How Azuna’s strong supply chain fuels its 9-figure sales
Below is the latest edition of GNReport’s Supply Chain Weekly newsletter, which goes out on Mondays at 10 a.m. ET, and dives into all things logistics and supply chain during a tumultuous time for the retail industry. To receive this weekly in your inbox, click here.
The non-toxic home air freshener space is growing, driven by consumer demand and a direct-to-consumer brand’s ability to balance hyper-growth with operational stability. For the 7-year-old air-freshener alternative brand Azuna, topping nine figures in annual online revenue has required aggressive inventory strategies that enable buffer time and vertical control.
Azuna has avoided supply chain bottlenecks by building a resilient logistics engine rooted in long-term raw material contracts, owned manufacturing and multi-tiered fulfillment.
At the heart of Azuna’s product line is its active natural ingredient: tea tree oil sourced directly from Australia. To insulate itself from global trade turbulence and tariff pressures, the brand secured a long-term supply agreement with Australia’s premier supplier, locking in nearly a full year’s worth of raw materials.
What’s more, Azuna owns its manufacturing facility. Owning domestic production gives the company full operational control over scheduling and batch output, allowing it to flex capacity when monthly order growth surges by 10-15%.
“We have about 90 days of inventory at our 3PL and 90 days at Amazon, and almost a year’s worth of raw materials,” Scott Dancy, founder and CEO of Azuna, told GNReport.
Managing seasonal demand adds another layer of complexity to inventory planning. Azuna’s limited-edition holiday scents — including Fraser Fir, Winter Berry, Apple Pie and Peppermint Frost — typically see substantial year-over-year boosts in order volume. To prevent stockouts without over-committing capital, the company executes long-lead procurement, ordering specialized packaging, for example, six to eight months in advance.
“Demand planning is always difficult at our growth rate,” Dancy said. “If it’s 5x [growth], then we shut it down a little bit earlier than we probably could have.” Once limited seasonal inventory runs out, production stops, preserving capital efficiency.
About 80% of the company’s monthly revenue comes from recurring subscriptions. The predictable order volume enables better demand planning and smoother production schedules.
Subscriptions suit Azuna’s high-margin “razor-and-blade” operational model: Customers buy a durable glass jar once, then regularly replenish it with eco-friendly gel refills.
“We make more money off the gel than we make off the jars,” Dancy said, noting that lightweight refills optimize freight density and shipping costs.
Logistical efficiency extends to Azuna’s order fulfillment and customer experience. Operating an in-house customer care team based in its home city of Buffalo, New York, Azuna maintains a return rate below 1%. Lower return volumes eliminate expensive reverse-logistics costs and inventory-restocking friction.
“Customer experience and product are the two most important things in our company,” Dancy said. “If you don’t have a good customer experience team, nobody’s going to rebuy it.”
Currently distributing 75% of its products via its DTC channel and 25% through Amazon, Azuna is now leveraging its supply chain stability to expand into physical retail. After a successful rollout in 75 Fresh Thyme stores in the Midwest, the brand is targeting premium grocers like Whole Foods and Sprouts, with plans to expand to mass retail and wholesale club distribution by 2028.
What we’ve covered
How Stitch Fix is using AI and customer feedback to build its private brands
Stitch Fix is going narrow and deep with its private brands, a strategy it says is contributing to revenue growth.
What DoorDash’s Instacart acquisition says about the modern delivery platform pitch
DoorDash’s announced Instacart deal shows that delivery platforms are shifting further into retail tech, ads and data-driven shopping.
What we’re reading
Is gold jewelry still on your holiday shopping list? – The New York Times
US manufacturing activity accelerates as production picks up – Bloomberg