Direct Home SuppliesGross Profit Up 46% After 1 Day with ChannelAdvisor’s Algorithmic Repricer

Company Overview

You name it, and Direct Home Supplies probably carries it. From clothing and nonperishable foods to automotive supplies and electronics, this six-year-old supplier ships millions of name-brand products directly to consumers through drop and direct shipping. The company prides itself on offering ready-to-ship, exceptional products at great prices.

The Situation

Direct Home Supplies’ benefits to customers include not only the promise of high-quality home goods, but the guarantee of competitive pricing as well. With 2 million SKUs and around 800-900,000 ready-to-ship SKUs, moving fast is a must for the company. It’s also a task that can become incredibly time-consuming. Nowhere is this truer than when selling on Amazon.

“It’s always a race to the bottom with Amazon,” said Direct Home Supplies President Mike Solomich. “The marketplace is getting more competitive each day, with more and more sellers launching and impacting pricing. The more you own the Buy Box, the better you do. It’s of huge importance and directly relevant to sales.”

Enter the Algorithmic Repricer. With this ChannelAdvisor tool, Solomich discovered a new
way to update prices quickly and improve sales…without sacrificing valuable resources or
man hours.

The Solution

Within one day of being applied to 11,000 SKUs, the Algorithmic Repricer led to some very promising outcomes.

“We were especially impressed to see the Buy Box go from just over 7% to nearly 17%, and to see the gross profit go up significantly as well,” Solomich said. “It was shocking, actually. To experience a big Buy Box jump and see that you also made an extra 46% is pretty impressive.”

Perhaps most noticeable, Solomich added, was the fact that those increases were accomplished with less work. “This repricer touches everything faster. It not only helps improve sales but also allows for a more hands-off approach.”

The Results

“Seeing numbers increase across the board as I did is huge,” said Solomich.

After 24 hours with ChannelAdvisor’s Algorithmic Repricer, Direct Home Supplies was winning 135% more of the Buy Box compared with a day earlier. The company also saw a 26% increase in total revenue and 46% increase in gross profits.

“The Algorithmic Repricer not only helps with total sales, but can also help grow the business,” Solomich observed. “You can go to manufacturers and get extra discounts, get more products to market and ultimately drive the revenue even further.”

After seeing the success of testing 11,000 SKUs during the beta period, Solomich then applied the Algorithmic Repricer to 75% of Direct Home Supplies’ catalog, over 720,000 SKUs.

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