Success Stories
Large Competitive Seller Increases Product Margins by 10%
About
Garry
Large Competitive Seller
Introduction
Leather Supply started out as a shoe repair shop in 2008. In 2013, it began to focus on its current product range: leather care products (sprays, waterproofers, protectors). The store sells on multiple online channels, including Amazon, eBay, and its own website.
Frustrated by the limitations of a rule-based repricer, they decided to switch to using Feedvisor’s algorithmic solution in 2014. Since then, the business has increased its per item profit margins by 10% and reduced inefficiencies, which the company attributes to Feedvisor’s in-depth revenue intelligence dashboard and actionable reports.
Challenge
Challenge
Gaining Access to Business Data and Finding The Right Repricer
Garry, the owner and president of Leather Supply, was looking to gain more control over his business. He understood that in order to grow its bottom line, he needed data on a micro level so he could identify the right opportunities. In addition, he knew that his growing Amazon business needed a repricer. For some time, he tried out a rule-based software, but quickly realized that he was only paying for automation — not price optimization. He still had to decide on prices, but setting the rules was challenging because there was limited data to base those decisions on.
He knew it was time to get better visibility and take control of his business.
Solution
Solution
“Sometimes, we lower the floor price, but the price itself will only be lowered if it actually helps the company’s bottom line.”
Algorithmic Repricing and Revenue Intelligence
After conducting some research, Leather Supply discovered Feedvisor, and they were immediately impressed by the algorithm’s sophistication. Finally, they were able to find the pricing sweet spot based on a wide range of variables and market conditions. They could adjust levels of selling aggressiveness based on their inventory velocity goals. And thanks to Feedvisor’s dedicated Customer Success team, they had the guidance to help set and meet their sales targets.
Garry cites Feedvisor’s advanced revenue intelligence solution as one of the most useful features of the software package. The user-friendly dashboards and personalized reports enable him to truly understand how his business is faring in the context of the dynamic Amazon marketplace.
Feedvisor’s revenue intelligence allowed them to take control of the business by seeing what was driving profits. They could know when his best-selling items were about to run out of stock, when items were no longer competitive, and get recommendations that allowed them to make more informed business decisions. Previously, if the company needed to boost sales, they would simply lower prices, but that’s no longer necessary because Feedvisor is designed to find the optimal price.
As a result of Feedvisor’s profit-boosting abilities, Garry estimates that Leather Supply has seen a per item margin increase of around 10%. They are able to effectively sell fewer products while upping the price per product, ultimately gathering more profit.
Conclusion
Conclusion
10%
increase in per item profit margins
A Premium Product That Delivers Premium Results
Since using Feedvisor, Leather Supply has seen significant growth and increased efficiency. Feedvisor’s customer success team helped them take control of their business strategy and improve customer satisfaction ratings by 17%. Feedvisor’s context-driven approach to selling on Amazon continues to play a vital role in Garry’s company success.
“Before switching to Feedvisor, I had to estimate my revenue and didn’t know which product was driving the fluctuations. Now I can control revenue on the micro level by getting rid of an ASIN if it’s underperforming. That’s a capability I haven’t seen anywhere else.”
