Speed Life Case Study
+21% Items Sold
+17% Overall Revenue
+12% Overall Profit
About Speed Life
Speed Life is an eBay store specializing in aftermarket auto parts. The aftermarket is a global market for automobile parts that aren’t made by the actual car manufacturer, but rather by third-party manufacturers. It is a highly popular and cost-effective option for both car owners and professional mechanics looking for replacement parts.
Auto parts sell for very low margins. In order to make your aftermarket business profitable, you must sell in high volumes. Speed Life was doing exactly that, in the US domestic market – cutting prices in order to increase sales.
Even though Speed Life offered the same attractive prices for international buyers, the added shipping costs by GSP were casting a shadow, deterring potential customers from making the purchase.
Speed Life chose Hipshipper simply for the better shipping rates we offer, compared to eBay GSP. More than that, it was highly important for Speed Life to offer the absolute best rates possible for shipping in order to attract the volume of orders their business depends on.
For that, we advised them to opt out of Free International Returns since according to the data we accumulated over the years, return rates in the aftermarket are markedly low – the buyers do their research and know exactly what they need and what to buy. That way, Speed Life was able to keep the shipping cost at its bare minimum.
Still, we wanted to offer an additional edge for Speed Life to increase overall profits. Hipshipper enable sellers to add a fixed price factor to the shipping cost (flat or percentage), which accounts to a net profit from the shipping itself. A flat addition to the shipping cost still allowed them to offer a competitive shipping price.
After Implementing Hipshipper
Speed Life reports a quick and significant boost to their international sales. Not only that, the Add Profit allowed them to increase their profit per order, making their international business more profitable than the domestic US one in mere three months.
No magic tricks here. Lower shipping costs increased the number of orders. Speed Life pricing of its inventory is competitive, all they needed was a shipping cost that would not scare away potential buyers.
+15% Increase in avg. order price
+17% Overall revenue
+12% Overall profit