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A Lithuanian Family-Owned “Home & Kitchen” Brand

Overview

  • Brand Type: Home & Kitchen
  • Marketplace: Amazon.com (U.S.) and Amazon EU
  • Timeline: Launched in the U.S. market in 2021
  • Initial Market: Amazon EU
  • Goal: To establish the brand in the U.S. market, grow profitability, and dominate their niche.

Market Insights

  • Seller Statistics: Only 2.1% of Amazon sellers make over $10 million annually. The average annual profit for sellers is nearly $30,000.
  • Growth Path: Success on Amazon is often a slow and steady process, with gradual growth being more common than explosive success.

Product and Market Positioning

  • Product Characteristics:
    • Category: Broadly classified as Home & Kitchen, but within a very specific niche that lacks a dedicated subcategory.
    • Price Range: $20-$40, making it an impulsive purchase for many buyers, with partly seasonal demand.
    • Size: The product is not oversized, keeping FBA fees manageable.
    • Market Niche: Not oversaturated, allowing the brand to stand out.
  • Initial Challenges:
    • Stolen ASINs in the U.S. market, leading to the need for new ASINs.
    • Keyword issues relating to “pesticides,” which delayed listing approval.

Phases of Growth

Phase 0 – Pre-Launch

  • Goal: Prepare listings and solve logistical challenges before entering the U.S. market.
  • Actions:
    • Fought to reclaim ASINs after they were stolen.
    • Resolved keyword-related issues that flagged the product as “pesticide-related.”
    • Launched with new ASINs, SEO-optimized listings, infographics, and A+ content (A++ was unavailable at the time).
    • Over 100 SKUs were unblocked, allowing for the first batch of stock to be sent to Amazon.

Phase 1 – Product Launch (0-6 months)

  • Strategy: Building product visibility through a robust PPC strategy despite an expected 0% profit margin during the launch phase.
  • Actions:
    • Launched with 10-15 parent variations, targeting the top 5-10 main keywords.
    • Separated keywords and competitors into dedicated ad campaigns, focusing on ranking and indexing.
    • Ran exploration campaigns targeting 20-30 keywords and competitor ASINs.
    • Implemented Auto, Broad, and Phrase match campaigns for deeper keyword exploration.
    • By the end of 6 months, the brand had stabilized, although it was still operating at a 0% profit margin.

Phase 2 – Growth Phase (6-18 months)

  • Strategy: Expanding visibility and establishing profitability.
  • Actions:
    • Utilized a strong Defence strategy to protect product pages from competitors by ensuring the brand’s ads appeared in all possible ad spots.
    • Dominated top search terms by separating individual targets into their own campaigns for maximum optimization.
    • Focused on Sponsored Product campaigns to further boost organic ranking.
    • Seasonal demand during the winter months helped boost performance.
  • Results: By the end of the phase, the brand was averaging $10,000 in monthly profit.

Phase 3 – Cash Cow Phase (18+ months)

  • Strategy: Maintaining market dominance and focusing on profitability through Sponsored Brand and Display campaigns.
  • Actions:
    • Upgraded A+ content to premium and added a brand story to further establish trustworthiness.
    • Continued testing new keywords and improving product quality, content, and manufacturing.
    • Aggressively defended against new competition by targeting competitor ASINs and keyword bids.
  • Results:
    • By 2023, the brand was consistently generating an average of $14,000 in monthly profit.
    • Expanded into Amazon Canada, generating around CAD 7,000 in monthly profit after overcoming compliance and logistical challenges.

Conclusion

  • Dominated Niche: The brand successfully saturated its niche, achieving its goals of market dominance and profitability.
  • Future Growth: With limited room for growth in the current niche, the brand is exploring new products and natural niche expansion.
  • Key Takeaway: Success on Amazon requires patience, investment, and long-term dedication. Brands must understand the product lifecycle and be prepared for slow but steady growth.

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