- Patrick Muir
- On March 8, 2015
- 0 Comments
- 25K Video
In my journey to launch a successful Amazon business, an important step is launching my own brand.
Currently my revenue comes from reselling other manufacturers’ products, under brands I don’t own. This creates thin profit margins because other sellers on Amazon (or Amazon themselves) also sell the product. This drives the price lower and squeezes profit margins.
In the video above, I documented launching a new Soap Mold brand – Sapone Soap Molds.
I targeted soap molds because I thought it was a popular category that did not have a #1 brand. Many of the soap molds listed on Amazon are sold by companies out of China – who offer free shipping, but it takes 3+ weeks to get the product. I saw it as an opportunity to leverage what I know about building brands with tools from Seller Labs to launch a soap mold brand on Amazon.
To source my product, I used Alibaba.com. The site connected me with dozens of manufacturers who build soap molds. I insisted on receiving a sample first and then used PayPal to order product.
After listing the product on Amazon and getting it into an Amazon FBA warehouse, I tried running a campaign to generate sales. I used photography from my Chinese competitors and because the product was new, it had no reviews. I did generate sales, but it cut my profit margins in half.
I then decided to use Snagshout to generate reviews and move the product up in the sales ranking. Snagshout automates the process of generating reviews for new products by connecting your brand with consumers and getting them to submit reviews in exchange for a discounted price or a free product. Because consumers purchase the product (even if it’s free) through the Amazon system, it also counts as a sales. This pushes the product up the sales ranking.
Within a few hours of launching my SnagShout campaign, all my offerings were Snagged and my unknown Soap Mold brand ranked #1 in Soap Molds. Pretty impressive.
But did it translate into sales? The answer is Yes!
Prior to launching a SnagShout campaign, I had sold 8 6-Packs of Soap Molds. My conversion rate was 4.4% and it took more than a week to generate those sales. I also ranked on page 6 of common search terms.
The Snagshout campaign has generated 9 solid reviews (almost a full 5-star ranking). This enhanced my ads because the star rating is always included in an add.
After the Snagshout campaign, I sold 8 units in a few days. My conversion rate jumped to ~8.5% (almost doubling). I also jumped in the search rankings and created some organic sales.
Once I get more product into Amazon’s warehouses, I’m going to run another Snagshout campaign to boost the sales ranking and hopefully get onto page 1 of the Amazon search rank for “Soap Molds”.