AM Eyewear is changing the way wholesale eyewear purchases are made, reducing the layers between factory and retailer with what they describe as “a digital-first approach” for 2020. With the launch of their new B2B ecommerce platform, the eyewear manufacturer is now able to preserve margin leakage, offering retailers industry-leading discounts and the ability to earn more sustainable profit margins - up to six times current rates – while allowing their retailers and agents to trade directly online. Two years ago, AM Eyewear Director Simon Ponnusamy took notice of the recurring trend of increased competition, lower margins and more middle-men in his distribution channel.
“I interviewed retailers across my sales channels and we quickly determined the current distribution model is not sustainable,” Ponnusamy says.
“Retailers were struggling to operate on thinning margins. With the age-old retailing mantra innovate or die in mind, I challenged my team to look for a better way to preserve margin as our products moved to our retailer-partners,” he says. Ponnusamy’s team met the challenge, working with him to design AM Eyewear’s unique self-service B2B platform that enables retailers to train sales staff, manage marketing support and receive aftersales service. Retailers who make wholesale purchases of frames are comforted by the AM Eyewear no-questions-asked refund policy on any order placed in the last 14 days.
“Our system removes multiple layers and pools the margin to share with AM Eyewear’s retailers,” Ponnusamy says.
“This is distribution innovation that had to happen.”