By Entrepreneurs for Entrepreneurs, the catchy slogan, which is at the core of BrandHero – for the new crowd – an European based Amazon Aggregator. Whilst 2021 saw the rise of Aggregators, we have been quietly making noise to start the new revolution within the industry – The Amazon Aggregator 2.0.
E-commerce is the future of retail and a contributing driver of this growth are third-party marketplaces, including Amazon, Alibaba, eBay and others. While the marketplaces have made it easier than ever to launch a digital-first brand, the process of getting products to consumers doors has never been more complex. Whilst many Aggregators see the challenges and frustrations of the ongoing complexities of supply chain as an insurmountable hurdle, we are proud to say that we are different. At BrandHero, we have a competitive edge and are viewed as true operators, which allows us to acquire brands that no other aggregator would be able to operate. Take as examples our two flag ship brands – Tech Therapeutics and Home Icon. Within each of these brands, a specific major focus area was identified in each case, which became the priority of our strategy to facilitate future growth most efficiently.
“We saw great potential in the brand, the category and the ways to optimize their actual market position, but, what is more important, a great potential for improvement in the inventory location, the stock levels and, in general, reducing the costs in the transport of goods. A correlation size/weight vs low prices is an excellent recipe for online sales”, explains Lucas Villanueva, co-founder and COO of BrandHero.
Home Icon, a UK cookware brand, which was an Amazon Choice for their copper non-stick woks and also other non-stick fryers & pans, had revenues of €500,000 in 2021 selling only in the UK. For Home Icon, the main linchpin in the growth strategy revolves around optimizing the supply chain and taking advantage of the scaling benefits of being an e-commerce aggregator, rather than an individual operator. The increased size allows for more rapid scaling and an accelerated expansion of both the product line and new marketplaces. Now, with the BrandHero engine behind it, projections are to increase sales by over 100% to €1,200,000 by the end of 2022.
“Some brands or products are more difficult to operate and there are not many aggregators that are willing to take such risk. We believe that is what makes us different, since we feel comfortable assuming certain challenges in the supply chain area, although we are aware that, on the long run, only a few players could manage the daily operation and have success”, says Carsten Bang Jensen, CEO and co-founder of BrandHero.
As both brands had revenues under €1M, they were overlooked by many aggregators. By being operation-focused, we were able to see the growth potential. Using pertinent data we conducted a thorough analysis which contributed to the sale and quick success in optimization. Given our in-depth knowledge of FBA, supply chain and a history of optimizing Amazon brands, we are already in course to hit these targets.
On top of these specific focus areas for each brand, we have also worked on more general optimizations of the brands’ listings – we have updated creatives (photos and videos), SEO title tags, ensuring each listing was Amazon TOD compliant, as well as increased advertising spend.
On the topic of growing under optimized brands, Joaquín Otamedi, CMO of BrandHero & Co-founder & Managing Director of the Amazing Agency added:
“There is a huge opportunity in the development of niche products, which thanks to the marketplace we will be able to reach a greater number of users. And thereby achieve economies of scale that boost the profitability of brands and thereby benefit the end user by optimizing the quality-price binomial. In the medium term, the goal is to build a quality brand image in e-commerce.”
We look to the future with great optimism, and predict that, by the end of 2022, we’ll have multiple brands of different categories, with the aim of becoming a reference operator in the e-commerce sector.
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