Home & Kitchen Case Study

166%

Increase in Sales

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104%

Increase in Engagement

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1

Top 1 in its Category

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360

Days with AMZ Consult

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Boosting Sales in Laboratory Equipment: A Strategic Approach to Overcoming Market Challenges

In the competitive world of laboratory equipment, standing out amidst a flood of low-priced alternatives is a significant challenge. Our client, a company renowned for its innovative, research-driven products, faced declining sales as cheaper Chinese products entered the market. However, through a series of strategic initiatives, they managed to not only stabilize but also grow their sales, particularly in the niche categories of pipettes, dispensers, magnetic stirrers, and pipette tips. Here’s how they did it.

 

Tackling Market Challenges

Highly Competitive Category
The Home & Kitchen category is notoriously competitive, leading to significant price competition and high CPCs (cost-per-click).

High TACoS
With an overall TACoS (Total Advertising Cost of Sales) of 45%, the client’s sales were declining month-over-month, necessitating a strategic overhaul.

Low Profitability
The high dependency on PPC and the saturated market share were eating into the client’s profitability.

Low Organic Sales Share
Despite having mature products, 60% of the client’s sales came from PPC, indicating low organic sales.

Improper PPC Campaign Structure
Campaigns were not optimized, with all variations bundled together, leading to inefficient spending. Many campaigns were overloaded with keywords, and top organic keywords were not given enough focus.

High ACOS for PPC
The client faced high ACOS (Advertising Cost of Sales) and needed to control wasted spend to become profitable.

Strategy Implementation

To address these issues and achieve the set objectives, we developed a comprehensive strategy focusing on listing optimization, creative upgrades, and PPC campaign refinement.

Listing SEO Utilization

We analyzed past converting keywords and updated the listing copy and brand content. Titles and backend keywords were continuously updated every month to focus on the most relevant and high-converting keywords.

Creative Upgrade

Understanding the target audience traits, we updated the product creatives to make them more appealing. Since the products were also giftable, we created themed creatives for occasions such as Mother’s Day, Father’s Day, and Christmas.

Sponsored Ads Refinement

We restructured the PPC campaigns to follow a “one campaign, one product, one match type” focus. This included splitting campaigns for different product variations, allowing for better control over spending and improved ROI.

Targeting Mid & Low Tail Keywords

We launched multiple single keyword campaigns targeting low competition keywords. This approach helped in controlling CPC and ACOS. Placement modifiers were also controlled for these low bid single keyword campaigns to enhance visibility and ranking.

Focus on Negatives

We created a comprehensive list of negative keywords and targets based on past data. This list was uploaded to every existing and new campaign to ensure controlled placements and reduced wasted spend.

Results

By implementing this strategy, we were able to significantly reduce the client’s reliance on PPC sales, enhance their organic sales share, and achieve a substantial improvement in profitability. The refined campaign structure, focused targeting, and continuous optimization led to a revival in sales, doubling the year-over-year sales as targeted.

This strategic overhaul not only addressed the immediate challenges but also set a solid foundation for sustained growth in a highly competitive market.

Results (Amazon CA)

Y0Y Growth

144%

TACoS Decrease

63%

ACOS Reduction

35%

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