Amazon Seller Case Study
How this company went from being an Amazon Seller to growing their online store to €1.92 Million
in annual revenue
WHO WE WORKED WITH
This seller is one of Germany’s leading brands in the health & supplements niche on Amazon. With more than 42 products, they have served thousands of customers in Germany and Austria. The company’s CEO grew his company from being a one-man show selling on Amazon to leading a team of 8 employees today.
In order to expand their sales channels and decrease their dependence on Amazon, the company created their own branded Shopify store.
Before working with SOLID, the company’s sales came almost exclusively through Amazon. Despite being a recognized seller with thousands of positive customer reviews and over €10 million in annual sales, Amazon would temporarily deactivate product listings or change rules that affected their product sales. The seller had already set up their own Shopify store and tried running ads, but sales through it were unpredictable and represented less than 3% of the company’s total revenue.
Low profit margins:
Coming from a competitive marketplace, the company’s philosophy is to provide the best quality products at affordable prices. This means that profit margins on each individual product are quite small. We had to meet a target cost per acquisition of 25% of the product’s price to remain profitable.
Concern for repeat purchases:
One of the CEO’s main concerns was that customers would not buy supplements from their brand again after the first purchase. He was unsure how to market to customers effectively to motivate them to keep coming back to their store weeks and months after the first sale.
SOLID helped create the online advertising strategy and created a multichannel advertising strategy with campaigns across Google and Facebook Ads.
We created multiple brand-focused and non-brand-focused Shopping campaigns, divided into single product ad groups to maximize control over keywords and bids for each product. For some of the top performers, we created separate campaigns to allocate a separate budget to them.
Across Facebook and Google, we implemented dynamic remarketing campaigns to run to site visitors who had added products to cart and viewed product pages, as well as multiple video campaigns for cold traffic.
Since working together, revenue from the brand’s own store increased by 102%, conversion rate increased by 6%, and conversions increased by 119%.
On average, customers purchased 2-3 products per order. The store maintains a consistent repeat purchase rate of 30% and SOLID was able to meet the target cost per acquisition to remain profitable.
- Optimized Shopping Campaigns
- Single Product Ad Groups
- Branded & non-branded Google Search and Shopping Ads
- Separate Google Shopping campaigns for top performing products
- Video campaigns on Facebook and Instagram
- Dynamic Remarketing on Facebook and Google
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