Ads Boon embarked on a journey with a client looking to launch a brand on Amazon USA with a limited budget of $8,500. The goal was to introduce a diverse range of 8 SKUs, each strategically priced within the $30 to $90 range. The launch was scheduled during the lucrative Q4 season, aligning with the client’s niche and leveraging the high sales potential of the holiday season.
Initial Launch Strategy:
To maximize product visibility and adhere to Amazon’s advertising guidelines, we recommended pricing products between $30 and $90. The launch involved 2 products priced at $90, 2 at $60, 3 at $40, and 1 at $25. Due to budget constraints, we initially ordered small quantities and judiciously allocated inventory based on projected demand. This included segments of 50, 80, 100, and 40 units per SKU.
Early Success and Scaling:
Within just one month, some SKUs went out of stock, reflecting strong demand. We promptly placed replenishment orders to meet the growing demand, gradually increasing inventory levels. Within 6 months, our revenue soared past $100,000, showcasing impressive margins ranging from 20% to 25%, even as we started from scratch with zero reviews. As we continue to accumulate reviews, optimize PPC campaigns, and expand our keyword rankings, we anticipate achieving margins of approximately 35% by year-end.
Challenges and Solutions:
Our journey was not without challenges. We encountered quality issues from our initial supplier, prompting a search for a new, more reliable supplier, which was eventually successful. In addition, the persistent problem of hijackers, often a barrier without a brand transparency program, was skillfully addressed using advanced strategies.
Expanding Catalog and Gaining Trust:
As we earned the client’s trust and demonstrated the effectiveness of our strategies, they expressed interest in further investment in their Amazon business. This led to an expansion of the catalog from 8 SKUs to 12 SKUs, including the addition of product variations. A rigorous market research approach allowed us to identify and launch products with great potential, and we look forward to unveiling more promising products in the near future.
Conclusion:
This case study underscores the remarkable success achieved through a strategic partnership with Ads Boon. Despite facing initial challenges, we were able to catapult our client’s brand into the Amazon marketplace, achieve impressive revenue figures, and anticipate even greater success in the near future. Our journey exemplifies the potential for growth and prosperity when combining expertise, dedication, and a well-devised Amazon strategy.