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/