As we dove into the background research of the success stories of companies gaining huge success after selling on the Amazon marketplace, we encountered several case studies and success stories, however, for most of them revenue growth was less than $50 million. Although we were able to gather one such success story in our initial research that meets the revenue growth criteria. A summary of our findings is provided below:
- Andrew Vagenas(the owner of Pharmapacks) one day picked up an EOS lip balm and guessed a price in his mind(including a glimpse of shipping charges). He then opened the products page on the Amazon marketplace and looked for the price of the same product. He observed that his offered price was the lowest among all the sellers on the Amazon marketplace. This makes him add his product to the Amazon marketplace expecting huge sales.
- Then he brought picked up other products like vitamins box, compared his price with those already on Amazon marketplace, and finally released his product on Amazon with a price slightly lower than those of other sellers. He started selling all his random products in the similar way.
- All this was started in the initial stage of 2014, and Pharmapacks marked a revenue of $31.5 in 2014. The annual revenue grew to $70 by the end of 2015. Additionally, the company observed tremendous growth in revenue of $160 in 2016.
- Observing the huge success, Pharmapacks brought all products to the marketplace, that are easily available in a drug store.
- Today, Pharmapacks employs 16 customer-service representatives, that serve over 200 concerns over the phone and by email every day. The sales observed a huge growth since the company started selling on the Amazon marketplace, and currently, Pharmapacks products have been rated more than 280,000 times and its Amazon rating is 4.9 stars.