Well this changes everything. Or does it?
Hey welcome back for another episode of The Bootstrap Boutique where beginners build businesses. My name is Megan and I just wanted to put out a quick video because yesterday Amazon dropped some really big news.
And that is that they are no longer going to allow incentivized reviews on product. Here’s the background on why that’s important.
There are a lot of people online teaching you how to launch private label products on Amazon, which is one of the reasons I don’t really get into that to much. I’ve told you before, you can listen to Scott Voelker he does an awesome job telling you how to launch a private label product on Amazon. But pretty much everybody follows a step by step by step process. And one of those processes is the launch process, by which you give out a number of free or substantially reduced products to people in exchange for their honest review.
So why is that important? Because reviews are social proof.
They help people make buying decisions, one product versus the other. And these discounted products have never been a problem, there’s just a few requirements that you have to follow. One is that you cannot offer a product at a discount in exchange for a four or five star review. So you couldn’t say, “hey buyer, I have this twenty dollar product, I’ll sell it to you for one dollar if you leave me a five star review.” You couldn’t do that, you could in no way influence the way that people review your products or the star rating that they give you.
Now on the reviewer side, you had to give an honest review and you had to disclose that you had received the product for a discount. So a lot of times at the end of these reviews you will see something that says, I don’t know, like, “I received this product for free or a discount in exchange for my honest review.” Simple enough, right?
And there’s a ton of groups that you could use that would give you those reviews, so you could have anything from a free group on Facebook to paid services like reviewKick or getBSR.com. Here’s the problem with those reviews: Amazon was noticing many customers, and I’ll be honest, myself included, didn’t really trust those reviews, because when you are incentivized through a free or discounted product, studies have shown that you are much more likely to give a more positive review than you otherwise would.
So I know when I would shop on Amazon, and I always look at the reviews, I would kind of scroll past the top five or six or so because you know that those are going to be the discounted ones. When you have these overwhelmingly positive reviews that don’t seem very well rounded it does create a lack of trust.
Amazon takes issue with that because Amazon is an extremely customer focused company. I don’t know if they were coming under criticism for allowing this type of review system or what, but at the end of the day, they’ve decided they are just no longer going to allow it. Of course they are still going to allow you to use Amazon Vine which is their own internal review club basically, but this is their sandbox, we’re just playing in it. That’s what they are going to do. Ok, we’ll find another way.
So what does this mean if you are an FBA seller or thinking of becoming an FBA seller? A few things.
Number one, Amazon has said in a Tech Crunch article I read this morning that they will go back and delete prior reviews if they are deemed excessive. Now who knows what “excessive” means or if they’re actually going to do it, or if they are just going to get rid of anything that has that disclaimer in it. But at the end of the day that is going to help established sellers with established products because even if they have a thousand of these reviews, if Amazon doesn’t deem that excessive that means they are still going to be there while you as a new seller or a less established seller are going to have to kind of claw and scratch your way back up the review chart.
Number two, it is going to be more difficult to launch more products. Everybody that I have read that’s talked about this new policy has said that yeah, it’s going to become a lot harder to get new products launched. And that is because its going to be harder to get that social proof. You have to rely on people that are not discounted or not incentivized buying a product, using it, coming back and reviewing it. The conversions for that are very small. So it is going to be a lot more difficult to get those reviews going forward.
There’s a couple of pieces of software that can help you with that, one is Feedback Genius another is SalesBacker, I’m sure there’s others, but they will send out autoresponse emails to people that purchase your products and ask them to come back and leave you a review. So I predict that those two companies are going to become a lot more popular going forward. And I’ll put links to those down below so you can go check them out if that is something you think you need to start using now.
We’re also just going to have to find other ways to market. A few ideas would be Facebook ads, blogger outreach, have bloggers do reviews of your products and link back to Amazon, youtube marketing could be a new way to do that. I’ve seen someone say that they used to just back in the day write thank you cards to every person that purchased their product. That’s a little time consuming but its not a bad idea, I like real mail. Could be fun.
But at the end of the day we’re going to have to find new ways to do it because this incentivized review program is no more. And here’s the main thing that I really want you to take away because I have read this in a lot of different Facebook groups over the past 18 hours or so. Do not try to find a way around this and continue to offer discounted reviews. Amazon is going to go Liam Neeson on you. They will find you, and they will ban your account, and then you’re going to be really sad.
Can I tell you a secret. I was never planning on using reviews in order to launch a product. I know. I know that sounds kinda crazy when this has been in the past a proven way to do it, but I just wanted to try something different.
You’ve been watching my videos for a few months now. You should know, if you don’t know anything else about me, that I’m a little bit hard headed and have to kind of do things the hard way.
My plan was always going to be to use a mix of pay per click within the Amazon platform and also youtube marketing. This is a big part of why I’ve been doing these videos, is because I want to practice getting better on camera. Still needs a lot of work.
The challenge now is that a lot of other people are going to be using these tactics also, and so that’s just going to make it a little more crowded. However, I think there’s also going to be a lot of people that just drop out, hands up, “This is a step too far Amazon, I’m just not going to do this private label thing anymore.” See ya.
Here’s the thing guys, it is important in business to be optimistic. Haven’t you read Good to Great by Jim Collins? What is one of the most common traits among those successful companies? Undeniably optimistic leadership. So when the game changes, change with it. It didn’t go away, its just, yeah some of the rules have changed. But is there still opportunity? Yeah, there is. Is it going to be harder? Yeah, it is. But that’s life.
Leave me a comment in the description below let me know what you think about this new policy by Amazon. Is it totally screwing you up or are you excited about the opportunity that is to come? And hey, it can be a little bit of both, we’re not so black and white here, right? But I look forward to hearing what you have to say, I look forward to seeing what changes are going to come and what new innovations people are going to have. It’s just a new opportunity guys, let’s grab it. I will talk to you next week, take care.