Vilgain: 300% sales growth on Allegro in 3 months

Vilgain is a Czech company that manufactures and sells high-quality food and supplements. Their product range includes fitness items like protein powders, creatine, and vitamins, as well as a wide selection of healthy snacks and food products. In addition to their home market, Vilgain also targets international e-commerce platforms like Amazon and Allegro.

Vilgain IS MORE THAN JUST PROTEIN

We began working with Vilgain in 2024. They had been on Allegro for about a year but felt they weren’t fully utilizing the platform’s potential.

SPREADING YOUR EFFORTS TOO THIN IS EXPENSIVE AND INEFFECTIVE

We began by identifying the products with the highest potential to build on. It was essential to understand Vilgain’s position relative to customer behavior and competition on the marketplace. Initially, Vilgain offered hundreds of products across more than 30 subcategories, which wasn’t the most effective strategy for achieving quick results.

QUICK ANALYSIS AND IDENTIFYING POTENTIAL: A MERCHANTEE CORE COMPETENCY

Merchantee makes it easy to gather marketplace data and link it to your products. You can quickly assess the market landscape and understand how your products are interacting with customers. In Vilgain’s case, we approached it with the following:

Identifying Product Groups with the Best Demand-to-Competition Ratio:

“Many customers view Vilgain as a fitness supplement seller, offering products like protein powders, creatine, and vitamins. However, with Merchantee, we identified the greatest potential in grocery items like canned meats, snacks, and dressings. This proved to be a smart choice, as these niches were highly promising but under-served by the competition. These products quickly became bestsellers, helping to boost overall brand visibility and sales.”

Jakub Vraspír, CEO Merchantee

TRACKING CUSTOMER INTERACTIONS

Especially in the early stages, when sales are low, key metrics to track include:

Dynamics PRODUCT PORTFOLIO SEGMENTATION

As you continue working on a marketplace, your product portfolio will naturally divide into different categories. It’s crucial to know how to handle each category to drive further growth. Monitoring customer interactions with your products is key to success.

#1 Superstars

These are products with a conversion rate of 10-20% or higher. We promoted these across channels—Allegro Days, Allegro Ads, promotions, etc. If a product converts well, the key to growth is getting it in front of more people.

#2 Contenders

These products attract customer interest but for some reason don’t sell in high quantities. The goal is to find the reason. In Vilgain’s case, reasons included better performance in multipacks, adjusting product weight, or benefiting from the first reviews or free shipping promotions.

#3 Cold stocks

These products can be effectively promoted through Allegro ADs as you only spend on relevant traffic which then helps direct the right activities. We have also improved visibility by updating product photos, adding key selling points to titles or moving products to more relevant subcategories.

Merchantee can fully automate product promotion (Promotion) based on the specified budget and conversion development. The Smart Segmentation feature will help with the selection of products for Allegro ADs or campaigns (e.g. Allegro Days or Black Weeks). Once the products are divided into multiple categories (e.g. Superstars, Contenders and Cold Stocks, which we described above), you can then set different expectations within each category and adopt a different strategy accordingly. Which will ultimately lead to even better results and expectations.

Merchantee delivers results

Merchantee collects important metrics, segments products intelligently, automates sales activities, and offers specific recommendations. This allows you to make effective decisions daily, driving results like the ones we achieved for Vilgain:

GROWTH? PRACTICALLY UNLIMITED AND NOT AT THE EXPENSE OF PROFIT. BUT automation AND prioritization ARE ESSENTIAL

Our growth with Vilgain wasn’t at the expense of profitability. We managed to maintain a cost-to-sales ratio (CoS) of around 25%.

The vision for the collaboration is to sustain sales growth while introducing new products. Recently, Vilgain expanded into cosmetics, a category that requires a different approach than food or fitness products. We also see opportunities to work with Vilgain’s customer base to encourage repeat purchases or use notifications that alert customers when a coupon or promotion is available. As of the time of this case study, we’ve already surpassed 5,000 units sold per month.

"Working with Lukáš and Eva is great, as are Vilgain's products. It's a pleasure to work with such a set-up. Merchantee in this story plays more of an automation and data layer, which is responsible for maximizing performance. But it all depends on the experienced Vilgain team, good customer support and flexibility with which they are always able to respond to new situations and obstacles. We have learned that successful sales on the marketplace require time and priority, which the seller devotes to it. The result is a very interesting business channel where you can continue to grow."

Jakub Vraspír, CEO Merchantee

HOW DOES VILGAIN RATE WORKING WITH MERCHANTEE?

„Allegro is a strategic channel for us in Poland. Initially, we worked with a local agency to launch on Allegro, but we ended the partnership after a few months due to the ineffective try and fail approach. Then, we decided to try Merchantee for their data-driven platform and automation approach, which aligns with our values. It was the right choice.

Thanks to Merchantee’s data-focused approach, we moved from random experiments to a state where we understood market potential, identified high-potential products, and implemented steps that had an immediate impact on sales. Merchantee also saves us time and money with automated promotions and insights into our portfolio. As a result, we are growing on Allegro as planned.”

lukáš verner, business development at vilgain