Case Studies / Amazon PPC & Brand Building

Case Study (Beauty): Amazon PPC & Brand Building

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$850k+

Total Sales in 2022

85%

Sales from PPC

8%

Average ACOS

Client Overview:

In 2022, we onboarded a client in the highly competitive Amazon marketplace. The client’s primary objective was to achieve brand dominance, drive higher sales, and ensure consistent growth. The client was not particularly concerned about Advertising Cost of Sales (ACOS) due to healthy product margins, but was focused on long-term sales expansion and brand visibility.

Initial Account Performance (Before Management):

Total Sales in 2022: $850,000+
Percentage of Sales from PPC: 85%
Average ACOS: 8%

Although the client achieved commendable sales, their business was heavily reliant on Amazon PPC (Pay-Per-Click) advertising, and ACOS remained high at 50%. A significant portion of revenue came through paid advertising, making it essential to reduce this reliance and improve organic sales growth.

Challenges Faced:

Brand Dominance: Establishing a strong brand presence in a highly competitive market.
Sales Growth: Increasing sales and expanding market share while managing costs effectively.
High ACOS: Bringing ACOS under control while maintaining aggressive advertising campaigns.
Ranking Setback: An account deactivation in June 2023 due to verification issues caused a temporary dip in ranking and sales performance.

Strategic Approach & Solutions

After taking over the client’s account in 2023, our primary focus was to implement cost-effective marketing strategies, enhance campaign efficiency, and explore new growth opportunities. Here’s a breakdown of the key steps and solutions introduced:

Introduction of Virtual Bundles:
- Virtual bundles were introduced to upsell and cross-sell products, driving higher average order value and improving the overall customer experience.
Participation in Amazon Deals and Events:
- We pre-planned and scheduled participation in key Amazon events such as Prime Day, Black Friday, and Lightning Deals after thorough analysis. This not only boosted short-term sales but also helped in long-term brand visibility.
Campaign Optimization & Bid Adjustments:
- We continually optimized PPC campaigns by adjusting bids, targeting profitable keywords, and using negative targeting to eliminate irrelevant or low-performing search terms. Budget allocation was also meticulously managed to ensure maximum efficiency.
Targeting New Keywords and ASINs:
- We conducted comprehensive keyword research and targeted new, high-converting keywords and ASINs that were either trending or newly introduced to the market. This approach diversified the client’s ad reach and tapped into untapped audiences.
Brand Storefront Development:
- We revamped the Amazon storefront to enhance brand recognition, improve the shopping experience, and increase organic traffic. This helped in establishing a stronger brand identity and drove organic conversions.
New Brand & Video Ads:
- We designed and launched new brand and video ads with buyer-friendly content. These ads were designed to not only showcase the product’s features but also create a connection with the target audience, leading to better conversion rates.

Results Achieved (Post-Management):

Within eight months, the results were outstanding:

Total Sales in 2023: $1,322,505.
Percentage of Sales from PPC: 70%.
Average ACOS: 46-48%

Under our management, the client saw a substantial growth in sales from $850,000+ in 2022 to over $1.32 million in 2023. Additionally, the reliance on PPC sales was reduced from 85% to 70%, and the ACOS dropped to an average of 46-48%, showcasing our ability to run more efficient and cost-effective campaigns.

Overcoming Setbacks: Account Deactivation

In June 2023, the account faced an unexpected deactivation due to verification issues. This temporary setback affected rankings and overall performance. However, with quick recovery actions and an aggressive advertising push post-reactivation, we managed to regain momentum. By implementing targeted advertising strategies and focusing on key growth drivers, we ensured the client’s continued success.

Future Goals for 2024

Our goal for the upcoming year is to reach $2 million in sales. Despite the temporary setback in 2023, we are confident that with our continued efforts in optimizing campaigns, launching strategic deals, and expanding organic growth, we will achieve this target.

The monthly sales chart illustrates significant growth, with a notable spike from October to November due to our proactive listing of more products in the first month, which sold in the following month.

Before & After Results:

How Can We Help?

Your Amazon business needs a certified Amazon partner to guarantee sustainable growth. More than simply listing your products on Amazon is required; a whole process of product research, listing optimization, and PPC campaigns is a must to ensure your store has a solid online presence on the largest eCommerce platform.