The Optimized Strategy That Turned Lullaby Lane Into a $7 Million Business - Wes Grudzien
January 13, 2016 99 min read
Whether you're new to selling on Amazon or a seasoned veteran, this saying from Wes Grudzien rings true: "Amazon in a sense is like a no limit hold in poker... it takes a minute to learn and a lifetime to master." Wes Grudzien has grown his co-founded business, LullabyLane to a 7 million dollar business in just three years. After this great achievement, Wes Grudzien actively consults and shares his knowledge as to how he had optimized his business with other sellers.
In the Seventeenth episode of Skubana’s E-Commerce Mastery Series where we invite experts of their respected fields to share their best practices for success, our host, Dr. Jeremy Weisz of InspiredInsider.com interviews Wes Grudzien of LullabyLane and Ezonomy.
What this interview covers:
- Resources and metrics to pay attention to to further optimize your business
- While private labeling seems to be a growing trend, there are several common mistakes to avoid
- Focusing on your niche and establishing your focused consumer base
- Finding inspiration and strife in your work to further both your personal life and your business
- The importance of efficiently testing your products before shipping directly to Amazon's fulfillment centers.
Raw Transcript: Wes Grudzien of LullabyLane and Ezonomy
[00:21:35] Yeah. For a retail seller, a seller that contracts directly with brands, what you want to do is find a high ranking base product, so the main product of the listing. So for example, with us, if there's a popular stroller, what you want to do is identify that listing, you can tell what the sales are on that, and then identify the secondary product that goes with it.
Wes: [00:13:26] Sure. That's a good point. There's positives and there's negatives in each of the styles right? So with retail arbitrage, your profitability is higher than any other area. Yeah but you have a...Depending on how deeply you search and dig for product, your per unit profitability is significantly higher. However, you have time cost associated [inaudible 00:13:54]. Do you want to spend seven days a week, five, six hours a day hunting for product? If you do, great, that's not my avenue. But it's difficult. The private labelers, that is true that you are your own brand and you're your own product. There's two issues that you run into with that. One is that you have people that jump onto your listings that are maybe even the exact manufacturer in China that is producing your product because there are programs and there are folks that do that. They literally contact these manufacturers in China and they say, "Hey we can help you sell direct on Amazon for products that are already being sold."
[01:35:45] You say that, right? What you want to do is create a great culture, and that really is the success. I'm fairly smart, my partner's smart, all these guys are smart folks, fine. Smarts are nothing if you don't have a great staff and crew around you that love what they do and like to come into work. What we've tried to do is build a really great culture within the company. And that really allows you to grow just as much as anything else.
[01:46:18] Yeah, I would say the technical nature of selling on Amazon, and there is a significant cost associated with educating themselves as a manufacturer on doing it. So what we've found is that smaller brands would be more apt to selling directly on Amazon because just of how the company's set up. There's less folks, they can dedicate more time to it, in general that's what we've found. So the larger brands are not themselveHow Wes Grudzien Optimized LullabyLane to $7 Million in 3 Yearss trying to sell through Amazon.
Be sure to utilize this real insight from a real marketing expert to help your e-commerce business grow and succeed. Stay tuned - this will be an ongoing weekly series featuring a variety of e-commerce experts looking to provide you with hard-won knowledge free of charge.
Work Smart. Sell More.
Written By Chad Rubin
Chad Rubin is the co-founder and chief executive officer of Skubana, a multichannel e-commerce software the enables brands to unlock growth by unifying their back-office operations.