SUCCESSFUL PRIVATE LABEL LAUNCH CASE STUDY
Total Investment: $55K (one-time costs, inventory, PPC, bleeding, etc.)
Time into Launch: 4 months till date
Gross Profit Margin: 30%
PPC ACOS 30 Days: 41%
PPC TACOS 30 days: 11%
Total reviews: 400+
Total Ordered Units: 8,371
Total Sales: $203,298.17
Total Profit: $7,334.2 (should’ve been $14K easily, details of this lesson below)
Net ROI (in these 4 months): 13.33%
[For monthly revenue breakdown and forecasts, seller board screenshot is attached]
This launch, as we’re calling in EC terminology currently, is a pure PPC launch. The goal of such launches is to minimize the bleeding budget by utilizing the investment made in ordering inventory to generate sales and make the revenues pay the expenses (like PPC) by themselves.
This entire launch can be broken down into 3 important stages:
A. Competitive Research
We spent about 3 months finalizing the product and its pack size. We chose a pack that was among the top-selling yet had a relatively low number of sellers. It also provided the maximum value to the customers for the price they were paying, a very important factor to consider.
B. Pre-Launch Preparation
We had top-notch photos, content, EBC, and keyword research-ready. Having enrolled in Brand Registry already, we also applied for 25 vine reviews from day one of the listings going live. This is an extremely important step as emphasized by the 333 checklists in EC Bootcamp training. You want to have the Brand Registry and content/media of your listing ready way before your launch date (i.e, the inventory reaching FBA).
Also check regularly if all the nodes of Brand Registry (like A+ content, Brand Analytics, Vine Reviews, Sponsored Brands Video, etc) are assigned to your account. Because even after being enrolled in the brand registry, sometimes these features are not enabled and you have to manually request to get them added. As it takes up to a week to get them enabled, you can lose a valuable launch period if you don’t time it right.
C. The PPC Strategy
We did micro-level campaigns. 1 keyword + 1 match-type per campaign. Starting with 20-25 top most relevant keywords (mid-long tail keywords). So the campaign structure went like this,
Keyword 1 – Exact
Keyword 1 – Phrase
Keyword 1 – Broad
and so on.
We didn’t do all match types for all keywords, since broad and phrase match types don’t perform well with very long-tail keywords.
Slightly above-recommended bid to begin with. As it’s hard for a new campaign and product to get traffic/ad rank, your bids need to be higher to get impressions and clicks.
Each week we mine search terms from our existing campaigns, and any new potential keyword we find, we make similar campaigns.
A $6500(+) LESSON WE LEARNED:
Did you notice above when I mentioned our total profit should’ve been $14K so far easily? Here’s the reason: Flimsy product packaging. And by flimsy I mean it wasn’t sturdy and was prone to deformation. This wasn’t the first launch we did, yet we didn’t do our best work in packaging this product.
The result was instead of having $8k+ profit this month (as we did last month), we are going to have about $2.5K profit. The remaining is going into additional FBA fees that Amazon is charging us now after they have rescanned our products. Our mistake was letting the supplier do the packaging how he wanted. Now that we’ve called our samples and brainstormed along with the team, we’ve shown the supplier how the same product can be packaged for better stability and reduced volume.
Take enough time to gauge your market and competition. There’s no space for mistakes in working on your price, pack size, and packaging. Do not shy away from investing in good quality content and media for your product. We choose the top 10-20 most relevant and converting keywords to use in our listing and PPC campaigns, so it’s important to painstakingly do your keyword research.
All these factors combined, along with the grace of Almighty, is the reason behind the apparent success of this launch. PL is a long-term business. We usually do not expect full ROI for an entire year. And we do expect many more challenges along our journey. But I’m sure we’ll work it out, as we always have, as a community here on the EC platform. And of course, I’ll keep sharing any key findings/lessons we get along our journey.