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.