Case Study. Growth in "Health & Household": Funnelic Agency’s Focused Strategy

Market Situation:

Our product is available in several variations, allowing potential buyers to choose the option that best suits their needs. It positions itself as a premium segment, thanks to the superior quality of materials and craftsmanship, making it the perfect choice for consumers looking for items in the "Health & Household" category. This allows us to stand out against competitors targeting a less affluent audience.

Objective:

The primary goal was to enhance sales and profitability for a product in the "Health & Household" category on Amazon, aiming to break into the Top-10 of its sub-category. The market presented a highly competitive environment with numerous well-known competitors, diverse pricing strategies, and a plethora of reviews.

Before Working with Funnelic Agency: September 2022

Strategy and Actions:

Advertising Campaign Audit and Optimization: Analysis of the client's existing ad campaigns revealed high Acos and a limited use of mid and low-frequency keywords. We deployed a strategy focusing on a broad range of keywords, including low, mid, and high-frequency ones, along with competitors' ASINs, and detailed semantic work. Our approach also included precise control over high-frequency keywords in both ads and organic search. Sponsored Product ads were extensively used to enhance organic rankings and sales.

Promotions and Discounts: To boost conversion rates and attract more sales, we utilized coupons, Lightning Deals, and 7-day Deals.

Listing Optimization: The client took an active role in listing optimization, updating main images, titles, and conducting A/B testing of bullet points. This, combined with the use of relevant keywords, positively impacted product ranking, CTR, and CVR.

Results:

In 15 months, we achieved a 5.5x increase in product sales, advancing from Top-50 to Top-10 in the niche category, while maintaining Acos at 38.88%. Moreover, we increased the organic sales percentage from 42.13% to 65.66%, significantly boosting profitability.

Start of Our Engagement: October 2022

Current Results: January 2024.

Challenges and Solutions:

High Competition: Flexibility in ad structures and the strategic use of discounts, coupons, and deals helped us respond effectively to market trends and redirect traffic as needed.
Limited Budget: Initially hesitant, the client's perspective shifted as targeted budget allocations led to improved metrics and eventually, an unlimited ad spend.
Narrow Structure: Expanding the semantic core to capture high organic positions for low-frequency words increased the organic share in sales. Manual management of high-frequency keywords was also crucial in maintaining top-selling positions.

n January 2024, total sales were $153,038.31 from 10,062 orders, ad sales accounted for $56,107.56 with an ACoS of 39.05%, and organic sales were $96,930.75. The advertising efforts yielded 2,627,942 impressions and 12,704 clicks at a cost per click of $1.72, with a total ad spend of $21,911.14. Refunds represented 7.32% of the total orders, and the BSR was 6.

Conclusions

A meticulous analysis, strategic approach, precise campaign management, and advertising flexibility, alongside proactive listing optimization, significantly enhance performance indicators on Amazon. This dedicated approach by Funnelic Agency, utilizing Amazon ads expertise, leads to achieving set goals, boosting market positions, and fortifying brand presence on the platform.

Meet the project team