Our client, a leading online retailer, experienced impressive early growth — achieving a 14% year-on-year increase in online sales, with Amazon as the primary driver.

However, increased market competition soon presented challenges:

• Rising paid media costs and lower ROI.

• Increased price competition driving down conversion rates.

• Entry-level product pricing 25% higher than market average.

• Heavy reliance on existing customers for repeat sales.

Although the website continued to attract strong levels of organic traffic — outperforming most competitors — converting new visitors into customers became an increasing challenge.

• Competitive Pricing Strategy: Greater flexibility to compete in price-sensitive product ranges.

• Amazon Margin Capture: All Amazon sales attributed directly to the parent company.

• Margin Optimisation: New model targets 21-23%+ margin on landed cost.

• Operational Efficiency: Streamlined credit control and sales functions for cost savings.

• Greater Internal Visibility: Full control over pricing, stock flow, and profitability.

The Results

This transformation has enabled the leading online retailer to:

• Rebuild its customer acquisition funnel.

• Improve onsite conversion rates.

• Maximise margin capture across all channels.

• Maintain customer loyalty through excellent service.

• Create a scalable, sustainable model for future growth.

Key Takeaway

Strong website traffic is only valuable if it converts. Through a combination of operational change, customer experience optimisation, and a refreshed commercial model, has positioned the leading online retailer for long-term success — with profitability at the core.