Emanuel Ruiz is losing $24,000 a month on one Amazon product through aggressive ad spending. He frames it as a scaling strategy: high ad costs drive traffic to a listing with multiple variations, boosting overall conversions and lifetime customer value enough to justify the loss.
I've lost close to $8,000 and we're only 10 days into this month. So this month alone, I'm on pace to losing more than $24,000 on a single item on Amazon. And if you stay to the very end of this video, I'm gonna tell you exactly why I do it. But I think I finally figured out the entire scaling phase of Amazon and how you can get to millions of dollars every single year, because this particular brand is gonna do over $5 million this year in top line revenue. And look, I've done so much testing when it comes to click-through rate, conversion rates, impression rate, everything when it comes to Amazon and scaling. And this particular product that I lost $8,000 so far gives me the highest click-through rate. So my competitive advantage over all of these other type of, you know, people in this category is advertising because I get the most amount of eyeballs and I'm able to go ahead and spend so much more and still be profitable. Because even though I've lost $8,000 on one single item, I have made a lot more money because I offer different variations. You see, the reason why I spent all that money on advertising for one item is because when somebody clicks on my product detail page, they might not choose that particular item, but I have other variations, right? I have a way heavier pound. I have a different heavier pound. I have a less heavier pound of this particular actual item. So when somebody goes on my listing page, my conversion rate actually goes up. So again, your competitive advantage can be as simple as being able to have enough margin to outbid your competitors on certain keywords.
