Amazon Case Study

Client Brief

Client from UK wanted to launch within Home & Kitchen category on Amazon with the initial investment of $15,000 but was not sure which market to target & which product to source.

We have been given a task to look at least 3 products on Amazon UK and Amazon USA marketplace. The retail price range set by the client was from $20 to $50 range based on their profit margins.

Our Process

  • We started researching on numbers in terms of demand for the product/s within given markets i.e. keyword research (exact, phrase or broad), monthly sales volume, any seasonality and competition (how difficult to rank).
  • We also looked at how many existing listings has got less than 200 reviews as this will define how difficult or easy to enter to market within Home & Kitchen category.
  • Whether Amazon itself not dominating within this category as this is the key factor to advise at this stage.
  • Sales volume of top 10 sellers with reviews and BSR.

Once we had overall market picture & numbers, we then presented to client and agreed on next steps which is selecting product and start looking at sourcing options from different markets (China & Vietnam).

Final Product :  Bread Proofing Bask

Sourcing

  • We looked at Ali Baba as one of the top wholesale market and other vendors in China and Vietnam.
  • Based on raw material, finish quality and vendor’s reliability, we arranged 3 samples to be delivered in UK so that client can approve.
  • Our advice was to go for improved packaging which client agreed in order to differentiate from competition.
  • Start with competitive price bracket.
  • Also we added few other essentials within product rage so that it can be sold as a Bakers Gift.
  • Since the product tentative launch was in Q4, we made sure that we get Holiday and X-Mass season.

Launch with Results

  • Listing was done as per Amazon best guidelines with all key elements and USP’s highlighted so that indexing will be easy.
  • We launched product with early review program to get social proof.
  • Budget of $30 was allocated to start PPC campaigns.
  • One automatic and two other campaigns started to see one-week results.
  • Second week by going through keyword search term report all converted keywords then transferred to other campaigns.
  • Offer was initiated to capture on holiday and gift seasons.
  • We managed to sell almost half of inventory in first 3 weeks of launch of this new product with BSR as low as 12,132 achieved in the week 15th Dec to 21st Dec.
  • Decline in the last week was due to reduce in budget, end of Christmas and limited delivery options.