Scaling Optimal Prices to Amazon to Drive Accelerated Profit Growth
Wall Charmers is on a mission to reinvent how people design their spaces. Their unique and intuitive products are designed to create the perfect rustic modern look in any space.
The Wall Charmers products really resonate with their market on Amazon. As a result, the company has experienced some pretty massive success on the marketplace. Growth in their product catalog combined with an increase in Amazon organic demand on the SERP drove revenue growth. While revenue is a great problem to have, the company was leaving serious profits on the table.
The Wall Charmers team was doing a solid job of generating revenue and demand for their private label Amazon business, but they were not accounting for profit based on different demand levels. The Wall Charmers team spent a lot of their time on manually pricing products. With a total of 80 unique ASINs in their Amazon US, figuring out the optimal price to maximize profit without hurting their competitive BSR (Best Seller Rank) on Amazon was cumbersome and daunting. While they have tried other repricers in the past, they found these private label repricers to be insufficient and rudimentary as they are mostly based on if-then rules. As Viktor Morozov, Wall Charmer Co-founder, explains, “We used other repricing tools in the past that weren't dynamic.They were more static and one-sided thinking. We wanted a tool that could account for more, such as competition, the market and other factors that affect sales.”
A Profit Acceleration Platform Harnessing AI That Actually Delivers
Wall Charmers implemented the Profasee dynamic repricer leveraging proprietary AI that directly addressed all of the companies most pressing pricing and profit challenges.
Profasee helped Wall Charmers improve their teams efficiency around pricing, productivity, and overall profit contribution of the Amazon channel.
Viktor also points out how Profasee’s dynamic pricing AI enabled their team to focus on strategic work instead of getting bogged down with the drudgery of manual pricing optimization.
Viktor explains “Profasee eliminates the guessing game around pricing. It provides factual information about what's going on in the market and is able to give sellers like myself a hands off approach to pricing and delivers more profit.”
After experimenting with the software for the first month, Profasee's AI determined that many of Wall Charmers' SKUs were underpriced and that they could generate additional profit by increasing prices on certain days. Profasee also identified large shifts in consumer demand at different days allowing Wall Charmers to optimize every penny of profit. . As a result, Profasee made gradual price adjustments, ranging from a 25% increase to a 5% decrease from the original price, which greatly improved their revenue, unit velocity and profit contribution - automatically.
30% Profit Lift and $90K in Additional Profit Straight To The Bottom-Line
After using Profasee's dynamic Amazon repricing software for just a few weeks, Wall Charmer's saw significant profit lift on the repriced ASINs. “As the price of our ASINs went higher and higher and higher, we saw not only our profit lift but also, our sales even went up despite those higher prices. It was interesting how the software was able to find this ideal price for both profit and BSR” explained Viktor. After the first month of experimentation, Profasee calculated a profit lift of 30% for the 31 repriced ASINs, equivalent to an extra $7,500 per month and a total of $90,000 in annual profits that flow directly to the bottom-line.