Our customer Mert, who sells through his brand Luvly Pets established during the pandemic, also provides e-commerce and digital transformation consultancy to companies. 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 because he ships high-volume products, our customer began using our Amazon Ocean Freight service to send his products in bulk to Amazon warehouses by sea. Having achieved an increase of nearly 400% in his sales volume today, let's hear his journey in e-commerce and especially selling on Amazon from him.
Could you briefly tell us about your business and the birth story of your brand?
Since 2014, I have been consulting various companies on digital transformation and their e-commerce starting processes. I worked particularly on entering the European and American markets, planning both marketing and operational processes specific to these markets to ensure their success. With the pandemic, all the brands I consulted increased their sales volume. E-commerce is now accepted worldwide and will continue to grow in volume. During this process, I created my own brand under the name of LUVLY Pets in a pet products category that had been on my mind for a long time.
How did you hear 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 while sending products by air and was very satisfied both in terms of price and service. When our sales volume on Etsy reached the 500-600 band, we decided it was time to sell on Amazon as well. Since our product volume is around 10 dimensional weight, the shipping cost is high. Here, I saw Navlungo's Amazon Ocean Freight service in a social media ad and contacted the team for sea freight.
Which needs and problems led you to start using this service?
The high dimensional weight of our product and the increasing global logistics prices were the biggest factors for us. Moreover, if you are doing e-commerce, you always need to keep working to reduce costs. We calculated that when we ship our products in bulk, there is a 40% increase in our profits. In addition, I think that the FBA service must definitely be used on the Amazon side. Besides the quality of customer service and the shipping advantages to individual consumers, it also has a significant impact on ranking the product higher. In this respect, the ocean freight service is again the most cost-effective solution.
Is the process of getting quotes and sending your requests through Navlungo's interfaces easy when using this service? What are your thoughts on the interfaces?
Using Navlungo's interfaces is very easy. The panel has been constantly developing since the day we started. It is also particularly pleasing to see our requests reflected in the panel from time to time. Features such as getting a quote, sending a request, and the Help Center for resolving all issues can be used quite quickly and smoothly through the panel.
What changes has your business experienced after starting to benefit from 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 was that it increased our competitiveness. Thanks to the cost advantage, we can realize more sales without reducing our profit margin. The second important plus is that having the products in the USA provides an advantage in B2B as well. In this way, by making a distributorship agreement with a company in the USA, we have increased both our market volume and our production power. Thanks to this service, you can seamlessly deliver your products to the Amazon USA warehouse. Since Navlungo is always by your side in customs clearance and similar operational processes, you are also protected from potential problems that may arise.
Could you give information about the change in your sales volume after starting to use the service? If there are any changes in your sales and operations personnel, and in the product categories you sell, could you share them as well?
After starting to use the ocean freight service, our sales volume increased nearly 5-fold. We didn't have to make many changes in the sales team department because we left the whole process to Amazon. Since Amazon does not impose an extra burden on you when using FBA, this contributes to an increase in your sales volume and does not cause an increase in your operational costs. I find this very important for competition.
With the Amazon Ocean Freight service, we found the opportunity to increase our product range. Because in our analysis, the most important issue always stood out as price competition. Even if we are higher in quality, when we lose on price, it is not very easy to enter that market. Together with this service, being able to compete on price while maintaining quality in the US market has allowed us to increase our production and our product count. We started shipping not only in the pet category but also in many different fields. In the beginning, while shipping products as partial cargo (LCL) in containers, at the point we have reached now, we are making plans to fill a 40-foot container. In this respect, I can say that the service has been of huge 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 carry out our own production and sales. Since demands are increasing day by day on both the consultancy and production sides, we foresee that our current number will triple.
What is the most challenging point for you when selling on Amazon? Do you provide training on selling on Amazon to your sales team?
The Amazon algorithm is a closed system. While Google announces its updates and their effects, Amazon, on the contrary, keeps it secret. In this case, you constantly need to monitor the market, competitors, and the actions they take. Sometimes, to find the right way, you have to hit your head against the wall knowingly so that you find the mistake. Therefore, the hardest and most time-consuming issue is staying constantly up to date.
There is no general success formula for Amazon. Every product and every consumer group is different from each other; therefore, it is necessary to master optimum practices and work specifically on the product. It is necessary to proceed in the same way in the advertising process as well. Unfortunately, launching automatic ads and selling, or checking your ad campaign once a week, leaves you behind in the competition. Amazon is a platform where daily, sometimes hourly action needs to be taken because competitors also proceed this way and receive professional support. Success comes not from uploading products, but from constantly optimizing the products and ads in the right way. This is an unending process. That's why our Amazon Marketing team keeps developing itself endlessly by getting support from as many sources as possible for both competitor and market analysis. On one hand, 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 sea freight to all sellers who sell on Amazon. Using FBA is absolutely necessary, but the price advantage provided by sea freight really changes a lot of things. Sometimes, a 0.5-dollar discount on a product can return to you as very high-volume sales. It may not be possible to achieve this solely by air transport.
Some sellers might see shipping such a bunch of products as a disadvantage, but with correct planning, you get exactly the opposite effect. Selling on Amazon is a long-term business model. Amazon says this too. Yes, a lot of sales can be made in a short time, but your general plan should be long term. In this case, shipping your products via ocean freight service gives you an advantage.
In addition, the Amazon algorithm can also affect the ranking of products based on the number of products the seller has in the FBA warehouse. There is a big difference between having 15 products in the warehouse and 500 products. When there are 500 products, since this is seen as 500 products from which money can be earned for Amazon, it features your product more to be sold. Among our consulted clients, we have clients to whom we sent 5000 products of one model to the warehouses. We have always seen the outcome of such a strategy as positive.
Apart from these, having your product in Amazon's warehouse does not mean that it will only be sold on Amazon, and I think this is also very important. Thanks to MCF, even if you sell through Etsy or Ebay, Amazon can deliver your product to your customer. This also turns back to you as an advantage on other platforms. Frankly, I can say that we have seen great benefits of storing products on Amazon, especially for Etsy.
What are your general recommendations for those doing e-commerce?
With the pandemic, the importance of e-commerce has been understood, and e-commerce sales volumes have increased tremendously all over the world. All studies show that this increase will continue in the future as well. Manufacturers in Turkey or those with a product idea actually have a huge advantage. Our ability to produce both high-quality and cost-effective products highlights us in competition in global markets. I believe that this power must definitely be used. Somehow, individuals with an idea or companies with a product should quickly take action to sell abroad.
The important point here is to make the correct planning and work with the right partners. In my opinion, the biggest mistake of e-commerce merchants is not planning. E-commerce is not a field to be underestimated or to think "I'll upload the product, it will sell anyway." Yes, the product may sell, but if you do not plan your next moves, you cannot really get efficiency from that product, and many opportunities will be missed. That's why it is necessary to think through the process from start to finish, plan the logistics operation, and foresee what kind of action to take at which point. If this is done correctly, 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. Reducing price is the last action that can be taken to increase sales. That's why marketing planning and strategy are very important. After doing everything right, one should look at the price last. Products that can be sold with higher profit through the right moves should not be sold cheaper.
Lastly, one should not forget that an e-commerce store is also a store. Just as you pay attention to the cleanliness of the store window and that customers leave satisfied if you open a shop on a street, an e-commerce store also has specific requirements. If you do these correctly and do not neglect the marketing of the product, there is no reason for you not to be successful. Because the market is huge and growing. Taking advice when necessary is also important, but one must stay away from people who sell dreams.
Consequently, no business without a plan or project can be successful. E-commerce is also a business model, and when planned correctly, maximum profit can be achieved with minimum investment.
