Over 150% Profit Margin Increase within Six Months of Using Feedvisor
“Every decision we make is based on data, and that’s why Feedvisor makes sense. Feedvisor has helped us manage complex business activities — providing us with speedy, tangible, and astonishing results.”Ozan Taner | Founder & CEO of Moema Espresso Republic
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Stay Competitive While Maintaining High Profit Margin
In 2012, Moema Espresso Republic made the move to Amazon, hoping to drive more revenue and growth. The move was far from smooth. MER quickly found itself in deep waters trying to reprice hundreds of SKUs for its competitive and non-competitive products. The next natural step was to build its own crawler, which MER used to retrieve prices from Amazon. But that proved to be ineffective.
“We quickly realized we’re not the pros, so we looked into using expert software and that’s when we decided to test out a rule-based repricer. That was OK for a while, but the repricer’s limitations impacted our performance capabilities, and we’d often find ourselves caught up in price wars. We just weren’t receiving the intelligent insights that we needed.”
AI Repricing and Data-Driven Actionable Insights
Frazzled by poor pricing methods and insufficient business insights, MER understood that an intelligent algorithm could offer a better alternative. In April 2015, it turned to Feedvisor. From there, things took off and MER saw impressive results in six months.
“The real advantage of Feedvisor is that unlike most of its competitors, the tool is made for maximizing the profit margin of each SKU. Instead of systematically going into price wars to get more market shares, Feedvisor analyzes the competition and will exploit opportunities to raise prices, and thus increase margins. We have some products which generate over 40% profit because Feedvisor found the right balance between price, competition, and sales velocity.”
Optimized Margins and Revenue
Since implementing Feedvisor, MER has experienced incredible results:
Ozan’s Top Three Pricing Strategy Tips for Amazon Sellers
1. Premium product selection: “Pick quality products that have a future and are trending (lower competition and high demand). Try to exploit the margins while they are there. For us it’s all about the premium coffee and equipment.”
2. “Pick your systems and circumvent price wars with intelligent technology tools like Feedvisor. Everything we do is based on data, so the more data we get, the more granular we get on certain actions.”
3. “Try and exploit the opportunities on several platforms by going multi-channel.”
Moema Espresso Republic is a direct fair trade startup which sells its own brand of premium coffee and top commercial coffee equipment (brewers, machines, and everything around coffee preparation). MER sells through its own webstore, with Amazon being its major channel and accountable for 40% of business sales.
Founded in 2005, the Berlin-based social startup pioneered a new fair trade trend in Germany by working directly with Brazilian farmers — giving them direct profit from the coffee roasting to ensure maximum economic fairness and investing in local community development. By 2012, Moema Espresso Republic — already considered a reputable brand — decided to go after the end-consumer market. It started selling on different channels, with Amazon as its primary focus.