Introduction
Eco Shell, an eco-conscious company, is renowned for producing Naturally Fresh, a brand of cat litter made entirely from walnut shells. Despite its high-quality products, the company struggled to scale its Amazon business. In June 2018, Eco Shell partnered with SalesDuo, a sales and marketing consultancy, to boost its Amazon sales performance. While Naturally Fresh currently enjoys a solid customer base, this was far from the situation just three years prior. Eco Shell was grappling with multiple issues that were stifling its growth.
How SalesDuo Helped Eco-Shell Grow
The company set a revenue target of 45% increase from 2022, aiming to achieve this through a more focused Amazon Advertising strategy. SalesDuo identified potential strategies to ensure this goal could be met while keeping the Advertising Cost of Sales (ACOS) below 20%.
SalesDuo implemented a two-pronged approach. Firstly, we ran Sponsored Product (SP) and Sponsored Brand (SB) ads across all the ASINs to enhance product visibility. Secondly, we introduced a dynamic bid optimization strategy, by reviewing the performance of each product. To further refine this, we added negative keywords and a “Rainfall bidding” strategy, offering the highest bids for close matches and the lowest bids for complements. This approach ensured a cost-effective way to maintain essential platform visibility.
Despite the promising outcomes of these strategies, the ACOS remained higher than anticipated. On further investigation, it was found that the high ACOS was due to insufficient funds, which interrupted the continuity of the ads.
After doing a deep dive and identifying this, SalesDuo pivoted the strategy, focusing solely on Sponsored Product (SP) campaigns and targeting the top 50% performing ASINs. By continuous review and optimization of the campaings, SalesDuo ensured the ad campaigns could run consistently throughout the day.
Additionally, to make the most out of the available funds and drive maximum impressions and conversions, SalesDuo combined both automatic and manual SP campaigns. We consolidated the top-performing keywords from the automatic campaigns and transferred them to the manual campaigns, thereby increasing conversions and lowering the ACOS.
The Outcome
As a result of these combined strategies, SalesDuo and Eco Shell were able to achieve a record-breaking sales month in May 2023. These campaigns garnered a total of 550K impressions and 2K clicks, indicating a robust engagement with the ads. From January 2023, we observed a substantial sales increase of 65%. Importantly, these strategies effectively reduced the ACOS to 16%, significantly below the initial 20% threshold.
In summary, through smart application of strategies such as the rainfall bidding, focusing on the top-performing products, and maintaining consistent ad campaigns, SalesDuo helped Eco Shell significantly boost their revenue via Amazon Advertising.
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About the Author
Meet Arjun Narayan, a Business Dynamo with two decades of conquering boardrooms and founding two companies that didn't just survive but thrived. When he's not navigating business strategies and delivery teams, you'll find him immersed in his love for cars and exploring new models, geeking out over tech trends, globe-trotting for new adventures, and occasionally pondering the mysteries of the universe over a good cup of coffee.
