How we increased profitability in the most competitive category ever

In this case study, we highlight how our Seller’s Umbrella effectively reduced Advertising Cost of Sales (ACOS) for our client, leading to increased profitability. We’ll walk you through the client’s journey and the strategies we employed to achieve these results.

Find out how we did it

Increase in total sales

Increase in total orders

Increase in PPC sales

Decrease in ACOS

The back story

Before collaborating with Seller’s Umbrella, John, a dedicated seller on Amazon, had encountered a set of challenges that affected their sales and profitability. Despite having an assortment of beauty and skincare products, their sales had been inconsistent.

However, a significant hurdle emerged in the form of Advertising Cost of Sales (ACOS), which hovered at a high 19.16%. This elevated ACOS value indicated that a considerable portion of their sales revenue was being absorbed by advertising costs, impacting their profitability. Recognizing the need to address these challenges, John reached out to Seller’s Umbrella for assistance.

How we achieved it?

Existing campaign overhaul

Keyword optimization

Bid optimization

Strategic PPC management

The challenge

- High ACOS: The client’s Advertising Cost of Sales (ACOS) was a substantial 19.16%, indicating that a significant portion of their revenue was being allocated to advertising costs.
- ROI optimization: Achieving an optimal Return on Investment (ROI) from their advertising spend was a challenge due to the high ACOS. The client needed strategies to better align their advertising efforts with revenue generation.
- Competitive landscape: The client operated in a competitive category on Amazon, where standing out and attracting target customers required careful positioning and effective advertising strategies.
- Budget efficiency: Ensuring that the advertising budget was being utilized efficiently to maximize visibility and conversions while minimizing wasteful spending was a key concern.

About the client

John is an established Amazon seller in the beauty category. They offer a range of skincare essentials that cater to a diverse customer base. The client had a strong product catalog and competitive pricing but needed assistance in navigating the complexities of Amazon advertising.

Our approach

To tackle the challenge, we adopted a data-driven approach focused on improving the efficiency of the client’s Amazon advertising campaigns. Our strategy included:

Keyword optimization: We conducted thorough keyword research to identify high-performing keywords and negative keywords that were draining the budget.
Campaign overhaul: We restructured the client’s ad campaigns to ensure better targeting and alignment with customer search intent. This involved creating specific ad groups and optimizing ad copy.
Bid management: We implemented a bid optimization strategy to allocate the budget more effectively, maximizing the exposure of high-converting keywords.
Performance monitoring: Regular monitoring and analysis of campaign performance allowed us to make real-time adjustments, optimizing for better results.

The results

ACOS decreased from 19.16% to 8.48%, significantly improving the client’s profitability
Despite the decrease in ACOS, total sales remained strong, ranging from $168,197 to $230,078
PPC sales increase from $31,704 to $35,313
The client experienced a substantial boost in profitability due to the reduction in advertising costs