How Volix helped an e-commerce business generate $8.5 million in annual sales.

A large e-commerce company in the United States had been losing sales volume since the pandemic (2020). Volix was hired to redesign its Pricing Strategy, focusing on increasing gross profit and sales volume. With the new Pricing Architecture developed, the company managed to increase its net sales by $8.5 million and EBITDA by $4.9 million annually.

The Challenge

The company was struggling to maintain its profitability and sales volume, especially in low-turnover products.

Main challenges:

Loss of sales volume since 2020.
Need to readjust prices without compromising competitiveness.

Restrictions imposed by the organization:

Price adjustments could not exceed 5%.
Increased sales should focus on products with low turnover (curves C and D).

Solution

Volix has developed and implemented a pricing strategy based on the following pillars:

Opportunity mapping

detailed analysis of product elasticity, the price of competing products, stock levels, consumer evaluation of products and the relevance of the product in the portfolio.
Definition of the New Pricing Architecture

adjustments considering the product’s gross margin and its impact on EBITDA.
Execution of Pilot Projects

tests to gauge the effectiveness of changes before full implementation.
Implementation at Scale

price adjustments applied to the entire portfolio with continuous monitoring of results.

Results

With the new pricing strategy, the company achieved the following results:

+$8.5 million in annual net sales.
+$4.9 million in EBITDA.
+900,000 additional units sold.

In addition to the financial gains, the company has optimized its stock management, significantly reducing the volume of products with excess weeks in inventory.

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