Case Study: 7-Fold Increase in Sales and ACOS Reduction from 47.98% to 18% in 9 Months in the Clothing, Shoes & Jewelry Category on Amazon

Challenges

Our mission was to boost sales and profit for a product in the highly competitive "Clothing, Shoes & Jewelry" category on Amazon, focusing on maximizing profitability within limited budgets and despite the product's high price point. citation of excess inventory to avoid additional storage fees.

Objective:
Our mission was to boost sales and profit for a product in the highly competitive "Clothing, Shoes & Jewelry" category on Amazon, focusing on maximizing profitability within limited budgets and despite the product's high price point.

Unique Value Proposition:
Our product stands out due to its superior quality of materials and craftsmanship, making it the perfect choice for customers seeking premium-class items in the "Clothing, Shoes & Jewelry" category. This allows us to distinguish ourselves from competitors focused on lower-price segments.

Before our involvement, March 2023

Strategy and Actions:

Advertising Campaign Audit and Optimization: An analysis of our current advertising campaigns revealed they were operating with a relatively high ACOS, limiting our ability to achieve desired results within the set budget. In response, we chose a strategy of using a large number of ad campaigns at a low bid, which included detailed semantic work covering all low-frequency keywords and competitor ASINs. We actively utilized all available advertising formats, including Sponsored Product, Sponsored Display, and Sponsored Brand, to identify profitable sales at low bids.

Promotions and Discounts: Given our product's high pricing policy compared to competitors, we decided to offer a 20% discount coupon. This was complemented by specialized promotional campaigns aimed at strengthening the brand.

Listing Optimization: In close collaboration with the client, we conducted a comprehensive optimization of all listing elements, including reworking the title, expanding the bullet point descriptions, enhancing A+ content, and updating the main photos.

The start of our work, April 2023.

Results:

In 9 months, product sales increased by 7 times, and we managed to reduce ACOS from 47.98% to 18%. Additionally, we were able to decrease the return rate from 35% to 17%, significantly enhancing profitability.

Current result, January 2024.

Challenges and Solutions:

Competition with Cheaper Alternatives: Our approach to adapting advertising strategies with a focus on the product's unique qualities allowed us to stand out among budget alternatives.

Limited Budget: Effective use of inexpensive traffic enabled us to find profitable sales points, which allowed us to gradually increase the advertising budget and sales volumes.

Reduction in CPC (Cost Per Click)

Challenges and Solutions:

Increase in Returns: Analyzing the reasons for the increase in returns led to changing the main product photo, which significantly reduced the number of returns and improved overall customer satisfaction.

Return Rate Decrease: Main Photo Update Cuts Returns and Boosts Customer Satisfaction

Conclusions

This case study demonstrates that even with limited resources and in a competitive pricing environment, it's possible to significantly increase sales and profit. Success was achieved through the product's unique quality, effective advertising strategies and promotions, listing improvements, and prudent budget management. This approach showcases how flexibility and comprehensive promotion contribute to sales growth and market position strengthening.