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Case Studies

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Amazon Success Case Study

Sutera|Home & Bath|United States
FBA Fee Reduction
-2.9%
18/21 products
Conversion Rate Lift
+21%
Successful A/B tests
Demand Increase
+11 weeks
Annual equivalent
Brand Defense
6/6
Sutera products shown

Goals

Increase profitability, optimize listings, and improve brand visibility and defense on Amazon

Initial Challenges / Pain Points

Challenge 1: High FBA Fees Are Eliminating Potential Profitability

Sutera was facing high FBA fees due to inefficient packaging, storage, and fulfillment strategies, which were significantly eroding potential profits

Challenge 2: Listings Weren't A/B Tested, Lacked Video Assets, Secondary Images, and Were Not Optimized for SEO

The product listings lacked important visual content like videos and secondary images, which are essential for boosting conversion rates and improving organic rankings

Challenge 3: Competitor Brands Like Purple and Casper Are Capturing Sutera's Branded Search Demand

Major competitors were ranking high on branded search terms, leading to lost sales opportunities and preventing the brand from attracting potential customers

Epic Global's Strategy & Execution

Fulfillment Optimization

  • Packaging Efficiency: Reduced product dimensions and optimized packaging materials to lower FBA fees. This helped decrease storage and shipping costs while maintaining product integrity.
  • Inventory Management: Streamlined inventory management processes to prevent overstocking and reduce long-term storage fees.

Results:

The below chart shows the per-unit change in FBA fulfillment & shipping fees by product upon inheriting Sutera's account compared to implementing the above efficiencies to the account. Across the 21 products in the brand's catalog on Amazon, the average product fulfillment fee realized a 2.9% decrease, with 18/21 products (86%) seeing lower fulfillment fees.

Listing Optimization

  • SEO Research & Keyword Strategy: Conducted extensive keyword research to optimize listings and improve search visibility. Focused on high-converting keywords while adjusting titles, bullet points, and descriptions to target relevant search queries.
  • Video Assets Added: Created product demonstration videos to provide customers with a more engaging and informative experience that better aligns with the demographics of the brand. Sutera's customers are male-heavy, highly skewed towards millennials and Gen Z, high-income, and high-education. Assets were created to reflect these demographics rather than the traditional bed and bath marketing typically targeted toward women.

A/B Testing & Image Optimization

  • Implemented A/B testing on images and copy: Enhanced listings with secondary images to showcase product features and improve engagement.

Results:

The below chart shows results of A/B testing across the top 10 products by sales.

  • - 6/10 products saw successful A/B tests, with successful tests seeing an average increase in their conversion rate of 21% (i.e., the equivalent of increasing to 12.1% from 10.0%)
  • - This is the equivalent of adding +11 weeks of demand over the course of a year
  • - A/B testing is critical to lifting sales and will be an ongoing initiative as we test different optimization strategies through different images, video, A+ content, titles, etc.

Brand Defense & Competitor Strategy

  • Defended Sutera's Brand Against Competitors: Employed targeted advertising campaigns to capture branded search traffic that was being dominated by competitors like Purple and Casper. Ensured Sutera's brand was visible for key search terms. Upon searching for Sutera on Amazon, the customer now only sees a Sutera sponsored brand ad as well as 6/6 Sutera products on the main search results rather than being riddled with competitor products.
  • Marketing Investment: Typically, we invest ~10% of total monthly sales into marketing through advertising, promotions, subscribe-and-save discounts, coupons, and deals on Amazon.

Results

  • FBA fees dropped by an average of 2.9% across 21 products (18/21 products saw lower fulfillment fees)
  • Conversion rates increased by an average of 21% across successful A/B tests
  • Successful A/B tests equivalent to adding +11 weeks of demand over the course of a year
  • Branded search traffic recaptured - customers now see only Sutera ads and 6/6 Sutera products in search results
  • Cost savings reinvested into advertising, increasing sales and profitability
BuySell

1P vs 3P Financial Breakdown: Auto Parts Brand Case Study

Auto Parts Brand|Automotive Parts|United States
Escalade Kit Gain
+156%
+$215.43/unit
Civic Kit Gain
+53%
+$58.58/unit
Fee Elimination
100%
Zero brand fees
Purchase Price
40%
of MSRP

Goals

Maximize brand profitability and eliminate Amazon fee burden through strategic model transition

Initial Challenges / Pain Points

Challenge 1: Low Net Profit Margin Under 1P Structure

Under Amazon's 1P model, the brand was absorbing nearly all Amazon-imposed fees, resulting in net profit margins ranging from only 15-30% of retail price, significantly eroding profitability.

Challenge 2: Unpredictable Fee Structure

Amazon's comprehensive fee structure including chargebacks, co-op fees, and other costs created unpredictability in financial planning and made it difficult to forecast true profitability.

Challenge 3: High Cost of Goods vs Low Net Revenue

The combination of high manufacturing costs and low net revenue after Amazon fees meant that depending on COGS, the 15-30% margin was quickly eroded, leaving minimal profit for the brand.

Epic Global's Strategy & Execution

Model Transition Analysis

  • Financial Comparison Framework: Conducted comprehensive analysis comparing 1P vs 3P structures. Under 1P, Amazon purchases inventory and the brand absorbs nearly all fees. Under Epic's 3P model, Epic Global purchases inventory at ~40% of MSRP and assumes all Amazon costs.
  • Net PPM Evaluation: Determined that the brand's Net PPM (Profit Per Margin) in 1P arrangement ranged from 15-30% of retail, which could be directly compared to Epic's 40% purchase price offer under 3P.

Results:

The fundamental difference lies in fee responsibility. Under 1P, the brand absorbs nearly all Amazon-imposed fees. Under Epic's 3P model, Epic Global assumes those costs. Our model typically offers ~40% of MSRP - effectively the same outcome as a 40% Net PPM from Amazon, but with operational simplicity and predictability.

3P Model Implementation

  • Product 1: Brake Kit (Escalade, Silverado, Suburban, Sierra, Yukon 2015-2020): MSRP $877.88. Under 1P: Amazon paid $489.85 (56% of MSRP), brand paid $354.13 in fees, netting only $135.72 (15.46% Net PPM). Under Epic 3P: Epic purchases at $351.15 (40% of MSRP), brand pays $0 in fees, netting full $351.15.
  • Product 2: Front and Rear Brake Kit (Honda Civic 2016-2021): MSRP $425.10. Under 1P: Amazon paid $230.23 (54% of MSRP), brand paid $118.77 in fees, netting only $111.46 (26.22% Net PPM). Under Epic 3P: Epic purchases at $170.04 (40% of MSRP), brand pays $0 in fees, netting full $170.04.

Detailed Financial Comparison

Brake Kit (2015-2020 Escalade, Silverado, Suburban, Sierra, Yukon)

Metric1P Model (Amazon Retailer)3P Model (Epic Global Seller)
MSRP$877.88$877.88
Purchase Price Paid to Brand$489.85 (56% of MSRP)$351.15 (40% of MSRP)
Fees Paid by Brand$354.13 (Amazon fees, chargebacks, etc.)$0 (Epic Global covers all fees)
Brand Net Revenue (Actual)$135.72 (15.46% Net PPM)$351.15
Brand Net Gain in 3PN/A+156% (+$215.43 per unit)

Front and Rear Brake Kit For 2016-2021 Honda Civic

Metric1P Model (Amazon Retailer)3P Model (Epic Global Seller)
MSRP$425.10$425.10
Purchase Price Paid to Brand$230.23 (54% of MSRP)$170.04 (40% of MSRP)
Fees Paid by Brand$118.77 (Amazon fees, chargebacks, etc.)$0 (Epic Global covers all fees)
Brand Net Revenue (Actual)$111.46 (26.22% Net PPM)$170.04
Brand Net Gain in 3PN/A+53% (+$58.58/unit)

Results

  • Product 1 (Escalade Brake Kit): Brand net revenue increased 156% from $135.72 to $351.15 per unit (+$215.43)
  • Product 2 (Civic Brake Kit): Brand net revenue increased 53% from $111.46 to $170.04 per unit (+$58.58)
  • Brand eliminates 100% of Amazon fees, chargebacks, and co-op costs
  • 40% of MSRP purchase price provides meaningful profitability vs 15-30% net under 1P
  • Operational simplicity and financial predictability with zero fee burden

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