Case Study. Funnelic Agency Elevates "Home & Kitchen" Sales: A Strategic Success Story

Market Situation:

We entered a highly competitive niche filled with well-known competitors who had garnered positive reviews and employed various pricing strategies. This included established brands with high prices and newcomers attempting to undercut the market with lower prices. This Funnelic Agency case study explores the strategies and outcomes of navigating such a challenging market landscape.

Objective:

The primary objective for Funnelic Agency was to increase sales and profitability for a "Home & Kitchen" category product on Amazon, despite facing a limited budget and the product's high price point.

Unique Value Proposition:

Our product set itself apart by offering multiple variations, providing customers the luxury of choice and positioning itself as a premium quality product highly rated on Amazon. This distinction allowed us to stand out in the "Home & Kitchen" category.

Before Working with Funnelic Agency: December 2022

Strategy and Actions:

Advertising Campaign Audit and Optimization: An analysis revealed a narrow ad structure primarily utilizing Video campaigns and High-Frequency Keywords in Sponsored Product ads, with limited use of mid and low-frequency keywords. We strategized to cover a wide range of keywords, shifting traffic from Sponsored Brand Video campaigns to Sponsored Product campaigns with key targeting, and meticulously working on semantics divided into relevant clusters for organic position promotion and sales.

Promotions and Discounts: Coupons, Lightning Deals, and 7-day Deals were employed to enhance conversion rates and attract more sales.

Listing Optimization: The focus was on refining photo and video content, and updating Titles and Bullet points through A/B testing. This, coupled with the use of relevant keywords, positively influenced product ranking and metrics such as CTR and CVR.

Results:

Over a 14-month period of working with the product, we managed to increase its monthly sales from 689 units to 1778 units. This significant sales growth led to a fourfold increase in the product's profitability. Our strategic efforts at Funnelic Agency have not only enhanced the product's presence in the "Home & Kitchen" category on Amazon but also substantially improved its financial performance.

Start of Our Work: January 2022

Current Results: January 2024.

Challenges and Solutions:

Competition: A wide semantic selection captured a significant amount of low-frequency keywords, leading to increased organic sales. The use of discounts, coupons, and deals allowed for better market adaptation.
Ad Types: While video ads drove additional sales, Sponsored Product campaigns on keywords were pivotal for boosting organic key positions. Redirecting spend from old video campaigns to new SP campaigns proved effective.
Limited Budget: Initially hesitant about increasing ad spending, we raised the daily spend from $300 to $550, which, with the right budget allocation, led to a fourfold increase in profitability.
Narrow Structure: Expanding the semantic core to cover more relevant keywords captured high organic positions for low-frequency words, enhancing the organic share in sales.

The product continues to evolve. As we can see in our Funnelic Soft, advertising sales are growing, and efficiency is improving.

Conclusions

This comprehensive case study from Funnelic Agency underscores the profound impact of strategic planning, diligent market analysis, and innovative advertising techniques in overcoming challenges within the "Home & Kitchen" category on Amazon. By adopting a multifaceted approach that included a thorough audit of existing ad campaigns, a broadening of the keyword strategy to encompass a wider semantic range, and a focused effort on listing optimization, we were able to significantly boost sales volume and achieve a substantial increase in profitability. Our success was not solely due to the increase in advertising spend but also the efficient allocation of resources and a keen understanding of market dynamics. This approach led to a remarkable ascent from 689 to 1778 monthly units sold, culminating in a quadruple increase in the product's profitability over 14 months.

Meet the project team