Product manufacturers only want one thing: SELL THEIR PRODUCT!
And the truth is:
Sometimes selling offline to retailers and other buyers is just not enough.
And that’s when…
“Product manufacturers start looking for ways to sell their products at a higher margin to more buyers.”
So, keeping this in mind we decided to write a case study mentioning few of many product manufacturers who became successful on Amazon by launching profitable products.
We will be sharing the results and experience of...
“A few product manufacturers who did not have an online distribution channel before but launched products online and literally made millions (or at least in 6 figures) selling them”
So, without further ado - let’s get started.
#1: Food Coloring Business that Made $425,361 in 8 Months
Do you know what we’re tired of hearing?
People don't think these online marketplaces are as profitable for business development as a retail market.
It's quite the opposite of reality. And we'll prove that here.
The first success story we will share with you is of a food coloring business that developed its business on Amazon through successful product launch, smart management and active marketing strategies and increased its revenue by 1300% in a span of 3 months.
Check out the complete case study: How We Grew From “$5,127 to $67,404/month” (& Growing!) - 8 Months AMZ FBA Case Study
How Was the Business Before Launching on the Amazon?
Here’s the big question:
How big of a business it was before the firm launched its products on Amazon?
Well, it was one of the largest and oldest well-established food coloring businesses in North America with many generations expanding the empire.
The vision behind the company was to provide the best quality product for grocers, bakers, retailers and other service providers in the market. In fact, they are renowned for their world-class flavor and quality.
And let’s be honest.
Before taking their products to the online marketplace, the actual target customers of the company were the retail stores only.
But here’s the interesting part: The company rose to success as soon as it developed a proper strategy for online sales.
So, What Happened Next?
To put it simply, Success!
After the product launch preparation for Amazon FBA and complete launch strategy:
The monthly revenues rose from about $5000 to a sky-high $65,000 in just a three-month period.
But, it doesn’t stop here.
The combined revenue for the last 6 months has been recorded at about $350,000.
Here are some of the numbers for you:
And it gets better.
The company is targeting its annual growth to be at least a MILLION DOLLARS.
How Did They Manage That?
Multiple factors played an important role in this company’s success, however, the most crucial one was:
Smartly Planning Their Online Product Launch.
It’s as simple as that.
But let’s take a deeper look into the system. Here’s how it all happened.
1. Defining Goals
When MarketplaceOps took over:
“We defined SMART (specific, measurable, achievable, relevant and time-based ) goals for these product launches”
To begin with, the six-month target was set at $50,000 per month sales and launch of 15 more products.
And here’s the interesting thing: All targets were achieved.
2. Discovering Issues and Finding Solutions
Fact: You can never flourish if you don’t face your problems.
Just like any other developing business, the biggest problem the food coloring business faced in the retail was Marketing.
Let me put it this way,
More money was spent to attract just a few customers. Totally NOT worth it!
MarketplaceOps restructured the entire marketing campaign and devised active promotional strategies for higher efficiency. In addition to that, the company adopted optimization techniques and increased the dominance of their products on Amazon search.
Long story short:
Interactive branding and planned marketing strategies boost online product launch revenues.
Unsurprisingly, it worked!
After a couple of weeks in the planning, it was time to implement these ideas.
The company ran tests on the various campaign and adopted the best strategy to attract traffic on their pages.
And here’s what happened:
“By the end of these two weeks, we were dominating the first spots for most of the main keywords. Our competitors had been pushed down and we were the most dominant in our ‘food coloring’ niche.”
At this point, it is worth noting that we had achieved remarkable conversion rates because the product was amazing and it was being displayed to the right audience.
Remember: Consistency is the Key to Success
This current era of technology has made businesses quite vulnerable to their marketing strategies. And to keep up, we must improve on each step.
The company faced a big challenge in maintaining consistency in revenues. How did they choose to face that?
Improvise on changing trends.
#2: Rollie Shoes’ Amazon Selling Success in Less than 7 Months
Talk about successful brands on Amazon and you cannot keep out Rollie Nation from the equation.
The success of the travel shoe company could not have been predicted in such a short time by even the most ambitious of entrepreneurs.
Here’s a success story of how an Australian-born brand made its way into the US Market.
The Vision Behind Rollie Nations
Before we share the secret of Rollie Nations’ success with you, we need to understand the vision behind this innovative brand.
Rollie Nation was founded in 2012 with the goal of revolutionizing the shoe concept.
It’s an interesting story here. Vince Lebon, an Australian designer, was actually inspired by his wife, a flight attendant, and the famous 'Rollie' who wanted to travel with lightweight, comfortable shoes.
And the best part about these shoes:
They weigh 20 grams less than a pair of Havaianas and are perfect for hopping, skipping, jumping and traveling.
As much clicking as the idea was, the biggest challenge was:
“When Rollie Nation made its way into the US market.”
But here is the Lebon’s vision to expand the horizons:
“After three years it was time to push online, so we could tell our brand story a bit better. We were trying to disrupt the thinking process to present as a brand and not as an item.”
And you know what they experienced? A lap of luxury.
How Much did they Generate?
Frankly, we don’t have enough data from the company to make an estimate especially while selling on an online marketplace.
But here’s the thing:
Based on the popularity of the brand, we can imagine their revenues to be in millions every year.
According to Vince himself,
“We were a wholesale business and started to focus energy online in 2015. Now the business is big. It’s 40 percent of our revenue.”
Still sounds impressive, right?
But How is that Possible?
Want to know their Secret?
Well, there isn’t just one secret - there are a few. But, successfully launching products online is one of them.
Let us just state a rule of thumb about Amazon:
Amazon is not a sales channel that requires a ton of effort in maintenance as long as you're strategically advertising your product launches.
Can we be completely honest with you?
Amazon has a large audience to address already. These people have their faith in Amazon. They are there to shop!
The biggest perk of online marketplace selling is that you don't have to convince your customers to purchase your products. That's what they do for you.
In Rollie’s case, the key was, again, planning and adapting.
1. Defining the Best Amazon Strategy
One thing you need to understand before selling any product in Amazon:
You have to be selective about your products on Amazon.
Let’s take an example from Rollie Shoes’ study.
Initially, they decided to go on the hunt of creating the entire catalog on Amazon and then shipping it to FBA for fulfillment.
They felt vulnerable to running out of stock or failing to ship products in time. It was impossible to send any single product manufactured in Australia to FBA centers on time.
2. Following Amazon’s Setup Rules
Do you want to learn how to optimize your products’ detail page?
The award-winning answer would be:
Ask seller central for your category detail report, download that, and fill in all the blanks.
It is as simple as that and that is what happened with Rollie Shoes’ as well.
They made sure that all their product launches were according to Amazon rules.
In the last financial year (2017-2018), Rollie Nation's online revenue grew in excess of 150 percent.
In addition, they strategically utilized keywords and active advertisement in the right places to generate maximum traffic to their online portfolios.
We are talking about their success story in our article.
#3: Pop-A-Shot Making a Comeback with a 971% increase in Revenue
So far, we have talked about two established brands building their success in the online marketplace.
But here’s an interesting question:
“What about those smaller brands that want to develop their sales online?”
Here we have a brand which did not only made its way into the online marketplace but also revived a 35-year old product into the market.
History of “Pop-A-Shot”
The vintage electronic basketball shooting game was an actual innovation of Pop-A-Shot and it all began in 1981 when its founder, Ken Cochran, was inspired by the idea of shooting hoops from his desk table during an injury.
It was then that he decided to put on side-by-side backboards, tiny basketball rims with a net to return the balls to the shooters.
The game soon became a famous hit and was featured as a famous trend among campers.
News Update: In 2016, the company was sold due to its bad financial health.
And with the new owner, Tony Stucker, in charge, it was time to restore the product on an online marketplace.
According to him,
“From a customer perspective, I thought if we can build a great game and introduce it to the Amazon Marketplace – I think shoppers will want to purchase from the actual brand and that would give us a leg up on the competition.”
What was the Big Payoff?
In about a month, Pop-A-Shot improved its revenues by 971.67%.
And the success didn’t stop here.
Pop-A-Shot was also chosen as "Amazon's Choice" due to the rise in excellent reviews, conversion history, client request, satisfaction process, and client search term rating.
So, How did it Become so Successful?
So what was the key behind this incredible increase in revenues for Pop-A-Shot?
“One of the first things I did when I bought the company was search for ‘Pop-A-Shot’ on Amazon. We knew it was uphill from that”
Well, to be very honest, all Pop-A-Shot did was to launch their product on an online marketplace with the right advertisement techniques.
But, let’s take a moment here and ask, what was the line of action?
We are here to help you with that:
1. Focusing on Better Review Response
Can we tell you a secret about Amazon?
Reviews are not only essential to the shopping experience of the client but also have a significant effect on the algorithm of Amazon.
What it means is:
With the increasing number of reviews for your product on Amazon, your brand is building a repute.
That repute will definitely allow people to trust your products more and more as compared to your competitors.
2. Enhanced Brand Content
Here’s an uncanny resemblance between success stories of “Pop-A-Shot” and Rollie Nation:
They both implemented a discreet detail of their products on the online marketplace.
In reality, it is turning out to be the best advertisement technique for Amazon algorithms.
So, What’s the Moral of the Story?
In addition to these cases, there are many other brands and people who made a fortune while selling their products on online marketplaces.
The purpose of telling you these stories specifically:
Whatever your product niche or company status, selling your product on the online marketplace will always be profitable for you if you apply the right strategies.
So, at this point, We may ask this question:
What have you got to lose? Just get it done!
If you need any help on the way, leave a comment below. We are going to help you with that.