Case Study: Hobbytown USA

  • Hobbytown USA
Improve profitability and increase efficiency with automation
“Our first full year, we had sales of $800,000. This year, we’re looking at $1.3 million. We attribute all of this growth to Monsoon.”
– Ryan Phillips, Owner, HobbyTown USA

The Problem

After developing an e-commerce strategy to sell inventory from its 160 franchise stores, HobbyTown quickly realized that their current operational methods wouldn’t translate to the online portion of their business. HobbyTown’s challenge was twofold: reach millions of buyers and ensure competitive pricing online.

In the beginning, the company manually listed, priced and re-priced inventory. “It took a tremendous amount of time to list each individual item. Any profits generated through sales were chewed up by labor,” said Ryan Phillips of HobbyTown USA. “We knew that by continuing to do things manually, we severely limited our growth potential.” HobbyTown sought a more robust technology solution to help better manage the inventory, distribution, and pricing strategies of their new multi-channel world.

The Solution

HobbyTown USA needed to create a robust, profitable presence on the online marketplaces. They turned to Monsoon Marketplace to automate distribution and pricing for their multi-channel operation. Additionally, the Monsoon Marketplace account management team helped the company create a vision for operational growth supported by the practical applications of the technology.

The Results

Monsoon Commerce has been the catalyst for HobbyTown USA’s rapid online success. The company experienced 62% revenue growth in one year. “Without Monsoon Commerce, we simply wouldn’t be selling online,” said Phillips. “Our first full year, we had sales of $800,000. This year, we’re already looking at $1.3 million. We attribute all of this growth to Monsoon Commerce.” This consistent increase in revenue has helped HobbyTown USA develop a stronger customer base through expanded product offerings.

Using Monsoon Marketplace helped HobbyTown USA:

  • Immediately realize a 62% increase in revenue and develop a stronger customer base through expanded product offerings
  • List and sell select inventory from more than 160 brick-and-mortar HobbyTown franchises, reducing time to list a single SKU online from 15 minutes to managing all SKUs in just 15 seconds

The Monsoon Commerce Professional Services team has been instrumental in helping HobbyTown USA create a strategic vision for future success. “They not only answered our questions, but they showed us how to improve on our existing ideas,” said Phillips. “The Professional Services team is great at explaining all the practical applications and helping us think not just one but four steps down the road. They really go above and beyond the call of duty.”

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Key Takeaways
  • Drive top line revenue through increased sales in Amazon marketplace
  • Automatically re-price inventory all day to compete more effectively
  • Improve profitability and increase efficiencies from automation
  • Focus efforts on strategic parts of the business