22% margin increase for the ModaBiałystok brand
We moved sales from intermediaries directly to Amazon.de and Amazon.fr. We eliminated unnecessary commissions.
The ModaBiałystok brand had relied for years on three German distributors who dictated terms and took the lion's share of the profit. We showed them how to bypass intermediaries and start earning real money on their own terms in the European market.
The challenge
In June 2024, the client's operating margin fell to 8%. Half of the profit was eaten by wholesaler commissions and surcharges for warehousing in Berlin. The company had 430 unsold dresses sitting with an intermediary who refused to lower the price, causing the stock to stagnate for 4 months.
Our approach
Our 3-person team started with hard data. We selected 12 clothing models that had the greatest sales potential in Germany and France. Instead of asking distributors for better results, we registered the brand in the Amazon Brand Registry system, which allowed us to regain control over brand image and product prices.
The solution
We implemented the Amazon FBA model, shipping goods directly from Białystok to Amazon warehouses in Germany. We prepared product cards with descriptions that considered specific phrases used by customers from Munich or Paris. We also launched an automatic price monitoring system that ensured ModaBiałystok's offer was always visible in the Buy Box, but never fell below the calculated profitability threshold.
Results
In less than 120 days, the brand became completely independent from external distributors in the DACH region. The recovered margin allowed for financing a new collection without taking out a working capital loan.
Timeline
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July 2024Audit of warehouse stock and selection of 12 key models.
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August 2024Trademark registration in Amazon Brand Registry and blocking unauthorized sellers.
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September 2024First shipment of pallets to Amazon warehouses and PPC campaign start.
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October 2024Achieving stable sales at a level of 47 orders per day.
"I was afraid we wouldn't handle the logistics ourselves and Amazon would block us after a week. Wisła Digital Strategy showed us concrete numbers, and today we earn much more in profit."