Case Study: iProven and the Ability to Weather the COVID-19 Storm
A spike in unemployment. Uncertainty about the future. Decreased consumer demand. A lot of businesses are feeling the effects of COVID-19 and struggling to keep their head above water. In these times of uncertainty, the good news is that there are also companies that can show what they’re really made of. iProven is one such company.
Founded in 2014, iProven sells high-quality healthcare equipment for home use. Crowned winner by authority sites such as The Wirecutter and Verywell Family, their thermometers, oximeters, and blood pressure monitors are among the top-rated in the US.
A sample of iProven thermometers
With the full economic impact of COVID-19 still unknown, now is a good time to look at how iProven has managed to thrive during these troubled times.
The Importance of Maintaining Partner Relationships
For cross-border sellers, the COVID-19 pandemic has wreaked havoc on traditional supply-chains. As noted in Payoneer’s Q1 2020 Global Seller Index, quarantines in China during the first months of the pandemic forced many Chinese logistics providers to either close or significantly reduce their services. This resulted in a severe shortage of inventory for many global sellers.
iProven’s challenge was to not only maintain their normal inventory, but to meet the dramatic increase in demand for their healthcare devices. Fortunately, they had spent years cultivating a positive relationship with their manufacturers, which enabled them to increase their stockpiles as the orders came pouring in. Additionally, iProven were forced to display a high degree of flexibility when dealing with their logistics providers, regarding everything from shipping times to added costs, to ensure they always had enough inventory on hand.
“We’re very happy with the collaboration with our manufacturers and carriers. Thanks to our partners’ relentless efforts, we’ve been able to deliver our healthcare devices whenever one was needed.”
- Nelle, iProven Inventory Planner
Diversifying Sales Channels to Ensure Consistent Revenue Streams
The temporary FBA restrictions Amazon instituted at the height of the COVID-19 pandemic served as a wake up call for many global sellers; relying on only one sales channel is a recipe for disaster. While most of your sales might come from a single marketplace, unforeseen events can quickly limit your revenue stream.
In the case of iProven, the fact that they are established on several sales channels has greatly helped increase their revenues throughout the pandemic. In addition to managing sales spikes on their Amazon store, iProven’s webshop saw daily sales increase by a stunning 2,000% over March and April. An earlier expansion in January and February to Walmart proved to be a golden opportunity. While sales were steady at the beginning of the year, they increased by an unbelievable 12,000% in March and April.
“The fact that we already had a stable base on multiple sales channels, has been a decisive factor in the success of the past months. We were prepared. This enabled us to handle the dramatic rise in sales on all our channels.”
- Peter, iProven Business Developer
Navigating the COVID-19 Landscape Going Forward
While this has undoubtedly been an extremely difficult time for cross-border sellers, there are steps business owners can take to help ensure their long-term profitability. As more and more Chinese logistics providers open back up and global shipping lines begin to return to their pre-pandemic levels, now’s the time to explore new options and build up lasting relationships with your service providers. Additionally, opening stores on a variety of marketplaces or building up your website’s store will provide additional revenue streams, helping to cushion the blow if Amazon places new restrictions on their FBA program.
As the case with iProven helps illustrate, diversifying your store as much as possible can greatly help increase your profits while reaching new markets and growing your customer base.