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When would you stop doing promotions on a product and move onto another product?

I have thousands of SKU's, so I am wondering at what point do you stop giving away promotions on some products and concentrate on another set of products? Would you say getting it onto the first page for your primary keyword can be considered 'job complete' and anything form then on is providing diminishing returns or would that top 5 or top 3 for example.

Comments

  • edited December 2015
    Hey @James_Ashford
    I'm not sure if there is a correct answer for this, but I'll try to give you some options at least of how I would think about it.

    1) "Getting to the front page"

    This actually depends upon the volume really. If a niche has huge volume then just being on the front page might be somewhat profitable, but generally you want to be in the top 3, especially if the niche is smaller. Check out this click through distribution chart below taken from Google (not Amazon), but it can give you a general idea of how people act and click.
    click through distribution


    You can use Unicorn Smasher to see estimates on how much all of the front page is selling based on their sales rank. Of course those revenue/sales estimations are based on ALL sales of a product, not just the sales for that particular keyword.

    2) When to "give up"

    Again there is no right answer here, but not every product that people launch will be successful. Sometimes it might even be best to just take a loss and walk away. This is especially true with niches that are just FAR too saturated. Garlic press, selfie sticks, iphone cases, etc. If there are a billion other marketers all doing the same thing to try and rank and you're not succeeding then it might be a losing battle.
    I will say that I about gave up on a product once and then messed up on hiding my promo code and it went viral. Sold about 1000 units. When I finally came back in stock the product sold like crazy. I was lucky. So it's tough to know when to give up.

    3) NEVER stopping promotions

    There are products where it makes sense to NEVER stop doing promotions. If you're in a niche where all of the big players are doing promos all the time then you need to continue to do them as well to keep up. It's just how the game is now for better or worse. This is true for very high margin/high volume niches that are ultra competitive. If the margins and the math works out then it might be a good option for some products.

    Hope that helps.
  • Great answer, Travis.

    I am sure Amazon page 1 distribution is a bit different... unless it is a commoditized product... If all items are e.g. Aloe Vera Gel and all are 16oz bottles and all are great listings with about the same number of reviews and the same review score... then yes, the one on top will win... But if the products vary in design, color, features, I think top spot is a not a guarantee of max sales... Especially with people doing promotions - that position #1 can be unsustainable and artificial... as soon as marketing wave is over, it will deflate, as it happens with many products I keep an eye on...

    This is very visible on Unicorn Smasher - product in position #1 often has lesser sales rank than a product in position #6... but generally speaking being in top 3 will mean more eyes looking at you and more sales happening... and being in top 3 with most and best average reviews will seal the deal.

    I would also say to never stop promoting... just promote on different relevant keywords... We plan to set aside a war-chest from every shipment for marketing purposes... Don't necessary use it up, but have it available for new keywords or old keywords that need a boost...

  • I will say that I about gave up on a product once and then messed up on hiding my promo code and it went viral. Sold about 1000 units. When I finally came back in stock the product sold like crazy. I was lucky. So it's tough to know when to give up.

    Do you think it makes any difference whether those sales are made to 1000 different buyers or a small number of buyers who buy in bulk?

    We did a clearance discount of a line and were surprised that most of the stock was bought by a handful of people. Initially we were disappointed thinking that this would count as just a few sales but it seemed to count as if each item had been sold to a different buyer.

    Does anyone have any experience of this? Thanks.
  • thanks guys real useful info, really appreciate it
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