A shrewd business decision...4 Mar 2021 16:46
1) Focusing solely on the sales which will ultimately make or break this product, RMS have signed a deal for a minimum of 1 million masks per month on the largest platform in the world. I do not imagine Amazon would not be involved unless production was secured.
2) RMS have clearly partnered up with an experienced seller. A quick review of the seller online illustrates they have high volume of sales in various departments across Amazon. One observation is they appear to have several thousand times more reviews than their competitors (indicating much higher sales).
3) A review of this seller illustrates they have infrastructure to move products around Europe in a post Brexit era, when all the papers currently report is issues with haulage. All of their products appear to be in stock.
4) Reach - This distributor (based on tweets that have gone out today) appears to operate in over multiple countries across Amazon EU. See through twitter to their website where they allude to having some involvement in this deal. Twitter @ LLGlobalDisti
5) Red tape - Anyone with experience of launching such a product will know there is significant regulatory compliance to be followed, especially launching a product across the EU. RMS appear to have navigated this by partnering up with someone who has the infrastructure in place, meaning they will have available on Amazon EU per the press release. For a new product to do this by themselves could take many months if not a year, by which point the opportunity could be lost. This decision to ensure speed to market and at such scale is a canny one.
6) The RNS refers to a minimum contract of 1 million units per month, which if you take the population of Europe which this distributor appears to have infrastructure in, that is over 750million people. Excluding any business buys (which we can all expect there to be) and multiple buys by consumers, that only equates a 4dp of a % to hit. It would not be beyond expectations for any business to buy more than one pack, or consumers to multi buy for this minimum number to be exceeded within days or weeks. Especially if on Amazon prime.
Finally all of this buzz we have seen today is from an RNS, one can speculate on the potential when this gets coverage as previous.
--IMO--