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CASE STUDY: How We Increased Profitability In The Most Competitive Category Ever

Posted by Jimi Patel | July 16, 2020

amazon seller case studies for PPC and SEO

 

Carlo, the owner of a haircare brand, decided it was time to reassess his brand’s PPC strategy when he found that his ad spend and ACOS has been constantly increasing while the sales were almost stable. He considered hiring Amazon advertising experts to handle his ad campaigns full time. After investigating a handful of PPC consultants and agencies, he chose eStore Factory as his trusted partner. During the initial project discussions, he made it clear that his main goal behind hiring experts is to reduce ACOS along with PPC revenue growth. Considering the uber-competitive category he was selling in, it wasn’t easy, but our team left no stone unturned. Not so surprisingly, we reached the target ACOS even before the target date and that’s when the foundation of a long-lasting relation was placed.

 

Challenges:

 

Our biggest challenge was maintaining profitability and ACOS in one of the most competitive categories on Amazon. There were big players already sitting on the most profitable spots, so we had to increase the bids and higher bids equals higher ACOS. Controlling ACOS is neither impossible nor unachievable, but our Amazon PPC specialists had a time limit for it which was the real challenge. 

 

Actions:

 

  • Our first step was to clean up wasted spend and identify opportunities for increased targeting
  • We created both automatic and manual campaigns to collect data, drive sales and improve visibility
  • After a few weeks, we started getting results and then we did Amazon ad optimization based on performance
  • Negative keyword harvesting on a daily basis helped us the most in controlling the ACOS
  • Micro-level bid tweaking dramatically reduced extra spend and optimized keyword performance
  • As the PPC revenue was already increasing at a faster rate than its ad spend, we had the opportunity to up the ACOS a tad and achieve better revenue without affecting the profitability

 

Results:

 

  • Within just two months the PPC orders grew from 826 to 1012
  • We reached the target ACOS of below 20% before the 1 month time period and our consistent efforts decreased it even further
  • The ACOS in February 2020 was reduced to 17.29% from 23.12% in December 2019

 

Past PPC sales numbers:

 

Month No of Orders PPC Sales ($) PPC ACoS (%)
November – December 2019 826 $26045.86 23.12%

 

Current PPC sales numbers: 

 

Month No of Orders PPC Sales ($) PPC ACoS (%)
January – February 2020 1012 $32524.99 17.29

 

All it takes to be successful on Amazon is consistent efforts and a well-thought plan

 

It’s been 9 months since working with Carlo and his company has experienced a never-seen-before advertising growth and increased profitability. Based on the strength of the partnership, the company happily handed the management of its UK and CA account to eStore Factory’s Amazon Consultants. Our relationship with Carlo is sure going to last much longer as we still have a lot of milestones to achieve. 

 

Still not convinced? Hire our Amazon Seller Central experts and find out how eStore Factory can be your turnkey solution for Amazon growth.