How I Boosted Sales and Net Profit by 20% Despite Primary Products Going Out of Stock

Amazon PPC Case Study: Driving Success in Health & Household Products

Overview

When managing Amazon ads campaigns, unexpected challenges can arise. In this Amazon PPC case study, I showcase how I increased sales and net profit by 20%, even when primary products went out of stock. This success story highlights my strategic approach to optimizing Amazon PPC for Health & Household products.

In June 2024, I began working with a client in the Health & Household category to boost the performance of their Amazon PPC campaigns. The initial scope focused on five primary products while also optimizing the broader account with over 500 active campaigns for 100-200 products. My goal was to increase sales, reduce ACOS, and improve the overall account profitability.

Challenges

  • High Campaign Volume: Managing and optimizing 500 campaigns across a vast product catalog.
  • Out-of-Stock Issues: Three of the five primary products went out of stock, which hindered sustained growth efforts.
  • Competitive Market: Health & Household is a highly competitive category with rising CPCs and evolving consumer demands.

Amazon Ads Strategy & Execution

  1. Initial Analysis & Optimization:
    • Conducted a detailed performance audit of existing campaigns.
    • Adjusted budgets, bids, keywords, and targeting for the five primary products.
    • Created new campaigns using Sponsored Products Auto, Manual, and Sponsored Display formats for targeted, similar audiences and retargeting.
  2. Data-Driven Campaign Creation:
    • Leveraged Amazon historical data (total purchases) to select high-performing keywords.
    • Downloaded search terms from campaigns to segment and group keywords by features and intent.
    • Created separate campaigns for specific keyword groups, ensuring focused targeting.
  3. Adapting to Stock Constraints:
    • When three primary products went out of stock, shifted focus to optimizing other profitable products and campaigns in the account to maintain momentum.
  4. Account-Wide Optimization:
    • Refined campaigns across the entire product catalog, focusing on high-ROI products.
    • Implemented strategic bid adjustments and targeted high-converting keywords to improve net profit.

Amazon PPC Case Study Results

Primary Products:

Despite stock challenges, the five primary products saw impressive performance improvements during the campaign period:

Metric5/20/24–6/18/246/19/24–7/19/248/1/24–8/31/24
5 Products Total Sales$9,827.13$10,988.59$15,389.06
5 Products Ad Sales$6,288.86$8,393.46$10,540.72
TACOS13.16%26.67%27.70%
Impressions437,370760,4231,166,698
Clicks1,5242,7883,274
Average Best Sellers Rank241221138

The efforts also significantly improved the Best Seller Rank for all five products.

Account-Wide Impact:

The holistic optimization approach yielded strong results for the overall account:

MetricJune 2024July 2024% Change
Total Sales$239,058.25$249,326.41+4.30%
Units Sold5,2565,494+4.53%
Net Profit$34,814.99$41,911.63+20.36%
Real ACOS11.59%11.30%-0.29%
Sessions70,18275,181+7.12%

Amazon PPC Case Study Key Takeaways

  • Adaptability: Swiftly reallocating resources and optimizing other products mitigated the impact of stock issues.
  • Data-Driven Decisions: Leveraging Amazon’s historical data and segmentation improved targeting precision.
  • Scalability: Scaling efforts across the account ensured sustained growth, not just for the focus products but for the overall portfolio.

Conclusion

This Amazon PPC case study highlights the importance of a strategic, adaptable, and data-driven approach to Amazon PPC. By combining analytics with targeted optimizations, I was able to deliver measurable results, including a 20.36% increase in net profit and improved performance metrics for the client’s account.

The July 2024 Amazon PPC case study demonstrates the power of adaptability and data-driven strategies. By shifting focus to account-wide optimization and utilizing historical data for keyword segmentation, I overcame the challenge of out-of-stock products while boosting sales and profit margins. Whether managing a single product or an entire catalog, strategic PPC management can drive exceptional results in the Health & Household category and beyond.

If you’re looking to enhance your Amazon PPC campaigns and drive profitable growth, feel free to reach out. Let’s make your business a success story too!

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