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Case Study

National Kitchen Goods Brand

How a $500M+ Multi-National Household Goods Brand improved profitability and catalog coverage with a hybrid 1P/3P model using Marketplace Valet

About the project

Marketplace Valet partnered with the Household Goods Brand, a manufacturer of fine trash cans and trashcan liners, to facilitate 3P sales for the company on Amazon.com

Challenge

As a massive home goods brand, they were well known in the category and have a significant retail distribution model. Therefore, because of Amazon’s Manufacturer on Amazon (MOA) Policy, the Amazon vendor team would tell the brand that they could not have their 3P seller account. This situation results in Amazon essentially controlling the narrative for how big brands will exist on the site, and Amazon will control the retail price point.

Proposed Solution

By leveraging Marketplace Valet’s 50k square foot FBA facility in Corona, CA, we could easily handle inbound truckloads of product and turn it around to FBA in a day. Utilizing our 3rd Party Seller Account, we could list the brands’ products for sale and set prices according to their policy. Additionally, Marketplace Valet developed some custom connections to route orders to their distributed fulfillment centers, helping to bring online many more SKUs in their catalog and optimizing for fulfillment fees.

Results

The brand was able to have full catalog coverage on Amazon.com which led to more sales. Leveraging the brand’s distributed fulfillment network meant that we could also help them cut down on the operation fees to fulfill marketplace orders. By taking a 1P / 3P hybrid approach, we could analyze profitability at an SKU level for both programs to help the Brand make an informed decision about which way to shift the catalog.

Conclusion

Partnering with Marketplace Valet helped this Trash Can manufacturer optimize their catalog for profitability. Utilizing Marketplace Valet to list through our 3rd Party Seller Account allows the brand to open up 3P selling as an option, and not be in violation of any Amazon MOA policy.

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