How 5Strands Affordable Testing Grows 30% Year-Over-Year with Seller Labs [Case Study]Helen Golubeva
The at-home testing company empowers families to have a voice in their own healthcare, and reaches more populations on Amazon with Seller Labs Managed Services.
When we first started with Seller Labs, we were doing half of what we’re doing now. Now we’re doing $1.2 million, with $600K coming from organic and $600K coming from ad spend, on Amazon. Even during the pandemic, we’re getting our product in front of more people who need it.
5Strands Affordable Testing is a small, tight-knit team, pushing the boundaries of availability for at-home testing for adults, children, and pets. Located in Atlanta, GA, the team is highly motivated to transform how sensitivities, intolerances, and allergies contribute to the overall well-being of human and pet health. Unlike other at-home testing kits on the market, the 5Strands method utilizes hair samples for determining temporary imbalances due to food and environmental intolerances, nutrition, and metal and mineral items. After launching in 2019, the team made their product available on Amazon.
Co-Founder and CMO Austin Collins was almost immediately overwhelmed with the daily tasks needed to bring their product to the Amazon marketplace. Managing campaigns, everyday analytics, long-term goal setting, and notifications were taking up a significant portion of his time, and the growth Austin was seeing was not on par with his yearly projections and time and budget invested.
From the first days of our business, we recognized how much the metrics and algorithm played into our business success. With our products just launching, we decided we needed to get in reviews, so we started with the Seller Labs Feedback Genius tool and almost immediately saw our review populate more.
After seeing overnight results with Feedback Genius, 5Strands started exploring additional Seller Labs solutions, adding options as their business grew, until they were working with a dedicated Account Manager on the Managed Services team. From ad notification management to strategic campaign forecasting, 5Strands began meeting weekly with the Seller Labs team to move into new audience groups, get the insider scoop on Amazon updates, and expand.
The Managed Services team is saving me a lifetime. I can’t even quantify the amount of time saved. We’ve organically grown with Seller Labs, and I don’t think we’d be where we are today if we hadn’t had Seller Labs as a resource to lean on or as a tool to leverage within my business. I could not imagine running an Amazon storefront or a business or CPC campaigns without using Seller Labs. There’s literally not a single service we don’t use now.
In 2020, a unique problem presented itself with Amazon: Limited holiday opportunities through Prime. Without realizing the downstream effects, 5Strands limited their inventory in the second and third quarters of 2020 at the height of the pandemic, unintentionally capping their abilities to compete with increased inventory during the fourth quarter of 2020. With the help of their Account Manager, 5Strands still made a significant play on Amazon with retargeting and optimized campaigns, and saw growth despite the inventory restrictions.
We worked hard with Seller Labs on managing our campaigns to make sure we were only advertising to the products that we had inventory in. I really leaned on Seller Labs to check on these campaigns and turn them on and off at any odd hour of the night that was needed. We missed out on thousands and thousands of dollars because of Amazon’s fine print, and it was good to recover some of that with optimized campaigns. We still grew our revenue, despite everything.
- Time Spent: 5Strands team couldn’t keep up with the daily requirements of running an Amazon business without hiring additional help.
- Industry Expertise: Amazon’s updated requirements around 2020 inventory left the team unsure how to recoup their financial year.
Even with all of the holiday spending being pushed into a single quarter, we were still able to have a stronger year than we did last year. This year, more than ever, it was really crucial for our business not to overspend and make sure the ad dollars were being put to good use. Once again, with the help of Seller Labs, we were able to get our product in front of people who needed it.
The Future With Seller Labs
5Strands’ goal for 2021? Expansion. By working with Managed Services, 5Strands will start releasing video ad campaigns in addition to expanding into the Walmart space.
Our goal for 2021 is to scale over $2 million, with a million in organic and a million in ad spend. Since we started, we’ve seen 30% growth year over year, and that’s thanks to Seller Labs. Now that we rely on them, we’re in a really good place, with a healthy business getting our product in front of people who need it. We’re not a finance company, we’re a results company, and we’re excited about diving in with video campaigns and Walmart to resonate with more people.
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Lawrenceville, GA, US
Opened in 2019
- 30% YOY Growth using Seller Labs
- 2+ years with Seller Labs
- $1.2M in revenue on Amazon
- 10 employees
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