How Kid Transit Sold 1000 Products On Amazon Japan – A Case Study
This article summarizes a larger in-depth case study that is published at: http://risingsuncommerce.co.uk/how-to-sell-on-amazon-japan/
In Summer 2016 Kid Transit were looking at ways to increase sales of their products around the world and after hearing details about the size and speed at which Amazon in Japan was growing they decided to send a batch of products to Amazon Japan. With a population of 127 million, spending £8.5 billion it was a market that really appealed.
By the 1st October 2016 Kid Transit, a UK company, had 1008 units of their car mirrors in stock on Amazon Japan. On the 2nd October they made their first sale, and on the 12th July 2017 they had sold all 1008 units.
Total sales revenue and other important metrics are discussed later in this article.
This was the first time Kid Transit had sold anything in Japan, but with the help of Rising Sun Commerce the whole process was relatively simple.
The overarching goal of this launch was to set the foundations for future sales, which simply means:
- Gaining a sales history on Amazon Japan
- Achieving product reviews
- Optimizing the product listing for:
- the number of sessions (i.e. number of people visiting the product listing)
- conversions (i.e. the number of these people buying the product)
This was achieved with the added bonus of making a profit and establishing a finely tuned Amazon advertising campaign that will be used to sell future products.
HOW TO SELL ON AMAZON JAPAN
Here are the steps Kid Transit followed to list their products on Amazon Japan:
- Created an Amazon Japan account and set-up a product listing
- Got packaging translated into Japanese
- Shipped 1008 units direct from China to an Amazon Japan warehouse
- Started using Amazon’s Sponsored Products advertising (AKA PPC)
For brand new products it will be unlikely that any potential customers will see the product listing, so using Amazon’s advertising platform is a must.
Following on from this Kid Transit then used these steps to increase sales:
- Followed up with customers to encourage Seller Feedback and Product Reviews
- Lowered sale price
- Updated to an optimized ‘Product Introduction Content’ listing
- Optimized advertising campaigns
Following these steps the product listing gained 30 product reviews and hit Best Seller status in its primary category. Once this happened sales increased substantially, hitting a peak of 22 units in a single day worth 44,000 Yen in revenue (approx. £300).
We were delighted with the results of our first shipment to Japan. We exceeded our aims for both profits and number of reviews as you can see from the statistics below…
Data from Kid Transit’s product launch case study:
Units shipped: 1008
Cost of units: £2721
Cost of shipping to Amazon warehouse: £1458
Total cost: £4179
Cost / unit in stock on Amazon: £4.15
Units sold: 1008
Average sale price: 1823 Yen (approx. £12.50)
Total revenue: 1,754,918 Japanese Yen (approx. £12,100)
Total Amazon subscription fees (Oct 2016 – July 2017): 58,800 Yen (approx. £404)
Total spent on Amazon storage (Oct 2016 – July 2017): 206,113 Yen (approx. £1420)
Total spent on advertising (Oct 2016 – July 2017): £264,490 Yen (approx. £1800)
Other Amazon fees (approx. 30% sales): 547,817 Yen (approx. £3770)
Total profit: Approx. £527
Amazon Seller Feedback: 13
Product Reviews: 30
The main goal is to further establish this first product on Amazon Japan, and then over time launch more products from the UK range.
For this first product (the car mirrors) future sales will be at a higher sale price, storage costs will be lower (due to better inventory management), and advertising will be more efficient. This will result in higher profits overall.
We wrote this guide to help you better understand selling on Amazon Japan. With this information, you can make an informed, intelligent decision as to whether selling on Amazon Japan might be a good fit for you.
Even if you’re not ready to start yet, this is an unmissable reference for the future.
In this exclusive guide you’ll learn...
- Why selling on Amazon Japan is a fantastic opportunity.
- 10 reasons why selling on Amazon Japan is easier than you think.
- How to avoid translation mistakes.
- 5 costly misconceptions about selling on Amazon Japan.