Case Study

The electronics brand has increased profits by $433,687 within 5 months

Karim Saydashev

oct 18, 2022

Our strategies have been proven to drive a minimum of 7% increase in sales based on over $113M in revenue being optimized on Amazon.

Overview

The Slim Nozzle Black and Decker hand vac is at your convenience for the everyday mess.

The choice is yours to mount your charger to the wall or leave it on the counter. Whether you spill your cheerios, coffee grinds, keep your kitchen spotless.

Industry:

Electronics

Location:

USA

Company Type:

Private Label Brand

Marketplace:

Amazon USA, Amazon CA

After beginning to work with HyperC, our clients have drastically improved their
efficiency by switching their shipment methods from Standard Parcel Delivery (SPD)
to Full Truck Load (FTL), resulting in increase of total annual profits by 28%

Using HyperC, our clients achieved
the following results:

Logistics team productivity increased by

49%

Storage fees reduced by

47%

Shipping costs decreased by

43%

The Challenge

Overstock storage costs and frequent "Out Of Stock" issues that led to the loss in sales of $142k and damage in rankings.

 costs in FBA shipments

$0.3-0.7

per LB

Overstock Storage Costs

$0.63

per LB

Lost Sales and Damage of Ranking

$142k

The Solution

Not only we came up with an effective strategy to update
the shipping processes to FBA but we also eliminated
the "Out of Stock" events, which have occurred during an active product line expansion.

By reduction SPD ratio of shipments (from an average cost of $0.70 to $0.26 per lb) and LTL rates optimizations with the partner program, eliminating of Out Of Stock events and implementing qualitative planning, they were able to achieve massive shipping cost reduction.

Optimization of international shipments

$0.70 → $0.26

Per lb

LTL rate optimizations

$0.22 → $0.10

Per lb

Since they stopped keeping large amount of stock with low sales velocity, they started to see significant savings on storage fees. As we started to plan well ahead, we were able to stock up for at least two weeks. Now we started to send out FTL shipments (Full Truck Load) every month with at least 4 weeks of coverage.

“The video and images provided are fantastic! Looking forward to seeing the images for the next product!”

 — David Moss, business partner of Black + Decker Hand Vac

With HyperC AI’s optimization process, the client was able to significantly improve its Amazon IPI score and boost inventory planning performance by 11%, as well as increase the speed of new shipment and PO creation by 78%.

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Since they stopped keeping large amount of stock with low sales velocity, they started to see significant savings on storage fees. As we started to plan well ahead, we were able to stock up for at least two weeks.