Our D2C approach is unique
Due to our many years of experience and our unique approach, many established brands have been working very successfully with us for years.
Case Studies
The challenges of running a successful online business are diverse and complex. Therefore, our customers have very different requirements and priorities.
Learn from some examples how we have helped companies achieve success based on their individual starting points.
Case Study Brand Protection and Price Stability
A premium skincare brand was previously available on Amazon through various sellers. Especially during the pandemic, many sellers started sourcing the products through wholesale channels. This created a situation where the brand was increasingly controlled by unauthorized sellers who damaged the brand through poor product presentation, insufficient content, and persistent price dumping. It was feared that the brand value would decrease, resulting in significant financial loss. In addition, there was massive criticism from selective retailers who could not or did not want to match Amazon prices.
Brand Protection & Price Stability
By using gating mechanisms, unauthorized sellers were identified and removed, enabling the manufacturer to gradually regain control of the brand through various tools, curb price dumping, and stabilize brand demand. As a result, the manufacturer’s direct-to-consumer (D2C) revenue increased by 423%. The margin against the B2B trade price increased by an average of 8.72%, and the trade price increased by an average of 16.7% in all other online channels in Germany, in addition to Amazon.
Marketing
Through AI-supported control of Amazon Advertising, the ACOS was reduced from 31.2% to 17.8%, which is 2.2% below the company’s goal.
We were able to generate new customers through margin-optimized ACOS control of Amazon campaigns, and thus gain market share from competitors.
90% Buy Box share
Reduction of ACoS by 43%
423% increase in sales
Case Study Internationalizing
A manufacturer of dietary supplements that is very successful in Germany is planning to expand into Europe. The goal is to implement this, as far as possible, without distributors.
Legally compliant international billing
Due to the new regulation on consignment warehouses in the EU in 2020, which is applied through our D2C approach, the manufacturer was able to avoid tax registration in the member states.
Content optimization & scaling
By using social media, especially in Spain, end-customer sales were increased from 0 € to 240,000 € in 2022. The use of social media in other countries, especially in Italy and France, is planned for 2023. At the same time, the presentation of the products in the respective national languages was performance-oriented optimized.
Sales targets achieved 2 months earlier
EU market entry realized in a short period of time
Assisted brand awareness has significantly increasedn
Best Practice: Case Study Natural Cosmetic
One of our natural cosmetics brands was part of the Amazon Vendor program for many years. In addition to increasingly difficult purchasing negotiations, the additional payments for co-ops, shortage claims, etc. had also been steadily increasing. Furthermore, Amazon regularly lowered end-customer prices to remain competitive with the lowest market prices (on Amazon & in online commerce). The absence of a vendor manager significantly complicated the collaboration with Amazon, and the net PPM was under massive pressure recently.
Additionally, there were concerns that the persistent price dumping would further decrease the brand’s value and cause significant financial damage. Moreover, there was massive criticism from retailers who could not or did not want to keep up with the Amazon prices.
Control over Brand & Prices
As part of a D2C approach test, individual sub-ranges were removed from the vendor program and listed through the seller program. By limiting sellers to Amazon, it was possible to regain control over prices and establish a price structure of UVP -3.7%* (previously -26.8%) on Amazon step by step over the next 18 months. Through careful price increases, other relevant market participants also adapted to the newly established price level on Amazon with a value between 5% and 6% below the UVP.
The use of the seller program significantly reduced out-of-stock scenarios. Sourcing of the items can now be controlled by the manufacturer with over 90%. The net PPM increased by an average of 11.4% per year and was able to compensate for the market-related decline in sales.