Case Studies

Tarmax – from setting up an account on Amazon to millions in sales made with Nethansa

4 minutes

 

The Nethansa team faced a tough challenge. As a result of the Newmax merger, we had to close our previous Amazon seller account and create a new one. It meant establishing our position on the platform from scratch, but Nethansa’s experts dealt with this task proficiently. During the first 30 days of our presence on Amazon, we sold goods worth over 22,000 euro. Now, thanks to the support of Nethansa’s experts and the automation of the Nethansa Platform, we generate a monthly turnover of several million euros. We sell in 28 international markets with minimal involvement from our team.

Arkadiusz Majkut, Board Member, Tarmax (currently Newmax)

Analysis of Newmax’s challenges

1. A double start on Amazon

With the closure of the original seller account, the Nethansa team lost their entire activity history. Thanks to an optimal strategy and a dedicated integration of the client’s ERP system with the Nethansa Platform, it was possible to automatically upload thousands of products to the Amazon platform in just a few days. The Nethansa team took on the task of implementing and monitoring the integration process. To position the offers effectively, it was also necessary to create new product descriptions in line with the principles of Amazon SEO.

2. Amazon’s blocking of Newmax’s popular products

Amazon assumes a restrictive approach towards new sellers offering products from very famous brands. This is meant to protect the platform’s customers from purchasing fake goods. Because Newmax distributed products manufactured by companies like New Balance, it was subject to such scrutiny. Thanks to effective reporting and detailed documentation, the Nethansa team quickly and easily regained Amazon’s authorisation to sell branded products distributed by Newmax.

3. Lack of resources for effective international sales

Providing customer service, selling on Amazon and organising aspects related to logistics are very time-consuming. Newmax’s owners were afraid that the time dedicated to these processes would be disproportionate to the profit generated by the marketplace. The margin on branded goods is low, so there was a risk that the turnover would not cover the costs of employees’ working time and Nethansa’s remuneration. However, thanks to the Nethansa Platform and a transparent model of cooperation, the generated profit exceeded Newmax Board’s expectations by several times. Also, the investment paid off much faster than the company’s management had assumed. As for the involvement of own resources, the total monthly time that Newmax employees devote to international sales is only 60 hours, while the additional income reaches several hundred thousand euros a year.

Sales results and time commitment

Since the commencement of cooperation with Nethansa, Newmax has sold over 30,000 items to 28 countries, for a combined value of several million euros. Currently, Newmax’s turnover reaches several hundred thousand euros per month, while the employees’ time devoted to sales does not exceed 3 hours a day. This is possible thanks to the Nethansa Platform and the automation it guarantees. Each Newmax offer has been optimised to become the most competitive on Amazon. By adjusting the price to the market demand, the Nethansa Platform instantly maximises sales profits. The system also takes care of ordering courier service, generating shipping labels and handling returns. That means significant time savings for the company.

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