I thought it would be interesting to run a case study talking about how to launch a successful Amazon business. Although I do a lot of marketing for Amazon SEO clients, I also own and operate my own Amazon businesses. These are very young and the one we will be tracking over the coming months is just over a year old. Making its first sale in January 2016. Although it is a year old it only has 3 products live. This is obviously not many for an Amz business and the main reason is down to time spent developing new products. Obviously we only want the top quality products for our seller account and hence growth has been slow.
Over the next months & years I want to run a case study on this business, talking about how we are going to take it from it’s current position to over £10,000 per month in sales. This is only revenue remember and not profit, but I think this is a figure most people can relate to and hence is one we will use currently.
I don’t want to reveal the business itself and the products we sell for threat of competition but I will talk about specific figures, number of products, marketing techniques, financials, Amazon PPC and how I generate reviews, sales and everything that goes into this type of business. So to start you need to get an idea of where this business is at.
This business is in an industry that improves in sales from November-February (as most Amazon businesses do) so as a result the March month sales are slightly down from Xmas & Jan time but this is just to get an idea. So let’s get started. Below is a screenshot of the March sales. Although we have 3 products they are all in the same category.
You can also see the “same date range one year ago” but ignore that data for now. There are a couple of other metrics we want to track. Most importantly is going to be refunds, units returned & refund rate. So we have 1 product that gets a high-ish refund rate. But for the purpose of this case study we will track everything together.
- March sales: £2,932.73
- Refund rate: 9.36%
- Refund No of Units: 16.00
- Refund £ Amount: £364.
- Gross: £2,565.
This is going to be the basic data that we will be looking to increase/reduce over the coming months. Obviously we will be looking to increase our sales as much as possible, whilst at the same time launching new products and looking to reduce the refund rate of that product.
Goals for next month:
Our goals for April are simple, we want to re-stock a product (STA), Improve conversions of product 2 (WRA) and begin progress of launching a new product (BEL). Obviously this is going to take time and I do not see much difference occuring in the weeks between this and April’s report as there is another goal that needs sorting that I’ve heard is very painful to set-up and this is changing from an individual sole trader seller on Amazon to a Ltd company. Here in the UK you are either a sole trader or a Ltd company, there are a lot more legal requirements when you are a Ltd company but there are also a few additional benefits, such as being separated from your business (legally) and also only paying 20% tax on profits, which when you earn over about £45,000 per year in the UK is very important as otherwise you pay a higher rate of 45% on everything above that!
So the goals for the next month:
- Sort Ltd company information out with Amazon.
- Complete samples of new product + Small 20 unit launch order + begin launch.
- Complete samples of product 3 (LEG) + Calculate costs for order.
- Begin shipping of 1000 unit order (STA)
- £3,000 in sales.
I hope you enjoyed the first post, ideally I’ll also start making videos to go along with this post but as I want to keep the identity of the company in question private this might be an issue. But I will be posting new updates on the 8/9th of each month and I hope you come along with me on my journey to £10,000 in sales.