Amazon case study #1 $230k in 1st year
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Case Study #1 www.dolmanbateman.com.au/amazon/
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Transcript of Amazon case study #1 $230k in 1st year
Case Study #1www.dolmanbateman.com.au/amazon/
Backgroundwww.dolmanbateman.com.au/amazon/
First Year of Operation – Sales of $230,000
4 products with variations
1 product dropped
Three Products – Red Blue & Green
Issueswww.dolmanbateman.com.au/amazon/
Profits not as high as expected
Why & What happened?
What can we learn?
Are low profits likely to continue into future?
What do we have to change?
Amazon Seller Central Reportswww.dolmanbateman.com.au/amazon/
Business Reports
By Date: Sales & Traffic - By month
Essential Columns:
• Date
• Sessions
• Units Ordered
• Total Order Items
• Ordered Product Sales
• Average Selling Price• Unit Session Percentage
Download and Open in Excel
Amazon Seller Central Reportswww.dolmanbateman.com.au/amazon/
Business Reports
By ASIN: Detail Page Sales and Traffic
Essential Columns:
• Date
• Sessions
• Units Ordered
• Total Order Items
• Ordered Product Sales
• Average Selling Price
• Unit Session Percentage
Select Each Month, Download & Open In Excel
Overview of Numbers – Top Levelwww.dolmanbateman.com.au/amazon/
Sales per Productwww.dolmanbateman.com.au/amazon/
$-
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Sales $
Blue Green Red Total Sales
Sales function ofwww.dolmanbateman.com.au/amazon/
Sessions – Number of Unique Visitors to your Product Pages
times
Conversion Rate – Number of Orders / Number of Sessions
times
Price
Sessions by Productwww.dolmanbateman.com.au/amazon/
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Sessions
Blue Green Red Total Sessions Sessions Trend
Conversions by Productwww.dolmanbateman.com.au/amazon/
0%
5%
10%
15%
20%
25%
30%
35%
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Conversion Rate
Blue Green Red Orange Average Conversion
Price per Productwww.dolmanbateman.com.au/amazon/
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Price
Blue Green Red Total Average Price
Gross Profit % by Productwww.dolmanbateman.com.au/amazon/
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Gross Profit %
Blue Green Red Average gross Profit
Total Gross Profit by Productwww.dolmanbateman.com.au/amazon/
$-
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Gross Profit $
Blue Green Red Total Gross Profit
What we foundwww.dolmanbateman.com.au/amazon/
Relationshipswww.dolmanbateman.com.au/amazon/
Sessions & Conversionswww.dolmanbateman.com.au/amazon/
0%
5%
10%
15%
20%
25%
30%
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Sessions & Conversions
Sessions Conversion Rate
Price & Conversion Ratewww.dolmanbateman.com.au/amazon/
0%
5%
10%
15%
20%
25%
30%
35%
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Price vs Conversion Rate
Price Green Conversion Green
Price & Conversion Ratewww.dolmanbateman.com.au/amazon/
0%
5%
10%
15%
20%
25%
30%
35%
$-
$5.00
$10.00
$15.00
$20.00
$25.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Price vs Conversion Rate
Price Blue Conversion Blue
Benefit of Hindsightwww.dolmanbateman.com.au/amazon/
Christmas Bonuswww.dolmanbateman.com.au/amazon/
$-
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
Jun-16
Sales
Sales
Double Bonus – Increasing Sessions & Conversionswww.dolmanbateman.com.au/amazon/
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Sessions & Conversions
Sessions Green Conversions - Green
Triple Bonus – Increasing Pricewww.dolmanbateman.com.au/amazon/
0%
5%
10%
15%
20%
25%
30%
35%
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Price vs Conversion Rate
Price Green Conversion Green
Christmas Bonus - $15,000www.dolmanbateman.com.au/amazon/
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$-
$2,000.00
$4,000.00
$6,000.00
$8,000.00
$10,000.00
$12,000.00
$14,000.00
$16,000.00
$18,000.00
$20,000.00
Gross Profits & Price
Gross Profit Price
Multiplier Effectwww.dolmanbateman.com.au/amazon/
Sessions Increased by 100%
Conversion Rate Increased by 45%
Price Increased by 42%
Gross Profit % Increased by 40%
Added together 227%
But resulted in 600% increase in Profits
Reaction to Drop in Saleswww.dolmanbateman.com.au/amazon/
$-
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16
Jun-16
Sales
Sales
Sessions not Conversionswww.dolmanbateman.com.au/amazon/
0
0.05
0.1
0.15
0.2
0.25
0.3
0.35
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Sessions & Conversions
Sessions Green Conversions - Green
Dropped Price in Reaction To Saleswww.dolmanbateman.com.au/amazon/
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
0
500
1000
1500
2000
2500
3000
3500
4000
4500
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16Mar-16 Apr-16 May-16
Jun-16
Sessions & Price
Sessions Price
Price & Conversion Ratewww.dolmanbateman.com.au/amazon/
0%
5%
10%
15%
20%
25%
30%
35%
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Price vs Conversion Rate
Price Green Conversion Green
Lost Profitswww.dolmanbateman.com.au/amazon/
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
$-
$2,000.00
$4,000.00
$6,000.00
$8,000.00
$10,000.00
$12,000.00
$14,000.00
$16,000.00
$18,000.00
$20,000.00
Gross Profits & Price
Gross Profit Price
Looking Forwardwww.dolmanbateman.com.au/amazon/
Declining Conversions in Redwww.dolmanbateman.com.au/amazon/
0%
5%
10%
15%
20%
25%
30%
35%
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Conversion Rate
Blue Green Red Average Conversion
Declining Trend in Green & Redwww.dolmanbateman.com.au/amazon/
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Sessions
Blue Green Red Total Sessions Sessions Trend
Increasing Red but dropped prices in restwww.dolmanbateman.com.au/amazon/
$-
$5.00
$10.00
$15.00
$20.00
$25.00
$30.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Price
Blue Green Red Total Average Price
Declining Green & Redwww.dolmanbateman.com.au/amazon/
$-
$10,000.00
$20,000.00
$30,000.00
$40,000.00
$50,000.00
$60,000.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Sales $
Blue Green Red Total Sales
Reliance on Blue for Profitswww.dolmanbateman.com.au/amazon/
$-
$5,000.00
$10,000.00
$15,000.00
$20,000.00
$25,000.00
$30,000.00
Jul-15 Aug-15 Sep-15 Oct-15 Nov-15 Dec-15 Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16
Gross Profit $
Blue Green Red Total Gross Profit
Conclusionwww.dolmanbateman.com.au/amazon/
Conversion Rate is Most Important Number
Look at Relationship between Price and Conversion Rate –
test
Sales function of Sessions, Conversion Rate and Price –
where is problem?
Past KPI – looks at what has happened = Sales
Forward KPI’s – Looks at what is happening – Trend in
Sessions & Conversion Rates
Questionswww.dolmanbateman.com.au/amazon/
