How SalesDuo Helped Skoy Grow Sales by 23% and Decrease their ACOS from 30% to 20% through Amazon Advertising

Introduction

Skoy Enterprises LLC is a woman-owned business based in Encinitas, California. The company was founded in 2007 by its current owners, Michelle Lundqvist and Karen Petersen, with the launch of the Skoy Cloth.

Skoy operates in the kitchen category and offers a range of products, including kitchen cloths, scrubs, and towels.

The Partnership

Skoy has been working with SalesDuo since 2020. Since then, both teams have worked closely on Amazon content, creatives, and advertising campaigns, with the main goal of growing Skoy’s business on Amazon.

Skoy sells its products through Amazon Seller Central using FBA (Fulfillment by Amazon). The brand has also been focused on competing with other sellers in the Swedish cloth and dish scrub categories to increase its visibility and reach more customers on Amazon.

The Goal

The main objective was to bid on competitor product listings to get Skoy ads to show up on their product detail pages. This gave consumers who were already shopping for competitor products an additional choice.

We also analyzed where competitor ads were running on Amazon. We knew that if competitors were consistently advertising on certain product detail pages or in certain categories, those were likely good places to run Skoy ads. This allowed us to get in front of shoppers who were already looking for similar products.

Another goal was to increase sales by 1.5X through competitor-targeting campaigns on Amazon Ads.

In Q1 2022, we created a manual campaign for Skoy’s scrub and cloth products using competitor-branded keywords. However, the campaign did not perform well. It generated a very high ACoS of 158%.

Since the competitor-branded keyword strategy was not giving us the results we wanted, we paused those campaigns.

We then created two new competitor campaigns: one for Kitchen Cloth products and another for Kitchen Scrub products.

Instead of targeting competitor keywords, these campaigns targeted specific competitor ASINs. We selected competitor products based on three main factors:

• Similarity to Skoy’s products
• A higher selling price than Skoy’s products
• Lower ratings and fewer reviews than Skoy’s products

This strategy helped increase account sales and reduce ACoS over time.

The results also showed an opportunity to expand product targeting to additional Skoy products and strengthen defense on Skoy’s own detail pages.

The Cloth competitor campaign doubled sales from its baseline between January and June while achieving a 34% ACoS and 734K impressions.

The Scrub competitor campaign became the top-performing campaign in the account, increasing sales to 3X the baseline while achieving a 20% ACoS and 5 ROAS.

To further improve brand awareness and revenue, we changed the bidding strategy for the top-performing campaigns.

We used the Dynamic Bids – Down Only strategy and increased Top of Search bids by 30% to 50%.

As a result, sales from our top-performing campaigns improved by 22%, while ACoS stayed below 20%.

We also worked on improving campaign efficiency and lowering ACoS further. We added negative keywords for search terms that had generated no sales but had spent more than $10 during the previous 65 days.

We also created manual campaigns using keywords that had a high impression share and ranked highly for impressions.

Along with these changes, we continued optimizing the account by transferring unused budget from ASINs that were temporarily ineligible to advertise. This shifted more available budget toward stronger ASINs and gave those campaigns more room to scale.

As a result, Skoy saw a 16% increase in sales in 2023, with advertising accounting for 23% of its total monthly sales.

Overall ACoS also steadily decreased from 30% to 20%, while the campaigns generated approximately 2 million impressions during 2023.

Our Learning from These Campaigns

The initial campaigns did not perform well because the bidding strategy and budget were not allocated based on the actual potential of each campaign.

Targeting competitor-branded keywords also came with a high CPC. This resulted in high advertising spend, low sales, and a very high ACoS.

Performance improved after we started putting more budget into the right campaigns, focusing on the best-selling products, and using a more suitable bidding strategy.

We also created Sponsored Products competitor campaigns that targeted specific competitor products based on their price, ratings, and reviews.

These changes helped improve overall campaign performance and made Skoy’s advertising spend more efficient.

Customer Testimonial

“Our experience using SalesDuo, specializing in Amazon Marketing Services (AMS), to target our competitors has been nothing short of exceptional. Within a short period, we witnessed a significant decrease in our ACOS, from 30% down to an impressive 20%. This reduction in advertising costs allowed us to allocate our budget more efficiently and reinvest in other critical areas of our business. Not only did SalesDuo help us optimize our advertising spend, but they also played a crucial role in boosting our sales. We experienced a remarkable 16% increase in sales as a direct result of their targeted competitor ads approach.” — Michelle Lundqvist.

Skoy’s journey demonstrates how structured Amazon PPC management can redirect spend away from inefficient competitor keywords and into more economical product-targeting campaigns.

Frequently Asked Questions

Is an Amazon advertising agency suitable for both small and large businesses?

Yes. Amazon advertising agencies can work with businesses of all sizes.

Small businesses can use an agency’s experience and guidance to compete on Amazon without building a large in-house advertising team.

Larger businesses can use agencies to manage complex advertising campaigns, improve performance, and stay ahead of competitors.

Agencies like SalesDuo can also create customized services and strategies based on a company’s goals, needs, and budget. This makes an Amazon advertising agency useful for both small and large Amazon sellers.

Why should I hire an Amazon marketing agency for my business?

Hiring an Amazon marketing agency can help reduce the time and resources you need to manage advertising on your own.

An agency can help you improve your marketing campaigns, reach new customers, and expand beyond your current customer base.

Working with a full-service Amazon agency like SalesDuo can also reduce your workload while giving you access to experienced experts who can help improve performance and support revenue growth.

How do I hire the best Amazon Agency for my eCommerce business?

Start by making a list of Amazon marketing agencies that provide the services your business needs.

Then search for an agency with a proven track record, strong knowledge of eCommerce marketplaces, and experience working with businesses in your product category or industry.

You should also compare the services they provide, how they communicate, their pricing structure, and their client testimonials.

Reviewing these factors will help you choose an Amazon agency that is the right fit for your business.

About the Author

With a wealth of experience in Amazon account management, Maaz Javeed Mohammed excels in refining sales strategies and amplifying brand presence. Committed to achieving impactful outcomes, he blends deep industry insights with a fervent drive for e-commerce triumph. Beyond work, Maaz enjoys hiking, capturing moments through photography, and reveling in music.