Selling on Amazon has proven to be a game-changer for many businesses, opening up new customer bases and significantly increasing sales. Small- and medium-sized enterprises (SMEs) from all around the globe have embraced the ability to set up their own storefronts on Amazon to showcase their products to millions of potential customers. More than 100,000 UK SMEs sell on Amazon. One notable success story is Nudie Snacks, a family-run brand founded by Tracey Hogarth in Stewarton, specialising in delicious plant-based and gluten-free snacks.
Challenge: Before selling on Amazon
When the pandemic hit in March 2022, Nudie Snacks faced significant challenges with the closure of offices and retail stores. Its B2B sales channels, which it heavily relied on, came to a standstill and sales plummeted by a staggering 95% virtually overnight. To overcome this situation, Hogarth and her team had to find an alternative solution and re-strategise to ensure the long-term success of her business.
Solution: Creating an Amazon storefront and pivoting to e-commerce
The team decided to establish an Amazon storefront and pivot its focus towards online sales, directly reaching out to customers through the Amazon platform. This strategic move allowed it to present its products to a much larger audience, ensuring its business’s survival during the pandemic.
“The pandemic forced us to reconsider our approach and adapt to stay afloat,” explained Hogarth, CEO of Nudie Snacks. “Thankfully, Amazon was a lifesaver and enabled us to sell our products to a large audience throughout the pandemic. As a small business that needed to sell directly to consumers, Amazon was the perfect place to be. During this time, Amazon accounted for 95% of our sales, which has helped us achieve a six-figure revenue.”
Outcome: Increased growth and stability
Selling on Amazon not only allowed Nudie Snacks to weather the storm of the pandemic but also facilitated its continuous growth. The ability to showcase its products to a wide online audience played a pivotal role in its development. Amazon helped the brand make the most out of selling online and it continues to account for a large part of the business. Furthermore, by diversifying its sales channels, Nudie Snacks ensured that it was not overly reliant on a single source of revenue, increasing its market resilience and agility.
Key outcomes include:
- Access to more customers – Nudie Snacks created an Amazon storefront, helping increase exposure and opened up its customer base. This move generated new opportunities and tapped into the pool of 300 million customers who actively shop on Amazon worldwide. “Amazon gives sellers a global reach that is otherwise inaccessible and it has the power to supercharge your growth. It was a lifeline during the pandemic and still a healthy chunk of our total revenue now that wholesale sales have returned back to normal levels,” said Hogarth.
- Increased sales – the increased exposure on Amazon naturally led to a surge in sales for Nudie Snacks. By offering its products on a service that millions of customers already frequently use, it provided convenience and accessibility to potential buyers. Hogarth noted: “It gives customers the option to buy how they want at their convenience. They might already be shopping on Amazon for various other things, and they can now simply add our product to their basket.” This additional sales channel has been a significant contributor to the brand’s success since the pandemic and has led to Nudie Snacks generating a six-figure revenue.
- Streamlined logistics – Nudie Snacks benefitted from the streamlined logistics offered by Amazon. With one of the most advanced fulfilment networks in the world, Fulfilment by Amazon (FBA) became instrumental in alleviating the burden of logistics for Hogarth and her team. FBA allowed them to store their products in Amazon’s fulfilment centres, enabling Amazon to handle the picking, packing, shipping and provide customer service for their products. Leveraging FBA helped take some weight off their shoulders, freeing up valuable time and resources enabling them to focus on scaling the business. “One of the key ways we were able to streamline our logistics and focus on growing our business was by leveraging FBA. Being able to store our products in Amazon’s fulfilment centres means we don’t have to worry about space or the labour-intensive role of sorting everything ourselves in the office. FBA has freed up a significant amount of time and resources for our team, allowing us to focus on what we do best,” said Hogarth.Selling Partners, on average, have seen a sales uplift of 35% when moving their products to FBA in the UK, as a result of faster delivery.
By pivoting to online sales and utilising Amazon, Nudie Snacks was able to persevere during challenging times and could continue concentrating on what mattered most to it – its core mission of creating delicious and healthy snacks. With an established presence in the UK, it is now setting its sights on expanding into other markets in the near future. This growth trajectory is a testament to the power of leveraging Amazon’s reach, customer base and fulfilment capabilities, providing businesses like Nudie Snacks with invaluable opportunities to thrive in an increasingly digital world.