Moema Espresso Republic Sees Over 150% Profit Margin
Increase within Six Months of Using Feedvisor
profit
®
república do espresso
ABOUT
Moema Espresso Republic is a direct
fair trade startup which sells its
own brand of premium coffee and
top commercial coffee equipment
(brewers, machines, and everything
around coffee preparation). MER
sells through its own webstore, with
Amazon being its major channel and
accountable for 40% of business sales.
Founded in 2005, the Berlin-based
social startup pioneered a new fair
trade trend in Germany by working
directly with Brazilian farmers —
giving them direct profit from the
coffee roasting to ensure maximum
economic fairness and investing in
local community development. By 2012,
Moema Espresso Republic — already
considered a reputable brand —
decided to go after the end-consumer
market. It started selling on different
channels, with Amazon as its primary
focus.
150% margin
increase
sales
13%
300%
300% revenue 300%
increase
Buy Box
share
increase
300%
$1M
annual
revenue
per year
Challenge: Stay competitive while maintaining high
profit margin
In 2012, Moema Espresso Republic made the move to Amazon, hoping
to drive more revenue and growth. The move was far from smooth. MER
quickly found itself in deep waters trying to reprice hundreds of SKUs
for its competitive and non-competitive products. The next natural step
was to build its own crawler, which MER used to retrieve prices from
Amazon. But that proved to be ineffective.
“We quickly realized we’re not the pros, so we looked into using expert
software and that’s when we decided to test out a rule-based repricer.
That was ok for a while, but the repricer’s limitations impacted our
performance capabilities, and we’d often find ourselves caught up in
price wars. We just weren’t receiving the intelligent insights that we
needed.”
Solution: AI repricing and data-driven actionable
insights
Frazzled by poor pricing methods and insufficient business insights, MER
understood that an intelligent algorithm could offer a better alternative. In
April 2015, it turned to Feedvisor. From there, things took off and MER saw
impressive results in six months.
Yet the reality of Amazon’s price wars
and fast-changing landscape hit MER
hard. After an insubstantial run with
two repricing tools, MER switched to
Feedvisor in April 2015. Since then, its
sales revenue has tripled and profit
margin has increased by over 150%.
“Every decision we make is
based on data, and that’s
why Feedvisor makes sense.
Feedvisor has helped us
manage complex business
activities — providing us
with speedy, tangible, and
astonishing results.”
Ozan Taner
Founder & CEO of Moema
Espresso Republic
“The real advantage of Feedvisor is that unlike most of its competitors,
the tool is made for maximizing the profit margin of each SKU Instead
of systematically going into price wars to get more market shares,
Feedvisor analyzes the competition and will exploit opportunities
to raise prices, and thus increase margins. We have some products
which generate over 40% profit because Feedsvisor found the right
balance between price, competition, and sales velocity.”
Results: Optimized margins and revenue
Since implementing Feedvisor, MER has experienced incredible results:
profit
150% margin
increase
sales
13%
300%
150% revenue 300%
increase
Buy Box
share
increase
300%
$1M
annual
revenue
per year
Ozan’s top 3 pricing strategy tips for Amazon sellers
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1. Premium product selection: “Pick quality products that have
a future and are trending (lower competition and high demand).
Try to exploit the margins while they are there. For us it’s all about
the premium coffee and equipment.”
2. “Pick your systems and circumvent price wars with intelligent
technology tools like Feedvisor. Everything we do is based on data,
so the more data we get, the more granular we get on certain
actions.”
3. “Try and exploit the opportunities on several platforms by going
multi-channel.”
feedvisor.com