What factors should I consider in deciding which product size to first launch?

2020-08-09T15:25:49-06:00By |Categories: Product Development|Tags: , , , , , , , , , |

This is a Quora question I was asked to answer. You are going to generally size based on the competing products already available to consumers. The reason is because that is what consumers expect and in many cases, supply chain, warehousing, e-commerce operations and store shelves are already optimized for the sizing sold. If you [...]

How is e-commerce viable for low value products?

2020-07-25T10:04:03-06:00By |Categories: Finance|Tags: , , , , , |

This is a Quora question I was asked.  My answer as follows. That depends. You really need to maximize your average order value (AOV), ideally above $75 in order to make the e-commerce operation pay for itself and earn a profit. If you can do that, then yes. Subscription orders and repeat customers will help [...]

Simple model to determine success of product sampling in e-commerce

2020-06-10T07:34:04-06:00By |Categories: Marketing|Tags: , , , , , |

Here is a simple model to determine success of product sampling in e-commerce. I was presented with some quick  performance metrics on an e-commerce product sampling campaign for a supplement startup, which included the cost of the sample plus shipping ($.70), the average order value ($39) and the response rate at 20%. That got my [...]

I’m considering on starting a drop ship ecommerce online site. What are the best products to offer?

2019-12-22T15:16:17-07:00By |Categories: Product Development|Tags: , , , , , , , |

This is a Quora question I was asked to answer.  My response is below. There are a ton of free resources online about drop ship ecommerce. One is Drop Ship Lifestyle. Finding the best products is the million dollar question. But you find these products using many tools and processes to help, one of [...]

The Flow of Money in a Consumer Product Company (infographic)

2018-12-08T14:11:46-07:00By |Categories: Downloads, Finance, Visuals|Tags: , , , , , , , , , , , , , , , , , |

The best way to think about this is a profit and loss statement, starting with revenue at the top and net income at the bottom. A customer flows from the top, acquired through marketing spend, and everything in between to deliver that product to them, with profit left over, and all the key metrics [...]

Revenue strategies in the early days of your consumer product startup

2017-10-11T15:07:11-06:00By |Categories: Finance|Tags: , , , |

In the early days of your startup, there are three revenue generating strategies that you want to try and adopt into your business. First, try to maximize the price of your product to get as much revenue a possible from a single customer. As an example, if your goal is $1000 in gross sales a week, at [...]

Do I spend the $50,000 on this TV commercial or not? Analyzing a TV commercial opportunity with simple metrics

2018-12-08T13:59:30-07:00By |Categories: Downloads, Marketing|Tags: , , , , , , , |

This is a question from a business acquaintance: I've been approached by a network and their TV show about featuring our line in a commercial as part of an episode. The rub is that they want a $50k "scheduling fee" from us in order to do the segment. This would be a big bet for [...]

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