“Microneedle Derma Roller” is a likely winner in marketing strategy distribution, and even if it fails, they can soon recover. Tom applauded this product highly. Yet stockholders do not want to take the risk of losing their money, which could cause a stir when it is launched.
To get the whole picture, it’s not just about the amount of money someone can make. If a project fails, there are losses. Investors are concerned about the possibility of tulip mania, or on the other hand, there are other factors that would affect the sales.
If Tom had not acquiesced, he would have been able to set the world on fire with it. To meet the needs of his clients, he would develop products that are available on a variety of online marketplaces, such as Amazon.
Another one, he overlooked the fact that if he produces more loyal customers, they will come back for the product or services, so he won’t need to worry about losing sales.
Using Amazon’s “Subscribe & Save” feature, you can ensure that your customers have access to your products on a regular basis. In this case, your clients can take advantage of free shipping and flexible delivery times.
It is less hassle for you and your consumers, as it reduces the burden on both parties. Customers benefit from reduced costs while you build your network. Don’t let this opportunity pass you by, as all are making the most of it.
The greater the volume and consistency of bookings, the greater the likelihood of a sale. Tom’s third and final mistake was that he didn’t consider the possibility of distributing his product through other channels instead of relying solely on a single source.
Unfortunately, it was already too late for Tom as the Sdara Skincare can work on its own now as it currently has 97% of its sales on Amazon FBA, where the 3% is for their wholesaler on Shopify and Nordstrom.
They would have more profit if Amazon had 40% of sales, 30% for Shopify, and 30% for retailers as they would not rely only on one channel that would pose a more significant threat. Just like a person with Plan A, B, and C—they have options and are in control.
To increase more valuables, as mentioned by Tom, they can generate their social media for more exposure to people because what is important is if it makes money and not the other way around.
Also, he added that if they decided to have social accounts like Facebook and Instagram to interact with leads directly, they should set a sales quota ($50 to $60) to earn, or else it will be a waste of resources and time.
For the amateur or veteran in Amazon FBA, don’t hesitate to contact Tom Wang for advice and suggestions as he has been there in the same shoes.