S5 E7: Newsbreak: How to Get Blacklisted From Amazon, Death to Clean Eating, and the Bedding Business Beating Amazon
Sep 20, 2023
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Amazon's blacklisting of Bloom Nutrition turns out to be not as bad as expected. Utopia Bedding, a Pakistani-owned brand, becomes a top seller on Amazon, leading to existential crisis for the hosts. The purchase of Hostess by Smuckers may mean the end of healthy snacks. The podcast also touches on TV advertising, jealousy in success, and the dynamics of fundraising and retail in the business world.
Relying solely on Amazon poses risks as competitors can sabotage your reputation by gaming reviews.
Utopia Betting's success on Amazon demonstrates the power of vertical integration and operational excellence.
Celebrity-led brands with a clear path to retail are securing significant funding and retail success, while brands lacking a celebrity association face challenges in securing funding.
Deep dives
Bloom Nutrition kicked off Amazon for gaming reviews
Bloom Nutrition, a competitor of Athletic Greens, was recently kicked off Amazon due to rumors of gaming reviews. It is believed that they received a warning from Amazon in January, but did not stop their review funnel. The review funnel involved QR codes on their bottles that prompted customers to leave positive reviews on Amazon. As a result, all the reviews on their products have been wiped out, posing a significant setback for their business. This incident highlights the risks associated with relying solely on Amazon and the importance of maintaining a strong reputation on the platform.
Utopia Betting: A Pakistani Amazon success story
Utopia Betting, a betting product brand, has achieved remarkable success on Amazon. Started by two Pakistani brothers in 2010, the brand has become the number two seller in Amazon USA and the number one seller on Amazon Canada. With annual revenues growing from $29 million in 2016 to a projected $700 million in 2023, Utopia Betting's rise exemplifies the power of vertical integration and operational excellence. By manufacturing everything in-house, from the bedding itself to the zippers and poly bags, they have been able to offer high-quality products at competitive prices. Furthermore, their focus on extending the shelf life of their products has allowed them to reach customers in convenience stores across the country. Despite their impressive success, Utopia Betting remains relatively unknown, showcasing the potential for brands to thrive on Amazon and build global empires.
The impact of celebrity-led brands on fundraising and retail success
The success of celebrity-led brands with a clear path to retail has had a significant impact on fundraising and retail success. These brands, often associated with well-known figures, have seen rapid funding rounds and are securing deals with major retailers like Walmart. The combination of celebrity endorsements, retail partnerships, and product differentiation has created a winning formula. In contrast, brands lacking a celebrity association or a compelling path to retail have faced challenges in securing funding. This trend suggests that the rich are getting richer, with established brands capitalizing on their influence and connections to fuel further growth.
Focus on Price and Quality to Compete with Amazon
In this podcast episode, the speaker discusses how a certain business successfully competes with Amazon by prioritizing price and quality. The company does everything in-house, reducing costs and allowing them to offer cheaper prices than Amazon's own brands. By leveraging the advantages of cheap labor and real estate in Pakistan, they are able to beat competitors' prices from anywhere in the world. Despite having fewer ratings, their betting products have gained popularity on Amazon due to their reputation for good quality at low prices. The episode highlights the importance of price competitiveness and vertical integration in competing with Amazon.
Chasing Success and Dealing with Envy
The podcast also delves into the speaker's personal feelings of envy when hearing about the success of others. While acknowledging the achievements of a Pakistani entrepreneur who built a $500 million business, the speaker reflects on their own struggles with envy and the constant desire for more success and money. They express their difficulty in letting go of this feeling and question whether monetary success will ever truly satisfy them. The episode concludes with the realization that happiness should be pursued by overcoming envy and finding fulfillment beyond financial achievements.
How did one of Amazon’s best-selling nutrition companies just get blacklisted from the site?
Nik and Moiz discuss the real reason Bloom Nutrition just got the boot—and turns out, it’s not *quite* as bad as you think… which honestly might make this story crazier.
Then, meet the #1 bestselling brand on Amazon you’ve probably never heard of. Why’s this bedding giant making Moiz have an existential crisis? And how can business owners live with the fear that they're not doing enough?
Later, Nik and Moiz discuss what the buyout of Hostess to Smuckers means for the snacking industry.
Are we finally done with kale chips and other healthy snacks that taste like shit? If the guys have a say in it, yes, yes we are.
Tatari has turned TV advertising into a digital-like experience: measured, real-time, and the ability to manage campaigns based on performance.
Through a combination of technology, data science, and deep relationships with publishers, Tatari has developed the industry's leading measurement and buying platform specifically built for TV advertising— giving marketers a competitive edge and a clear way forward. https://www.tatari.tv/brands
And if you’re looking for an instant stream of on-demand DTC gold, check out the Limited Supply Slack Channel for Nik and Moiz’s most unfiltered, uncensored thoughts.
Follow Nik:
Twitter: twitter.com/mrsharma
Follow Moiz:
Twitter: twitter.com/moizali
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