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EspañolConsistency and commitment: The key to Allegro sales success
The Client
In March of last year, we were approached by a pharmacy operating exclusively within the traditional, brick-and-mortar retail sector.
In response to rapidly shifting consumer behaviour and the booming popularity of online shopping, the company decided to expand into e-commerce. They made their debut on the Allegro marketplace in April 2023, initially offering a limited product range.
Alongside over-the-counter medicines, the client’s catalogue includes a wide selection of dietary supplements, medical devices, and cosmetics, with a strong focus on dermocosmetics.
The Challenge
Transitioning from a physical storefront to the highly dynamic Allegro marketplace presented a steep learning curve. The client faced several key hurdles:
- Navigating a lack of e-commerce experience: The company had to pivot from traditional retail to digital sales, learning the complex mechanics of the Allegro platform from scratch.
- Building listings and reputation from the ground up: They needed to create marketplace-compliant listings, implement a robust pricing strategy, and secure those crucial first reviews to build buyer trust.
- Meeting strict account health standards: The client had to align their internal processes with Allegro’s stringent requirements for customer service, rapid dispatch times, and overall Sales Quality.
- Standing out in a highly competitive market: Fierce competition made it difficult to gain traction, demanding highly effective pricing and promotional strategies.
- Overcoming initial scepticism towards online advertising: A cautious approach to ad spend initially bottlenecked their ability to scale visibility and sales.
Account setup
We kicked off our partnership by creating the account and configuring the essential backend settings required for a professional Allegro storefront:
- Setting up returns, warranties, and complaint policies.
- Configuring delivery pricing templates.
- Establishing payout schedules.
- Selecting the optimal Allegro subscription plan.
- Crafting the “About the Seller” section.
- Integrating BaseLinker with the Allegro account for streamlined order management.
Building listings and seller reputation
Selling the exact same products as your competitors is always a major challenge, particularly when the client is a distributor rather than a manufacturer.
We began building out the catalogue strictly according to Allegro’s listing guidelines. Our initial focus was on expanding the product range and executing a targeted pricing strategy. For certain product lines, we were able to adopt a highly competitive pricing model, which helped the listings slowly gain traction. However, a significant portion of the catalogue couldn’t match competitor prices. As buyer reviews began to trickle in, the platform’s algorithms increasingly favoured the account’s performance metrics.
It’s crucial to highlight the client’s outstanding commitment here. They were highly receptive to our feedback regarding Sales Quality, constantly adapting their internal structures to meet Allegro’s standards while learning the ropes. Thanks to this collaborative effort, the account has consistently maintained a ‘Super+’ Sales Quality tier for several months, with a customer satisfaction rate sitting at an impressive 99.9% for the past year.
Furthermore, the company prioritised Allegro’s strict dispatch metrics from day one. Out of 2,185 parcels, 99% were dispatched on time, with nearly a thousand shipped the very same day! This dedication to operational excellence steadily built a highly competitive account standing month on month.
Visibility
Once the catalogue was live, the initial reviews secured, and the Sales Quality metrics stabilised, we aggressively ramped up our promotional efforts. We launched our marketing push using Promoted Listings, which allowed us to save on fixed fees.
Next, we rolled out Allegro Ads campaigns. Initially, the client was hesitant about PPC (Pay-Per-Click) promotions, keeping the budget tightly capped. However, after witnessing exceptional ROI within the first few weeks, they quickly scaled up their ad spend.
The Results
From their launch up until April, the company generated over 1.3 million PLN in revenue, with sales continuing to grow consistently month on month.
Advertising statistics
The return on ad spend (ROAS) averaged 9.80 PLN for every 1 PLN invested, driving a total of 373,208.92 PLN in ad-attributed sales over the course of the year.
Summary
When operating as a distributor, success hinges on developing a smart pricing policy, maintaining impeccable account health driven by positive customer feedback, and ensuring fast, reliable fulfilment.
Coupling these operational fundamentals with strategic promotions can trigger a snowball effect, leading to consistent monthly sales growth even in fiercely competitive sectors.
Our partnership with this client is ongoing. We continuously optimise and adapt every aspect of their sales funnel to keep pace with the ever-evolving marketplace landscape.
We believe in our clients’ products, which is why we successfully scale their sales! Thank you for your trust.
Would you like to work with us to achieve similar results?
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