It’s no secret that commercial clarity and rigour are two of our driving forces here at Venture Forge – and the story we’re about to share is the perfect illustration of exactly why they’re so important to your success…
We love good data – accurate, real-time, deep dive data.
And, when it comes to building a successful, sustainable Amazon brand, this information is not just useful – it’s critical.
Let’s take a recent tale shared by our CEO, Andrew Banks, over on LinkedIn.
The Story…
Recently, we had the opportunity to work with a brand to grow their sales – they believed they had a £4 million Amazon business.
Before the meeting, we conducted our own data analysis.
It revealed sales of £13.6 million – some difference!
The discrepancy was that we were coming at the figures from two very different perspectives – but their numbers meant they couldn’t see a massive growth opportunity that’s been right in front of them all along.
The Data Insight…
The brand’s £4 million represented their sales to Amazon through their Vendor account.
In contrast, our £13.6 million figure reflected the total purchases made by consumers of their brand’s products on Amazon.
And this distinction is crucial, because the consumer sales give the holistic view of the market demand for the brand’s products.
“Whether you’re a vendor or seller, everything starts with the consumer,” explains Andrew.
“Get the consumer to buy more and you turn more stock.”
The Opportunity…
Our rigorous deep dive into the data revealed a significant growth opportunity that the client had missed.
The consumer was already buying more, it just wasn’t all going through their Vendor account.
In fact, over 50% of their products were being sold by other vendors or third-party sellers, all at a lower margin for our client…
… a leakage in sales which meant that the brand was losing out on potential profits that could easily have been theirs.
Our Solution…
Now, with this gap identified, the client can get strategic:
- Taking better control of Amazon
- Tightening their distribution channels
- And prioritising selling directly to Amazon at a higher margin rate
This way, they’re not just enhancing their profitability, but also strengthening their presence and control on the marketplace.
The Bottom Line…
This story underscores the non-negotiable importance of understanding your numbers – but it also reveals something really key about Amazon growth.
When your brand is looking to grow on Amazon, it’s so tempting to put all your effort into increasing your topline.
But, without an accurate and complete grasp of what that topline truly is, you risk missing out on broader growth opportunities – some of which could be dangling right in front of you, ripe for the picking.
So, if you want to unlock the full potential of your Amazon business, start by always knowing your data.
This rigorous approach to commercial clarity won’t just reveal immediate opportunities for growth – it will also give you the solid foundation you need for long-term success.
Ready to transform how you do Amazon? Speak to our team to discover how we can help unlock hidden growth opportunities and boost your profitability.