How SalesDuo Grew TNG Worldwide’s Sales on Amazon by 127% in 2021, 182% in 2022, and 184.5% in 2023 YTD

TNG Worldwide is a business focused on manufacturing Personal Care and Beauty products. They cater to the needs of both businesses and consumers with their signature brands for ForPro Professional Collection and Ginger Lily Farms. TNG subscribed to SalesDuo Services in 2020. TNG Worldwide at the time of signing up with SalesDuo was already a Tier I vendor on Amazon Vendor Central.

TNG Worldwide had faced issues where Vendor Central orders were not received for all items. The company was operating through Vendor Central In-network and also through Seller Central Fulfilled by Merchant (FBM), and also partially through Fulfilled by Amazon (FBA). The primary issues that existed for the account were Availability / Buyability concerns, purchase orders inconsistency from Amazon’s end, no Amazon Prime tag due to offers from Seller Central / Fulfilled by Merchant (FBM), blocked ASINs, and when things were settling down, the COVID-19 pandemic started to wreck chaos across the world and things became uncertain due to lock down across nations, eventually affecting the supply chain.

The successful year despite COVID-19

The top focus when we started working with TNG Worldwide was making the items available as much as possible through Vendor Central, hence SalesDuo addressed the issue of exclusions. These ensured availability issues were fixed and since TNG had an automated way to send inventory to Seller Central, the feeds ensured the availability is covered through Seller Central as well. SalesDuo then recommended the variation for the items to ensure the products are grouped to create visibility for the items with lower reviews and review aggregation.

One of the early successes visible with the help of Amazon Advertising, for their top items that are COVID essentials, were 3-Ply masks, Gloves, Hand soaps, and Sanitizers as the products were advertised to be on the top of the search results campaigns with under 40% ACOS competing against the top brands specific to those categories and emerged as a trusted Brand for the essential items during a global pandemic. The sales of masks rose from 0 units to 2600 units per week during the period and from 0 reviews to 989 (4.5 stars) as of today. During this period SalesDuo helped TNG to reinstate multiple items that were blocked due to compliance issues such as pesticide issues, used items being sold as new complaints, Late Shipment issues”, A-Z Claims, and other document-related issues such as Electrical safety, SDS, and Import compliance. In addition to this, a discussion around rebranding was made and the name of the Seller Account was changed from “be beautiful” to “TNG Worldwide” (name of the actual company).

TNG team’s swift response for the content and creative changes done by SalesDuo ensured timely changes of all items in the catalog. TNG ended 2020 with revenues higher at 98.71% more than 2019 through Vendor Central and 28.04% more through Seller Central — a total revenue increase of 126.75%. The reason for that increment through Vendor Central was by addressing the Purchase Order issue by disabling exclusions.

Improving profitability on Vendor Central

Another key item to achieve was to increase profitability with the combination of Vendor Central and Seller Central — drive sales through Seller Central for the items that are not profitable on Vendor Central due to increased costs driven by the Global Supply Chain Freight charge increases and Cost Increases from the manufacturers. The choice was to use Seller Central / Fulfilled by Amazon (FBA) to drive volumes and use Amazon Last Mile Power part of the FBA program (though TNG had a great track record in managing 1000s of orders per week) and most importantly ensure the continued availability of the Amazon Prime tag.

The top drivers in sales for 2021 were Hot Towel Warmers, Hand Soaps, Shampoo, Gloves, 3-Ply masks, Spa Liners, Massage Sheet sets, Aluminum Sheets, etc. On multiple products, the sales grew more than the forecast for the entire year in 3-4 months because of moving the products to FBA. SalesDuo’s recommendation and strategic insights, Amazon Advertising, Creative and Content optimization were key for TNG’s enormous growth. 

Building on Success: Prioritizing FBA while Leveraging Vendor Central

The remarkable momentum built up throughout 2021 translated into an impressive sales surge through FBA in 2022, cementing it as the preferred channel. To understand the product’s potential, several strategies were implemented. These included leveraging the Vine Program for all new item launches, effective variation and allocating 15% of the total AMS budget for promoting new products once enough reviews were received, with performance tracked over a period of 60 days. Based on performance metrics and profitability, the optimal channel for each item was identified. Some of the top items from 2022 were Towel Warmers, Embossed Foil Sheets, Cotton Rounds, Vinyl and Nitrile Gloves. 

In 2022, a total of 320 new products that were launched accounted for 4.8% of overall sales. The split between Vendor Central and Seller Central for these items was 4.5% and 5% respectively.

In terms of AMS strategies, SalesDuo's focus was primarily on promoting top 80% revenue generating items via Sponsored Products and prioritizing new item launches for the top search results. The year 2022 saw 85% of the total advertising spend allocated to Auto and Manual campaigns for Sponsored Products, with the remaining 15% invested in Sponsored Display campaigns. These were strategically employed for both offensive and defensive marketing tactics. The total advertising expenditure for 2022 constituted a modest 1.13% of total sales.

Complementing these strategies, TNG's diligent product research, effective inventory positioning, and competitive pricing flexibility, coupled with SalesDuo's subject matter expertise in resolving issues in timely manner, expert planning and advertising, propelled growth by 38.1% through Vendor Central and a staggering 144.8% through Seller Central.

The year 2023 brought further changes. A notable increase in units sold the previous year led to a reduction in manufacturing costs for some items. This allowed for a smooth transition of these items from FBA to Vendor Central, enhancing customer trust and fueling additional growth. As of May, we have observed a 184.3% increase compared to the same period (Jan - May) last year, with Vendor Central's growth standing at 134.4% and Seller Central's at 50.2%.