product pack

How AZZS eliminated 75% of their dead stock due to Produck Pack

About the company

A company that produces its own natural beauty products

Sells and advertises their products mostly on Facebook

Over 20 employees, half working in marketing

Products are advertised and sold in 7 EU countries

Problem

AZZS used to base their whole production process on the number of sales they generated.

Why is this problematic?

AZZS’s target ROAS is 8 – anything below that is generating a loss. Unfortunately, a large number of orders doesn’t necessarily translate to a high ROAS. This means that AZZS should have considered ROAS (not just orders) when making decisions about their production process.

In order to do that, they would need to keep track of every product’s results across different accounts, shops, and countries.

The load of work was simply too much for them to handle. So they used the old way and based their production on sales figures only. The company oftentimes produced way too many items that they couldn’t sell and, consequently, some of them went bad – an additional risk when selling products with an expiration date.

“We have way too many products, webshops, and markets. If we wanted to track every item’s ROAS, we would have to hire someone just for that task. So we based our production process on monthly sales. Needless to say, it didn’t always pan out the way we wanted to. Sometimes we produced way too much and we just couldn’t sell the products, which resulted in money loss.”

Amir Salesevic, CEO

Solution

When AZZS started using ROAS monster, they found one feature to be particularly useful when it comes to inventory - PRODUCT PACK.

It allowed advertisers to track individual product’s performance across different countries, ad accounts, domains, and webshops.

Tracking every product’s ROAS might have been an issue beforehand, but after AZZS started using Product Pack, they were able to get the right metrics within seconds.

Let’s look at Product Pack in action.

The product Sprucy generated 9,238 orders last month. Great numbers. But looking further, we see that the product’s ROAS is alarmingly low. Increasing or continuing with the production rate as before would therefore be risky. Still, there are 1000 pieces of this product left to sell.

By checking the table with all the webshops Sprucy is sold in, we can see that it actually performs well in some of them. By focusing on shops where ROAS is still above target, AZZS will be able to sell the remaining 1000 units of the product without generating a loss.

So, what did it do for AZZS?

“The Product Pack feature changed everything. We use it all the time to monitor products’ life cycles and follow trends. We were able to reduce dead stock and expired products by 75%.”

Amir Salesevic, CEO

Results

Before using Product Pack, the AZZS wasted over 15,000€ on products that expired.

70% reduced
overall costs

60% more
storage space

75% less deadstock

60% higher roas

Overall conclusion?

“Costs reduced by 70%. We are very happy with that.”

“We increased our storage space by 60% since we don’t have products laying around anymore. And because of that, we were able to relocate into a smaller and cheaper storage unit. Product Pack really helped us save a lot of money.”

Amir Salesevic, CEO