Helping the wallet seller get the “Best Seller” badge on Amazon and sell its business for a good deal.
Company Background
In July 2020, Profit Whales entered into an agreement with a company that sells various types of wallets, promising to provide excellent service and help the brand achieve a “Best Seller” badge. The company has gained credibility and approval by being a company with a firm policy of acting as the exclusive distributor for a specific product line.
The Challenge
When the company decided to exit the Amazon business, it realized the need to increase its profitability and boost awareness in general in order to make a good deal when selling its business. Our task was to generate improvement in the brand and sales performance of this company on Amazon.
The Solution
When the company first reached out to Profit Whales, it was largely focused on several of its best-performing products. We, on the contrary, have set our advertising goals by focusing on working all the way through the customer funnel: advertising, product detail, and Store content.
After an audit of the seller’s retail readiness, we optimized its Store and product detail page content. This step is a must before starting to implement paid ads. The insights from Amazon Brand Analytics served as a reliable source of information when conducting our assessment.
“If a seller’s detail pages aren’t optimized from the get-go, we cannot accurately gauge their ad performance. There are many things that potentially contribute to the conversion rate, and poor optimization makes it difficult to pinpoint all the contributing factors.”
Michael Efremov, Head of Analytics at Profit Whales
Sponsored Brands ads became central in our efforts. Focusing on top-performing products, we employed A/B testing and used product tier information from Sponsored Products ad campaigns for the optimization of Sponsored Brands’ CTR. Since the competitors of our client had higher visibility, the ads helped to increase awareness and consideration by boosting the seller’s visibility and by encouraging potential buyers to browse their product listings.
After analyzing the position of the seller in the market and the settings of the store, we developed an individual strategy for each of its products’ line-ups. This gave the company the opportunity to become a bestseller for several products at once.
In the graph below, you can see how the critical brand’s metrics changed as a result of the Profit Whales work for the period from July 2020 to March 2021. In particular, the net ad profit increased by $444,383.
When comparing the results of advertising campaigns for the period from July 2020 to March 2021 with the same period last year, we can see that advertising began to generate almost twice as much revenue (an increase of $172,717), while total revenue increased by $724,076. At the same time, total sales were up $2,869,184, and ad sales were up 55%. A smooth increase in the cost of a click occurs due to an increase in the number of players in the market.
The graph shows an increase in the number of orders to 57.41% and an increase in the total number of advertising sales to 67%.
The highest-performing item in the entire account is the men’s money clip wallet, which generates two-thirds of all sales. After 5 months of working with this product, we got the bestseller badge for the company.
By August 2020, after only a month of working with a product that accounts for two-thirds of all sales, we got the company into the Top 10 in a very competitive category. It took us 4 months to establish the seller in the niche and get enough reviews for his account.
We were able to get the bestseller badge in this category in early December (after 5 months of working with the product). Now our approach has changed, and we are working on protecting the bestseller badge from possible competitors.
The second best-selling product in the account is a men’s wallet with a slim front pocket. It accounts for about 16% of all sales. The main goal of the product at the moment is to reach the advertising break-even and give the seller an opportunity to sell the remaining stock.
It remained consistent in the Top 30 during the peak season in the same category as the top-selling product. During this time, with the help of advertising, we have helped the company to sell more than 24 thousand pieces, and in total more than 50 thousand pieces. In the graph below, we can see that the best-selling product in the account is a men’s wallet. It got great reviews and sales rank, which helped the seller to reach its goal – be the best seller in the category!
Outcomes
Successfully working with a full-funnel system, this advertising strategy helped us deliver a successful campaign that focused on different aspects of the client’s business. As a result of our work with the client’s account, there was an increase in sales and orders by more than 40%. We have done a comprehensive and extensive job of implementing a custom-designed Profit Whales ad structure for a client account, including all types of paid ads (Sponsored Products, Sponsored Brand, Sponsored Display).
In just 5 months, we helped the seller get the “Best Seller” badge. During the season, sales increased by up to 70% compared to the same period last year. At the moment, the main task is to maintain the “Best Seller” badge and optimize all running advertising campaigns.
