The electronics brand has increased contribution profits by $433,687 within 5 months
Top 3 brand in the Electronics niche has transformed their operations with Nyle.ai and boosted their annual contribution profits by 54%, adding $433,687 in contribution profit in just 5 months.
Industry:
Electronics
Location:
USA
Company Type:
Brand
Marketplace:
Amazon USA, Amazon CA
By using Nyle.ai, our client was able to achieve the following goals within just five months:
Labor productivity
+ 50%
Storage Fees
- 48%
Contribution profit
+ 54%
The Challenge
In 2021 our client has been struggling with high shipping costs (6.94% of total revenue) due to disorganized planning of shipments and high storage costs (3.46% of total revenue) due to not using demand forecasting solutions. There has been some stockouts for some of the best selling items, causing the Total Out of Stock rate to be 5%.
High shipping costs
6.94% from revenue
High storage cost
3.46% from revenue
Lost sales
-$128k
- 5%
The Solution
With our unique shipping recommendations, our client was able to identify effective methods for shipping products through Amazon’s fulfillment system and increase the speed of creating new POs by 17%.
Shipping cost reductions of 24%
Due to twice shorter distances, better partner program quotes, and planning ahead without the need for air shipment, they achieved shipping cost reductions of 24%.
By grouping orders together in the same packages for maximum price efficiency, forecasting future demands with high degrees of accuracy, they were able to improve their Amazon inventory performance by nearly 60%, which means more efficient inventory management, optimization of sales and lower storage costs.
Amazon IPI score
+ 60%
Nyle.ai algorithm has helped the client to create 95% accuracy demand forecast for several months ahead and provided the most optimal shipment recommendations to avoid negative events in the future.
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