Moda West is a division of David’s Wholesale of Dallas, Texas and Miami, Florida. For over 22 years, Moda West has specialized in high-quality, low-priced wholesale products, including backpacks, hygiene kits, school supplies, and more. Moda West is devoted to bringing hope and smiles to customers while supporting humanitarian missions such as aiding people experiencing homelessness.
Moda West is primarily a seasonal business with peak volume in late summer and early winter. Moda West partnered with Channel Key to develop and grow its brand on Amazon in 2018. After several years of consecutive growth, the company experienced inventory challenges in 2021 due to various factors. The challenge was to find a way for Moda West to replenish Amazon inventory and meet sales targets in time for the peak seasons.
Channel Key connected Moda West with SellersFi, an all-in-one financial solutions platform designed specifically for growing ecommerce merchants. Unlike traditional financial institutions, SellersFi provides instant access to working capital for marketplace sellers based on their sales performance and history.
By developing a marketplace strategy in tandem with SellersFi, Moda West was in a strong position to launch aggressive marketing campaigns to capture heavy seasonal traffic with high purchase intent that otherwise would not have been possible.
Approach
- Secure Funding to Replenish Inventory
Connect Moda West with SellersFi to unlock working capital for purchasing back-to-school inventory - Grow Awareness and Expand Target Audience
Develop Top of Funnel advertising efforts coupled with an enticing pricing strategy to increase visibility during peak seasons - Utilize Retail Readiness to Increase Conversions
Achieve 100% Retail Readiness across the full product assortment to maximize conversions on all Product Detail Pages
Key Results
- 279% year-over-year sales increase from August 2020 to 2021 for Hygiene Kits
- 8.21% average TACoS for 2021 back-to-school season
- 574% year-over-year session increase for adult backpacks from August 2020 to 202
Conclusion
Channel Key’s strategy was contingent on Moda West’s ability to meet demand driven through increased visibility and targeting. As a financial solutions platform for marketplace sellers, SellersFi quickly identified the seasonality of the brand, including its strong performance in key months. Using sales projections backed by live data, SellersFi was able to offer a larger credit limit at a better price than traditional banks. Within days, Moda West secured the funding to purchase and restock inventory. Combined with targeted advertising and gold-standard listings, this working capital nearly tripled sales for top-selling products and resulted in an outsized growth rate of 15% YoY. Moda West was able to sustain this accelerated growth due to improved cash flow and liquidity, which allowed for investment in other areas of the business.
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