Matt has a 7-figure office and home utensil brand. He was trying to grow sales on Amazon, but he had challenges with implementing systems and frameworks, inventory and logistics management, low profit margins, and high ad spend with lackluster performance. He wanted help from the ground up to add efficiencies and to better track and monitor every part of the business.
Margins were low
Products were frequently going out-of-stock and losing ranking
Did not have enough people, frameworks, and systems to fully manage the business
- Client
GNO team performed an in-depth 200+ point brand analysis that looked at all aspects of the business along with all points of the Profit & Loss. Every part of the business was scrutinized and improved.
First thing that we tackled was their logistics. We entirely revamped their logistics and shipping processes with many processes, monitoring systems and reports, and provided him with SOPs to eliminate out-of-stock (OOS) issues. This led to massive cost improvements. Afterwards, we laid out a roadmap to improve BSR and start dominating the market.
After tackling their logistics and OOS issues, we gave the client a step-by-step guide to improve their margins and cashflows. We analyzed the P&L and gave the client the frameworks and reports to make sound decisions for all parts of the P&L. We saw many products with very low margins so we defined a clear strategy to increase margins ASAP.
Also, we provided SOPs and weekly support to renegotiate COGs with their suppliers, source lower cost products with equal or better quality, and review ways to reduce all expenses and fees; we lowered many.
With the challenges out of the way, we helped the client hire various people to help work on the business so that he can focus on strategies and growing the business. We provided him with the SOPs for hiring, interviewing, onboarding, training, and delegating tasks to new hires. Also, we introduced him to virtual assistants whom our team already trained to manage different parts of the Amazon business. This helped free up a lot of time for him to focus on the important parts of the business instead of putting out fires all the time with limited resources.
Another area that we improved was monitoring and tracking their PPC agency’s performance. We provided the reports, knowledge, training, and SOPs for the client to understand which KPIs to track and to keep the PPC agency accountable.
Throughout the process, various experts from our team (depending on which expertise was needed) met with the client on a weekly basis, provided 24/7 support through Slack, supplied a check list of all the projects and tasks, gave them guides to effectively and efficiently complete the tasks, and kept them accountable to finish the tasks to get results as soon as possible.
The client’s drastic improvement to logistics and supply chain management had a compound effect. First, it added 4% margin (additional 6-figures) to top line revenue. Next, sales increased with a snowball effect, increasing every month, with elimination of products going out-of-stock.
Within 5 months of joining GNO, sales increased 91% Year-over-Year (YoY), which was a high 6-figure (close to 7-figure) in additional yearly revenue. In addition, sales have been increasing at a steady rate of 9% Month-over-Month (MoM) with an average profit margin increase of 17% MoM.
Also, with the client better understanding the PPC process and management, ad sales rose almost 3x (adding high 5-figures) in less than a year. That happened while Total Cost of Ad Spend (TACoS) remained relatively the same.
The best part is that the client is able to focus on growing his business most of the time whereas he was putting out fires most of the time before he joined GNO.
Frameworks, systems, and a proper path to growth are very important to a business. Those are either gained through time or through experts willing to share their knowledge from having experienced, managed, and scaled brands from 6-figures to 7-figures, then from 7-figures to 8-figures, and taking some brands to Exits. Set up your frameworks, systems, and roadmap for growth today. If you need experts to review your brand and provide insights with positive business impact, book a call. We’re always open to extend a hand.
