Lowering Amazon Ads ACoS by 60%, Then Doubling Seller Account Sales

Overview

Enter Brian, a true entrepreneur who took a traditional, almost 100 year old, oil distribution business digital. Selling and fulfilling bulk products is tough, risky and full of expenses that most online sellers do not incur. Warehousing, trucks, staff and deliveries to the growing “global” selling environment is daunting. Brian expanded his Midwestern reach to all of the contiguous 48 states by opening his arms, ears and expense account to the likes of eBay, Amazon and Shopify. Today, Brian's company is the number one Amazon Seller in it’s category.

Challenge

As is the case with almost any entrepreneur, Brian knew all the details to managing his business and initially he wore a lot of hats. “I want to do everything myself, then figure out who to delegate tasks to.” We were introduced to Brian via a marketing partnership. Brian was frustrated with the exorbitant cost of advertising on Amazon and not able to consistently increase his revenues. Besides needing to lower his ad cost and increase revenue Brian had a seller account with over 3000 SKUs that needed some additional organization and optimization to perform better on the Amazon Seller platform.

Solution

AdServePros first analyzed the current Ad Account structure in an effort to optimize the product campaigns to maximize the ACoS (Advertising Cost of Sales). In doing so we found ourselves in a highly technical topic that we knew nothing about. So we took a lot of time to educate ourselves on the industry to identify the best SKUs to start performing for this Amazon Seller account. In doing so we noticed a poor job of optimizing product listing pages that existed in this account. We brought this to Brian's attention and agreed to tackle this first so we could best service his account. He was completely on board, without hesitation.

Results

Within 60 days we lowered the ACoS by nearly 60% and increased sales from ads by nearly 50%. AdServePros built out a new ad campaign that was structured in detail to go after the low-hanging fruit that exists with Amazon traffic and then included the outliers that needed some ad traffic to gain some traction on the Amazon Seller platform.

After a longer-term rehabilitation of the product listings for this seller account and sending more ad traffic to just some of the not so popular product pages, we learned quite a lot about the retail oil business. Several months later with the accumulation of the new ad account performance and the optimized product listings this seller account doubled their monthly revenue for the year-over-year (YOY) performance look back. We achieved these results in about 12 months.