Light & Bulb: Electronics Niche Domination

Light & Bulb – Electronics Niche Domination

Challenge: High return rate and poor listing conversion.
Solution: Creative redesign of A+ content and PPC campaign restructuring.

Service Category

Tools & Home Improvement

Sub-Category:

Multiple Sub-Categories

Client:

LIGHTS AND BULBS

In the United States, the Tools and Home Improvement market commands a substantial valuation of $260.5 billion, and the subcategories where our products, including Hardwired Under Cabinet Lights, Lighting Fixtures for Gardens, Outdoor LED Wall Lights, and Light Bulbs, are listed constitute a 23 Billion USD portion of this market share

Revenue Potential

The primary consideration was selecting a product with a strong revenue track record. This means identifying products that have consistently generated substantial income.

Demand & Sales Volume

A product’s demand and sales volume are crucial in the selection process. Products that were purchased in significant quantities were given preference, as this indicated a higher
level of market interest.

Competition Analysis

One of the key factors in product selection was evaluating the level of competition within the niche. The preference was for niches with less intense competition, where the market was not oversaturated with similar products.

Rating and Customer Stisfaction

The product’s rating and customer satisfaction were essential considerations. Products with a strong rating and positive customer feedback were favored, indicating that they effectively met customer needs.

IDENTIFICATION OF NICHE GAPS

Limited Product Variety

One significant gap in the niche was the limited variety of available products.
While some products performed well, there was a lack of diversity, leaving room
for innovation and introducing new product variations.

Customer Pain Points

Through customer feedback analysis, it became apparent that there were specific

pain points that existing products were not addressed adequately. These pain
points include issues related to product features, pricing, or availability

Unmet Consumer Needs

Consumer needs in the niche revealed critical gaps, spanning customization, ease
of installation, warranties, user-friendly interfaces, energy efficiency, compatibility
with smart home systems, safety, durability, low-maintenance options, and
accessory availability. Sustainability, local sourcing, multi-functionality, and
educational resources were also lacking. Addressing these needs enhances
customer satisfaction and market competitiveness

Meeting & Exceeding Consumer Demand

Across multiple products within our account, there’s a unique opportunity to not
only meet but exceed existing sales figures. Current sellers in the market have yet
to fully satisfy consumer demand, and our products’ distinct attributes bridge
the gap between potential and supply. With strategic targeting of this demand
and effective promotion of our products’ distinctive features, we stand poised to
surpass marketplace sales expectations.

INITIAL INVESTMENT

35K USD

The initial capital injection was designated for the introduction of 15 distinct products, encompassing a total of 90 SKUs, during the launch phase.

Marketing Strategy For Product Launch

Launching a new product in a highly competitive environment demanded meticulous planning and execution. Our marketing strategy encompassed the following key components:

ORGANIC SOCIAL MEDIA ENGAGEMENT

Utilized platforms like TikTok, Instagram, and Facebook to tap into organic traffic and engage potential customers.

PAID ADVERTISING CAMPAIGNS

Deployed paid advertising strategies on Google Ads to reach a broader audience.

AMAZON PPC CAMPAIGNS

Leveraged Amazon PPC (Pay-Per-Click)

advertising as a primary channel, including
the following campaign types:
• Sponsored Products (SP)
• Sponsored Brands (SB)
• Sponsored Display (SD)

QUARTER WISE CASE STUDIES

2022 QUARTER # 1 (JANUARY - MARCH)

No. of Orders

Revenue

Profit

Profit Percentage

17,125

$877,898

$131,684

15%

2022 QUARTER # 2 (APRIL - JUNE)

No. of Orders

Revenue

Profit

Profit Percentage

19,607

$1,088,600

$108,860

10%

2022 QUARTER # 3 (JULY - SEPTEMBER)

No. of Orders

Revenue

Profit

Profit Percentage

20,777

$1,104,061

$149,048

13.50%

2022 QUARTER # 4 (OCTOBER - DECEMBER)

No. of Orders

Revenue

Profit

Profit Percentage

20,683

$1,075,298

$145,165

13.50%

AMAZON ACCOUNT CURRENT HIGHLIGHTS

Our current Amazon account status reflects a robust performance, with a total of 152,926 order items processed to date, contributing to a substantial ordered Product Sales Revenue of $7,797,048. This impressive figure underscores our effectiveness in generating revenue on the platform.

Furthermore, our average sales per order item stands at a commendable $50, indicating not only a significant volume
of sales but also a healthy average transaction value. We are delighted with this level of success and remain committed to sustaining and expanding our presence on Amazon to achieve even greater milestones in the future.

Upoming Growth Events

Product Diversification

By introducing new product variations and addressing the variety gap, there is an opportunity to expand the product line and capture a broader customer base by diving into closely related categories as well.

Diversifying within the Category

Pursuing expansion into additional niches within the same product category to enhance revenue streams and broaden brand reach.

Improvement in Product Features

Addressing the pain points expressed by
customers by improving product features and
functionality can lead to increased customer
satisfaction and loyalty.

Effective Marketing

Leveraging less competition and strong
customer ratings, there is an opportunity to
implement effective marketing strategies to
capture a larger share of the market.

Pricing Optimization

Analyzing pricing structures and finding
the right balance between affordability
and profitability can enhance market
competitiveness.

Profit Optimization

Our focus on profit optimization includes
renegotiating terms with suppliers to lower
Costs of Goods Sold (COGs) and transitioning
to longer lead times, prioritizing cost-effective
sea shipping. This strategic approach enhances
profitability while maintaining product
availability and quality

DTC Approach Beyond Amazon

We’re diversifying our sales channels by
targeting both Direct-to-Consumer (DTC) and
retail store opportunities in the USA market. This
strategic move allows us to tap into a broader
consumer base, reducing reliance on a single
platform and enhancing market reach.

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