Video summary

How He Makes ₹2 Crore per Month Selling Bathroom Accessories on Amazon!

Main summary

Key takeaways

Business

Business model & growth (Gloxy)

  • Brand/company: Gloxy (bathroom accessories)
  • Base & manufacturing: Based in Rajkot; manufacturing initially sourced in Rajkot, later transitioned to in-house
  • Startup & capital constraints:
    • Started in 2019 with ~₹500
    • No inventory at the start; first orders arrived after ~3 months

Revenue milestones (as stated)

  • ₹28 crore in ~1 year
    • Timeline referenced: from 2019 to “last year closed 28 CR”
  • Channel revenue split:
    • Amazon: ~50%
    • Flipkart: stated as a key channel (along with Amazon + website)
    • Website (Glog.in): ~5–7%

Portfolio scale & team

  • Products: ~400–500 SKUs
  • Team size: ~35–40 people
    • 25–27 in warehouse
    • Remaining team covers office functions and product designing

Vision/targets & founder schedule

  • Vision: ₹500 crore in 5 years (referenced as ~2031/2032)
  • Founder work cadence: 8:30 AM–8:30 PM, daily focus on solving operational problems

Go-to-market (GTM) & channel strategy

Core strategy

  • Sell bathroom accessories direct-to-customer on marketplaces after noticing dealer/distributor markup

Marketplace channels

  • Started with Amazon + Flipkart
  • Later added own website

Fulfillment strategy

  • Uses FBM / “Fulfilled by Amazon (FBA)” style with regional distribution
  • Growth approach described:
    • Place stock in multiple regional warehouses
    • Send inventory to Amazon warehouses
  • Planning/operational concept mentioned:
    • 80 warehouses across 15 states

Marketing mix

  • Amazon Ads: major driver
    • Spend: ~₹17–18 lakh/month
    • Minimum ad-driven sales: ~₹1.5–1.6 crore/month
  • Meta (Facebook/Instagram):
    • Video content used
    • Some traffic converts to the website, which then supports Amazon search + purchases
  • Influencer marketing:
    • Budget mentioned: ~₹40k–₹00k/month (upper bound unclear; stated as “₹40 to ₹00 monthly”)

Unit economics & profit framework (what to watch)

Marketplace cost breakdown / KPI logic (Amazon)

  • Amazon commission: ~25–27%
  • Advertising cost: planned around selling price and target margin
    • Example assumption: ~12% ads
  • Warehouse/godown maintenance: ~2–3%
  • Shipping to Amazon + logistics via ATS: ~7–9%
    • Transport sub-logic: Amazon transport capacity cap mentioned
      • Example: ~20 kg cartons → 10–12 pieces per carton
  • Implied margin statement:
    • “If we talk about margin, then there will be 5–6% margin on Amazon”
    • Remaining profit described as ~5–6% (within their framing)

Returns / refund handling

  • Customer return rate: ~4–5%
    • Later attributed to packaging/process improvements
  • RTO handling:
    • RTO not charged (in courier-return situations where the customer didn’t accept/receive)
  • Risk to watch:
    • If returns occur within the customer return window, profit can be affected
    • Therefore they calculate return costs and focus heavily on:
      • quality
      • tight packaging/process controls

Pricing guidance (entry strategy)

  • For a product “worth ₹1000,” commission + ad structure are discussed
  • Rule of thumb given:
    • Start with net profit target: ~15–20%
    • Rationale: ad costs may fluctuate and early returns/learning can be higher
  • Guidance:
    • Don’t price strictly based on marketplace-suggested pricing
    • Keep enough margin to survive returns and iteration

Product strategy & competitive moats

Category selection rationale

  • Choose categories with:
    • potential
    • manageable competition
  • Bathroom accessories identified as a strong category

Product expansion & testing

  • In the first year, added 3–4 categories, including:
    • “cotton accessories”
    • “main door handle”
    • later: “sanitary ware”

Avoiding copy vulnerability

  • Products can be copied, but their defense is:
    • best quality
    • product presentation quality (looks better than photos)

Photo/content execution playbook

  • Use high-impact 3D photos
    • Cost mentioned: ₹700–₹800 per 3D photo
  • Belief:
    • “Maximum conversion comes from the photo.”

Review integrity stance

  • No fake/bought reviews
  • Belief:
    • Better product → better truthful reviews → lower returns (4–5%)

Packaging improvements loop

  • Early packaging damage caused returns
  • Packaging changes reduced return rates to ~4–5%

Operations & learning loop (how they improved)

Starting with limited knowledge

  • Early sales came with no promotion
  • Founder habit:
    • check portal/orders daily
  • After first order:
    • learned marketplaces
    • tested multiple agencies

Agency pain → internal capability

  • When agencies didn’t deliver expected service levels, they built internal knowledge

Vertical integration (manufacturing in-house)

  • Trigger: supplier issues
    • dispatch delays
    • quality inconsistency
  • Outcome:
    • within ~2 years, started a manufacturing unit to ensure:
      • quality control
      • timely dispatch
      • “two to three problems solved” (quality + speed + reliability)

Monthly performance accounting cadence

  • Every month around 20th–25th:
    • settlements/returns come
    • founder reviews whether the portfolio is in profit or loss

Advice framework / playbooks (actionable steps)

Start on Amazon today (step-by-step, as described)

  • Ensure GST to dispatch from required regions
  • Use FBA model:
    • transfer/ship stock to Amazon fulfillment centers
    • listing becomes Fulfilled by Amazon after Amazon receives stock
  • For scalability:
    • keep regional stock (exact visibility depends on local placement)

Keyword & listing optimization playbook

  • Use keyword tools (example: Helium 10)
  • Workflow described:
    • Input 10–15 competitor products
    • Extract 10–200/300 keywords
    • Identify hero keywords where competitor/top products rank for those queries
  • Apply top keywords into:
    • title
    • bullets
    • description
    • backend/system fields
  • Goal:
    • improve organic sales via discoverability

Marketing dependency balancing

  • Claim about order mix:
    • ~60% organic
    • ~40% from ads
  • Warning:
    • until organic ranking is strong, ads are effectively dependency
    • if ads stop, orders drop

Business survival rule

“Take care of profit; don’t sell at marketplace-suggested price.”

  • Pricing must account for the full cost stack + returns, not just marketplace suggestions

Concrete example claims & operational disclosures

  • First order timing: first Amazon order after ~3 months (no inventory)
  • Initial sales: Amazon first year around ~₹2 crore
  • Early selling without ads:
    • founder claim: reach ₹20–25 lakh/month without ads initially
    • later, ads became necessary for top-of-search visibility
  • Hottest sellers/category leads:
    • “Bathroom shelf”
    • “Sanitary ware” new category mentioned
    • “Kitchen sink” reached top within ~3 months (within their portfolio)
  • Return/risk management example:
    • Packaging changes reduced returns to ~4–5%
  • Supplier-to-maker transition:
    • manufacturing started due to dispatch delays and quality inconsistency

Key metrics & KPIs explicitly mentioned

  • Revenue: ₹28 crore (year stated); ₹500 crore vision in ~5 years (~2031/2032)
  • Channel mix:
    • Amazon: ~50%
    • Website: ~5–7%
    • Flipkart: mentioned as a marketplace channel (percentage not specified)
  • Ad spend & impact:
    • Amazon Ads: ₹17–18 lakh/month
    • Minimum ad-driven sales: ~₹1.5–1.6 crore/month
  • SKU count: ~400–500
  • Team size: 35–40 total, 25–27 warehouse
  • Profit/margin targets:
    • Amazon implied margin: ~5–6%
    • Suggested starting net profit buffer: ~15–20%
  • Return rates:
    • customer returns: ~4–5%
    • RTO not charged / not treated the same way
  • Operations cadence: monthly settlements/review around 20th–25th

Presenters / sources

  • Presenter/Host: Satish ji (interviewer / channel host)
  • Source/Guest: Dhawal ji, founder of Gloxy

Original video