Women’s underwear brand from the US

Brand E is a women’s underwear brand selling Boyshort panties via Amazon FBA and WooCommerce.

Background:

This US based women’s underwear brand found a niche in Boyshort panties made of 100% cotton. It successfully operated for few years but was facing major hurdles in scaling up 

Problem Statement:

High Customer Acquisition Cost (CAC) – this was because the average order value was low

Low Order Volume leading to mismatch between order quantities and MOQs

Limited Variety: Only black and some core colors were available

Limited Budget

Before

Solution:

Hula Global team conducted its study across the brand’s competitors and implemented the following solutions:

  1. Focus on Amazon FBA: With limited resources, it was not possible to scale across Amazon FBA and WooCommerce together. Amazon FBA was over 70% of the business and the price point for the product was a direct fit for Amazon FBA
  2. Create Multi-packs: This strategy solved multiple problems at one go:
    1. Average Order Value (AOV) increased from $15 to $30 and in some cases $40, CAC and fulfilment cost came down further because the cost to acquire a customer for multi-pack and cost to fulfil a multi-pack SKU was not significant compared to the cost of individual items
    2. MOQ: By increasing the multi-pack, we were able to increase the order volume and as a result solve the MOQ bottleneck
    3. Variety: By able to leverage its supplier relationships, Hula Global was able to create variety even for SKUs that could not meet the MOQ criteria individually.

Result: 

The brand has doubled its numbers Year-over-Year consistently since 2019. As of FY 2022, the brand did over $6mm in topline, operated by a solo founder backed by Hula Global’s sourcing and Tulip digital’s e-commerce team.