A consumer-direct mattress firm aged 6 years, Nest Bedding, recently disclosed its partnership with Amazon, introducing a Queen-sized mattress exclusively for Amazon, named FLIP, starting next month, February 2019. This mattress will be marketed at $399 specifically for Amazon’s clientele. Concurrently, the firm announced the upcoming opening of approximately 15 Nest-exclusive physical stores by 2019’s end and the launch of numerous new merchandise.
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The mattress will exclusively be sold online through Amazon, and not through Nest Bedding’s own site or any physical retail locations. The strategic partnership with Amazon aims to engage customers seeking budget-friendly mattresses. Target demographics include college students in search of an affordable starter mattress and cost-aware consumers desiring reasonably priced products, who may later become loyal customers and transition to higher-priced mattresses ranging from $899 to $1799.
Potential Reasons for the Launch of Amazon-exclusive Mattress
This move may also be seen as a strategy to differentiate itself from competitors in the marketplace. Marketing tactics used by rivals like Casper, Tuft and Needle, Leesa, and Purple include selling on their individual websites or partnering with various retailers for physical store sales, as well as selling products on platforms like Amazon and Walmart. For instance, in November, Tuft and Needle launched an Amazon-exclusive mattress called the Nod. Nest Bedding’s choice to launch an exclusive Amazon product might be considered a strategic maneuver to maintain competitiveness.
The company plans to invest about $200,000 in Amazon display and search advertising and anticipates sales of 4,000 – 6,000 mattresses within a year. This strategy is expected to boost the company’s existing 60% profit from online sales. Despite anticipating growth, Nest Bedding faces tough competition from various vendors on Amazon, including Amazon itself, which lately started selling the AmazonBasics Foam Mattress priced at merely $130.
About Nest Bedding
Founded in 2012, Nest Bedding has captivated audiences in the mattress market. The brand is renowned for its organically and naturally made mattresses crafted in the USA, ensuring restful and comfortable sleep. Ending fiscal year 2018 with $28 million in revenue, the company saw a sales increase of 20% from the year before, illustrating its growing popularity.
