Brand E is a women’s underwear brand selling Boyshort panties via Amazon FBA and WooCommerce.
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
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
Hula Global team conducted its study across the brand’s competitors and implemented the following solutions:
- 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
- Create Multi-packs: This strategy solved multiple problems at one go:
- 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
- MOQ: By increasing the multi-pack, we were able to increase the order volume and as a result solve the MOQ bottleneck
- 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.
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.