Enterprise FBA Seller Sees 6x Revenue Increase
“I was mind-boggled by how I would find myself in the Buy Box at a higher price than my competitors.”
Jim
Enterprise FBA Seller
Introduction
Jim is a health and beauty supplies reseller who started on Amazon in 2015. He was manually repricing products multiple times a day and had little idea of what his profits were. After realizing he needed to automate his repricing, he decided to sign on with Feedvisor in January 2016.
He links this success to Feedvisor’s revenue intelligence dashboard, which gave him greater visibility over his business, as well as the repricer’s capacity to keep his prices high while still winning the Buy Box.
Challenge
Growing an Amazon Business
Despite Jim’s best efforts, the first few months of his fledgling Amazon business were difficult and frustrating. Sales were dropping, he was in the dark regarding profits, and Amazon’s limited business reports were of little help. A great deal of his time was taken up by manually lowering his prices to undercut competitors – a process he went through seven to eight times a day. Jim found himself perpetually entangled in price wars that sapped his energy and his profits.
He looked at multiple repricing solutions on the market, but found they would just give him more of the same: a race to the bottom or else big upfront fees. On the brink of throwing in the towel and giving up on Amazon selling altogether, he chose to give it one last go with Feedvisor. Jim decided to give it a shot. If it didn’t work, he would forget Amazon.
Solution
A Repricer That Promotes Business Growth and Visibility
Bigger Inventory and Bigger Profits
Soon after setting up Feedvisor, Jim was immediately struck by how he could go weeks without even glancing at his pricing. When he did, it was only to look into one or two challenging products. With all the time he saved, Jim devoted himself to strategizing for growth, sourcing new products and expanding his inventory. Jim came to Feedvisor in January 2016 with a narrow inventory range and modest sales. Within just seven months, Jim saw his monthly revenue go from $23,000 a month to $150,000 a month, a 6x climb.
It wasn’t just the quantity of ASINs that grew. He was also growing his profit margins. Today, nearly a year after joining Feedvisor, Jim boasts an average profit margin of 27%. He observes his friends who are also selling on Amazon, and settling for profit margins of two or four percent. He chalks up this dramatic difference to Feedvisor’s sophisticated repricing capabilities, saying it all begins at the Buy Box.
Revenue Intelligence Dashboard
One of Jim’s biggest complaints before using Feedvisor was that he had no idea what his profits were, let alone what was driving them. With Feedvisor’s revenue intelligence dashboard, he was finally able to see not only how much money he was making, but where it was coming from.
Jim says he doesn’t start his day without checking his seller metrics on Feedvisor, including the 30-day trailing information, profits, units sold, and sales. He uses these dynamic insights to make smarter business decisions in real time.
When asked about his favorite feature on the Feedvisor dashboard, Jim immediately brings up the replenishment report, which tells him when it’s time to re-stock items. In order to minimize time spent on replenishing, he deliberately overstocks items. While the report functions on a 30-day basis, he works on a 60-day scale, ensuring he has at least two months’ worth of stock at Amazon so he doesn’t have to deal with replenishing as frequently. The system he’s devised for himself, aided by Feedvisor’s analytical capabilities, allows him to focus on sourcing new products.
Conclusion
It’s no accident that Jim exponentially grew his business in under a year. Feedvisor’s automatic repricing software saved him an enormous amount of time, enabling him to devote himself to sourcing new items. Rather than blindly undercut his competition and erode his profits, Feedvisor’s data–driven algorithm frequently increased his Buy Box share while managing to sell his ASINs at a higher price. The combination of in-depth business reports and smart repricing makes Jim enthusiastically recommend Feedvisor to other growth-minded Amazon sellers.