[ Case Study ]

Overview

BM Electric was originally a traditional wholesale electrical supplier selling products like NYM-J / YDYP installation cables.

Operating primarily in local markets, they supplied electricians and hardware stores but had no presence on Amazon beyond competing on price. Before February 2024, BM Electric was merely one of many generic listings on Amazon Germany without brand ownership, control over their product listings, or any Amazon-specific marketing strategy. This limited their potential and left them vulnerable to common Amazon challenges such as hijacking and price wars.

[ Case Study ]

Challenge

BM Electric faced several key issues in their wholesale business on Amazon Germany:

  • Lack of Brand Ownership: No control over their Amazon listings, which meant they were exposed to hijackers, price competition, and instability in their product catalog.
  • Listing Problems: The existing ASINs had outdated images, poor SEO, inconsistent variation structure, high refund rates, and inefficient Amazon PPC campaigns.
  • Compliance Risks: Without owning a brand or having GS1 UPCs, they had limited protection against catalog violations, leading to the suspension of key ASINs due to historical errors.
  • Limited Control Over Product Representation: There was no Amazon Brand Registry or ownership of the intellectual property or backend data, leaving BM Electric vulnerable to external changes and errors.

Solution

In February 2024, BM Electric made the decision to pivot from a wholesale strategy to becoming a fully branded Amazon private label. The solution involved the following steps:

Amazon Account Management & Listing Optimization:

  1. Optimized the existing listings even without ownership, fixing broken attributes, improving the variation structure, and stabilizing indexing.
  2. Enhanced the product images, cleared up confusion around product sizes, and optimized the PPC campaigns for better efficiency.

Transition to Private Label:

  1. BM Electric registered a trademark, obtained GS1 UPCs, and joined Amazon Brand Registry, which gave them greater control over their listings.
  2. Created new product packaging, custom cable specifications, and quality control systems to meet Amazon’s standards.
  3. Invested in premium listing elements such as A+ Content (Enhanced Brand Content), hero images, and lifestyle photos to enhance the brand identity.

Branding & Market Positioning:

  1. Shifted from a commodity-focused approach to a value-driven Amazon brand. This transition involved focusing on long-term brand protection, improved catalog stability, and higher margins through strategic branding.

Continued Expansion & Refinement:

  1. With their private label setup, BM Electric achieved stable, profitable listings that avoided issues like hijacking, suppressed listings, and price wars.
  2. Optimized their Amazon PPC campaigns and invested in brand-specific marketing strategies, resulting in significantly higher sales and profitability.