AmazonCase Study

Case Study – Perfect Amazon Product Launch

By August 25, 2017 2 Comments

This case study is for a product we launched last year in Q4. The product was part of the baby category and only sold on Amazon US.

In the first 30 days of the launch we did over $30,000 revenue on FBA and another $2000 in commissions from Amazon Associates:

Amazon FBA Income:

Amazon Associates Income:

We achieved this launch by using three different traffic sources:

  1. Email List
  2. Facebook Ads
  3. Review site + influencers

Email List

Objective: Initial reviews

Fortunately we launched one product in this niche previously and had an email list of a few hundred customers.

We setup an AMZPromoter campaign and ticked the option to not collect emails. This means that every one who clicked on the get coupon button would be sent to a page with their unique coupon. We didn’t collect email addresses because we already had them and this reduced friction. We made sure to use the IP limit feature so customers could only claim one coupon.

We sent out two emails to our list using Mailchimp with the AMZpromoter link included.

In the first email we announced the product and spoke about its benefits and features and how we needed their help to get our product seen on Amazon. We offered them a 50% discount since they were loyal customers with a link to the AMZPromoter page.

In the second email we told them that the sale ended in the next 24 hour and this was their last chance to get 50% off.

After they purchased we asked them to leave a review. Since we already had a relationship with these customers the review rate was quite high.

Results:

    • Customers emailed: 329
    • Coupon Claims: 79
    • Purchases: 35
    • Reviews generated: 9

Facebook Ads

Objective: Boost rankings, capture emails for future promotions

We have quite a bit of experience running Facebook ads so we thought this was the next best method to use to launch our product.

First we created an AMZPromoter campaign with email opt-in but skipped email confirmation. We made sure to limit our inventory to 2 units per sale as a safety measure.

We then shot a short 60 second video of our product in action and wrote some simple ad copy. Here is how we usually structure our ad copy.

Main benefit targeting a pain point

Special offer

Scarcity

‘Share/tag with someone who would love this’

We also made sure to include several emoticons throughout the ad as we found this brings better click through rates.

We created a conversion campaign optimized to the AddToCart objective. We made sure to install our Facebook pixel on the landing page and include the AddToCart event code on the coupon claim page.

For targeting we setup two ad sets:

  1. A 1% lookalike campaign based off a custom audience we created from our previous Amazon sales. We also layered this with some interest targeting including: likes Amazon.com, Parents with children 0-1 and 1-3. The audience was around 800,000 in size.
  2. We created a second audience using just interest targeting. We used the ‘flex targeting’ technique were we layered lots of similar smaller baby brands and we also included: likes Amazon.com, Parents with children 0-1 and 1-3. This audience was around 500,000 in size.

For placements we did Mobile Newsfeed only. Generally this is the placement we use for testing and can scale to other placements after.

We used Auto bidding and set the budget to $30 a day.

After around $10 ad spend we started seeing much better results with ad set 1 (better CTR and CPC) so we turned off ad set two.

We ran it for around 7 days and had quite good results. I attribute this mainly to our quality targeting, great product, great offer and video creative.

Results:

  • Coupon claims/ emails collected: 129
  • Amount spent: $216.72
  • Cost per coupon claim: $1.68
  • Purchases: 47

Review Site + Influencers

Objective: Sales

We managed to acquire a related review site in the space for quite cheap. For this we just direct linked to Amazon since it was part of a review site with many other products.

We didn’t have to do much to promote this since we were already ranking well on Google for some relevant keywords.

We also managed to get listed on two “top 10” websites for our product category.

This strategy drove some sales but not very many.

Results:

  • Purchases: ~30

Post Sale Strategy

For the post sale we sent a three part email series to collect as many reviews as possible.

We sent emails:

  1. ASAP after order is Delivered
  2. 3 days after order is Delivered
  3. 7 days after order is Delivered

In the emails we spoke about how we are a small company and assured them of our product quality, our money back guarantee and superior support.

In the last two emails we also included a link to leave a product review and tried to prevent negative reviews iterated that if there is any problems they should contact us first and we will sort it out.

Since it was around Christmas time many people were buying this product for Christmas so it was difficult to get initial reviews.

We managed to get the majority of our reviews from our discounted coupon campaign and ended up with around 35 reviews by the end of 30 days.

(Note: we also used Amazon PPC as part of this launch but I haven’t included it in this case study)

Conclusion

We were very satisfied with this launch and even in the first week we started generating organic sales. We turned off external promotion quite early as we were limited by inventory and didn’t expect the sales to come so quickly. We also increased our price to avoid running out of stock. If we didn’t have the inventory limitations then we would have kept on running Facebook ads as long as they didn’t become too much more expensive.

Sign up for your 21 day AMZPromoter free trial today.

Join the discussion 2 Comments

  • Derek Higgins says:

    I have a skincare product on Amazon.co.uk will this system work for me as i am struggling to make any sales

  • Josh says:

    Thank you for the excellent Post. With regards to the affiliate earnings. How did you earn so much in affiliate commissions when offering your product for 50% off? Doesn’t Amazon pay affiliates on revenue generated, meaning after the 50% discount you get your commission. It seems like you continued to drive traffic from Facebook to Amazon for the entire duration. If so doesn’t that get costly? Or do you continuously run Facebook ads as means to increase sales and rankings? Thank you very much for your guidance and excellent products.

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