Akalade Is a private label brand that sells phone cases on Amazon
They joined the Fratsy community because they had an issue which prevented them from scaling. This was a purchasing requirement from the Chinese manufactures. Because the outer material of the phone case was a special high grain cow leather exported from Italy, The Chinese manufacturer needed a minimum order of 20 square meters. This is equal to 5,000 phones cases, an amount Akalade could not justify with their start-up sales forecast.
Like most start-ups – starting slow and building traction is common practice, otherwise they would have exhausted all their budget on inventory and had to pay for storage when finding out they’re selling like whatever the opposite of hotcakes is… They should be spending budget on advertising and buying inventory in batch until their sales forecast increased after building their brand in time.
This is the part where Fratsy comes in to aid their supply chain and cash flow.
By Akalade filling out a submission form on the Fratsy website, they were able to recruit other community members to join the purchase of 20 square meters of high grain cow leather exported from Italy. To boost success of finding others to join the purchase from non-members, they shared the live group buying deal on their own social media pages.
After the group buy went live we had a number resellers and retailers join the campaign. In this case, we reached a group buy of 28 square meters, that meant even Akalade got a price better than they were hoping for.
There were a couple of questions on the instant messaging section of the campaign. These were about colour preferences. Thankfully the supplier was able to split half the order in to two different colours, which all members of the group purchase were able to negotiate and agree on. After all, everyone made a big price discount and achieved a rare purchase opportunity, so the colour preference was not as important for some of the participants.
Once the group buy had ended
The campaign lasted two weeks to give time for people to piggyback off the order. On the last day, each participant was refunded the excess amount reached by unlocking greater wholesale prices, and the order was kicked off.
It took the Italia leather company 5 days to die and cut the material before they shipped out 60% to our UK warehouse-which was then split up and forwarded to our group buy piggy backers. And the other 40% was shipped to the Chinese phone case manufactures that then assembled the leather on to the Akalade phone cases.
By allowing 2 weeks for the Fratsy lead times, Akalade received 2,000 phone cases at a reduced price and reframed from buying 5,000 phone cases.
A Job well done!
If you would like to repeat this group buy or request your own campaign, please email firstname.lastname@example.org or go submit through our website.
This particular phone case was a white labelled product, and in this case, the phone case was designed by a Chinese manufacturing company and Akalade asked the company to heat stamp their own logo on it, so that it is now branded as an Akalade phone case.
The beauty of private labelling is there are no research and design fees.
Also, if all participators of the Fratsy group buy agrees, we could request for the manufacture to split the order in to multiple different heat stamped logos. The would result in no minimum order quantities, great wholesale prices AND bespoke phone cases for every participant.
If you are a private label reseller company, this tool is perfect for you. Request your white label product to go live on our group buy page and you can instant message the other collaborators on the campaign to negotiate this easily achieved deal.
And remember its your brand story that sells, so other resellers with the same product to you is not your biggest concern, especially as this method increases you profit margins 😊