13 Nov Amazon Distribution to Ownership Drives Sales +75%
+75%
Increase in Average Monthly Sales
CVR changed +119%
SnS Grows 0% to 5% of Sales
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 + Conclusion
- 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.
- 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%.
- VENDO’s Amazon Ads team redeveloped their ad strategy to target non-branded keywords within the categories they sell in, improving their new to brand (NTB) customer acquisition. The ad team was also able to help their competitor targeting, allowing them to hold up to 20% of their market share within their top performing category.
- 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.
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