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600% sales increase with Sponsored Ads: A case study

One of factor-a’s recent partners is a German manufacturer striving to embellish people’s homes and gardens with eye-catching metal decorations. Their sales did not see any significant improvement since the brand started selling on Amazon in early 2017. Limited time and missing expertise in dealing with Amazon were the main reasons for this. They approached factor-a in 2019 with the hope of finally benefitting from the potential that Amazon offers. Within a few months, factor-a achieved six times the original monthly revenue.

The Challenge

The brand pursued these key goals:

  • Generate higher revenue
  • Improve product visibility
  • Increase organic sales

Their 50+ products, while distinguished by high quality, were not seen by the customers due to insufficient Best Seller Rankings (BSR), unfavorable search result positions and missing customer reviews.

After defining the goals with the client, factor-a performed a thorough portfolio analysis. We found that to scale the customer base, there is a substantial need for product detail page optimization and a clear Sponsored Advertising strategy.

The Solution

Factor-a took over the management of the Seller Central and developed product content with relevant keywords to ensure users find exactly what they need before converting. In order to grow revenue and push visibility, we implemented Sponsored Products campaigns for the customer’s focus products.

Our strategy included bidding on generic (product-relevant) and competitor (brand) keywords while utilizing product and category targeting. Since the client’s brand awareness is quite low, defensive (brand) keywords were not considered essential. During the 2019 Prime Day, deal products were highlighted with adjusted bids to reap the day’s traffic explosion.

The ultimate objective of the Sponsored Ads campaigns was to boost sales. This ensures that products place higher in the search results and start selling organically.

The Results

600%

revenue increase

2x

traffic

5x

organic sales

3.7

ROI

We were able to deliver on all defined goals. The revenue rose from the starting point of $4,850 (Mar 2019) to a monthly average of $27,500 (Apr-Sep 2019) – an increase of 600%. The product detail pages were visited over two times more often than before while the conversion rate improved from 3.6% to 6.7%.

Consumers started reviewing products in the portfolio, thus fostering additional trust. As the items sold with a higher frequency, the BSR grew, making the products more visible to the users and in turn ensuring a healthy organic sales growth. In the measured period, the client enjoyed a 500% increase in organic sales.

Average monthly sales increase in % as compared to March

Average monthly sales increase in % as compared to March (July deviation due to Prime Day)

Any questions? We are here to help you!

About the author

Nils Zündorf

Managing Director info@factor-a.com Jetzt auf LinkedIn vernetzen!

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