Numi Tea: Turning Precision into Profit — 32% Growth with 46% Less Ad Spend

Overview

In just one year, Numi Tea transformed its Amazon business from stagnant to dominant. This wasn’t about pouring money into ads — it was about strategic control, operational excellence, and brand integrity.

Despite cutting ad spend nearly in half (from $500,000 to $270,000), Numi achieved a 32% year-over-year growth in Amazon payouts (Shipped COGS). Revenue increased from $943,769 in 2024 to $1,246,871 in 2025, proving that profitability and growth can coexist when every lever — from fulfillment to advertising — is optimized.

The Problem: Overspending Without Strategy

Before partnering with Courageous, Numi Tea was managed by an agency focused solely on spend — not results. The previous team burned through $500,000 in ad spend, plus an additional $120,000 in Amazon DSP, which ended up cannibalizing organic sales rather than driving new growth.

Even with that heavy investment, sales increased only 16% year-over-year. The brand was paying more but earning less — plagued by inefficiencies like poor ACoS control, Buy Box leakage, and fulfillment disruptions that undermined its organic visibility.

The Turnaround: Smarter Strategy, Not Bigger Budgets

Courageous approached the account differently: every dollar, listing, and process was re-engineered to drive measurable impact. The focus wasn’t on throwing money at ads — it was on fixing the foundation that drives sustainable growth.

1️⃣ Reclaiming Lost Revenue

Through deep channel analysis, we discovered multiple unauthorized third-party resellers undercutting prices and stealing the Buy Box. Working with Numi’s distributors, we blacklisted these sellers and implemented counter-offers to regain price consistency and brand control.

Result: Over $600,000 in missed revenue recovered. The brand regained Buy Box ownership, restored pricing authority, and stabilized its sales velocity.

2️⃣ Fixing Fulfillment & Operational Bottlenecks

Behind the scenes, chronic fulfillment errors and out-of-stocks were eroding performance. We collaborated with Numi’s internal operations team to fix case-pack issues, improve delivery accuracy, and align restock timing with category demand.

Result: Fewer chargebacks, stronger in-stock rates, and uninterrupted organic momentum — essential for sustained category ranking growth.

3️⃣ Smarter, Leaner Advertising

Instead of overbidding defensively, we rebuilt campaigns around cross-promotion, repeat-purchase ASINs, and high-converting search placements. This strategic shift allowed us to cut spend by 46% while improving efficiency and ROAS.

Result: Advertising became a growth multiplier, not a cost center — driving more profit with fewer impressions and higher intent traffic.

Key Outcomes

• +32% YoY growth in vendor payouts (Shipped COGS)
  
  
• –46% reduction in ad spend
  
  
• 2× higher return on ad spend (ROAS)
  
  
• $600K in recovered revenue from unauthorized 3Ps
  
  
• #1 Bestseller in Dark Tea
  
  
• Top 10 rankings in five additional categories
  
  
• 80% YoY growth in single-SKU COGS