Case Study # 3

£120K+ Added In Monthly Revenue


Client Background:
The client, a seller of medical supplies on Amazon, faced challenges with their account, including underutilized products, stock issues, and low margins due to low product prices. Their monthly revenue was around £80k, and they aimed to increase it while maintaining a Total Advertising Cost of Sales (TACoS) under 15%.

Goals:
1. Increase monthly revenues
2. Lower TACoS
3. Address underutilized products and stock issues

Challenges:
1. Underutilized products and stock issues.
2. Low margins due to low product prices.
3. Need to maintain feasible advertising despite low margins.

Strategy:
• Product Optimization: Identified underutilized products and implemented strategies to increase their visibility and sales.
• Stock Management: Addressed stock issues to ensure availability of popular products and prevent stockouts.
• Campaign Optimization: Lowered CPC by refining targeting, improving ad relevance, and adjusting bidding strategies to maintain feasible advertising.

Execution:
• Product Optimization: Improved product listings, including titles, descriptions, and images, to enhance visibility and conversion rates.
• Stock Management: Implemented inventory management practices to monitor stock levels and prevent stockouts of popular products.
• Campaign Optimization: Conducted regular reviews of campaigns to identify and eliminate inefficiencies, lowering CPC and improving overall ROI.

Results:
• Revenue Increase: Achieved a significant increase in monthly revenue from around £80k to over £200k.
• TACoS Reduction: Lowered TACoS to under 15%, ensuring efficient use of advertising budget.
• Improved Margins: Despite low product prices, maintained feasible advertising by optimizing campaigns and lowering CPC.

Conclusion:
Through strategic product optimization, stock management, and campaign optimization, the client was able to significantly increase their monthly revenue while lowering their TACoS to under 15%. This case highlights the importance of proactive management and optimization in maximizing revenue and profitability, especially in industries with low margins such as medical supplies.

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