Little Giraffe Converted From 1P To 3P On Amazon. The Right Move? They Doubled Margins.

Mike Zetlow

Mike Zetlow, Channel Key
February 28, 2023

Little Giraffe is a premium baby boutique that sells luxury baby blankets, baby clothing, baby gifts and throw blankets and more.

Challenges

  • Selling to Amazon 1P and Resellers and had no control over retail pricing or content on Amazon Detail pages
  • Catalogue was mismanaged and not organized properly
  • Pressure for markdown dollars from retailers like Nordstrom over show rooming activity that was happening with assortment in store
  • Lack of internal resources and Amazon knowledge to transition business

Solution

  • Converted business from 1P wholesale relationship to 3P Direct to Consumer FBA business
  • Re-organized 250+ sku assortment creating proper Style/Variant structure to entire catalogue
  • Entered most popular products into our Jumpstart process completely revamping imagery and copy taking into account Keyword research to optimize for SERP on top terms
  • Achieved Brand Registry 2.0
  • Successfully uploaded Enhanced Brand content to top listings for conversion increase
  • Created comprehensive Sponsored Products and Headline Search Ad programs optimizing for Branded and Non-Branded search terms
  • Continually scrubbed Buy Box successfully removing all 3rd Party Sellers

Results

  • Business converted 100% to 3P with no degradation in revenue
  • Doubled net margin profitability of business taking advantage of retail vs wholesale margins
  • Leveraged FBA for 100% of sales
  • Average buy box % grew from 6.74% to 44.07%
  • Drove 33.3% of sales from sponsored products at a 5% acos
  • Increased E-conversion rate from .57% to 7.95%
  • Merchandising of Amazon Detail Pages more inline with Direct to Consumer website
  • Generated 50 seller reviews and 103 product reviews in 10 months

Mastering Amazon Ads eBook Cover

Let us send you our free ebook.

Mastering Amazon Ads: How to Unlock Explosive Sales Growth

Mastering Amazon Ads eBook Cover
We'll never spam or share your email.