Case Study with Luvly Pets, a User of Amazon Ocean Freight Service

Our customer Mert, who sells through his pet brand 'Luvly Pets' founded during the pandemic, also provides e-commerce and digital transformation consultancy to businesses. Initially starting to sell his products on Etsy, our customer decided that it was time to enter the Amazon market as his sales volume reached significant numbers.

Understanding the importance of optimizing logistics costs due to shipping high-dimensional products, our customer began using our Amazon Ocean Freight service to send products to Amazon warehouses in bulk by sea. Let's hear from him about his e-commerce and sales journey, especially on Amazon, at this point where his sales volume has increased by nearly 400%.

Could you briefly tell us about your business and the story behind your brand's creation?

Since 2014, I have been providing consultancy on digital transformation and starting e-commerce processes for various companies. Especially during entry to the European and American markets, I worked to make them succeed by planning targeted marketing and operational processes. With the pandemic, all the brands I consulted for increased their sales volume. E-commerce is now accepted worldwide and will continue to grow in volume. During this period, I created my own brand, LUVLY Pets, in the pet products category that had been on my mind for a long time.

How did you find out about the Amazon Ocean Freight service and how long have you been using it?

Initially, we were only selling on Etsy. I met Navlungo while researching shipping alternatives. I worked with Navlungo to send products via air cargo and was highly satisfied with both price and service. When our sales volume on Etsy reached the 500-600 range, we decided it was time to sell on Amazon as well. Due to our product volume being around 10 dimensional weight, the shipping cost was high. At this point, we saw Navlungo's Amazon Ocean Freight service on a social media ad, and I contacted the team regarding ocean freight.

What needs and problems led you to start using this service?

The high volume of our products (dimensional weight) and globally rising logistics prices were the biggest factors for us. In addition, if you are doing e-commerce, you always need to keep working on cost reduction. We calculated that sending our products in bulk resulted in a 40% increase in our profit. Furthermore, I believe that the FBA service should definitely be used on the Amazon side. In addition to customer service quality and shipping advantages to final consumers, it has a significant impact on product ranking. From this perspective, the ocean freight service is again the most cost-effective solution.

Do the processes of getting a quote and submitting your request through Navlungo's interface run smoothly? What are your thoughts on the interfaces?

Navlungo's interfaces are very easy to use. The panel has been constantly improving since day one. It is also very pleasing to see that our feedback is sometimes reflected in the panel. Features of the panel like getting quotes, sending requests, and using the Help Center to solve all problems can be used very quickly and seamlessly.

What changes has your business experienced since you started using this service? How do you rate your experience in terms of cost and speed?

The most important advantage of the Amazon Ocean Freight service for us has been the increase in our competitive strength. Thanks to the cost advantage, we can make more sales without reducing our profit margin. The second major benefit is that having the products in the USA provides an advantage for B2B. As a result, we signed a distribution agreement with a company in the US, thereby increasing both our market volume and our production power. Thanks to this service, you can deliver your products to the Amazon USA warehouse without any problems. Since Navlungo is always by your side for customs clearance and similar operational processes, you are protected from any potential problems that may arise.

Could you share the changes in your sales volumes after using this service? If there are changes in your sales and operations staff or product categories, could you tell us about them?

After we started using the ocean freight service, our sales volume increased nearly fivefold. We didn't have to change much on the sales team side because we left the entire fulfillment process to Amazon. Since using FBA doesn't put an extra burden on you, it helps increase your sales volumes without causing an increase in operational costs. I find this extremely important from a competitive perspective.

We had the opportunity to expand our product range with the Amazon Ocean Freight service. Our analysis showed that price competition was always the biggest challenge. Although our quality is higher, it is not easy to enter that market when you lose on price. This service allowed us to maintain quality in the US market while staying competitive in price, which helped us increase our production and product range. We started shipping not only in the pet category but also in many different fields. Initially, we were sending products as Less than Container Load (LCL); now, we are planning to fill a 40-foot container. In this regard, I can say that the service has been of great benefit to us.

You are a growing platform; how many people do you foresee employing by 2023?

With our EcomCO brand, we support sellers and manufacturers who want to achieve success on Amazon, eBay, and Etsy. With Luvly Pets and our other brands, we manage our own production and sales. Since demands on both the consultancy and production sides are increasing day by day, we foresee that our current number of employees will triple.

What is the most challenging part of selling on Amazon? Do you get any training regarding Amazon sales for your sales team?

The Amazon algorithm is a closed system. While Google announces updates and their impacts, Amazon does the opposite and keeps them secret. In this case, you need to constantly monitor the market, competitors, and their actions. Sometimes, to find the right path, you have to hit a wall on purpose to learn what is wrong. Therefore, the hardest and most time-consuming task is staying constantly up-to-date.

There is no general formula for success on Amazon. Every product and consumer group is different; therefore, you need to master optimum practices and work specifically on the product. The same applies to the advertising process. Opening automatic ads and hoping they sell or checking your campaign once a week will, unfortunately, leave you behind in the competition. Amazon is a platform where you must act daily, sometimes hourly, because competitors also work this way and get professional support. Success comes from constantly and correctly optimizing products and ads, not just uploading products. This is an endless process. Therefore, our Amazon Marketing team continuously improves itself by getting support from as many sources as possible for competitor and market analysis. Simultaneously, they aim to get the best results by applying what they know and learn.

Would you recommend the Amazon Ocean Freight service to businesses selling on Amazon?

I definitely recommend ocean freight to all sellers on Amazon. Using FBA is absolutely necessary, but the price advantage provided by ocean freight really changes everything. Sometimes, a discount of 0.5 dollars on a product can bring you high-volume sales. It may not be possible to achieve this only by air cargo.

Some sellers might see sending such large quantities of products as a disadvantage, but with correct planning, you will experience the exact opposite effect. Selling on Amazon is a long-term business model. Amazon says this too. Yes, you can sell a lot in a short time, but your main plan should be long-term. In this situation, shipping your products via ocean freight gives you an advantage.

Also, Amazon's algorithm can affect the ranking of products based on the quantity of inventoried items a seller has in the FBA warehouse. There is a huge difference between having 15 items in the warehouse and 500 items. When there are 500 items, Amazon sees it as 500 items that can convert into money, so it prioritizes your product to be sold. Among our consultancy clients, we have sent 5,000 units of a single model to the warehouses. We have always seen positive results from such a strategy.

Apart from these, having your product in Amazon's warehouse doesn't mean it will only be sold on Amazon, and I think this is very important. Thanks to MCF (Multi-Channel Fulfillment), even if you make a sale on Etsy or eBay, Amazon can deliver your product to your customer. This gives you an advantage on other platforms as well. To be honest, I can say we benefited a lot from storing products in Amazon warehouses, especially for Etsy.

What is your general advice for e-commerce sellers?

The pandemic highlighted the importance of e-commerce, and e-commerce sales volumes exploded worldwide. All studies show that this growth will continue in the future. Manufacturers in Turkey or people with a product idea actually have a huge advantage. Our ability to produce high-quality, cost-effective products makes us stand out in global competition. I strongly believe we should utilize this power. People with ideas or companies with products should take quick action to sell abroad.

The key point here is to do proper planning and work with the right partners. In my opinion, the biggest mistake of e-commerce sellers is the lack of planning. E-commerce is not a field to be underestimated or summarized as "I'll upload the product, and it will sell anyway." Yes, the product may sell, but if you don't plan your next steps, you won't get real efficiency from that product and many opportunities will be missed. Therefore, you need to think through the process from start to finish, plan the logistics operations, and anticipate actions for each step. If done properly, I believe there is no product that cannot be sold.

The second issue is that our sellers enter into price competition with each other. I find this very wrong. Lowering the price is the last step to take to increase sales. Therefore, marketing planning and strategy are crucial. Only after doing everything right should you look at the price. We shouldn't sell products cheaper if they can be sold at a higher profit with the right moves.

Lastly, we must not forget that an e-commerce store is still a store. Just like you would take care to keep your storefront clean and ensure customers leave satisfied in a brick-and-mortar shop, an e-commerce store has specific requirements. If you do these correctly and do not neglect product marketing, there is no reason why you shouldn't be successful. Because the market is immense and growing. Getting consultancy when needed is also important, but we should stay away from people who sell dreams.

Ultimately, no project without a plan can be successful. E-commerce is also a business model, and with proper planning, maximum profit can be achieved with minimum investment.