There is a new effective start up strategy for launching innovative products that includes combining together two unlikely sources in the market: Amazon and crowdfunding.
Caleb Light helped launch Power Practical in 2012 and developed the initial strategy to bring "The PowerPot" to market through the use of crowdfunding. This method helped test consumer interest for the product and then assisted with the financial funding to actually get it built for customers.
After their successful crowdfunding campaign, Power Practical first went to brick and mortar stores to distribute their product, but they found that getting it on the shelf is different than actually selling through to the consumer. After this costly experiment, Caleb then turned to Fulfillment by Amazon. He found that it was a lot easier to sell their product by using a marketing video instead of only having the design of the packaging when it was sitting on the shelf.
Caleb currently uses the services of Amazon Exclusive because it serves innovators like himself who want to launch and build a brand by providing increased customer discoverability and merchandising. He sends the products directly from the manufacturer to Amazon for all their fulfillment and shipping. Caleb explains that "when you sell lots of units, it is hard to pack boxes by yourself" Like many small business owners, Caleb has had to find the right outsourcing channels and distribution partners to successfully grow his company. It is hard to let go, but his company is now free to focus on selling to new customers, instead of just "putting products in boxes". This is a critical change that almost every entrepreneur needs to make if they are to be successful.
Source: Barry Moltz.