Case study

How DF Omer® transformed from a $120K unprofitable Amazon vendor to a $4M profitable Amazon FBA seller

Client Overview

Company Name

DF Omer®

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Industry

Lawn and Garden Products

Business Location

USA

Marketix Services Used

Inventory Management, Logistics Planning, Profitability Management, PPC Campaigns, Catalog Images & Videos, New Product Line Research

Platforms Managed by Marketix

Amazon USA, Amazon Canada, Amazon EU,Home Depot, Wayfair and Walmart

About the Client

D.F. Omer Ltd. is one of the leading international suppliers of home and garden products with over 100 years of combined leadership team experience. As a recognition of our outstanding innovation and new product development, we at D. F. Omer Ltd. were recently awarded the Miracle-Gro license for these corporate qualities.

Before vs. After Stats

Annual sales before

$ 0

Annual sales after

$ 0

ACoS before

0 %

ACoS after

0 %

Conversion Rate before

0 %

Conversion Rate after

0 %

The Challenge

DF Omer faced multiple challenges that hindered their growth on Amazon. Their composters were underpriced on Amazon Vendor, leading to unsustainable losses. Poorly optimized product listings with subpar images and copy failed to attract and convert customers effectively. Additionally, high return rates, logistical inefficiencies, and insufficient inventory management further constrained their ability to scale in the highly competitive home and garden market. These obstacles needed to be addressed to unlock their true potential.

Inventory Management:

We developed a detailed forecast with projected growth percentages and collaborated closely with DF Omer to ensure adequate inventory levels that aligned with their expected growth trajectory. This approach enabled them to maintain stock availability and scale effectively.

Logistics:

DF Omer struggled with inventory management, frequently facing stockouts or overstock situations due to a lack of accurate forecasting. This inconsistency disrupted their ability to meet customer demand and hampered growth opportunities. Without a reliable system to predict and align inventory levels with sales growth, their scalability and operational efficiency were significantly impacted.

Profitability Management:

Inconsistent pricing led to low profit margins

PPC Campaigns:

DF Omer’s advertising strategy was inefficient, resulting in high Advertising Cost of Sales (ACoS) and wasted ad spend across both Amazon USA and Canada. Without a targeted and optimized approach, their campaigns failed to generate sufficient returns, limiting their profitability and hindering their ability to scale effectively in these markets.

Product Listings:

Product listings lacked high-quality videos and images, resulting in lower conversion rates than those of the top competitors.

Customer Support

DF Omer was struggling with high return rates and a low average review score, largely due to unclear product instructions. To address this, we created a comprehensive digital instruction guide featuring an interactive image slider. This improved customer understanding and satisfaction, leading to a 35% reduction in return rates and an increase in the average review rating from 3.6 stars to 4.3 stars.

Key Metrics Before Engagement

Annual sales

$ 0 K

ACoS

0 %

Conversion rate

0 %

Stockouts

Frequent during peak season

TACoS

High

The Solution

Inventory & Logistics Management:

Profitability & Pricing:

We performed an in-depth profitability analysis to identify underperforming SKUs and implemented strategic pricing to maintain competitiveness and profitability year-round.

PPC Campaign Optimization:

We implemented a comprehensive advertising strategy to address the inefficiencies and reduce ACoS. This involved restructuring campaigns with targeted keywords, optimizing bids, and focusing on high-performing products. Additionally, we introduced advanced analytics to monitor campaign performance in real time, allowing for continuous adjustments to maximize ROI. These changes significantly improved ad efficiency, leading to better profitability and sustainable growth in both the Amazon USA and Canada marketplaces.

Catalog & Listing Enhancements:

Our team created professional videos and high-quality images for all product listings, significantly improving consumer engagement. These enhancements we implemented resulted in an increase in conversion rates from 5% to 10.2%, all due to the improved marketing materials.

Customer Support:

To resolve these issues, we developed a comprehensive digital instruction guide with an interactive image slider. This user-friendly guide provided clear, step-by-step instructions, making it easier for customers to assemble and use the composters correctly. As a result, customer satisfaction improved significantly, leading to a 35% reduction in return rates and an increase in the average review rating from 3.6 stars to 4.3 stars, strengthening DF Omer’s reputation and product performance on Amazon

The Results

Through our comprehensive strategies and collaborative efforts with DF Omer, the results were transformative.

Revenue Growth:

Annual sales skyrocketed from $120K as an Amazon Vendor to over $4M as a profitable Amazon Seller in the USA—achieved in just three years.

Improved Profitability:

Transitioning to the Seller model and optimizing pricing allowed DF Omer to become profitable, eliminating the losses they faced as a Vendor.

Reduced Return Rates:

The introduction of a digital instruction guide reduced return rates by 35%, improving customer satisfaction.

Enhanced Review Ratings:

The average review score increased from 3.6 stars to 4.3 stars, strengthening customer trust and brand reputation.

Efficient Inventory Management:

Implementing a detailed forecast and aligning inventory with projected growth ensured consistent stock availability, supporting scalable growth.