How to use Amazon and advertising to build a D2C startup – gpgmail


Entrepreneurship in consumer packaged goods (CPG) is being democratized. Every step of the value channel has been compressed and made more affordable (and thereby accessible).

At VMG Ignite, we have worked with dozens of direct-to-consumer startups trying to both find product-market fit and achieve scale through Amazon and online advertising.

This article focuses on customer acquisition, particularly Amazon and online advertising, for the direct-to-consumer (D2C) CPG venture. Selling on Amazon, specifically third-party (3P), has become an increasingly important component of the D2C playbook. About 46% of product searches start on Amazon, which makes it a compelling source of sales even for early-stage ventures.

Table of contents

How to find product-market fit 

People say that ideas are a dime a dozen. They aren’t valuable. But finding product-market fit? Now, that’s hard. The gap between an unexecuted idea and proven product-market fit can seem vast. Yet it’s a critical first step because, ultimately, marketing amplifies your product and value proposition.

If they aren’t compelling, marketing will fail. If they’re compelling, even mediocre marketing can often be successful. So start with a great product that people love.

How do you create a great product, you ask? A/B test your product configuration like you A/B test your landing page, copy, and design. Your product is a variable, not a constant. Build, ship, get feedback. Build, ship, get feedback. Turn detractors into your customer panel for testing.

Early-stage D2C companies typically get their first customers through three channels:

  1. Begging your friends and family to buy and promote your product.
  2. List it on Amazon as a 3P seller. Figure out the platform and start selling!
  3. Advertise on Facebook. Start with a daily budget of 10x your price point to get started and start tinkering with creative, audiences, and settings to minimize cost per order.

The companies that succeed are often the ones that iterate the fastest. In his book Creative Confidence, IDEO founder David Kelley and his co-author (and brother) Tom relay a story of a pottery class that was split into two groups.

The first group was told they would each be graded on the single best piece of pottery they each produced. The second group was told they would each be graded based on the sheer volume of pottery they produced.

Naturally, the first group labored to craft the perfect piece while the second group churned through pottery with reckless abandon. Perhaps not so intuitive, at the end of the class, all the best pottery came from the second group! Iteration was a more effective driver of quality than intentionality.

Don’t know how to manage Amazon or Facebook? Here are some best practices:

How to get started with Amazon


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Twilio launches SendGrid Ads and new cross-channel messaging API – gpgmail


At its annual Signal developer conference, Twilio today announced a couple of new features for developers on its core messaging platform and users of its recently acquired SendGrid email service. The new Twilio tools now allow developers to create multi-channel messaging tools and to get real-time streams of conversations in order to run them through transcription services, a translation tool or other machine learning models.

The company’s $3 billion acquisition of SendGrid closed less than half a year ago, so it doesn’t come as a surprise that Twilio would use its biggest event of the year to showcase the service to its developer community.

It’s a bit of an odd one, though. See, SendGrid already announced the beta of SendGrid Ads back in November 2018. As best as I can tell, Twilio SendGrid Ads, which is now launching in beta, is the same product, but a Twilio representative tells me that the ads product is now more deeply integrated into SendGrid Marketing Campaigns, and also got a bit of a redesign. A form of this integration already existed in the previous version, though.

The general idea here is to allow SendGrid users to run multichannel display ad campaigns on Facebook, Instagram and Google from their SendGrid accounts. The advantage of this, the company argues, is that marketers will be able to use data from their email campaigns and website data to then retarget users on other channels. Similarly, they can use lead ads on Facebook to get potential customers to sign up for their SendGrid mailing list.

SendGrid Ads will cost $50 per month, plus the cost of the ads. SendGrid will also take its own cut of 5% of any media cost over $500.

The new developer tools are pretty straightforward. Twilio Conversations, now in public beta, is a new API that allows developers to create solutions that integrate various messaging channels like SMS, WhatsApp and other chat tools.

“Over the last two decades, we’ve watched businesses evolve their communications with customers from the phone call, to website chat, to native mobile apps,” said Chee Chew, chief product officer at Twilio. “Leading companies have figured out that the next evolution of great customer experience is through messaging. Twilio Conversations empowers businesses to build personal, long-lived connections with their customers on the channels they prefer.”

Twilio Media Streams does exactly what it promises to do. Previously, you could get a recording to a call. Now, you can tap into the real-time call to analyze that stream in real time. That’s useful for all kinds of AI tools that aim to help call center agents, for example. This service is now also in public beta and will cost $0.004 per minute, in addition to the rest of the fees associated with the call.


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