Case Study:Takeya USA
Takeya USA had untapped growth potential and unexpected Amazon chargebacks. Then, Amazon deemed the company’s products “non-essential” due to COVID-19’s impact on shipping resources.
- Sales model diversification
- Proactive marketing investment
- Improved and proactive operational compliance
- In-depth competitive analyses
- Integration of DSP campaigns
- Sales surge — from $2M to $20M in just 24 months
- Drop in deductions rate to 0.6%
- Amazon Vendor Manager acquisition
- Extension of brand visibility
Founded in 2008, Takeya USA manufactures lifestyle-enhancing reusable hydration bottles, mugs, makers, and pitchers. Over the last 12 years, the company has grown its hydration solutions — including one of its most popular new items, the cold brew coffee maker.
While growth progression had remained steady since the company’s inception, Takeya encountered varying obstacles in selling online. Gaps in operational compliance, limited data, and other complexities of Amazon’s selling platform required external input.
Takeya USA needed to identify revenue disruptors. The company wasn’t able to optimally interface with Amazon, which was negatively impacting engagement across the customer landscape.
“The Ideoclick team is great to work with. I trust them to manage our affairs as if the business was theirs.”General Manager, Takeya USA
Amazon’s structure is highly intricate. As a result, companies like Takeya often sustain unexpected chargebacks and deductions. Having no vendor manager at Amazon, Takeya faced an uphill battle to mitigate operational non-compliance fallout.
Additionally, Takeya’s Amazon marketing strategy focused on keeping ACoS low rather than leveraging opportunities. The company had not yet taken advantage of targeted DSP opportunities. An absence of data, research, and insights was stymying profitability.
No company could foresee the disruption COVID-19 would wreak on momentum. When Takeya’s products were labeled by Amazon as “non-essential,” sales orders halted. Bricks-and-mortar closures further diminished sales.
Once engaged with Ideoclick, George Gelfer, EVP, Sales & Marketing for Takeya, explained that the Amazon expertise provided by Ideoclick’s client success team “provided a level of resources and detail we’d never seen before. In fact, now our whole organization attends the quarterly business reviews Ideoclick holds because the team provides advice on how to react to the data trends.”
Proactive Best Practices
Addressing operational non-compliance was a key initiative Ideoclick’s team helped with to alleviate the financial bleed associated with Amazon chargebacks. Gelfer stated that he especially appreciates the team’s proactive approach in reaching Takeya’s head of operations directly to suggest logistics non-compliance resolutions in order to avoid Amazon chargebacks.
Understandably, a heightened sense of urgency surrounded the quarantine environment — not just in sales lost, but also from a human perspective. Ideoclick’s fast-acting, proactive measures to address both Amazon’s lockdown on shipping and store closures allowed Takeya to retain its employees. “The interim plan the Ideoclick team created while brick-and-mortar locations were closed kept our people paid,” noted Gelfer.
This plan included implementing Amazon Seller Central to overcome Vendor Central order interruptions. Ideoclick also urged Takeya to ramp up marketing spend ahead of its competitors, which garnered optimal real estate and search results momentum. Takeya also continued highly targeted Amazon Advertising DSP campaigns, which were initiated by Ideoclick the previous year.
With the help of Ideoclick’s subject matter experts and comprehensive Amazon services, Takeya’s sales increased from $2M to $20M in just 24 months and operational non-compliance deductions were reduced to 0.6%.
Regaining the momentum the company had lost due to COVID-19, sales reached $1.7M in one month. Greater investment in ACoS resulted in a growth rate spike to 150%, allowing Takeya to reinvest in other areas of its business.
“The level of services and engagement that we get from top to bottom across Ideoclick provides a huge differential for our success. Ideoclick has become an extension of our team and our Takeya family.”
Over time, ecommerce-specific sales also flourished from 10% to 30%. Takeya’s improvements in its Amazon presence led to brand recognition that enabled further national expansion and brick-and-mortar store additions.
Gelfer said, “The business capabilities and insights derived from the data science — combined with the premium brand-building platform in the Amazon environment — created the birth of our brand. Ideoclick’s team established the roots of our brand to take hold on Amazon and explode.”
Ideoclick’s guidance also helped Takeya secure an Amazon Vendor Manager, a powerful milestone that will have lasting effects on the company’s success.
Overall, the competitive analyses, data insights, and constant stream of research Ideoclick performs underlies all of Takeya’s business strategies. From marketing strategy to new product guidance, Ideoclick’s contributions have led Takeya to a coveted level in the marketplace.
At Ideoclick, we thrive in gaining positive results for Takeya, as well as enjoy their hydration products to keep our team going strong. Gelfer stated, “Ideoclick’s efforts have changed the game for us. It remains Takeya’s number-one strategic partnership because of the results and leadership of the collective Ideoclick team.”