How Ecommerce Prevented a Brand Crisis for Yogi During Retail Stock Outs and Grew Sales over 100%

Katie Lavin

July 6, 2022

Most executives understand the importance of dedicating time and resources to a retail strategy but may underestimate the potential revenue from an ecommerce strategy.  Unexpected problems can arise on either of these channels, so it is imperative brands operate both channels at full throttle so if one fails, even for a short period, the other can pick up the sales.

Yogi has long-term, profitable relationships with brick and mortar retailers such as Walmart and nationwide grocers, but wanted to also be available online.  So Yogi invested in a partnership with Pattern, the top global ecommerce accelerator, to solidify their ecommerce strategy and presence, which allowed Yogi to survive and thrive during the world's most turbulent retail period.

COVID Hits, Consumers Panic and Yogi Stocks Out at Brick and Mortar 

When the COVID-19 pandemic hit in March 2020, it immediately changed the global retail landscape as consumers, in a state of uncertainty, were flocking to stores to stock up on daily essentials and health remedies.

Like a majority of other health remedies and self care solutions, Yogi recognized a significant uptick in overall sales.  In terms of products, the Get Well Variety Pack demand almost doubled that of previous months.  With consumers lining up at brick and mortar stores, many retailers were overwhelmed, could not get more supply, and quickly ran out of stock. 

Yogi keeps extra raw materials and finished product in stock in their warehouse, so the brand is normally prepared for small shifts in consumer demand.  However, this demand shift was completely unprecedented and unpredictable, leaving them unprepared.

Consumers' Only Option—Buy Yogi Online

As a Pattern partner, Yogi had been developing a well-rounded and effective ecommerce strategy well before the pandemic. So, in Spring 2020, when brick and mortar sales dropped to zero, Yogi’s overall business was able to maintain steady revenue.

Since consumers could no longer buy Yogi tea varieties in physical stores, they immediately turned to marketplaces like Amazon, Walmart, and others to find Yogi’s products.

How Yogi Survived COVID

Pattern, an ecommerce accelerator, invests in its partners by purchasing inventory as well as applying proprietary technology and data-driven insights to the entire ecommerce journey.  By owning the inventory, Patten made sure Yogi was able to positively respond to the online demand shift because Pattern keeps up to 12 weeks of stock for Yogi exclusively for Amazon  Additionally, Pattern holds additional backstock for marketplaces that are more volatile with a smaller baseline.

Pattern also worked with Yogi to develop an ecommerce strategy that would not only keep them in stock on ecommerce platforms, but also get their brick and mortar retailers back on track. First, Pattern temporarily discontinued 4-pack sizes on Amazon so Yogi could fulfill inventory back to their brick and mortar stores.  Then, Pattern focused its efforts on 6-pack sizes so that both channels could have positive revenue from the updated bundles/packaging until all channels were back on track.

Yogi Tea Sales and New Consumers Spike Over 100%

4-pack sales are up 103% year over year. Pattern’s data-driven strategy to temporarily discontinue the 4-pack size, in order to get all retail channels back to profitability, had no negative impact on long term SKU growth.

New customers increased up to 110% and repeat customers increased up to 100%. Since the initial demand spike in spring 2020, Yogi has seen two additional large demand spikes, each one greater than the previous (Q4 2020 and Q1 2022).

Yogi’s retail AND ecommerce platforms continue to grow. While each spike brought unexpected challenges, Pattern and Yogi were able to minimize damages.

Pattern Delivers for Brands During Times of Uncertainty

Pattern has the unmatched, proprietary technology, data, resources, and marketplace expertise to develop and execute a brand’s ecommerce strategy, giving brands peace of mind during turbulent times.  Pattern invests in a partner's inventory which leverages data-driven solutions, product innovation, and inventory and fulfillment expertise that benefits all your retail channels, even during a global pandemic.

Get in touch with our team to learn how Pattern can develop and execute your ecommerce strategy.

Explore Our Ecommerce Resource Library

Find relevant content to accelerate your ecommerce business. Stay on top of industry trends and best practices.

Ecommerce Accelerator vs. Aggregator
Blog

Ecommerce Accelerator vs. Aggregator

You may be a big brand or an emerging challenger looking to grow on Amazon and other marketplaces. Your goals seem simple: to grow your profits and stay in brand control. You know you need help, but who do you turn to? An aggregator or an ecommerce accelerator? Like most executives you ask, “What is the difference?”

As an ecommerce accelerator, Pattern helps brands stay in control and maximise profitability worldwide. We are acutely familiar with the confusion (aggregator vs accelerator) and will break down the differences so you can understand why an ecommerce accelerator, like Pattern, is the right partner for your brand to maximise its potential on global marketplaces.

The Simple Difference: Purchase vs Partner

Aggregators are typically purchase-focused. They will buy and scale third-party brands on marketplaces. Their strategy is to acquire brands that fit their strategic vision and then grow them through operation. 

In ecommerce, aggregators tend to be relatively new companies that invest in Amazon-focused brands and then apply a wide range of strategies to grow them. Strategies like technology, economies of scale with other brands, and tapping into historical data on Amazon from their portfolio of brands.

Rather than purchasing brands, ecommerce accelerators partner with brands to apply data-driven technology and expertise to increase revenue growth for that brand across major online commerce channels, including D2C sites, ecommerce marketplaces such as Amazon, Tmall, JD.com, noon, Zalando, and beyond.

Accelerators can help their brand partners bridge the gap between one-off metrics and the lifetime value of a customer, which is a much more accurate indicator of the long-term growth and success of a brand. This collaboration and communication typically enables the brands to become much more strategic about both short-term investments and longer-term product development.

Pattern, an ecommerce accelerator, works with brands to accelerate sales by buying the brand’s inventory, using proprietary technology to maintain brand control on marketplaces, and accelerate growth (traffic, conversion). Pattern uses data insights and expertise to figure out where the gaps are in sales, optimising the brand across marketplaces, and identifying insights for boosting margins.

They Can Co-exist

Accelerators and aggregators are not direct competitors. Remember, aggregators buy brands, whereas accelerators buy stock in the inventory, so aggregators may hire an accelerator to move product.

But, even together, accelerators do the heavy lifting. Brand aggregators may get the press, but ecommerce accelerators often do the hard work of helping brands grow on Amazon and beyond. Accelerators bring the data and operational know-how to identify and capitalise on opportunities and the experience to help overcome common difficulties.

As a result, brand aggregators and accelerators are not competitors but different approaches to the same goal: sustained growth for brands. And with all the aggregation that has already occurred, acceleration with a partner like Pattern will be the mandate for future proofing your brand.

Which Will Bring Your Brand Success?

Most aggregators are good at sizing up an acquisition but may lack the total experience needed to operate a business on Amazon and other marketplaces. Aggregators need to become accelerators if they are going to continue to survive. It's not enough to acquire brands, you have to grow them.

Pattern is an ecommerce accelerator that helps brands succeed on marketplaces like Amazon, TMall, JD.com, Zalando, and more. As a partner who has stock in your inventory, Pattern applies its proprietary technology and data-driven insights to help brands stay in control and get a piece of the $6 trillion global ecommerce market.

Are you ready to accelerate? Contact Us Today.

Ecommerce Accelerator vs. Agency: What Makes Them Different?
Blog

Ecommerce Accelerator vs. Agency: What Makes Them Different?

Ecommerce accelerators are taking the industry by storm, and catapulting brands to new successes. But, since an ecommerce accelerator is a third party relationship, isn’t an ecommerce accelerator actually just another agency on a brand's roster?  

While the two sound similar, ecommerce agencies focus more heavily on providing services and deliverables within a specific scope of work and time period in exchange for payment, while ecommerce accelerators lean into full-fledged partnership, helping grow brands in exchange for a share of profits.

As an ecommerce accelerator, Pattern partners with brands to provide the technology, expertise, and resources brands need to grow revenue and profits across marketplaces around the world. And, unlike other accelerators or agencies, Pattern invests even deeper in each opportunity by taking stock in a brand’s inventory.

Ecommerce Agency vs. Ecommerce Accelerator

Agencies Provide Deliverables

Ecommerce agencies work for your brand to provide a variety of services.  From marketplace SEO to product photography, agencies are contracted to provide a set period of support and/or a number of specialised deliverables.  By taking things like content creation, listing optimisation, and reporting analysis off your plate, agencies allow your brand to focus on other important aspects of your ecommerce business.

However, agencies have their downsides. A scope of work usually includes a flat agency fee, or retainer, aka the benefit of working with them, as well as variable costs.  Plus, the “unexpected costs” like creative shoots, overages, and rush fees.  Because agencies are often paid for work completed and not results achieved (for instance, media agencies are typically paid on a percentage of total ad spend) your goals aren’t always aligned.

Hiring a handful of different, specialised agencies only makes aligning a brand’s marketplace goals even harder since each agency is working with its own data and providing siloed reporting.  Having a bloated agency roster typically means that the tech stacks do not integrate or even talk to one another. By working with one team for advertising, another for graphic design, yet another for customer service, and the list goes on, your ecommerce team is left piecing together the different results to identify new opportunities and create one holistic strategy. 

Ecommerce agencies help alleviate some of the stress on your team, but can create more work connecting the data to the larger business strategy, wasted time going back-and-forth on approvals and processes, and may require more investment in technology to integrate the disparate reports.

Accelerators Provide Partnership

Like an agency, an accelerator is a third party that works with your brand to provide the expertise and resources you need to optimise for marketplaces and ecommerce opportunities.   But unlike an agency, an accelerator buys your inventory and works side-by-side with you to grow your brand and is a one-stop shop for an entire marketplace solution.

Ecommerce accelerators have the same services and capabilities like listing copy, product imagery, and data and analytics that both relieve your ecommerce team and drive traffic to and conversion for a product. But accelerators have the scale to go a step further and full-service resources to provide every step along the way like customer support, inventory forecasting, warehouse storage, packaging product bundles, shipping logistics, and more.   All without surcharges, separate fees, or hidden costs.

Accelerators provide these services under one roof. No more disparate data or disconnected strategies. Ecommerce accelerators can help you optimise your marketplace offering from start to finish, and help you understand how each aspect (inventory, SEO, promotions, etc.) affect the others.

At Pattern, we accelerate your brand by buying your product inventory, helping you optimise for sales, getting orders to customers, and finding actionable insights along the way to enhance the process going forward. As an extension of your ecommerce team, we don’t succeed unless you do, helping us get aligned from day one.

Accelerators—A Long-Term Solution for Brands

While agencies may relieve some pressure and provide expert advice on one specific area of your ecommerce business, accelerators partner with your brand, taking on the workload to drive your revenue. Agencies want you to succeed, but accelerators rely on your success, instantly aligning accelerators to growing your brand.

A leading ecommerce accelerator, Pattern takes stake in your inventory and provides the resources and technology needed to accelerate ecommerce growth and drive profitable revenue on marketplaces like Amazon, Tmall, JD.com, and beyond. 

Want to streamline your agency roster? Set up a meeting now.

Pattern UAE Shopper Report 2022 Cover Image
Blog

Shopper trends and growth opportunities for brands in the United Arab Emirates

Pattern’s 2022 Amazon United Arab Emirates (UAE) shopper research has highlighted the consumer habits in the region, and demonstrated why it is fast becoming one of the most exciting growth opportunities for brands selling online. We surveyed UAE online shoppers at the beginning of 2022 to determine how their shopper behaviour was likely to develop during the year compared to 2021. We compiled our findings in the UAE Shopper Report 2022 and share the most interesting insights shown below. Shoppers have an appetite to spend Online spending in the UAE is set to see a year-on-year increase during 2022. Overall, 74% of online shoppers polled said they would spend more online shopping this year compared to 2021. A further 19% expected to spend the same as in 2021, with just 6% expected to spend less. Of the 74% who expect to spend more during 2022, nearly half (47%) said this figure was likely to be a lot more. Online marketplaces lead the way More respondents expected to purchase online this year from Amazon or Noon than other online retailers for every major product category, including fashion, consumer electronics, home and kitchen, and beauty. For example, in the consumer electronics category, 61% of online shoppers expect to buy from Amazon, and 42% from Noon. In comparison, only 14% expect to buy online from retailers with both stores and a website. For home and kitchen, 60% expect to buy from Amazon, 46% from Noon and just 18% to buy online from retailers with a store and website. This pattern is mirrored in many other categories. Amazon opens new doors The opportunity for consumers to discover new products and brands through Amazon is evident. 42% of Amazon.ae shoppers purchased a product from a brand that they had never purchased before. Our findings show that Amazon.ae is a great platform for brands to raise their profile amongst UAE’s online shoppers. Our UAE Shopper Report shows the growing popularity of Amazon in the region, with shoppers using Amazon to find new products and discover new brands. With increases in usage, spending and Prime membership across almost all age groups, Amazon.ae is a platform where consumer brands must build a strong presence if they want to achieve Middle Eastern sales growth. The UAE’s ecommerce market size is predicted to grow from US$10 billion in 2021, to US$17 billion in 2025, reinforcing the opportunity for brands to achieve profitable growth in the region. Download the full [2022 UAE Shopper Report](https://info.pattern.com/uae-shopper-report-2022) to learn more about the insights we have gained from this research.

Contact Us

Let’s accelerate together. Our marketplace experts will walk you through how our ecommerce acceleration technology and services help you grow faster, protect your brand, and sell globally.