Client
A multi-brand home improvement portfolio operating in the Rough Plumbing category on Amazon.
Business Challenge
Growing complexity across the portfolio’s multiple sub-brands was creating issues for margin and profitability. Catalog cost terms needed to be reset to avoid a looming cost increase. Certain ASINs were sitting in a less profitable sales model than they should have been. Revenue was being lost to shortages, COOP charges, and pricing discrepancies.
Goal
Deliver consistent growth while significantly improving margins on Amazon.
Approach
Market Defense migrated two sub-brand catalogs to a different Vendor Central account to leverage lower terms and reset the cost structure. ASINs were migrated between 1P and 3P models based on profitability. Through Market Defense’s Revenue Recovery service, the team audited past invoices, disputed charges directly with Amazon, and reconciled inventory counts to recover lost margin. Amazon-exclusive hard bundles were built to save on shipping cost, bundle low-priced items with profitable ones, offer otherwise-unprofitable selection, control price, and upsell frequently-bought-together items. A package hierarchy strategy was also implemented for case packs and pallets, securing a 15 to 25% referral fee discount and improving inventory management, shipping efficiency, and visibility in business-filtered search; case packs and pallets sold 16% faster than single-unit equivalents.
Results
- Amazon purchase order volume grew more than 20x over eight years, from under $2M in 2016 to over $30M in 2025
- Shipped COGS grew 14.3% year-over-year across the portfolio (dollar-weighted average)
- Total margin improved 5.25% in 2025: 4% from the 1P migration, 0.5% from the 3P migration, and 0.75% from Revenue Recovery
- 15 to 25% referral fee discount secured through package hierarchy strategy
- Case packs and pallets sold 16% faster than single-unit sales
