How we have helped a Polish power tool distributor conquer Amazon

To conquer Amazon, it is not enough to offer your products in your home market. Being aware of this, PHU A/B/C decided to use the Nethansa Platform and our sales support services to expand their business area. At first contact, the company was only considering taking advantage of Amazon. Find out what steps we have taken to help this Polish power tool distributor boost their sales.

The Customer’s profile

PHU A/B/C was founded in 1991. The company’s customers include professionals and DIY enthusiasts looking for expert advice on tool selection, as well as companies in the automotive, construction & assembly, and energy sectors.

In addition to supplying high-quality power tools, the company also offers advice on choosing the right tools, the possibility to test them in workshop conditions, and maintenance services. The company’s assortment includes tools tailored to specific industry requirements, e.g., non-sparking tools, insulated tools for live working, as well as tools used in automobile repair workshops.

The Customer’s perspective

“We know that whenever there arise any difficulties, the Nethansa Team is there for us and will work towards resolving the problem. This includes issues related to managing our Amazon listings, communicating with customers or completing various formalities. With Nethansa’s help, we have launched successful sales in six markets, and we are on our way to achieving our financial targets.”

Łukasz Babowicz, PHU A/B/C

Challenges related to international trade

1. Lack of presence in any of the Amazon marketplaces

Before the partnership, PHU A/B/C did not sell on Amazon. This meant that our client had to be more patient than those who merely want to expand their current offer into another market. All the formalities had to be carefully dealt with and some time had to pass before the first profits could be made.

2. Allocation of resources required to manage the account properly

In order to achieve effective sales on Amazon, sellers are required to follow the platform’s rules and regulations, and maintain the highest standards of customer service. PHU A/B/C offers a wide range of products. The company’s portfolio consists of thousands of items. Because of this, managing the sales account in accordance with Amazon’s guidelines is challenging and requires a lot of effort.

3. Need to implement a sales automation system

Selling simultaneously across multiple European markets is a challenge even for experienced companies. With such a wide range of products, the effects of implementing a sales management and automation system, such as the Nethansa Platform, become even more visible. Using such a tool enables rapid business growth by facilitating expansion into new markets and nearly real-time assortment updates.

A solution by Nethansa

The Nethansa team, having signed a contract with PHU A/B/C at the end of January 2020, began to conduct activities leading to the registration and verification of the company’s sales account. In April 2020, Amazon successfully completed the process, validating the account. From that moment onwards, it has been possible to carry out the task that clients value most – selling across Europe.

Analysis of the European markets, excluding the UK, showed a potential of PLN 3.95m monthly turnover, assuming PHU A/B/C has 5,900 active products on Amazon. We keep introducing and maintaining new listings, gradually approaching this target. To date, the number of active products has risen from zero to around 1,700.

In addition to managing listings, the Nethansa Team also provides PHU A/B/C with comprehensive reseller services and business consultancy. On average, we handle around 1,500 interventions related to the company’s Amazon sales account per month.

Following our recommendations, PHU A/B/C decided to use the Nethansa Platform to automate their sales on Amazon. Currently, with the help of our system, the company offers products in six of Amazon’s eight available marketplaces in Europe. By implementing dynamic pricing on the Nethansa Platform, we have managed to generate PLN 360,000 in additional profit.

The results of our cooperation obtained from February 2021 to February 2022