Here is an update on the case study. If you followed along in my webinar (Webinar) you know which product I am talking about.
Before I get into the results I wanted to share a few photos with you of the exhibitions here in Hong Kong last week and meeting up with a lot of fellow Amazon sellers and ImportDojo members.
I also had the opportunity to speak at the 3-day Global Sources Sourcing Summit event as the opening speaker where I met a lot of fellow Amazon sellers. The atmosphere and networking there was simply amazing.:
Dinner with a fellow German/Europe seller
Heading for dinner with a couple of ImportDojo members and my business partner
Waiting to speak at the Global Sources Sourcing Summit
Talking with a attendee of the Sourcing event
Trying not to be too nervous during my speech
Walking the Global Sources Consumer Electronics show with sellers
Arriving in Shenzhen with ImportDojo members to visit a factory
Without further ado onto the case study
Ok so first things first. I would have never thought that this product is so competitive.
When I looked into it in November 2015 the competition seemed big but manageable and with a superior product I thought it wouldn’t be so difficult.
Well I can tell you it was quite difficult to get the product on the map. Having said that I am quite happy with my initial launch results.
I have now sold over 200 units and a sales turnover of nearly 7000$ within the first week of the launch.
And the best thing, I am now number 7 on the best seller list and on page 1 for my main keyword.
Here’s how I did it:
When I started this project there were about 30 something sellers with similar items and I already knew it will be quite competitive but I was in for some real tough competition.
I am not going to lie, this was a though one.
When I launched there were about 120+ sellers of similar items and my main key word was VERY VERY competitive (over 3 Million searches per month) and I would need a huge launch to kick it off.
After my initial boost with my email list, bloggers and Facebook group I realised I needed help to push it.
Here are some of the numbers:
Start of the project: 17th of November 2015 (Chinese New Year added nearly two months to my production)
End of the project (launch): 12th of April
Length of the project: ~5 months. It can be done in less time (2-3months) especially if you don’t forget to place orders before the Chinese New Year
Total order value of product: 4500$ (1000 pieces at 4.5$)
Total cost of inspection, photography, layout and packaging: 949$
Total cost of shipping: 2650$ (~900KG by Air – thats 2.94$ / per kilogram)
Total cost: 8099$
I figure if you are on a smaller budget you can do 500 pieces, cheaper photos and white box instead of color box (ike mine) and you can halve the costs of my 8000$.
BUT to really maximise your profits I suggest a starting budget of minimum 5000$ per item. It is possible with less but a lot harder.
Alright, numbers, milestones, strategies, giveaways and results after 10 days of launching in order of action taken:
Friends and Family: 95% of coupons used
11 sales at 98% off. Helped definitely to put me on the map and ranks of Amazon.
3 sales at 49% off. Not much but can’t complain either. None of my Facebook groups are Coffee target groups.
About 23 sales (with 20% off) resulting in a profit of 180$. Deducting the advertisement fee for both bloggers @50$ each leaves me with a profit of 80$. Not bad BUT the sales of the product and climbing the ranks trough these sales is MUCH MUCH more important to me at this stage. PLUS my product is embedded on the Blogger’s pages permanently so I am expecting more sales and traffic to come to my listing “for free” from here on.
My email list:
8 sales. Not great but my email list are mostly NON Amazon buyers and retail customers mostly. But either way, I just needed to send out 1 email that took me 10 minutes to write and I got 8 sales from that.
0 sales (980 followers) I guess you really need to have targeted followers.
1 sales (150 followers) I guess you really need to have targeted followers here as well. Most of my Instagram followers are friends or family and I only have personal photos on there usually. Create a new account that targets your product category.
My product got buried quite quickly in the “new products” section but you can boost your item to the top every 3 days or so. So far everyone who took the coupon has bought AND left a review. So thats a 100% conversion on reviews.
It also boosted my ranking but difficult to say by how much. I guess you can leave your product on there forever and boost it once in a while to keep your BSR at a good level. Anyway, its free so I recommend you to try it definitely.
Spikelisting’s boost took about 90% of coupons. Difficult to track the reviews but I would say 85% of those left a review so far. Spikelisting helped me from #56,000 to #16000 in Kitchen and Dining. You might think thats a huge boost but it isn’t so difficult to climb from 56,000-16,000 as opposed to from 16,000-10,000 for example. It’s much more difficult the better the BSR and you need to make serious sales to get into the Top 1000 within Kitchen and Dining. Either way give them a try if you need a initial or during sales boost. Their boost definitely helped me and if I were already on page 2 at this stage this would probably help to put me on page 1.
I needed one more push.
Zonblast’s result took me by surprise. 98% conversion of coupons and the boost put me on page 1 within 7 days and my BSR from #16,000 to #1320 in Kitchen and Dining. Yes thats right, my product climbed to rank #1320 within a week in one of the biggest categories on Amazon and hovered there for a few days. I’ve never had any climb that fast on previous launches and THAT immensely helped on getting organic sales.
Zonblast also used a “heat seeker” URL with my main keyword that pushed my listing to page 1. Contrary to many other review sites, boosts and pages that help you climb the ranks, Zonblast boost your product over the course of 5-7 days which essentially helps more than just a 1 time boost or give away (in my opinion anyway). Zonblast put me on page 1 within 7 days and my BSR from #16,000 to #1320 in Kitchen and Dining. Zonblast’s COO Anthony Lee (who I had the pleasure meeting in person last week here in Hong Kong) was a huge help. He provided keyword research, analytics and was always there when I had questions.
Conclusion of tools and services to boost your product:
- Friends and Family are important for intial boosts.
- Reach out to bloggers and advertisement services.
- Build your Amazon customer email list asap.
- Grow your social media (FB, Twitter, Instagram etc.) from the beginning and target specific interest groups from the beginning (relating to your product).
- Use tools and services to help you.
What service worked best for me and what is my personal favourite:
Why and when you should use them:
A: launching in a very competitive niche (your product should be superior if you launch in a competitive niche)
B: pushing your product on page 1 in a matter of a week to 10 days (no guarantee there but it worked in my case)
C: trying many different things to get to page 1 but you just don’t get there.
I will give AMZtracker a try next week to boost and see how far this product can climb. I’ve been excited giving them a try but I haven’t gotten around it this week.
Also I wanted to wait and see what the others can do so that I have a clearer picture of what AMZtracker can do for me. I am super excited to try them next week and push my product even further in the rankings.
Will give you an update asap.
Some more numbers:
Reviews so far:
38 – 5*-reviews
1 – 4* review (customer received a broken handle but I immediately sent him a replacement without blaming transport or anything so he left me a “stellar 4* review)
Top so far: 1320 in Kitchen and Dining
Currently: 5400 in Kitchen and Dining
Top so far: #7 in french presses
Currently: #25 in french presses
Total Sales so far: 6548$
Toal Units so far: 219 pieces
AND Currently averaging 8-12 ALL ORGANIC sales per day
Activating PPC: Start with a automatic campaign and check the report after one week. Use the most searched and effective keywords in your automatic campaign and set up a manual campaign with these keywords.
Remember, before you get to this stage you need a superior product and the prerequisite is that you have a great supplier, excellent quality, the right strategy and take your time with the process. Key is to take action but don’t forget important steps when dealing with the supplier such as exclusivity agreements, purchase order contracts, background check and lots more.
Check out my webinar where I walk you trough my process on how to get a superior and safe product from China.
I am quite happy with the results of the case study and I could have climbed trough various strategies slowly but above services definitely helped getting the product on the map fast and hence resulting in great organic sales after week 1.
Matter of fact at this velocity of sales I need to re-order within the next 2-3 weeks.
Now imagine your product is in a less competitive niche what’s actually possible on Amazon FBA. Take action now
If you are interested in the entire case study looking over my shoulders with each step I took in every detail feel free to check out my course. I have detailed and documented every little thing from the beginning to the end in over 50 video tutorials.
From the research phase to finding a supplier, evaluating them, placing the order, booking inspections, margin calculations, exclusivity agreements (so you guys don’t try to copy my product ) and arranging straight to Amazon shipments until the launch of my product. I am taking out all the fear and worry in the process and show you how it works.
The point I want to get you to and with this case study is that you can see a complete product launch that starts from finding the right product, the right supplier and shipping it to Amazon, promoting and selling it.
Best thing about this, I’m using my own money and will try a lot of different things so you can see what works and what doesn’t and learn all this without running your own trial and error experiments.
If you don’t sell yet simply watch and see and all your worries and anxiety of placing your first order will be gone because you already know everything step by step.
Apply these methods to your own product idea and become a professional Amazon seller and importer.
Whats more? This case study is on top of the already existing 50+ video tutorials, templates, private Facebook community and 2 hours of one on one coaching with me personally.
Check it out here: http://importdojo.com/importdojo-masterclass/
All the best and happy sourcing,