Turning Wholesale Woes into Woohoo:
How Our Strategies Helped a Business Achieve Success with a Smile!
Problem
The client faced several challenges in their wholesale business. Firstly, they faced intense competition due to low-ticket products, leading to lower profits. Secondly, their IPI (Inventory Performance Index) score was low due to poor inventory management, resulting in the unavailability of profitable products. Thirdly, the client encountered difficulties due to IP infringement issues, hampering their business growth. Lastly, most of their capital was tied up in slow-selling and less profitable inventory.
Solution
To address these challenges, the client was advised to shift towards high-ticket products that would increase profitability and reduce competition. Additionally, the implementation of Smart Inventory Management (SIM) practices helped eliminate risky inventory and avoid expensive Amazon storage fees. The client’s IP infringement issues were handled by our team which handles reinstatement cases every day, and the client was encouraged to source authentic brands and distributors to prevent future issues.
Outcome
As a result of these solutions, the client saw a significant increase in profits of more than 13% by investing in high-ticket products. They also improved their cash flow by 29%, freeing up capital for investment in more profitable products. Moreover, their sales velocity improved, creating space for new products in their inventory. Finally, the elimination of IP issues made the wholesale business hassle-free for the client, leading to renewed enjoyment in their wholesale operations.
