Overview
In July 2024, our client, a US-based brand in the Health & Household category, faced challenges with their Amazon PPC campaigns. Despite good ad sales data, the focus on ROAS alone did not account for overall profitability. To address this, we shifted the focus to Net Profit by integrating a third-party software tool that analyzed all costs—including Amazon fees, expenses, and product costs—to calculate a comprehensive ROI.
Challenges
- Profit Loss Across Products:
- Of the 200 products analyzed, 23 showed significant profit loss despite low TACoS.
- Common issues included high ad spend, negative margins, and poor pricing strategies.
- Operational Challenges:
- 28 previously well-performing items went out of stock.
- Frequent returns, negative reviews, and lost Buy Box further impacted sales and profitability.
Goals
We developed a two-pronged strategy:
- Primary Goal: Addressing the 23 challenging products to reverse profit loss.
- Secondary Goal: Increasing sales and profitability for high-margin products.
Amazon Marketing Strategy and Implementation
Step 1: Resolving Challenging Products
We analyzed each product’s performance, identifying key issues and implementing tailored solutions:
- Listing Optimization:
- Enhanced A+ Content, brand stories, and product images to showcase benefits and address customer concerns.
- Pricing Adjustments:
- Gradually increased prices for select products to improve margins without losing competitiveness.
- Ad Spend Optimization:
- Reduced bids and turned off underperforming campaigns.
- Enhanced bids and refined targeting for campaigns showing potential.
Step 2: Boosting High-Margin Products
- Campaign Expansion:
- Launched new Sponsored Products, Sponsored Brands, and Display campaigns.
- Utilized historical purchase data to segment keywords and create targeted campaigns.
- AI-Generated Campaigns:
- Integrated AI tools to design broad and precise manual campaigns, optimizing based on historical performance and customer behavior.
Amazon Marketing Case Study Results
By October 2024, our efforts yielded substantial improvements:
| Month | Total Sales ($) | Net Profit ($) |
|---|---|---|
| July 2024 | 49,190.54 | -1,434.55 |
| August 2024 | 97,412.07 | 2,703.55 |
| September 2024 | 94,269.51 | 5,556.49 |
| October 2024 | 80,847.65 | 5,502.84 |
Key Takeaways
- Data-Driven Decision Making:
- Shifting focus from ROAS to comprehensive ROI provided a clearer picture of profitability.
- Targeted Problem Solving:
- Tailored strategies for individual products led to measurable improvements in both sales and profit.
- Adaptability:
- Regular analysis and adjustments ensured continued performance optimization.
Conclusion
By integrating advanced analytics and focusing on profitability rather than ad sales alone, we transformed a challenging situation into a success story. This case highlights the importance of holistic strategies in Amazon PPC management.
For brands facing similar challenges, our approach demonstrates the value of precision, adaptability, and a profit-first mindset in achieving sustainable growth. For those seeking expert assistance, our Amazon marketing services are tailored to help you navigate these challenges. As an Amazon marketing freelancer, consultant, and specialist, I can provide data-driven strategies and targeted solutions to optimize your campaigns and maximize profitability.