Starting and scaling a product-based business can be both exciting and overwhelming. Many entrepreneurs struggle with what to sell, who to sell to, and how to grow their revenue profitably. In a recent episode of the Etsy Seller Success podcast, product and retail expert Melissa Robbins, founder of The Lot Co., shared her insights on how to build a profitable business, scale effectively, and market strategically. Here are the key takeaways from the conversation.
Melissa Robbins’ Journey to E-Commerce Expertise
Melissa’s career began in an unexpected place—teaching high school science and math. However, her entrepreneurial journey truly took off when she co-founded a children’s wear brand with her sister, which they grew and eventually sold. Since then, she has worked in corporate retail across multiple product categories and now serves as a business coach, helping product-based businesses grow profitably.
Building a Profitable Business
One of the most common mistakes entrepreneurs make is pricing their products too low, based on market perception rather than actual costs. Melissa emphasizes the importance of strong profit margins:
- Retail margin: Aim for an 80% markup
- Wholesale margin: Ideally, around 60%
For example, if a product retails at $100, it should cost no more than $20 to manufacture. This ensures that businesses can cover expenses, invest in marketing, and sustain long-term profitability.
Direct-to-Consumer vs. Wholesale: Which One to Start With?
Melissa advises that entrepreneurs should have multiple sales channels to diversify income.
- Direct-to-Consumer (DTC): Easier to start via platforms like Etsy, Shopify, or Amazon, but requires consistent marketing and customer acquisition efforts.
- Wholesale: Requires strong branding and retail-ready packaging but allows for larger order volumes and long-term client relationships.
For those starting with Etsy or DTC, wholesale can be a great next step for stability and scalability.
Getting Started with Wholesale
Melissa highlights the importance of being “retail ready.” This means having:
- Strong branding and packaging that communicates your product’s value.
- A clear understanding of your target retailer’s needs.
- A well-crafted pitch tailored to each store, showing how your product fills a gap in their inventory.
Instead of sending mass emails, focus on personalized pitches that demonstrate how your product adds value to the retailer’s store.
Marketing Beyond Instagram: Driving Traffic That Converts
While many brands rely on Instagram, Melissa stresses the importance of diversified marketing efforts:
- SEO Optimization: Ensure product descriptions, collection names, and website content are search-friendly.
- Blogging: Write six high-quality blogs per year focused on customer needs and product use cases.
- Pinterest Marketing: A powerful but often overlooked traffic source.
- Email Marketing: Build and nurture a strong email list to drive repeat sales.
Conversion Rate Optimization: Turning Visitors into Buyers
Once traffic reaches your site, optimizing the user experience is key. Melissa’s top tips include:
- Clear navigation: Instead of a generic “Shop” button, list specific product categories.
- Strong Call-to-Action (CTA): Use bold, contrasting colors and clear directives like “Shop Now.”
- Compelling Hero Image: Ensure your homepage visually communicates what you sell within seconds.
- Shipping Information: Display shipping policies prominently to reduce buyer hesitation.
Success Story: How One Business Tripled Sales
Melissa shared a client case study where an entrepreneur with a large Instagram following saw sales decline after algorithm changes. By implementing a comprehensive marketing strategy—including SEO, email marketing, collaborations, and wholesale expansion—the business tripled its revenue within a year.
Final Thoughts
Melissa Robbins’ expertise in product-based businesses offers valuable lessons for entrepreneurs looking to grow sustainably. Whether you’re just starting or looking to scale, focusing on profitability, diversifying sales channels, and optimizing marketing efforts can help you achieve long-term success.To learn more from Melissa, visit The Lot Co. and follow her on Instagram @thelotco.
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