When fans started relisting their Youtooz collectibles on Amazon, Austin Long knew he had to rethink his sales strategy. For the first four years, the co-founder and CEO of the designer vinyl figure and plush company, Youtooz, focused his efforts on direct-to-consumer sales through their website, using pre-orders and product ‘drops’ to keep fans coming back for more.
Concerned that selling his products on Amazon would cannibalize his direct-to-consumer sales, which account for 90% of Youtooz business, he directed all efforts to exploring other sales channels. Long scaled his company through collaborations with YouTube stars and animation powerhouses like Disney, and partnering with specialty retail stores like Spencer’s, Hot Topic and GameStop. The Youtooz team of 55, with over 20 artists, from 3D modelers to packaging illustrators, could bring a concept to a customer pre-order product in days.
By 2023 their collectibles business was pulling $40 million in annual revenue, and Long decided to take a chance on Amazon. After all, he said, with fans listing their own collections, “we were like, okay, there’s obviously a market here where people want these products now,” he said.
Soon after, all concerns “went out the window.”
“We found that largely it was a unique audience. [Amazon customers] really like shopping on Amazon because they trust the customer experience that Amazon built,” explained Long. In addition, because of Amazon’s fast shipping and easy returns, they’re tapping into a distinct Youtooz fan base with a specific need, never before served.
“We definitely find that on Amazon there’s a lot more gifting,” said Long. “There’s people buying it for someone else and we see a lot of repeat; someone orders something on our website and they really love it, so they’ll get a second one on Amazon.”
In an industry often defined by slow product cycles and mounting inventory, Youtooz has managed to marry a pre-order driven model with lightning-fast turnaround times - a formula that has fueled its rapid rise. Last year, Amazon accounted for around 5% of Youtooz’s overall sales, and Long expects to grow that sales channel by 30% year-over-year.
Long said, ‘being first and being fast’ applies to their Amazon store as well. “It’s incredibly valuable to be able to offer fans and collectors a way to get top products same-day, sometimes within a few hours.” he said. So much so, they’re developing new lines specifically for their Amazon customers.
“Being on Amazon has been tremendously valuable for us,” said Long. “Many of our peers were quicker to embrace it, but now we’ve seen firsthand how it can be a game-changer for businesses like ours. When we talk to others who haven’t tapped into Amazon yet, it’s a channel we recommend they explore.”