Strategic FBA to FBM Transition Drives Profitability for LEER on Amazon

​OVERVIEW​

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LEER faced profitability issues on Amazon, primarily with their 3P business. High storage and catalog fees from FBA were eating into margins, particularly for larger, slow-moving truck accessories. Channel Key identified these inefficiencies and worked with LEER to transition to a more profitable FBM model, expand their product catalog, and launch new high-margin products. This realignment helped the brand achieve its first profitable month of 3P sales.

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APPROACH

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• Deep Dive into Profitability
  Analyzed LEER’s hybrid fulfillment model to identify FBA-driven losses and pinpoint areas for improvement.
   

• Eliminate FBA Inventory & Transition to FBM
  Cleared excess FBA stock and shifted the full 3P catalog to FBM for better margin control.
   

• Expand Catalog & Launch New ProductsAdded new product lines and high-margin items, achieving the first profitable 3P month.
   

CONCLUSION

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Channel Key’s strategy helped LEER turn around its 3P business. By eliminating FBA inventory and transitioning to FBM, LEER achieved its first profitable month of 3P sales in June. Expanding the product catalog and launching high-margin items led to stronger profitability. As a result, LEER saw a significant improvement in margins, continued 1P PO fulfillment, and a full overhaul of its brand stores, improving content and shopping experiences.

​​​+170%​

MoM Increase in Profitability