Case Study: Lowering ACOS While Scaling Amazon Sales
Client Overview:
A niche eCommerce brand was struggling with high advertising costs and slow revenue growth. With an ACOS of 53.85%, their PPC strategy was inefficient, leading to minimal profit margins. They needed a structured approach to reduce wasted ad spend while increasing overall sales.
Challenges:
- High ACOS and Low ROI: The brand was spending $1,846.33 on PPC but only generating $3,429.39 in PPC sales, making advertising unprofitable.
- Limited Visibility: With low organic sales, the brand relied heavily on PPC without ranking improvements.
- Budget Constraints: The client hesitated to increase ad spending due to previous inefficiencies.
- Inefficient PPC Strategy: Campaigns lacked proper keyword targeting, bidding strategies, and scheduling optimizations.
PPC BEFORE
Solutions Implemented:
- Single Keyword Ranking Campaigns: Focused on ranking high-converting keywords by isolating them in dedicated campaigns, boosting organic visibility, and reducing reliance on ads.
- Day-Parting Optimization: Adjusted bids and ad placements to run during peak conversion hours, ensuring the budget was spent efficiently.
- Negative Keyword Implementation: Eliminated irrelevant and non-converting keywords to prevent wasted ad spend and improve ad relevance.
- Bid Adjustments & Smart Scaling: Increased spending strategically, reaching $8,113.79, while ensuring lower CPCs and a better return on investment.
- A/B Testing of Creatives: Optimized product images, A+ content, and ad copy to increase click-through and conversion rates.
PPC AFTER
Results After Implementation:
- Massive Sales Growth: Total sales jumped from $15,838.81 to $54,548.81, demonstrating the success of the refined PPC and ranking strategies.
- Efficient PPC Scaling: PPC sales increased from $3,429.39 to $25,847.88 while keeping ACOS at a sustainable 31.39%.
- Lowered ACOS: By eliminating wasteful spend and improving ad targeting, ACOS dropped from 53.85% to 31.39%, making the campaigns significantly more profitable.
- Sustainable TACOS Increase: TACOS rose to 14.87%, reflecting improved organic growth alongside a balanced ad spending strategy.
Conclusion:
Through the use of single keyword ranking campaigns, day-parting, and organized PPC optimization, we were able to reduce ACOS while greatly expanding revenue. This method not only minimized wasted ad spend but also improved the brand’s organic placement for long-term achievement.
Why Choose Sellvex?
Improving your Amazon listings can be challenging, especially when juggling multiple business responsibilities – that’s where Sellvex comes in. We take the burden off your shoulders, allowing you to focus on growing your business while we handle everything from full account management and PPC optimization to listing enhancement, SEO, and strategic growth planning. Our team of Amazon experts leverages data-driven strategies to create high-converting product pages that boost visibility, drive traffic, and maximize sales. Whether you’re looking to scale, rank higher in search results, or optimize your ad spend, Sellvex is your go-to partner for comprehensive Amazon success. Let us help you dominate the marketplace – contact us today!
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