Indigo Wild is a bar soap, detergent, and home/body/skin care brand that combines nature and natural ingredients, scent, and positive energy. With a quirky and high performing, yet limited, direct to consumer business, they wanted to expand their reach via Amazon.
1P vs 3P Partner on Amazon
Without the resources to maintain its brand presence or manage logistics on the marketplace, launching a 1P seller account felt unsustainable. Instead, Indigo Wild was looking for an experienced 3P partner to effectively accelerate their growth by launching more effectively on Amazon and taking ownership of and growing the brand on the marketplace.
With deep Amazon experience, Pattern knew the various Indigo Wild product lines may also be a good fit for Amazon’s Subscribe and Save (SNS) model.
Not All Brands are Eligible for Amazon Subscribe and Save
There are several requirements for a brand to be eligible for Amazon SNS, it is not something everyone has access to. For instance, brands must provide:
- Fulfillment history with an 85% in-stock rate.
- A professional seller account in good standing.
- Inventory must be in an FBA warehouse (i.e. you cannot enroll in Subscribe & Save with your own inventory).
- Seller feedback rating of 4.7 or higher.
- Fulfilled by Amazon seller for at least three months.
Pattern’s Data-Driven Insights Target the SNS Opportunity
Pattern used its own technology to pull data-driven insights, which singled out Zum (Indigo Wild’s laundry detergent) as the best candidate for SNS to generate the most sales. Pattern launched SNS in early 2022 for Zum laundry soap (an Indigo Wild brand), after they had been a Pattern partner for a year and a half.
In addition to managing the Amazon requirements and administrative SNS setup, Pattern’s team:
- Enabled the program with permissions and coding
- Applied SNS to all applicable products
- Created matching subscriptions
Zum’s Subscribe and Save Hits 20% YoY Growth
Offering a 5% discount to shoppers, no matter what the replenishment cadence, Zum conversion rate increased with the price incentive.
Key Results:
- Indigo Wild laundry soap had 20% YoY growth (compared to 2021)
- In Q1-Q2 2022, 10.5% of Indigo Wild total sales by Pattern came from Amazon SNS
- Total Amazon Subscriptions: 8,572 in Q3 2022
- Repeat Amazon Subscriptions: 4,314 (53%) in Q3 2022
- Average Revenue/Customer on Amazon by Pattern: $47
In its search for a 3P partner, Indigo Wild needed Pattern’s Amazon expertise and full-suite of resources (advertising strategy/spend optimization, Account Health & CS management, etc.) to help them save time and manpower, be agile with advertising spend, and help with brand integrity and price protection.
Once the Pattern team launched Indigo Wild on Amazon, Pattern’s data-driven insights pinpointed a key sales opportunity in the category via the SNS model. A true 3P partner, Pattern transformed Zum’s Amazon sales with SNS, something they may not have been able to achieve alone as a 1P seller.
Ready to accelerate your brand on Amazon with a 3P Partner? Contact us.
