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.

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Pattern UAE Shopper Report 2022 Cover Image
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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.

People of Pattern - Ellie Dolphin
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Ellie Dolphin, Brand Manager: People of Pattern

At Pattern, we believe the key to success is our team members. Our PeopleofPattern series shines a light on the people that make Pattern great, learning about their roles, experiences, and what it’s like to work at Pattern. This week we spoke with Ellie Dolphin, Brand Manager in our London office. Could you tell me a bit about your role and experience working at Pattern? I work as a Brand Manager in the Brand Management team here in Pattern’s London office. I’ve been working here for two years now, having started in 2020. I act as the main point of contact for our brand partners, in my case I work with Rituals. I work as their key stakeholder within the business to help them liaise with all of our other functions. This includes our merchandising team, ordering team, advertising team, the warehouse team, and operations team, so it is a beast of a task! This alignment ensures the brand’s business is optimised and we are making good commercial decisions to hit their objectives on marketplaces like Amazon. Why do you choose to work at Pattern? My previous role was quite different to where I am today. I previously worked in a translation team, so we were always reacting to decisions that other people made and translating work that they’d made for other marketplaces. What I liked about Pattern, was that I would be the driver instead. Here, I get to drive forward the strategy and tactics for my brand partners that are best for them on the platform. In my role as a Brand Manager I am no longer reactive to other’s actions, I get to be really proactive and make key decisions. This suits me really well and has helped me develop as a person in terms of my commercial and strategic knowledge. I have learnt a lot about ecommerce in general and also about Amazon and marketplaces specifically, which has been really beneficial for my personal development. What has been the most rewarding part of working at Pattern for you? For me, it’s when I get positive feedback from my partners and when I’m able to cultivate a good relationship with them as well. When a brand partner is succeeding on marketplaces, it means we’re both winning. Pattern is winning, and most importantly our brand partners are winning as well. It feels great knowing that our team has helped them, such as supporting them in achieving their internal goals or sharing data that allows them to validate trends they see in other areas of their business. I enjoy championing my brand partner’s best interests and being their advocate. What does a typical day as a Brand Manager look like? One of the best things about being a brand manager is that no two days look the same. For me, it’s normally reviewing how my brand partner’s business is performing as a whole, so how my listings are appearing, how sales are performing, and then seeing if there are any opportunities to drive more sales in the short term. I plan for new product launches, coordinating with the creative team for new assets, or with the ordering team for forecasting what we might need to order, or with the overseas team on actually setting up those listings and getting them live. I also look at the bigger picture, thinking about the brand’s biggest goals for marketplaces and what our strategy will be in order to achieve this over the next quarter and year, The other part would be communicating with the brand partners themselves, to make sure they are aware of all developments and updates in the business, they have all the information they need to make decisions on their side, and that they are confident in what we’re doing and aware of the results. Why would you recommend working at Pattern? Like I said earlier, the days are really varied and interesting. This is great from a working perspective. For me, it’s also the people I work with. Pattern is a really social company, which makes coming into the office and getting through the work day really enjoyable. I’m actually in the social committee, a responsibility I really enjoy. I love getting the team involved in all the activities that we do. We enjoy going to the pub together, participating in charity races, we have our own Pattern bar in the London office called the Pattern & Crown where we host events each month, there’s lots of things that we all enjoy getting involved in as a team - it’s great. We’re growing our team at Pattern! If you're looking to start a career in ecommerce or even if you're a seasoned professional and want to learn more about our exciting opportunities, check out [our open positions here](https://pattern.com/about/careers/).

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Top Insights for Global Brands from Pattern’s Amazon UK Shopper Research 2022

A team of data fanatics, Pattern seeks to better understand UK shopper behaviour across ecommerce, with a focus on Amazon, to provide strategic support to the consumer brands authorised to sell on Amazon UK as well as many global consulting clients. Pattern leverages this research to supplement our own Amazon transaction data in order to build a comprehensive picture of Amazon shoppers, and understand buyer behaviour. The Post-Pandemic UK Online Shopper Throughout the numerous lockdowns experienced during COVID-19 in the UK, shoppers had little choice but to adopt online channels for non-essential purchases. These circumstances incentivised many brands to shift to digital marketplaces, like Amazon, to capture a growing audience looking for variety and convenience across all product categories. But what does that mean for Amazon and other marketplaces as the UK and Europe ease out of restricted living? In January 2022, Pattern polled online shoppers to build on the findings from the [2021 UK Shopper Report](https://info.pattern.com/uk-shopper-report-2021) to learn how shoppers use online channels, why they choose Amazon, and identify key trends to future-proof your brand on the marketplace and beyond. [Download the full report here](https://info.pattern.com/uk-shopper-report-2022) Top Three Data-Driven Insights It is clear that part of the change in customer behaviour brought about by the pandemic has stuck. Amazon is the Start of the Shopper Journey Last year our research supported the idea that most online shoppers begin their journey on Amazon. This year, we found 93% of online shoppers had visited Amazon to research potential purchases. More than half of shoppers (63%) reported visiting Amazon to check the prices of products, 56% to look for gifts, 50% to look for product information, and 37% to find inspiration. [Edge by Ascential](https://www.ascentialedge.com/press/amazon-become-uks-largest-retailer-gmv-sales-2025) reports Amazon is expected to account for 15% of all retail sales by 2025 – up from 9% in 2020. Coupled with the data that a high percentage of online shoppers begin their journey on Amazon, identifies for brands that their presence on Amazon affects purchase decisions through all sales channels. Gifting The majority of UK online shoppers buy gifts online, and, in 2022, 66% of UK online shoppers are regularly logging on to purchase gifts. In our study, we found 56% of respondents turn to Amazon UK for gifting, which is high traffic for any brand. However, being a gifting destination comes with a sense of responsibility and buyer confidence. Overall, 40% of shoppers who purchased from Amazon in the past year faced at least one issue. Out-of-stock was noted by 21% of all respondents and the product not delivered within the expected time frame a close second (16% of answers). Brands need to ensure they have enough inventory in the right channels to service this demand, particularly during peak trading. As Amazon was the most cited channel for online gift purchases, this should be reflected in brands’ range planning decisions. Prime Position Prime membership is a forward indicator for any brand on Amazon UK – once people have Prime, they tend to visit Amazon more frequently and to buy more. Our 2021 research found that 50% of online shoppers had access to their own or someone else’s Prime account. Now, a total of 58.5% report having access to their own or someone else’s Prime account, and a further 6.2% said they were likely to become Prime members in the next 12 months. With access to low prices, key deals and exclusive promotions, more Prime members will prioritise the marketplace in 2022 and beyond. This also matches our survey data that has about 25% of respondents stating they will spend a little or a lot more on Amazon.co.uk in 2022. Amazon is a Prime Opportunity for Global Brands UK-based online shoppers are savvy and choose to shop online because they’re looking for the best prices, exclusive products, better delivery options, and convenience. Amazon.co.uk delivers on these fundamental consumer ecommerce behaviours, and more, which indicates traffic and conversion will grow year over year. Our research shows DTC online sales can continue to grow as well, provided brands do not charge a premium. Simultaneously, Amazon continues to expand into a broad range of categories and is seen by consumers as the online gateway for shopping. This means brands need to: - Ensure inventory is in the right channels, such as Amazon – particularly during peak trading - Prices on Amazon are viewed as anchor prices and price depreciation on the marketplace will impact the price consumers are prepared to pay in all retail channels Year after year, our research shows that a brand’s DTC channel is not enough to win at ecommerce. As more shoppers start their journey on Amazon, become (or get access to) Prime, and reset their expectations from Amazon, brands need to capitalise on the actionable insights. [Download the complete UK Shopper Report](https://info.pattern.com/uk-shopper-report-2022) to learn more about online shopper behaviour in 2021 and 2022. For more information about how Pattern accelerates brands on Amazon and beyond, please contact us uk@pattern.com.

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