Update: I am doing a new 2019 Case study right now. Follow along here.
I see a lot of people are still struggling with launching products in 2018 and getting their first reviews. So I’ve decided to do a little case study and let people tag along while I launch a new product. I am obviously not going to reveal the actual product, but I will show all other related stats and info. I will be using a couple of different methods to get reviews and gain traction. I am not saying these are the best ones, these are just the ones that work for me. Of course, I will be staying compliant within the Amazon TOS.
- Part 2: Here we started with our Amazon Product Giveaways & also enrolled for the Amazon Early Reviewer Program.
- Part 3: Is where we started seeing the first results! This is also where I started with the PPC campaign.
- Part 4: Last part of the case study where I show the final results.
- Final update: Here I share how the product is currently doing and what I am doing to further improve the product.
Ok, so I’ve found myself a nice little niche. There are only a handful of sellers offering the same type of product. They are doing between $1k – $15k in revenue per month and have between 100 – 700 reviews. It shouldn’t be too hard to rank on the first page here so perfect for a little case study!
Landed cost ( Production + Shipping ): $6,11
Average sales price the competition is charging: $20
FBA fee’s: $7,71
So if I decide to sell it for the same price as my competitors I will get $6,18 profit, a healthy 100% ROI. But since making a profit is not my goal at this point ( getting reviews & sales velocity is ) I will probably undercut my competitors.
I’ve spent around $200 on professional product photo’s, and I’ve done my research and made a nice little listing filled with my keywords. I’m not going to cover this here, but this is extremely important! If people are interested in learning more about this they can let me know.
Update: So a bunch of people have asked me to expand on how I found this product. I have written a separate post about this here.
My Amazon Product Launch Strategy 2019
So first of all my goal when releasing a new product is not making profit! My goal is to get reviews & sales velocity, which will in turn, increase my rankings and increase my sales even more. Once I am satisfied with my ranking and I will change my goal and focus on making profit. I strongly believe Amazon is ranking products based on their 7, 30 & 90-day average sales volume. So in order for me to archive this, I will start with the following steps:
- Lower price
- Setup follow-up email
- Product giveaways ( while staying within Amazon TOS )
- Early review program
- GO HARD on PPC
- Increase price
This is a very basic one that people don’t seem to utilize. I am completely fine with selling my products for breakeven or even at a loss when I am launching them. Since there is a very healthy profit margin on this product this won’t be necessary in this case. I will be starting with a price of $15, this will net me a $1 profit per sale. But most importantly is significantly lower than all my competitors, a great way to get some sales!
Absolutely essential when it comes to getting reviews IMO. I use Jump Send but I don’t think it really matters which service you use. As long as you make sure your customers receive a follow-up email with you asking how they like the product and a link to leave a review. I try to stay very direct & personal. Here is the message I use:
I am <MY NAME> and I just started selling my product on Amazon. And I want to thank you personally for purchasing my product! I am just running a one-man operation and every purchase means a lot to me!
I am very curious how you like the <PRODUCT>? Do you like the <Material>? Do you think it is too big? Do you think this is a great gift to give to friends? I want to hear all about it!
If you could please let me know your opinion with a product review that would mean a lot to me!
<PRODUCT REVIEW URL>
So does this work? Of course it does! I feel that since you introduce yourself and let them know you are just a small operation they are more inclined to leave you a review instead of a faceless corporation. Here is a typical reply I would receive:
Next post I will go over Product giveaways ( while not breaking any Amazon rules! ) & Early Reviewer Program. Let me know if you found this post helpful or if you have any questions let me know in the comments.