INSUBCONTINENT EXCLUSIVE:
Matt Altman - Tyler EllistonContributor
Matt Altman runs the Amazon practice area for VMG Ignite, an eCommerce consultancy that helps
early to mid stage CPG companies achieve growth
Tyler Elliston is the founder of VMG Ignite
Clients include Sun Bum, Perfect Snacks, Aloha, Pill Club, Solid Gold, and many more
Entrepreneurship in consumer packaged goods (CPG) is being democratized
Every step of the value channel has been compressed and made more affordable (and thereby accessible).At VMG Ignite, we have worked with
dozens of direct-to-consumer startups trying to both find product-market fit and achieve scale through Amazon and online advertising.This
article focuses on customer acquisition, particularly Amazon and online advertising, for the direct-to-consumer (D2C) CPG venture
Selling on Amazon, specifically third-party (3P), has become an increasingly important component of the D2C playbook
About 46% of product searches start on Amazon, which makes it a compelling source of sales even for early-stage ventures.Table of
The gap between an unexecuted idea and proven product-market fit can seem vast
So start with a great product that people love.How do you create a great product, you ask? A/B test your product configuration like you A/B
test your landing page, copy, and design
Your product is a variable, not a constant
Build, ship, get feedback
Build, ship, get feedback
Turn detractors into your customer panel for testing.Early-stage D2C companies typically get their first customers through three
channels:Begging your friends and family to buy and promote your product.List it on Amazon as a 3P seller
Figure out the platform and start selling!Advertise on Facebook
Start with a daily budget of 10x your price point to get started and start tinkering with creative, audiences, and settings to minimize cost
per order.The companies that succeed are often the ones that iterate the fastest
In his book Creative Confidence, IDEO founder David Kelley and his co-author (and brother) Tom relay a story of a pottery class that was
split into two groups.The first group was told they would each be graded on the single best piece of pottery they each produced
The second group was told they would each be graded based on the sheer volume of pottery they produced.Naturally, the first group labored to
craft the perfect piece while the second group churned through pottery with reckless abandon
Perhaps not so intuitive, at the end of the class, all the best pottery came from the second group! Iteration was a more effective driver of
