitability
  • Hero Product
  • Agency Collaboration
  • Creator Center

FAQ

1. What is TikTok Shop?
TikTok Shop is an e-commerce platform that enables users to buy products directly through TikTok, integrating shopping into the app experience.

2. How can I succeed on TikTok as an Amazon seller?
Focus on a single hero product, leverage influencer marketing, and consider collaborating with agencies that can help connect you with suitable creators.

3. How important is profitability vs. revenue?
While revenue is important, it's crucial to maintain profitability. High revenue numbers do not guarantee financial health if costs are not managed effectively.

4. What role do creators play in driving sales on TikTok?
Creators help amplify product visibility through engaging content, creating a direct connection with potential buyers and encouraging impulse purchases.

5. What were the advantages of working with agencies for influencer marketing?
Agencies can provide access to creators, streamline communication, and manage campaigns efficiently, increasing the likelihood of successful promotions.

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