Client: Nourish You
Shopify | e-Commerce
In a nutshell
Nourish You decided to give Shopify a try in order to reduce their reliance on marketplace sellers like Amazon and Flipkart, which charge steep commissions (up to 40% of the order value). By selling their products online through Shopify, they hoped to have more control over the sales process and potentially increase their profits
e-Commerce is not an easy game
Nourish You, a company specializing in superfoods, has been facing intense competition from other newcomers on Amazon. These new players have been implementing lower pricing strategies, which has led to lower profits for Nourish You. The company has found that selling on Amazon is like operating in a "red ocean" with numerous similar competitors. Furthermore, depending on marketplaces like Amazon for sales has become increasingly unsustainable due to the high commissions (up to 40% of the order value) that these marketplaces charge..
$444+ Billion USD of the global economy happens on Shopify
Depending on the category, the proportion of Amazon's commission can range from as little as 2% to as much as 38%
