Case Study # 2
Relaunch of Seasonal Products with <30% ACoS
Client Background:
The client, a seller of seasonal products on Amazon, faced a challenging situation. Due to prolonged stock shortages, all their products had lost their rankings, and their campaigns were converting at a very high Advertising Cost of Sales (ACoS).
Goals:
• Re-establish rankings for seasonal products.
• Reduce ACoS
• Increase sales revenue.
Challenges:
• Low stock levels leading to lost rankings.
• High ACoS resulting in inefficient ad spend.
• Need to quickly regain market share and profitability.
Strategy:
• Inventory Management: Prioritized restocking of seasonal products to ensure availability.
• Campaign Optimization: Restructured campaigns, focusing on high-converting keywords and adjusting bids to maintain a low ACoS.
• Keyword Expansion: Conducted extensive keyword research to identify new, relevant keywords to target.
• Ad Creative Enhancement: Updated ad creatives to improve click-through rates and overall ad performance.
• Competitor Analysis: Studied competitor strategies to identify opportunities and refine our approach.
Results:
• Sales Revenue: Achieved total sales of $21,843.42 in the first month, compared to $5,831.88 in the same period last year and $2,354.21 in the 30 days before the relaunch.
• ACoS: Maintained a <30% ACoS, ensuring efficient use of ad spend.
• Rankings: Successfully regained rankings for seasonal products, improving visibility and sales.
Conclusion:
Through strategic inventory management, campaign optimization, and a focus on relevancy and efficiency, the client was able to successfully relaunch their seasonal products, achieving significant sales growth and maintaining a profitable ACoS. This case demonstrates the importance of proactive inventory management and strategic advertising in maximizing sales and profitability on Amazon.