Logical Life

How The Logic Products Business Model Works – Part I

How The Logic Products Business Model Works – Part I

I regularly get asked why Logic Products has focused our business primarily on ecommerce, and specifically on marketplaces like Amazon.

When I launched Logic Products I was familiar with the old traditional way of pounding the pavement in hopes of getting product into stores and on shelves, as I had previously started and owned a successful handbag line.

Selling bottles of eco-friendly products is a very different business than selling five hundred dollar plus handbags. So I started to think about a better way that would circumvent my previous sales methods, and one that would allow Logic Products to immediately launch to a national audience, at low risk and low cost.

It was important that I could control the brand, it's pricing, and test the waters to find out what customers want and do not want. I also decided to bypass the traditional CPG model of sales reps, brokers, and vying for shelf space. The ultimate goal was to find a way to preserve product margins and control brand image.

So from inception, it was clear that Amazon would be the perfect partner for Logic Products, and it would not only provide an immediate national distribution footprint, but when the time was right, an International one as well.

I chose the FBA model, also known as Fulfillment by Amazon, which turned out to be a perfect fit for launching 4 interconnected brands of 78 SKUs in a short period of time. On this platform, sales started to come in within hours and days of listing my products.

How it works is very simple: We ship to Amazon's fulfillment centers and they handle the rest. They receive our products into their system, warehouse them, and ship to their customers. And until recently we spent little on marketing, advertising or public relations, however through word-of-mouth and reviews we grew month after month.

Recently we started to spend small amounts of money on advertising within the Amazon marketplace to make sure consumers find our products. And we think the results are very impressive. In fact;

  • On Amazon over the past two months we've improved our sales approximately 65% over last year for the same period, and,
  • Just this past August alone Logic Products sales were up over 90% versus last for the same time period
Amazon has upended the Personal Care industry and I invite you to watch the following video that outlines the strategy we deploy in the Amazon marketplace and why it works for Logic Products and other smaller brands. In my next blog post, I will outline some of the other exciting initiatives we are undertaking that we believe will continue to grow our eco-friendly brands and get them into the hands of mothers and pet owners around the country. Jill Taft - Founder - Logic Products

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