Eric SDA
New Contributor
- Joined
- Jun 12, 2018
- Messages
- 7
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User Power: 186%
Hi all,
I'm going through a very tough time and would really appreciate some advice on my e-commerce company situation.
Background
I began work on the business (physical products) in April 2019 and started trading in August 2020. The model was to launch on Amazon (FBA), rank the products, get consistent sales and make a net profit. Then invest in marketing to drive sales to our own e-commerce website to grow the brand.
The 1st product launch didn't go well and the product never ranked. 2nd launch went better and the product ranked but competition is cutthroat and AMZ advertising costs (CPC) are too high, resulting in net losses per month just to maintain stock and stay afloat.
There is a market for my product (worth billions) but also a complete red sea of undifferentiated products and marketing.
Current Situation
The 2 Products are still selling on Amazon but barely breaking even (without accounting for stock purchase). Revenue is also on a negative trajectory at break even.
I began an organic customer acquisition strategy for our website via blogging and SEO and here's where we are
Problem
I cannot find a way to differentiate my offering and grow my brand and revenue in a sustainable way outside of Amazon. Hence my marketing efforts and content strategy lack direction/clarity and of course any traction.
I also cannot figure out a way to monetize the website traffic in a way that the potential payoff is worth my time and investment.
Lastly, I don't want to buy more physical stock once the current inventory runs out as this is not sustainable.
Request
Can anyone help or offer any advice on how to move forward?
- Am I wasting my time in a fundamentally saturated industry with an undifferentiated model/product?
- Is there a different model I can pivot to, in order to monetize the website traffic?
- Should I try to build the site to 10k visitors/month or more, invest in optimization and try to sell it?
I don't hold a job and living off savings right now.
Thanks for reading and appreciate any legit advice. Not looking for business coaching.
I'm going through a very tough time and would really appreciate some advice on my e-commerce company situation.
Background
I began work on the business (physical products) in April 2019 and started trading in August 2020. The model was to launch on Amazon (FBA), rank the products, get consistent sales and make a net profit. Then invest in marketing to drive sales to our own e-commerce website to grow the brand.
The 1st product launch didn't go well and the product never ranked. 2nd launch went better and the product ranked but competition is cutthroat and AMZ advertising costs (CPC) are too high, resulting in net losses per month just to maintain stock and stay afloat.
There is a market for my product (worth billions) but also a complete red sea of undifferentiated products and marketing.
Current Situation
The 2 Products are still selling on Amazon but barely breaking even (without accounting for stock purchase). Revenue is also on a negative trajectory at break even.
I began an organic customer acquisition strategy for our website via blogging and SEO and here's where we are
- Grew traffic from 200 visitors/month in Jan 2021 to 2,100 visitors/month in May - June 2021.
- The conversion rate remains low (0.75% or less) with an average order value of only £17 (we only sell 2 SKUS at £14.99 each).
- The website is not optimized for UX and conversion.
- Email list of 300, 30% Open Rate, 1% Click Thru Rate.
- 2 FB groups about 300 members each. Unengaged.
Problem
I cannot find a way to differentiate my offering and grow my brand and revenue in a sustainable way outside of Amazon. Hence my marketing efforts and content strategy lack direction/clarity and of course any traction.
I also cannot figure out a way to monetize the website traffic in a way that the potential payoff is worth my time and investment.
Lastly, I don't want to buy more physical stock once the current inventory runs out as this is not sustainable.
Request
Can anyone help or offer any advice on how to move forward?
- Am I wasting my time in a fundamentally saturated industry with an undifferentiated model/product?
- Is there a different model I can pivot to, in order to monetize the website traffic?
- Should I try to build the site to 10k visitors/month or more, invest in optimization and try to sell it?
I don't hold a job and living off savings right now.
Thanks for reading and appreciate any legit advice. Not looking for business coaching.
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