Quick Summary

A $4.6M industrial components brand increased profit payout by 22% and achieved 5.5x ROI on engagement fees—recovering from a failed acquisition by implementing profit-first operations that freed the founder from 50+ hours/week of operational work.

Key Takeaways

• Increased profit payout by 22% (from $1.03M to $1.25M) while maintaining healthy 12% TACoS
• Achieved 5.5x ROI on engagement fees—$5.50 returned for every $1 invested
• Secured #1 Best Seller badge in US market through systematic listing optimization
• Freed founder from 50+ hours/week of operational work to focus on strategic growth
• Expanded into Canada market with 2.1% YoY revenue growth while US grew 4.3%

About the Client

Niche: Industrial & Scientific Components

Revenue: $4.6 Million

Team: Founder-led, bootstrapped

Matt began in 2015 rebuilding small-engine parts in his garage after work. What started as a one-product side hustle is now a multi-million-dollar brand with 25+ SKUs selling across the US and Canada - built entirely through his hands-on product knowledge and data-driven decision-making.

"When I interviewed Naeela, her direct, data-backed approach stood out right away - she challenges assumptions and moves faster than any agency I've worked with."

- Matt

What Went Wrong After the Failed Acquisition?

By mid-2024, Matt had just clawed his brand back after a buyer defaulted on the acquisition deal. Margins were shrinking, supply-chain costs were climbing, and growth had flattened.

"It felt like starting over - expensive, frustrating, and I was ready to escape the day-to-day."

• Exit Fallout: Lack of visibility diagnosing what the buyer changed, and what broke. Listings, pricing, and workflows were left in disarray.
• Tariff and cost pressure: New tariffs, higher storage fees, and slower AWD shipping eroded margins. Stock-outs on key SKUs limited revenue upside.
• PPC Performance Drift: Campaigns lacked strategic oversight; TACoS crept up while topline growth hovered at 1-3%. Limited visibility into ASIN-level profitability.
• Operational Overload: Founder trapped in daily ticketing and case management. Support interactions consumed hours, diverting focus from growth initiatives.

Hands-on Audit: Key Findings

We didn't just pull reports - we rolled up our sleeves and inspected every product in the catalog.

1. Revenue pulse: Growth had plateaued and category rank was starting to slip.
2. Wasted ad spend: A big chunk of budget wasn't moving the sales needle. Very little focus on organic ranking.
3. Inventory pulse: Best-sellers faced stockouts while slow movers tied up cash.
4. Conversion issue: Critical keywords and reviews were missing, capping organic reach.
5. Account health: Stranded SKUs, hidden fees, and compliance red flags.

How Did ALFI Approach the Recovery?

The Profit-First Diagnosis

"When I interviewed Naeela, her direct, data-backed approach stood out right away - she challenges assumptions and moves faster than any agency I've worked with."

- Matt, Founder & CEO

1. Diagnose: We deep-dived into their entire Amazon ecosystem - PPC, keywords, inventory & customer reviews - to pinpoint profit leaks and root causes.
2. Tailored solution: Once we identified the problem, we crafted a profit-first roadmap - optimizing PPC bids, expanding high-value keywords and streamlining inventory.
3. Fast implementation: We rolled out changes fast, tracked the numbers, and strategically managed ad-spend at the product level - so results showed up right away.

Deep Dive 1: Declining Market Share

Lost Badges, Lost Sales

Shoppers picked competitors with Amazon badges, better reviews, and Amazon's Choice. The brand lost clicks and sales.

Key Stat: Category rank slipping, conversion dropping

90-Day Action Plan: Audit, Fix & Scale

We rolled out our 90-day action plan to audit, fix, and scale.

1. Audit every ASIN: Zeroed-in on the 20% of competitors & keywords taking 80% of sales. Competitor analysis, keyword, SEO, image, review, price and ranking audit on every ASIN.
2. Fix the gaps: Overhauled Product Detail pages - fresh imagery, copy, A/B test images, refresh A+ content, test pricing, secure badges, plan deals on every ASIN.
3. Scale what wins: Roll out bundles, promotions, and targeted ads; track performance and iterate weekly.

Results: +6.4% Revenue

US YoY revenue went up by 4.3%, Canada revenue went up 2.1%, confirming balanced geographic expansion. Secured both the #1 Best Seller badge (US) and Amazon's Choice badge (CA SKU).

• +4.3% - US Revenue (Year over year)
• +2.1% - Canada Revenue (Year over year)
• #1 - Best Seller Badge (Secured in US)
• 12% - TACoS (Held steady)

Deep Dive 2: Forecast, Cash, and Supply Chain

Bottlenecks Everywhere

Forecasting gap: The team projected demand only from past sales, causing stock and marketing budgets to fall short. Cash-flow squeeze: Amazon payouts arrived too slowly to fund faster inventory and ad spend.

Key Stat: Supplier ceiling: Vendors maxed out with 30-day lead times

90-Day Action Plan: Focus on Forecasting

Diagnosed what's blocking growth: Forecasting, Payouts, or Inventory Limits.

1. Rebuild the Forecast Model: Create a rolling 12-month forecast that layers in growth targets, promotions, and seasonality; update it every month.
2. Audit and Fix Cash-Flow: Map payout timing vs. inventory and ad spend, then set 14-day checkpoints to keep working capital positive.
3. Secure Extra Funding: Negotiate extended supplier terms. Aim for smaller deposits and longer balances (e.g., 30% down, 70% 60 days after shipment).
4. Add Supply Capacity: Share the new forecast with the primary factory and onboard a secondary supplier to cover at least 30% of volume.
5. Weekly Forecast-to-Actual Reviews: Compare sales, inventory, and cash vs. plan each Friday and adjust orders, bids, or pricing before small gaps widen.

Results: +22% Profit

Revenue up 6.4% while profit payout jumped 22% - showing the profit-first focus. Canada drove two-thirds of the lift. Return on engagement: 5.5x, meaning every dollar of fees delivered $5.50 back.

• +22% - Profit Payout (From $1.03M to $1.25M)
• +6.4% - Revenue (From $2.1M to $2.2M)
• 5.5x - ROI on Engagement ($5.50 back per $1 fee)
• 0 hrs - Founder Ops Work (Down from 50+ hrs/wk)

Hidden Profit, Unlocked

Profit isn't a one-lever trick. We synced listings, ads, pricing, and operations so every piece pulled its weight.

• Profit payout +22% while keeping healthy 12% TACOS
• Revenue +6% and conversion rate climbed
• Re-structured 40%+ of campaigns, redirected budget to best-margin SKUs
• Took over all case management, catalog fixes, and AWD stock monitoring
• Implemented unified dashboard pulling Amazon, Sellerboard, and finance data for weekly decisions

Client Testimonial

"In just six months, our brand transformed from a cost center into a high-margin growth engine. I can't point to one magic move - every part of this process compounded to explode our business."

- Matt, Founder & CEO

We get in the trenches with you.

What makes us different?

No distant theories - we visit you onsite, watch you in action, and co-create solutions with you.

"With the big agencies it's like moving the Titanic, but with your group we get changes logged and live in days, not weeks."

- Matt

• Weekly 1:1 strategy sessions: Tackling real problems
• Custom feedback: Tailored to Matt's unique catalog
• Reassurance and accountability: To trust the profit-first approach

Frequently Asked Questions