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37% Contribution margin increased 37% in the 12 months post-acquisition
32% Average daily units sold increased 32% in the 12 months post-acquisition
60% Increased total revenue over 60% since acquisition
The Origin Story
When Thrasio acquired Beast Gear – a UK-based fitness-equipment company – the owner had built personal connections with many of the brand's customers. Brand loyalty was impressive, but as the company grew, that level of engagement wasn’t scalable, and the competition was closing in.
The Challenge
Three months post-acquisition, COVID-19 hit, and demand for home-fitness equipment surged. That was good for Beast Gear – but demand for competitors' products also spiked, the supply chain was becoming unreliable, and Brexit was looming.
Brexit
Solving Complex Market Challenges
When Brexit came to a head in early 2021, pressure mounted on Amazon sellers operating in the EU. To serve both UK and EU customers, they had to find separate storage facilities and divvy up their inventory. Miss the deadline, and they’d face steep customs fees.
Thrasio’s Supply Chain, Finance, and Brand Management teams went to work for Beast Gear. In the face of unprecedented demand for shipping and warehousing, our teams revamped the inventory pipeline to meet the changing market conditions. They also created new listings for Amazon Europe.
Fail Forward
Pulling Back to Get Ahead
When we purchased Beast Gear, its products were available in the United Arab Emirates and Australia, but storing and shipping merchandise to those markets cost more than they delivered in profit. We cut our losses there and focused on launching in the U.S., where forecasting showed a much stronger market.
Optimizing Amazon Listings
Strength in Numbers
Originally, Beast Gear had several independent listings for skipping ropes. By combining the listings and merging the ratings and reviews for each variation, Beast Gear Skipping Ropes quickly earned the Best Seller Badge.
Creative
New Branding Brings a Wider Audience
To expand the brand’s consumer base, we pivoted the Beast Gear hyper-intense bodybuilder image to one with broader appeal. Thrasio’s Creative team replaced low-quality images and stock photos on its Amazon listings with professional product photography. The new look paid off when the pandemic drove people to look for simple, unintimidating home-fitness solutions.
*Our case studies are for general information purposes; they are not guarantees of future performance and undue reliance should not be placed on them. Each study is based on a particular set of facts and conditions at a point in time and may involve known and unknown risks and uncertainties. The performance, financial results, and projections for the products or sellers in these case studies may not be parallel in others.
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