In this episode, we’ll break down how the growth mindset and the fixed mindset impact almost every area of your Amazon FBA business. From sourcing profitable items, dealing with customers, handling returns, fixing bad feedback, dealing with seller central reps, and even seeing the success of other Amazon sellers online, the way your mind processes and responds to these actions has a direct impact on your profits and sales.
For many people, focusing on your mindset is not all that exciting or appealing, but if you’re just beginning your Amazon business, or you’ve been selling on Amazon for a while but your profits are plateauing, then adjusting your mindset might be the jumpstart your Amazon FBA needs to get to the next level. In fact, your mindset could be the missing puzzle piece you’re looking for on the road to Amazon FBA success.
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Links and resources mentioned in this episode:
- Mindset: The New Psychology of Success by Carol Dweck
- FREE BOOK: Seller Central Tips: Reimbursements, Refunds, and How To Correct Other Possible Amazon Glitches
- Fixing Customer Feedback
- Overcoming Tanking Prices
- The Full-Time FBA Facebook Group (answer 3 questions to make sure you’re a good fit for the group)
- The 6th Bloggiversary Sale of Full-Time FBA blog
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Episode Transcript:
Announcer: Welcome to The Full-Time FBA Show. In each episode it’s our goal to help you turn part time hours into a full time income selling almost anything on Amazon and now your hosts of the show, Steven and Rebecca Smotherman.
Stephen: Welcome back to The Full-Time FBA Show and this is episode seven where we are going to be talking about mindset and the thing about mindset is that some people think that it might not be all that interesting. Some people kind of turn their brain off, which I think is kind of ironic because we’re talking about mindset, so don’t turn your brain off when we’re talking about stuff. It’s actually something that’s really important.
Rebecca: Yeah, it is one of the most important topics I think that I have learned about since starting to do business and over the years I’ve really enjoyed learning more about how my mindset affects how I approach everything related to doing Amazon business. And so I’m really excited about this conversation and some of the things we’re going to be discussing.
Stephen: Sometimes when people think about mindset, it’s not the sexy topic. But when you look at all of the people who are high achievers, high performers, they all have one thing in common. And that is that they prioritize their mindset. It’s something that’s really important to them. And so if you looked at this episode title and you’re like, “Oh this might not be that interesting, but I’ll give it a shot.” Keep listening because this is something that really could make or break your Amazon FBA business.
Stephen: I know with most Amazon FBA sellers their ears perk up when they want to hear about things like sourcing strategies or Amazon FBA strategies or pricing strategies or ways that they can increase their profits. And when people start talking about mindset, they maybe tune out a little bit. But this is something that is so important and so we have a whole episode focused on that today,
Rebecca: Right? And we also want to right here at the very beginning, clarify what we mean when we say the word mindset. Because sometimes that can be misinterpreted to mean positive thinking and just, “If you think it you can do it.” Kind of a thing and that’s not what we’re referring to here. We’re actually talking about when we say the word mindset, we’re using the terminology of Carol Dweck. She’s a professor and a researcher at Stanford University and she has a book called Mindset that has been really instrumental in a lot of other research. And once I first read this book, after Stephen recommended it, I started hearing about her in so many other books that I’ve read related to business or psychology and any number of topics because this concept and her work is really very instrumental in many different areas of life, not just business, but also parenting and relationships and so we want to clarify right off the bat what we mean when we say mindset.
Stephen: And specifically when Carol Dweck talks about it in her book Mindset. She breaks things down into two Mindsets. There’s a fixed mindset and a growth mindset. People with a fixed mindset. Those people are the ones who think that their abilities are fixed, that their surroundings are fixed, and there’s nothing that they can do to impact what’s going on in their life. But those with a growth mindset, those are the ones who believe that their abilities can be developed and the things around them can change and that things can be be good overall. And so we’re going to talk in this podcast about how the fixed mindset and the growth mindset impact your Amazon FBA business. So let’s get right to that.
Rebecca: So we want to talk about several different areas of working on an Amazon FBA business today and how you can have either a fixed mindset or growth mindset when it comes to those aspects of your business. In the first one let’s talk about is sourcing. And I know that’s something that we all are concerned about with our business is sourcing. How do we source, where can we source, where can we find more inventory? So Steven talked to us for a minute about how having a fixed mindset versus a growth mindset can impact your FBA business. When it comes to sourcing.
Stephen: Right. And as we’re going through these examples and stuff, be listening to things that sound familiar. Your own thoughts that might be going through your head and see if like, “Oh, I might lean a little bit more towards fixed or a little bit more towards the growth mindset.” But when it comes to sourcing in stores, someone with a fixed mindset might say something like, “Oh, there’s just so many items in her to scan. I’m never gonna be able to find something to sell.” Or they might be thinking, “Oh, there’s just so many different stores to go to, I’m not going to be able to find anything really.”
Stephen: That’s a fixed mindset that is going to stop you and cause you to give up too early. It’s going to cause you to possibly even quit selling on Amazon before you get started because that mindset is stopping you.
Stephen: On the other hand, if you have a growth mindset, you might be thinking, “Oh my gosh, there’s so many items. I’m sure to find some inventory to sell.” Or, “You know what? If I don’t find something in one store, I’ll find more in another store.” Because there’s just so many stores out there. So that’s the difference between a fixed mindset and a growth mindset when it comes to sourcing for inventory.
Rebecca: Okay. Talk to us also in relation to that, because that sounds really familiar to me, especially in the early days of getting started working on the business with you. Talk to us also about, this happens in particular if you do RA, retail arbitrage type sourcing. When you go into a store and you’re just not finding anything and you’ve got an empty cart and the feelings and the thoughts that you have at that time, your mindset at that time when you’ve scanned a bunch of stuff and you just can’t find anything, the cart is empty.
Stephen: Yeah. No one likes to go into a store and leave with an empty cart. But you know, sometimes it happens and the person with a fixed mindset might think to themselves, “I didn’t find anything here. There’s literally thousands and thousands of things here and I could not find one thing to resell. I must be a failure. I must not be doing something right. I must be doing the … I probably should just stop and quit.”
Stephen: But someone with a growth mindset might think to themselves, “Wow, I’m really glad I didn’t buy anything here because nothing was worth buying. If I would have bought something here, I probably would’ve paid for something that wasn’t profitable or an item that wouldn’t really sell. So I’m glad there’s other stores out there that I can actually go and find stuff to sell that actually is profitable. I’m glad I didn’t waste my money here. I’m going to take that attitude and go onto the next store.”
Rebecca: Yeah. Those things sound really familiar to me. Like I was saying, when we first got started, I had a very fixed mindset when it came to sourcing, especially. And I would encourage everybody as we’re listening to this, this concept of mindset and what Carol Dweck’s research shows, is not just that you fall into one of these two categories as a person or a personality, but she talks about how you really can change your mindset.
Rebecca: And the first step in that is identifying it. So as you’re listening to this, don’t get discouraged thinking, “Oh, I’ve got a fixed mindset. I must be horrible as a person or I must need to change myself as a person.” Because I personally had a fixed mindset when we first got started and I naturally have a more fixed mindset. But through working on it, through thinking through how my thoughts were being shaped in each situation, I was able to really come to find some growth and change my thoughts into actions because of changing from a fixed mindset to a growth mindset.
Stephen: Yeah. And also, there’s even a chapter in the book Mindset about how you can work on yourself to start to see things in more of a growth mindset perspective and so it’s totally possible.
Rebecca: Okay. So that covers the topic of sourcing. That’s a really big area that impacts pretty much everybody who does FBA sourcing is one of your number one tasks. Another really big area that we all have to deal with is how do you interact with seller central and the seller support representatives. And this too, I know that seems maybe a little bit counterintuitive, but you can have a fixed mindset or a growth mindset when it comes to how to deal with your inventory within seller central and how to handle solving problems, especially when it involves somebody on the other end of the phone line, or the other end of the email that you just sent.
Rebecca: So Stephen, tell us a little bit about having a fixed mindset versus a growth mindset when it comes to seller central and your inventory.
Stephen: Yeah. It can be pretty frustrating dealing with seller central at times. And so the person with a fixed mindset might think when they get a reply from seller central or talking to someone on the phone, “These people are just idiots. They don’t know what they’re doing. I just got to copy and paste reply and it doesn’t even match what I was asking. Did they even read my email?” And you can begin to be frustrated. You can take that frustration into other areas of your life and other areas of your business where it impacts your sourcing and it impacts your overall attitude about the business of selling online.
Stephen: But someone with a growth mindset might think to themselves, “Man, it must be hard to be asked every possible question from Amazon sellers and try to figure out the best way to reply. Or maybe they did think they understood it, but they just made a mistake and they’re trying to help you as fast as possible. And so the copy and paste is something that they think is serving you. And maybe this rep is brand new. Maybe this person is new to their job, they’re doing the best that they can. I’m going to show them some grace because at one time I was new, I needed grace as well.” So that that could be a way that you can respond mentally from a growth mindset perspective.
Rebecca: Okay. What about, this is a scenario that happens quite a lot and we hear about it in our Facebook group a lot and this has happened with us too. What about when you have inventory that either goes missing at the warehouse or is damaged or like your shipment is not checked in correctly? How do we handle that from a fixed mindset perspective versus a growth mindset perspective?
Stephen: Yeah. I actually see this on Facebook a lot where people complain and they jump to conclusions and it’s almost like a little peek into their mindset because I can see the people with a fixed mindset respond and think something like, “This FBA warehouse worker, they stole my inventory. They literally took it out of the building, stole it, and I don’t have it anymore and I’m not even going to get reimbursed properly. And Amazon warehouse, they put my stuff off to the side. They’re checking it in really slowly and it’s just super frustrating. What are they even doing there?”
Stephen: But someone with a growth mindset would respond, “Man, I can’t imagine how many inventory items go in and out of an Amazon FBA warehouse. It must be a hard job where mistakes happen. But I’m thankful that I can use seller central to open up a ticket to get reimbursed for something that was lost and these people are doing the best they can. I understand that sometimes there’s bad apples in every type of situation, but overall things happen pretty well with working with at Amazon warehouse.”
Rebecca: And I think that that concept applies not just to when we direct those thoughts towards the FBA work warehouse workers individually, in our own individual situations. But I see that come up too just in how we talk about Amazon as a company or FBA as a concept in that I can see at times really there’s this struggle between a fixed mindset and a growth mindset. When you have these viewpoints of Amazon’s just try trying to charge lots of fees. Amazon’s just trying to make a lot of money off of me.
Rebecca: And really thinking that Amazon as a business is trying to take advantage of us as opposed to having the mindset of this is a really great opportunity for me. Yes, there are things that I would like to be different. There are ways that I wish that selling on Amazon was a little bit easier or that I didn’t have to pay so much or do so much in certain respects, like certain types of work that’s involved in dealing with Amazon. But overall the opportunity is really great and the trade off of having to deal with certain negative aspects is more than worth it for the value I get out of being able to sell on Amazon.
Rebecca: So that’s just another area where I’ve seen the two different mindsets at work. So on that note, let’s talk about how we handle customers in dealing with customers. I know that in general, one of the main selling points of doing FBA is that our customer service is mostly taken care of by Amazon. But we still do have to interact with customers and we have to deal with the fact that there’s a customer on the other end of our sales. So talk to us for a second, Steven, about fixed mindset versus growth mindset in how we relate to customers.
Stephen: So when we deal with customers, the most annoying part is returns. I mean, that’s just an annoying part of every type of business. Returns are part of every type of business. And as sellers on Amazon, we have to deal with more returns than other businesses because Amazon’s return policy is just so awesome and so easy to do. The customer sometimes will return. And those in the fixed mindset will have the perspective that this customer is trying to take advantage of this return policy. They’re trying to trick. They’re trying to steal. They lied. They said it was defective. It’s not defective at all.
Stephen: Or another possibility, they’re trying to cheat me because they returned a broken item. But over 99% of the time, the customer, they’re just returning the item. They’re not trying to cheat you. But someone with a growth mindset would reply and say, “You know, maybe they thought the item was defective and they didn’t really know what effective means. I can create a removal order, I can double check it for myself and, and send it back into Amazon if everything’s fine.”
Stephen: But the people with the fixed mindset just so focus on what the customer is trying to do to cheat them that they’re not thinking about the profitable thing to do, which is to just open up a removal order. And if it’s defective, fine. But if it’s good to sell still, go sell that item again. And so focusing on what’s profitable, then what’s not profitable. Complaining about stuff is not profitable at all.
Rebecca: Right. And that directly ties into our feedback score and how that is also another aspect of our relationship with our customers. Talk to us for a second about how we handle any type of negative feedback that we might receive because that does happen from time to time. Even the most meticulous seller out there is going to get a negative feedback at some point or another.
Stephen: Right. And the people who, their feedback score ends up ruining their attitude for the rest of the day. That’s somebody with a fixed mindset because that’s something they just can’t let go of. The person with a fixed mindset would reply, would respond to getting negative feedback by thinking to themselves. “They’re just trying to ruin my business.” If the person who left the feedback says that the item was used, they might respond saying, “I know this was new when I sent it. And they’re just lying so that they can get a free return and, and, and they’re just trying to back it up by leaving me negative feedback. I know they got a brand new item.”
Rebecca: And I would add to that, even just the desire to respond to a negative feedback shows, to a certain extent, a fixed mindset. Because if you’re wanting to justify yourself and defend yourself, rather than looking at how can I improve this situation, how can I make this better? That’s in and of itself evidence that you have a fixed mindset and that you’re more concerned with how you can be shown to be right and how you can get what you can out of this situation and not in how do I learn from this? How do I make this better for the customer?
Stephen: Yeah. Someone with the growth mindset would be thinking, “Maybe they thought a one was a good. Maybe they thought, ‘Hey, he’s number one. I’m going to give him a one feedback.'” So you can try to fix that by reaching out to the customer and try to ask them directly if that’s what they meant by that feedback. Ask them if there’s anything you can do to make things right if they really were upset with the transaction.
Stephen: And maybe the item was opened and had some shelf ware and it was a little scratched up a little bit. So they thought it was used because they wanted a gift quality condition item. So again, it’s just trying to do the research to find out what really was going through and not responding in anger, but just seeing, okay, what’s the profitable thing for me to do? I want to make sure my items really are in new condition and how I can make sure that I do that. But most of it’s just taking that feedback in stride, seeing what you can do to fix it and make the customer happy. But after that, just let it go and move on with your business.
Rebecca: Okay. That’s all really good. I really enjoy talking about these types of things because it’s a good reminder for me. Like I said, I tend to more naturally have the fixed mindset and so I want to always be reminding myself, how do I handle these situations?
Rebecca: So looking into the next area that we want to talk about. This one has to do with how we relate to our competition on Amazon. And I know for the most part you’re not going to know on any individual [inaudible 00:17:40] who your competition is or even you know, within the category that you’re selling in. You might know some of the names of the big stores that sell in category, but you probably aren’t really going to know exactly who they are, but you’re still going to have to think about in general your competition on any particular item or in general, the items that you sell. And so talk to us for a second about our attitude and our outlook when it comes to thinking about other sellers on Amazon or our competition.
Stephen: Yeah, I know a lot of people complain that the competition is tanking the prices. Everyone was selling this at $30 and now this competition is brought it down to $19.99 and can’t even make much money off of that. And then later on more competition comes in. It’s now at $10, you must be losing money on this. And you just get caught up in that. Well that’s a fixed mindset.
Stephen: When on the other hand, if you have a growth mindset, you might be thinking to yourself, “Wow, maybe they got their items cheaper than I could get them. I wonder how I can learn how to do that. Or maybe they have other reasons for losing money.” I mean there’s actually people who sell on Amazon and specifically lose money on the transaction so that they can have good customer metrics so that they could possibly get increased positive feedback and they know these items would have positive feedback and that their customer metrics would be good. So it’s okay for them to lose money. So we just don’t think about those things because we’re so focused on ourselves and why we’re losing money if we had matched their prices. And so have that fixed mindset. You can possibly even find out, “Whoa, there’s other ways that I can get this item even cheaper.” That’s happened to us a lot.
Rebecca: Right, and I want to clarify too with this, it’s not that it’s bad to think about how is this affecting me and how is another seller’s actions affecting me? That’s obviously something that we do need to spend some time thinking about. I want to bring this back to though, the fixed mindset versus the growth mindset comes down to how you look at the overall situation and take it as, “Am I seeing what another sellers doing with their prices as a personal attack on me and my business or am I seeing it as an opportunity to understand more about how to do business in general and how to do business on Amazon in particular? How can I learn from this situation? How does the market work? What are the different things at play here?”
Rebecca: And that’s where it comes down to looking at the fixed mindset versus the growth mindset. Having that growth opportunity be the most important part of what’s going on and not, “How is this affecting me and how is this going to be difficult for me?” But how am I going to take this difficult situation and learn from it, grow from it, and see where my business goes from here.
Rebecca: So another area of relating to competition. In some ways we do get to, even though it might not be our competition on a specific item or even in a specific category, we do relate to other Amazon sellers. If we’re on social media, in the forums or on Facebook and Facebook groups, we have a Facebook group, the full time FBA Facebook group, where we see a lot of interaction between sellers. Some of them who don’t sell in anything close to the same category, some of them who are brand new beginners, some of them who are big time sellers. And can you talk to us for a second, Stephen, about the difference of a fixed mindset versus a growth mindset when it comes to how we relate to each other as sellers on these types of platforms?
Stephen: So with the fixed mindset, when we start to see people posting on Facebook, they’re asking questions, they’re needing help, they’re trying to solve a problem and the person with a fixed mindset might think to themselves, “Why should I help them? I had to learn things on my own. I had to start the hard way. And so if they want to find more inventory, if I help them find where inventory, that’s less inventory for me.” And so that’s just not a healthy way to respond and think when you’re dealing with your mindset.
Stephen: But someone with a growth mindset might think, “Well, you know. I wish I would have been helped when I first got started. Or I was thankful that I got helped and I want to pass that along and help others.” And after all, there is more than enough inventory out there for everyone to sell. I’ve found stuff, other people can find stuff, there’s tons of stuff out there and we can all help each other out and actually grow together. Because sometime down the road that person might be able to help me out as well.
Stephen: On the other hand, there’s times on Facebook and all these others platforms where people, they’re posting pictures of big shopping carts full of inventory. They’ve got a picture of their van with the doors wide open and all this inventory in there. And so you could respond with a fixed mindset and think to yourself, “Man, I’m so jealous of that. And that kind of success threatens me. I mean if that person can do it and I haven’t been able to do it yet, that’s scary.”
Stephen: But someone with a growth mindset might think, man that is awesome, that is inspirational. They were able to figure it out. I can go do the same thing and figure it out as well. And so you can have that kind of growth mindset that pushes you to grow and learn and take your Amazon business to the next level because you’ve seen the success of others, you know it’s possible for you too.
Rebecca: Yeah. We’re not necessarily advocating for going out and posting pics of every time you have like a really great RA haul or anything like that. We’re just talking about how do you handle that when people do that, because I have mixed feelings honestly about when you see those types of posts. Is it genuine? Are people genuinely trying to help others and inspire others when they do that? Are they just trying to make themselves feel better? I go back and forth on it. I can see it from both sides.
Rebecca: But when you see those posts, how do you respond? That’s the question I have to ask myself. So we’ve covered a lot of pretty specific areas related to FBA and how you can have a fixed mindset or a growth mindset. Let’s talk a little bit more general now and just in general. Learning when it comes to growing your business, growing your FBA business, but really this can apply to any area of your life where you have to learn and grow. Talk to us for a second. Wrapping it all up, tying it all together, about having a growth mindset and how that can lead to success versus how having a fixed mindset can cause you to stall out.
Stephen: Yeah. When it comes to learning something new or even when you got the hang of it and you want to expand and learn some new aspects of what you’re already doing, especially with your Amazon FBA business, there’s that different type of fixed mindset versus growth mindset in the topic of learning.
Stephen: So somebody with a fixed mindset might think to themselves, “You know what, I’m either going to be good at FBA or I’m not.” But someone with a growth mindset would think, “Man, if anyone else can learn this, I can learn it too. I can learn what I can need to do to take my Amazon business and grow.”
Stephen: And that just opens up the future for your Amazon business. Someone with a fixed mindset might think, “Man, if I start to experience certain challenges, that just is a sign that I need to quit.” But a growth mindset might see these challenges as an opportunity to grow, to learn from their mistakes, and to be able to take that next step. And basically the fixed mindset, if there is anything going wrong with their Amazon business, they see themselves as a failure and they should just quit. But a growth mindset knows that failure is not a person. Failures are just events and events we can learn from. And so we can learn from those events. We can learn from those failures and we can move our business forward by keeping that growth mindset, knowing that, “You know what? When I fail, there’s lessons to be learned to be able to take our Amazon business forward.”
Rebecca: I think that’s a really good summary of this concept and how it really relates to our FBA businesses. And again, I know I’ve said this already, but this is something that I think we need to just keep coming back to you because it is an area of growth and for me it’s something that I personally have struggled with.
Rebecca: I know for other people, having a growth mindset just comes more naturally, but even if it doesn’t come naturally to you, you always can recalibrate your thinking and you can really check in with yourself when you’re going through a difficult time and make sure, “How am I handling this? How am I handling my mindset right now? Do I have a growth mindset here? Am I trying to handle this challenge appropriately or do I have a fixed mindset?”
Rebecca: I’m not saying that we don’t ever get frustrated or that we don’t ever approach challenges with some discouragement because that’s natural. But after we’ve given ourselves a moment to have that moment and experience our feelings about how this is going, how do we move forward from there? That’s really good to keep in mind as we’re taking this topic and figuring out how are we going to let this influence our business moving forward.
Stephen: Yeah, and if you’re interested in learning more about the concept of mindset and how to apply it to every area of your life, business, personal, family, all that kind of stuff, parenting, schooling. I totally recommend Carol Dweck’s book Mindset. We’ll have the links to that on our show notes. If you got a fulltimefba.com/7, the number seven, we’ll have the links to that book and anything else that we talked about that could be helpful and the topic of mindset.
Stephen: Because mindset, like I said before, it can be a really big deal breaker and can ruin your Amazon FBA business. But if set up correctly and responding correctly, it can really help you overall find that success that you’re looking for.
Rebecca: Well, that does it for this episode of our podcast. We’re glad that you are here with this. We really love this topic about mindsets and we’re just really happy to be able to share some of our thoughts about it with you. Keep listening though because we have some important news.
Stephen: Yeah. If you are listening to this episode right after it dropped on to the podcast platform, this week we are celebrating, Rebecca and I are celebrating six years. It is our bloggaversary this week and man, I can’t believe we’ve been blogging for six years.
Rebecca: Me either. Some days it feels like longer, but a lot of the time it just feels like we just started.
Stephen: And to celebrate, we are offering up a huge sale on many of our full time FBA products. If you go to fulltimefba.com/bloggiversary, you can save some really big amounts of money off of our courses and if you don’t know how to spell bloggaversary, which I didn’t when I first started to try to type it up. You can just go to fulltimefba.com/7. That’s episode seven for this podcast and all the links that we’ve talked about will be there. So fulltimefba.com/7.
Rebecca: Yeah. I think bloggaversary is a pretty made up word. So how do you spell a made up word?
Stephen: Right.
Rebecca: We just went with what makes sense to us.
Stephen: The clue is that it has two GS.
Rebecca: Right. Bloggaversary. I don’t know. Anyway, I think that about does it. We’re glad that you are here with us for this episode. Thanks for celebrating our bloggaversary with us and we will see you on the next episode which we are going to be actually interviewing, Stephen’s going to be interviewing me for that episode and so we’ll see how that goes. That’s one of the requests that we received when Stephen sent out an email with a question about who would you like to hear interviewed.
Rebecca: For whatever reason, people want me to be interviewed and I do have a lot of opinions about a lot of things. Not all of them have to do with FBA, but this podcast will be centered around Amazon FBA and making a full time income.
Stephen: Yeah. First episode was called, Who Is Stephen Smotherman, and so episode eight coming up next on The Full-Time FBA Show will be who is Rebecca Smotherman and we’ll get to find out and you’ll all find out she’s so much more and interesting than I am and I look forward to interviewing her.
Rebecca: Oh, that’s sweet. Okay. Let’s go.
Stephen: All right. Thank you guys for listening. Appreciate it. Leave a review. Fulltimefba.com/leaveareview.
Announcer: That’s all for this episode of The Full-Time FBA Show. So head over to fulltimefba.com/podcastwhere you’ll find the show notes and links from this episode. While you’re there, subscribe to our newsletter where you’ll get several free downloads of our popular and helpful Amazon FBA resources, including a free ebook. Now, take action on what you’ve learned today so you can find success at turning part time hours into a full time income with Amazon FBA.
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