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Amazon | Private Label Scaling

01Project Details

Total launch budget is 6185 USD. Monthly revenue is $3150 (11300 DHR) with 31% profit margin. Monthly profit is 3565 DHR ($990). Bleeding cost is 800 USD. 6 months inventory cost us 4850 USD when we had a policy of sending 6 months inventory to Amazon strictly. So, if he launch today with 3 months inventory backup then the total launch budget would shrinks to $3760 USD with 3 months inventory.

We already know that Market Leader always sell at higher price and yet get a major chunk of the category sales. Profit will further increase here because the listing reviews are 72 now and we are second in terms of reviews in the entire market. Once we cross 3 figure reviews, we can increase our price further with 10% comfortably because 3-4 months down the road, he will become the market leader with a strong history of sales and enjoying the perk of being supreme in the market.

Imagine a seller carrying mere 150 reviews while enjoying the perks of being the market leader, enjoying high sales with higher profit margins. Isn’t it alluring? This is the benefit of entering a new growing marketplace with a small budget.

Now, he is planning to add a variation in it as well which will further increase his profit to $1300 USD. ROI would be expected to be done hopefully in the next 3 months . Building strong and growing assets are comparatively easy in Small marketplaces because we can easily achieve the market leader position within a short time and enjoys the perks of getting the higher sales with higher profit.

 
After 4 months, if he flips this asset after completing the ROI, then the worth of his asset will be around 20000 USD, considering 1100 USD as monthly profit.
 
Let me share that we were struggling to get even 3 orders on the 30th day of the launch because price point was not okay but Abdul Wahid did a good job by keep building reviews during that time and remain Sabir and Shakir and ultimately we adjusted correct price point and sales started flooded in. But you would be saying that the bleeding budget is still very small even after long period of stability. Right? Just because the MPL launching strategies are too efficient that it does not effect the budget much while absorbing the struggle shocks. We always moves slow in MPL launches while giving Amazon algorithm a strong feeling of being organically ranked.

Our success lies in the selection of right product. This is not easy task really. This is one of the frustrating but fruitful job!!
Amazon Private Label
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