8-figure Home and Kitchen Seller

Introduction

One of the largest sellers on Amazon in the Home and Kitchen category reached out to our Agency as their Amazon PPC was getting out of hand. Their Amazon Advertising Cost of Sales (ACOS) has been increasing monthly. Their current Amazon PPC agency told them that their Cost Per Click on Amazon is rising and all strategies they tried did nothing to stop their Amazon CPC cost from rising. They contacted us for an audit to see if we can help. We did a deep dive into their Amazon advertising account. Here is how our PPC team audited this account and the strategy they took to reduce their Amazon PPC costs and increase their Amazon sales.

The Challenge:

Their Amazon CPC has risen over the past few months, resulting in higher ACOS and less efficient spending. To bring their Amazon ACOS down we needed to find a way to lower their Amazon CPC. But the challenge is that by lowering the CPC we might get fewer impressions and start spending less, which we did not want.

The Plan:

We realized that to maintain the current monthly spending and decrease the CPC we’ll need to create many more campaigns with many more targeting, more keywords, and more product targeting so we’ll be able to maintain spending with a lower CPC.

We decreased CPC bids on inefficient keywords and created hundreds of new Amazon ad campaigns with thousands of new keywords and ASIN’s.

The results:

The first monthly Amazon advertising report was spectacular, way better than expected! We brought their Amazon ACOS down from 35% percent to 20% within one month, over a 42% decrease! A month later their ACOS was at 16%. We lowered their ACOS by 54% in 2 months. At the end of the year, in December, their ACOS was at 9%! (That is also due to better CVR during Q4).

During the year, we constantly optimized the account more and more, and we lowered their ACOS and TACOS significantly and significantly increased their sales in 2023 vs 2022.