Model
Private Label
Location
United Kingdom
Timeline
2023 - Ongoing
Product Selection
When the client approached us, we already had an evergreen product in our Private Label Product bank. With the numbers and data that we had, we knew it would be a hit. The product category being Sports and Outdoors. The sales were remarkable for the budget in hand, and so was the revenue. Average market sales were 2000 units monthly. It had very high reviews but using our strategic Private Label data analytics sheets we were able to identify the gap in the market and that was the decisive moment for us.
Product Sourcing
Luckily, we also had the top 3 suppliers in hand with ready quotations all under our target price. So we quickly moved towards sampling and after thorough evaluation (keeping review analysis in mind), we selected the final supplier and placed the order.
However, things didn’t go as planned.
When we got the reports after the inventory inspection, we realized that a very important piece (clip) from the product was missing, and the supplier didn’t add it in any of the units we ordered. We didn’t have the time to get it fixed because that would take another two weeks in the warehouse.
Launch
So we had to come up with another plan. That’s when our team suggested we change the attributes of the product while remaining in the constraint, and broaden its applications.
Using the intellect we have in our company, we came up with a brilliant marketing strategy to be used in future while quickly editing the product information & images; ready to go live.
Our initial selling price was £11.99 (Same as the BEST SELLER) with 40% gross margins without VAT (the client had VAT exemption till then).
The rest of the market had their prices ranging from £10.99 to £12.99 so there wasn’t much of a price war, until we started selling in volumes.
One of the challenges for this product was that there weren’t many high search volume keywords, only a handful. So our launch PPC strategy was to go with the highest search volume keywords in exact campaigns for ranking. While also configuring low Amazon advertising cost of sales (ACOS), high conversion campaigns for the rest of the keywords in broad modifier campaigns.
All of these strategic efforts resulted in an outstanding elevation to our listing. Within the course of 5 days, we were ranked on the top of search against the main keyword, making an estimated 600+ monthly sales. The best seller got in competition with us and decreased its price to £10.99 while we kept our price £11.99, because we knew our strategy was working and no alterations were needed.
Now the question is: How were we able to sell at the same price as the best seller and even higher than them given that our product was missing a key element?
All credits go to our plan of action, and how we changed the product for two uses instead of one. Our product cost didn’t change but the selling price automatically accounted to be higher because the product scope had increased, and buyers didn’t mind paying a pound or two extra for double the utility of the product.
Scaling Strategy
Since then, we have been following our strategy that worked for us along with some additional changes and tweekings based on our Key Performance Indicators (KPI) and Customer Behaviour. We analyze the data from Amazon Brand Tools like Brand Analytics, Opportunity Explorer, etc to study the market trends and improvise our listing accordingly.
It has been only five months since the product went live and now we are ranked organically on 3rd against the main keyword and 5 other top keywords. Our listing has only around 100 reviews, but still manages to take more sales than other older listings because of our PPC campaigns and SEO. Our Best Seller Rank (BSR) is maintained at 3 figures in the main category even after going out of stock twice because the listing is well stabilized.
The current momentum of sales requires us to keep the inventory cycles rolling fast and our cash flow intact. Our listing is on track for £12,000-15,000 monthly revenue with the ACOS controlled below 25% across all campaigns.
