Beauties of London Case Study

Lezzat

How Beauties of London Launched their Perfumes Wholesale Business on Amazon UK with Lezzat’s Amazon Full Account Management Service

Beauties of London is a wholesale perfumes & cosmetics company based in the UK. The company wanted to explore Amazon as a potential channel to sell their products, they had no experience of selling on the platform nor a concrete understanding of the Total Addressable Market (TAM) there. Lezzat offered the following services:

Selling on Amazon was something the client really wanted but they did not have any experience nor in-house expertise on how to do it. They knew it could be a great sales channel both for increasing their revenues as well as increasing their average order size with their supplier. If the UK proved to be successful they wanted to expand into the other EU countries, including Germany, France, Spain, Italy & Holland.

Smelling the Amazon Success

The client wanted to start selling their products on Amazon UK & EU however they had limited experience of Amazon and had more than 500 SKUs that they wanted to sell. Understanding the profitability and margins involved was key to ensuring they are profitable selling on Amazon in the UK.

Amazon Launch

Overall Account Goals

After the initial account set up phase that involved account opening in the UK, ungating to selling in cosmetics and getting brand approvals for more than 60 brands, such as Dolce & Gabbana, Dior, Boss etc, the client was ready to start sending their shipment straight to Amazon FBA. Lezzat had to analyze over 10,000 different SKUs in order to find the most profitable ones and pinpoint exactly the margins of each for selling on Amazon UK, and later on EU.

The Right Strategy for the
Right Results

The wholesale business, especially in the perfume industry, is very unique in the sense that the margins are very tight, volumes are high and products are prone to theft, making Amazon full account management complex. Getting the right data in terms of what perfumes sell well and what don’t and what is their respective margins was crucial in the success of this project. Using Amazon best practice methods to send inventory to FBA meant that any missing inventory issues that arose where effectively reimbursed by Amazon using Lezzat Amazon reimbursement service.

Setting the Right Pricing at the Right Time

When selling under other listings on Amazon, it is important to have a solid pricing strategy in order to win the buy box and start building revenue. A combination of industry leading tools and inventory forecasting enabled the Lezzat team to advise the client what the minimum and maximum prices should be for their product. That ensured that units sold were done so with the desired margin and ultimately profitability.

Starting in UK and Expanding in the EU

Once the UK market was opened and the client had successfully started selling on Amazon the focus quickly turned into expanding in the EU market. Lezzat offered the following service:

E-commerce Marketing Strategy
German VAT registration support
Price analysis for EU market
Inventory Management for Amazon German
Monthly reporting on sales
Inventory forecasting

Once all the necessary paperwork was created the Lezzat team helped the client open their Amazon EU account and start shipping products to the Amazon Germany warehouse.

Opening UK first, gaining traction and then opening the EU market is a best practice followed by many Lezzat clients. This helps ensure that the client is prepared to handle Amazon and has enough time to obtain all the legal paperwork in order to sell in the EU.

Outstanding Results

The client has been selling on Amazon UK & EU for more than 2 years now, established very strong relationships with their suppliers and is further developing their own perfume brand. Lezzat has been instrumental in their success having managed their account using our Amazon Marketing Services.

Why Choose Lezzat

We are Amazon sellers ourselves, what we advise our clients to do and what we do for them is what we implement on our own Amazon business as well – we are talking about Amazon full account management. At Lezzat, we know firsthand what it takes to succeed on Amazon and the challenges needed to be resolved along the way.

It is our promise to our clients to make them succeed on Amazon. This requires our expertise and our commitment in transparency and communication to make this a successful business partnership.

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