Moving Off Amazon: When and How to Start Your DTC Journey

Many Amazon sellers ask whether to expand into direct-to-consumer (DTC). Typically, this question comes from sellers making between $10,000 and $40,000 per month. For these sellers, the best approach is usually to focus on maximizing Amazon sales first. Once growth occurs on the Amazon plateaus, consider expanding to DTC. 📈

Why not start selling directly to consumers immediately?

Amazon provides a ready-made platform and infrastructure, making it easier to scale. DTC (such as launching a Shopify store) requires more effort, resources, marketing & advertising to drive traffic. 🛒

For Larger Brands ($2M–$7M in Sales):

• Use analytics tools like Sellerboard or other software to identify your top-performing states in the U.S. 📊
• Focus your DTC strategy on these states, rather than spreading your advertising budget too thin. 🎯
• This targeted approach can help you win customers more efficiently. 🏆

Additional Recommendations:

1. Set up Multi-Channel Fulfillment (MCF) and “Buy with Prime” on your website. This builds trust and can increase conversions from Prime members. 🏅
2. Develop a process for creating unique video content, including product introductions, unboxings, how-tos, etc. You don’t need professional videos, but you do need a variety of authentic content. 🎥
3. Don’t overspend on your website. Start simple with a few banners and select your main advertising channels (Google, Facebook, YouTube, etc.). 💡

Investing in Traffic for DTC Success

When driving traffic to your DTC store, you’ll need to allocate a budget for platforms like Meta (Facebook and Instagram) or Google. Both require significant creative assets to perform effectively. 💸

For Google, prepare a variety of banners in multiple sizes to ensure your ads function properly. On Meta, success often hinges on creating numerous short videos (15–18 seconds) that focus on product introductions, brand awareness, and testing against different ad strategies. 📢 

On Facebook, we recommend starting with a budget of around $30 per day per campaign, roughly $900 to begin. However, don’t expect immediate results; success often comes after producing a substantial volume of content (potentially hundreds of videos) and building a follower base. ⏳

For Google, a minimum starting budget of $50 per day is recommended to allow the system to optimize, build audiences, and create lookalike audiences. Many brands transitioning from Amazon to DTC struggle because they lack a strategic, focused approach to these platforms. 🚦

If you're prepared, have fully utilized Amazon's potential. If you're considering expanding further, go for it—but ensure you're confident with the basics first. The essentials include launching your product properly and driving traffic.

More traffic increases the chances of converting visitors into sales.

If you have questions or would like to share your experience, please let us know! For more updates, subscribe to Ricardo Do Not. 📝