Increased Sales by 11x: Transitioning from Vendor to Seller Central
august 25, 2023
about the brand
Hope’s has been delivering on the promise of an easier, more effective clean for almost 50 years. The brand was developed with the desire to see more cleaning promises fulfilled and produce a safe, satisfying cleaning experience for their customers.
Services
Account Management
Platforms
Vendor Central
Seller Central
Seller Central
Goal: Increase Profits
Commerce Rev and Hope’s partnered together in February of 2020. At the time, Hope’s was utilizing Amazon Vendor Central (VC). Commerce Rev drastically grew Hope’s sales within the first 6 months but noticed that profits did not scale with the sales growth. Commerce Rev was tasked with exploring ways to increase both Hope’s top and bottom lines.
Top Challenges
- Stuck with outdated pricing that did not give Hope's the ability to pass along rising costs to the customers. This resulted in shrinking profits
- Shrinking profits and rising Cost-Per-Clicks (CPCs) forced Hope's to lower ad budgets and consequently, sales
- Inconsistent purchasing from Amazon Vendor Central
- Lack of communication and support from Amazon reps
Fears of Switching from Vendor to Seller Central (SC):
- Worried switching to FBA would have Amazon repercussions
- Opportunity cost of switching Amazon business model
- Couldn't "compete" with VC pricing
- Takes time to sell out of VC inventory
- Fear of who would 'own' content VC or SC
- Sales would decrease with required price increases
0 %
Sales Growth
0 %
Increase of Average Sales Price
0 %
Increase of Advertising Budget
The Solution
Account Management
Over the next year, Commerce Rev slowly transitioned each product family over from VC to SC. First creating a SC account and then adding products. Sending items into FBA to start building up storage units. As VC inventory ran out, FBA would start winning the buybox.
The Results
- Sales are up 1,100% when compared to shipped COGS to VC
- Average Sales Price increased 62%
- Maintained units sold despite the sales price increase
- Price increases generated higher profits
- Increased Advertising budget by 320% thanks to increased profits
- No resistance or repercussions from Amazon
Ready to talk? Get in touch with an expert
Fill out this form to get in touch with us