Link to Amazon store:
https://www.amazon.com/stores/Bizzikins/page/3AD0ACE9-9671-47B9-AB51-938EE5C5079A?lp_asin=B0GSC67673&ref_=ast_bln&store_ref=bl_ast_dp_brandlogo_sto
Bizzikins Montessori dolls - dolls that open up like a book with different things inside for toddlers to interact with
* $20k revenue/mo
* $5.2k on manufacturing/shipping (COGS)
* $4k FBA fees
* $3k Amazon referral fees (15%)
* Near-zero PPC adspend (they only advertise on their own brand name)
* PROFIT - $7k (~36% margin)
Business overview:
* Their products come in four variations - 3 female dolls and 1 male doll - to appeal to different toddlers
* They sell 100% on Amazon - they have negligible presence on social media (tho it seems like they're actively working on it)
* Business started just 7 months ago - they currently run almost no PPC - perhaps they launched with PPC - we have no data on this - either way, their last month's figures are as above ($7k profit, 36% margin, near-zero adspend)
MOST IMPORTANT - How do they have such a high margin ?
* high margins is king in ecommerce - arguably the most important metric
* I try to only post about businesses with HIGH MARGINS - how do they achieve it?
* This, yet again, is a design-based product. The customers don't pay for the doll's fabric, but rather for their clever DESIGNS. That's how you get high profit margins. A design is painstakingly pamade once but sold many times.
How much does it cost to start a similar business ?
* A single such doll can be manufactured for just $5.40 at a 100 MOQ (an actual quote we got from a supplier from Alibaba) - $540
* Shipping these dolls costs an extra estimated $400
* Advertising on these long tail keywords for a month (estimated 1000 clicks over a month at a standard conversion rate) - "felt busy book" ($96), "busy bag for toddlers 1-3" ($40), "busy book for 1+ year old" ($195), "busy book for 1 year old" ($533) - $864 total
* TOTAL product validation up-front costs - $1,804
How I estimated the figures:
* Revenue = Amazon's "X+ bought in past month" for each ASIN, aggregated
* COGS = founders' own admission - they were on Shark Tank Vietnam
* Adspend = price-per-click * search-volume * estimated-CTR, aggregated for all the search terms they bid for
Sources: Keepa, Similarweb, Jungle Scout, Meta/Google ad library, and Alibaba and Freightos for COGS estimation