Large Retailer Experiences 110% Increase in ROI With Feedvisor
“We are constantly impressed by Feedvisor’s continued efforts to be a profit-driven repricer — a quality that has always been at the core of their business structure. When we had initial discussions about the direction we wanted our business to go, they were eager to help us drive overall profitability instead of just focusing on one aspect of our business.”
Introduction
This large retailer began selling on the Amazon marketplace about seven years ago, focusing on professional cookware and food service products. The retailer’s parent company is a majority B2B company, selling cookware items specifically for correctional facilities. When the company made the switch to B2C, they put items on both Amazon and eBay. The company also has their own e-commerce website. On Amazon, they have a hybrid portfolio — selling both private label items and items that are competing for the Buy Box. The company fulfills the majority of their items via FBM, about 10K SKUs, but have 75 items that are fulfilled via FBA.
Challenge
Finding a Profit-Centric Pricing Optimization and Intelligence Solution
Prior to partnering with Feedvisor, the company was using Mercent’s repricer before it was bought out by CommerceHub in 2014. Before that merger took place, the retailer used Mercent as an omnichannel repricer, but quickly ran into functionality and cost issues. They were paying a premium price for a product that wasn’t yielding ideal, consistent results. They quickly realized that they needed a strong repricer with AI software that is geared to maximizing overall profitability and not just sales.
Solution
Maximize Overall Profitability With Comprehensive, AI-Driven Technology
Given that 75 of the retailer’s SKUs are fulfilled via FBA and the remaining items are dropshipped directly to the customer via FBM, it was very important for the company to have a repricing solution that analyzes and considers data points related to individual SKU, product category, or time of year. With Feedvisor’s pricing optimization solution, they were able to do this and simultaneously ensure their sales velocity was being properly tracked in order to accurately measure demand. The company noticed results within two weeks of implementing Feedvisor’s platform and are pleased with the ongoing performance assessments, impact reviews, and hands-on support.
Results:
Tangible Performance Increases to KPIs Across the Seller’s Portfolio
- Upon partnering with Feedvisor, the company experienced a 110% increase in ROI versus before they were implementing Feedvisor’s price optimization and intelligence platform.
- Their average monthly profits increased 68% in their first year with Feedvisor and have remained positive for each year that they have been a customer.
Conclusion
Consistency From a Technology Partner Is Key for This Large Retailer
On pace to achieve about $5.5 million this year through Amazon, the large retailer is constantly looking for innovative ways to optimize their store and take their business to the next level. They are currently utilizing Feedvisor’s Sales Return Rate Report on a weekly basis, as it informs them which items have a high return rate, causing a positive profit to become a negative one.
The report also lumps in hidden fees such as reimbursements, allowing 360-degree visibility into all steps of the selling process — the initial conversion, any returns, and the impact of both. To the retailer, this is a prime example of Feedvisor’s business model: not just surface-level results, but rather in-depth, holistic insights, strategies, and automated pricing updates that work in unison to drive streamlined marketplace results.