Amidst the challenges of the pandemic, Discount Promos seized the opportunity to transform their surplus inventory into a thriving business venture on Amazon Business.
Discovering a Niche
Faced with an unexpected surplus of inventory, Discount Promos saw it as an opportunity to explore new avenues for their business. As they delved into Amazon Business and all that it had to offer, they were immediately drawn to its customizable module, which allowed them to tailor their offerings to meet customer preferences. They then identified an untapped opportunity for customized bulk orders. Their journey commenced with a small selection of just six items, including ceramic mugs and glassware.
Discovering Their B2B Potential
As their product offerings expanded, they noticed an unexpected trend - interest from other businesses. This was a turning point for Discount Promos. Recognizing the untapped potential for growth within the B2B space, they embraced Amazon Business tools and features to amplify their visibility and attract more B2B customers. Acquiring Certifications and establishing a Business Profile was important for them to establish their credibility and stand out in this new landscape.
Driving Success Through Amazon Business
What began with just six products rapidly expanded into an impressive collection of over 800 unique items across 20 categories on Amazon Business. The addition of large pack options to their product offering played a significant role in this expansion, allowing Discount Promos to cater to the growing demand in bulk orders in various categories, including tote bags, sunglasses, stationery supplies, and more. This remarkable growth was fueled by two factors:
Case Pack: By offering case packs, Discount Promos indirectly provided their B2B customers with more affordable per-unit prices. This structure resonated with businesses, enabling them to reap the benefits of bulk purchasing. As a result, they gained traction within the B2B sector and drove their B2B sales to skyrocket.
Amazon Bulk Services (ABS): By leveraging Amazon Bulk Services, they were able to maximize their growth potential by enrolling over 6,000 large packs in the program. This feature enabled them to link single units with case packs and pallets of the same product. The significant referral fee discounts, ranging from approximately 20 to 25% for Discount Promos’ selection, allowed them to reinvest these savings into targeted marketing campaigns and attract a wider customer base.
"Amazon Bulk Services (ABS) serves as a platform that empowers us to extend volume discounts to customers on bulk orders, translating into competitive pricing and enhanced marketing for our products."
— Simon Tisminesky, Head of Strategy, Discount Promos
“ABS serves as a platform that empowers us to extend volume discounts to customers on bulk orders, translating into competitive pricing and enhanced marketing for our products. This strategic approach swiftly led to a noticeable rise in units per order from both B2B and B2C customers,” explained Simon Tisminesky, Head of Strategy at Discount Promos.
Over the course of three years, Discount Promos experienced a remarkable growth in their B2B sales, reporting that their share of sales from B2B customers increased from 8% to an impressive 32%. This growth was driven by the higher average order value (AOV) they received from their B2B customers. With the increased AOV, they were able to allocate more resources towards marketing, which in turn boosted their B2B expansion even further. As a result, Discount Promos’ B2B sales consistently outpaced their B2C sales year after year.
Joining Amazon Business marked a new chapter for Discount Promos. As they started catering to B2B customers, they witnessed shifts in customer behavior and journeys with the ability to use Amazon Business’ analysis tools. “By joining Amazon Business, we tapped into a vast network of business customers and experienced unparalleled growth. The platform’s algorithms and access to valuable insights propelled our success to new heights,” added Simon.
"By joining Amazon Business, we tapped into a vast network of business customers and experienced unparalleled growth. The platform’s algorithms and access to valuable insights propelled our success to new heights."
— Simon Tisminesky, Head of Strategy, Discount Promos
Discount Promos primarily serves educational institutions, commercial real estate, food service, and hospitality businesses. By utilizing Amazon Business tools, they gained insights into each of these customer segments. This knowledge enabled them to fine-tune their listing content, directly addressing the needs and preferences of their B2B target audience. This customer-centric approach solidified their position as a trusted seller within these industries.
Discount Promos’ transformation from surplus inventory to a thriving business on Amazon Business showcases their ability to adapt, evolve, and capitalize on untapped markets. Businesses can learn from their story of leveraging the right tools and platforms, identifying opportunities, and prioritizing customer satisfaction in order to grow their business.
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