A leading designer and manufacturer of solar power panels, lights, and electric power stations had been handling its Amazon Advertising in-house, but was seeing a dramatic increase in costs and an alarming decrease in advertising profitability. The team knew their situation was complex, so they turned to Seller Labs Managed Services to address their business’s complexities and increase profitability.
Within just two months Seller Labs PPC experts cut wasted ad spend and increased ad revenue by 180% (yes, you read that right). Read the case study to learn more.
Clients Situation and Challenge
A leading designer and manufacturer of solar power panels, lights, and electric power stations, found itself in a quandary regarding its Amazon advertising. The company sells its products through multiple channels, including its own eCommerce website, camping/outdoor stores, and Amazon. The company’s Amazon presence is that of a hybrid merchant: a 1P-vendor (a brand-owning wholesaler that sells directly to Amazon) as well as a brand- registered 3P-seller that sells its products on the Amazon Marketplace.
Because the Amazon Advertising program is tailored to 1P-vendors and 3P-sellers but not brands that are both, the company discovered that it was competing against itself in PPC. Further, the manufacturer also faced complications like bid inflation and sales cannibalization.
The brand had been steadily handling its Amazon Advertising in-house, but was seeing a dramatic increase in costs and an alarming decrease in advertising profitability.
The team knew that its situation was complex and it turned to Seller Labs Managed Services to address the complexities to increase profitability.
How Seller Labs Managed Services Delivered
Seller Labs Managed Services experts met with the brand’s Amazon team and did a complete in-depth assessment of the brand’s situation and existing ad campaigns.
Eliminating Wasted Ad Spend
After taking the time to understand the brand’s business and challenges, then performing a full account audit, we restructured the company’s campaigns to eliminate costly keyword overlap and improper placements.
The results were immediate. We found and eliminated $2,500 in wasted ad spend just by fixing terms that were set to incorrect match types. With that quick win, Seller Labs and the brand agreed to a quarterly goal of achieving and maintaining an ACoS under 10%.
By focusing on the new campaigns and continually making adjustments and optimizations based on the data provided by the Seller Labs PPC advertising software, we were able to help the brand quickly meet the ACoS goal, sell more during its slow season, and reduce overstock products.
Launching Upsell and Cross-Sell Campaigns
During our biweekly updates, Seller Labs experts were able to show the brand increasing profitability and lower costs. As the original problems were now solved, the Seller Labs Managed Services team developed an ambitious strategy for the brand.
With the company’s go-ahead, we implemented upsell and cross-sell ad campaigns, which generated sales far exceeding what the company expected.
With this expansion, clean data, and effective reporting, the brand was not only winning more ads and selling more product at lower CPS, the company was able to more accurately forecast and prepare inventory and future ad efforts.
| Month 1 | Month 2 | % Change | |
|---|---|---|---|
| Impressions | 3,719,491 | 7,753,281 | +108% |
| Clicks | 17,518 | 31,402 | +79% |
| CPC | $0.77 | $0.70 | -9% |
| Conversions | 273 | 955 | +250% |
| Conversion Rate | 1.56% | 3.04% | +95% |
| ACoS | 10.85% | 6.26% | -42% |
| CPC | $49.65 | $22.96 | -54% |
| Ad Revenue | $124,928.50 | $350,073.59 | +180% |
