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Multiple Case Studies From Different Programs
First 8 Months Of A New FBA Store - 40k Profit (Launched Jan 2022 / Updated Sep 1st 2022)
During the first three months, we spent less than $7,000 on inventory testing a very wide variety of product from 4 distributor contracts. This resulted in around $10,000 in revenue generating the first three months.
Once we knew exactly which products we wanted to scale up, the Account Executive went over multiple product analytics with the client including historical sales data from the same time last year matched with our own sales data, price volatility, sales volatility, estimated monthly sales, and over a dozen more key data points. After discussing the best budget to move forward, we spent around $20,000 to secure 60 days worth of inventory during the last week of March. Typically, we only place inventory orders on a 30 day sellout basis, but the client was comfortable with the analytics and wanted more stock. As soon as the products became active for sale, an instant spike in sales occurred resulting in a revenue of $31,246 from April 1st to May 31st. After replenishing inventory and adding other products, the clients revenue grew to $44,328.71.56 from June 1st to July 31st. In just August, this Client had $24,208.49 in revenue and $8,957.14 in profit.
This Client’s best selling brands include Sterilite products in the Home and Kitchen niche which are good year-round sellers as well as Backyard Pool Repair Supplies which become popular during the summer months. This store is currently phasing out Backyard Pool Repair Supplies and has a Toys / Games contract which will preform well during the upcoming Holiday Season
First 12 Months Of A New Hybrid Store - 115K+ Profit
The first step we took when building this store was adding a Dropshipping contracts to begin establishing healthy sales history on the account while we waited for FBA shipments to arrive in Amazon’s Fulfillment Centers. 59% of revenue was from dropshipping while only 41% came from the FBA side of the business. The Dropshipping business model can be scaled up faster than FBA, but has a lower ROI since distributors charge a premium for handling fulfillment. This is why the overall Profit Margin of the business is 29% and lower than the FBA business shown in Case Study 1. The FBA side of the business had a much larger average ROI due to wholesale pricing.
When creating a customized approach for the store, we noted the Clients budget and determined we could sell higher-ticket items on the store. We aimed for contracts with an average unit sell price of $200, which we exceeded. This Client had multiple contracts from multiple niches including Outdoor Appliances such as Mini Home Pizza Ovens to Pet Supplies, Small Furniture, and a few others.
First 10 Months Of Aged Hybrid Store - 260k+ Profit
The first Dropshipping contracts took us about 8 weeks to open in total. These contracts allowed the Client to sell licensed electronics such as Dell, LG, Intel, Lenovo, and a few others. They contributed to a large portion of Dropshipping sales. For FBA, the client became a licensed distributor of many household, non-perishable grocery items including Arms and Hammer products, Baby Formula, Canned Foods, and others. They also became a cosmetics distributor and predominantly sold Cerave, L’Oreal Paris, Rogaine, and similar brands.
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