Case Study

Amazon Distribution to Ownership Drives Sales +75%

November 13, 2023

Metrics

+75%

Increase in Average Monthly Sales

+119%

CVR changed

0% to 5%

of Sales SnS Grows

Top 50

in Categories

Context

A beauty and hair care brand that wanted to take ownership of their Amazon business from a previous distribution partnership turned to VENDO to help manage their own Amazon account. As a result, VENDO was able to give the company control over their Amazon inventory, resulting in better scalability and higher conversion rates on Amazon, even for previously lower-selling product lines. VENDO was also able to improve their product display pages based on market research, increase their investment in advertising to improve their new to brand customer acquisition, and increase their participation in marketing programs, such as Subscribe and Save (SnS), which improved their repeat customer rate and customer lifetime value (CLTV) on Amazon.

Tactics

1. VENDO took on full inventory management by working with the brand on collaborative forecasting to ensure stock was provided and available to meet consumer demands and projected growth.

2. VENDO redesigned and optimized all product detail page content in accordance with market research and Amazon standards to improve overall conversion rate by a change of 119%.

4. The brand's distributor had not been levergaing Subscribe and Save, a feature on Amazon that allows consumers to receive automatic deliveries of a certain item at a 5-10% seller-funded discount (best used on items with reusability/repeat purchase value). VENDO implemented and helped grow this program for them and it now makes up 7% of their total business, while also improving their customer lifetime value (CLTV) and branded awareness on Amazon.

Conclusion

Overall, taking ownership of their Amazon business allowed this brand to increase their revenue by 75%, with better control over their inventory management and the strategies they invest in on the Amazon platform that allow them to scale their business and market share within their categories.