How to quantify the success of a product launch
Hi all
I recently launched my first ever product on Amazon (UK market). It’s been selling for about 4 weeks, averaging about 8 sales per day (priced on average about £12). It’s already got a few reviews… all 4 and 5 star. No returns or negative feedback (ranked as an ‘excellent’ listing on seller central performance tab). The average click through rate on my ppc has been about 3.5%. Sales conversions on the high ranking competitive key words are roughly 1 sale per 10 clicks, give or take. The product has been hovering between the number 20 and number 30 best seller in its sub-category (special needs toys). The problem has been the advertising spend - my average ACOS is around 158% (!) Recently I’ve brought it down to about 100% - of course still very high. Bottom line, I’ve sold just under £3k worth of products in 1 month but spent about £2200 on ads. I’m losing money here. BUT, customers are clicking, buying & starting to leave nice reviews, so it’s making me think I should re-order and carry on. Maybe these results aren’t too bad for a total newbie? I’m thinking as I gain experience, start lowering the ACOS, further optimise the listing and up my game generally, perhaps this product can succeed. Overall though, I’m struggling to judge from these mixed metrics if the launch is going well or not? Feedback appreciated (!) Thanks in advance.
4 replies
Seller_BS5lg2keRs2QO
Is it one of those sensory bubble fidget things? If it is you should also be considering whether the market has reached saturation and whether the fad is about to come to an end.
Seller_3TxhVJ1GuBSgl
are your main keywords ranking organically?
Seller_77IcbQKVGdZo0
This is not a profitable business model as you probably know. Why don’t you stop the ads and see what your sales are like. You can just stop them for a few days and see what your sales are like.
I had a FBA product last week that got to number 1 in its sub category with no advertising and no reviews on the product. If your product is popular people will find it and buy it you don’t need advertising.
Advertising does help to increase traffic however it can hit profits hard if not managed correctly.
In answer to your question I would say your launch is not going well, yes you are getting sales but you have no idea of the level of sales without advertising or a level of advertising you can afford.
Seller_l4yoe4MHz7TUm
Thanks all. Very helpful. Answering the questions:
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Yes it may be a fad, but sales are still strong in the category and searches are high. The problem is that the ppc costs are high and it’s a competitive niche.
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The product has started to rank organically on some long tail (lower search volume) key words. On the high volume ones it’s still stuck on the back pages.
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(Smile Guy) - thanks for the input. Amazing to get such traction with minimal ads. Talking to other sellers I’d thought it was quite common to over spend on ads at the beginning, in order to build up the organic rank of the product over time. I was actually expecting to lose some money on the first batch, break even on the 2nd and start making money on the third. My objective for launch isn’t to make money but to build up the organic rank. If I switch the ads off entirely I think the product will lose a lot of momentum. But I am trying to bring the cost down. Thanks again all, very helpful.
