We need to understand how much money requires to launch a specific product (you need to check your budget and do proper analysis before going for launch or selecting a product)
Before going for Ranking – We need to get Reviews as we know they convert people more than anything else and in USA for instance 65% of people read reviews before making a purchase on Amazon.
50 Sales = 10 to 15 Reviews (to maintain the review velocity)
50 Sale x $18 (Selling Price) = $900
Product Cost = (Landing Price)$4 x 50 (Total Sale for reviews) = $200)
Listing Promoter: $5 x 15 = $75
Check which keyword you want to rank with
For instance, we want to rank against Moon Lamp Keyword
Moon Lamp keyword requires 24 Sales per day to rank on Page 1 for 7-14 days according to tools (JS etc)
We should calculate based on worst case scenario which means multiply 14 (days) with number of sales require per day
24 sales x 14 days = 336 Sales to Rank on Page 1
336 x (Sale Price) $18.00 = $6040
Per Unit Cost: $4 (Landing Price)
336 x $4 = $1344
Total: (Reviews Cost) + Burning Cost + Inventory
($900 + $200 + $75) + $6040 + $1344
Worst Case Scenario: $8559
Now you need to have 2nd Round of Inventory for 1 Thousand units minimum
$4 x 1000 = $4000
$8559 + 4000 = $12559 ($1k to 2k)
OVERALL TOTAL: $14k
The above calculation and this exercise shows that you likely to be on page 1 after this and should start to make profit and get organic orders.
That’s how you should look at that this cost was more of your marketing cost to launch a product in order to gain below:
You will be on Page 1 after spending the above cost
You likely to make organic sales if you would have followed Enablers Optimization training
You should continue to get organic reviews from now onward
You should continue to generate more sales to maintain yourself into page 1
Hope this helps to understand what a Launch Cost looks like once your product goes live – of course you need to calculate other costs like which are one time cost for trademark registration, images and any other logistics to run the business.
So Choosing a product & Keyword is a KEY in this whole private label business which can lead to your budget small or bigger!
p.s i am sure you know but to remind you that you are launching on $1 Trillion worth of marketplace!
Keep Moving!

Saqib Azhar
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To Start your eCommerce Journey with Enablers:
https://www.enablers.org/group
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Enablers Upcoming Seminars:
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Ask Saqib Azhar:
http://www.saqibazhar.net
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Enablers Mission is to use the Enablers Platform to create 2 Million jobs and 200k eCommerce Businesses in Pakistan and get Pakistan to be recognized by the world as an eCommerce Hub.

Saqib Azhar believes unemployment is one of the biggest issues in Pakistan, and he has taken it upon himself to solve this issue to as much extent as he can. For this, Enablers has introduced Enabling Video Series (EVS) having all those training programs and courses which will help people to do eCommerce businesses in International markets by offering training to those who cannot afford and they can apply from here: https://www.enablers.org/evs

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