Lack of Branding and Differentiation as a Premium Brand
Profits declined 28% to 9%
Eroding Market Share
Client Objective
Get to $4m in ARR (Annual Run Rate) on Amazon US ($2.6M ARR previously)
Reach Net Profit Margins of 15% annualized
Increase share of voice and best seller rank in their respective category
Results
+60% Sales YoY in 5 months ($2.6M to $4.2M📈)
-15% TaCoS reduction 📉
+40% Profit since account ownership📈
+50% CTR 🎯
Client Summary
By Madee is a brand known for offering premium disposable dinnerware, designed with elegant and sophisticated styles. Their products include heavyweight plastic plates, silverware, and linen-feel napkins, ideal for special occasions like weddings, parties, and other formal events. These sets often feature metallic embellishments, such as gold or silver rims, mimicking fine china.
Client's Problems and Pain Points
Sales Growth has stalled YoY
There were many reasons that By Madee was searching for a new agency for their Amazon business. The chief amongst them was that their YoY growth has stalled and is trending toward the decreased territory. There has been no clear strategy or ideas to reverse this downtrend.
Premium Positioning
The category in which the brand is situated is dominated by low-cost and cheap alternatives.
On the other hand, the By Madee product catalog is a premium, well-designed, and sophisticated dinnerware product. Their dinnerware products are the kind that you cannot differentiate between actual chinaware and disposable dinnerware on first look.
The owner of the brand put considerable effort into picking out the specific raw materials and thickness of the products to create this effect. As well as investing in custom molding for their unique product line.
There is currently no strategy in place to communicate this unique selling point of the brand.
Eroding Market Share
There has been a steady drop in BSR, and it seems like competition has outpaced them in the rankings. Not only is this seen in the relative BSR decline but also the organic ranking of specific “money keywords”.
The brand was looking for a strategy on both a macro and micro level to reverse this trend.
Declining Profits
The profit margins have been on a steady decline as well. From a +20% profit margin in 2023, it has since dwindled to under 10%. The owner and operator require advice on this issue as the current agency really does not have the ability to see the business on a holistic level. The client was impressed by the experience of SellerMetrics’ management of being able to exit their own Amazon brand for 7-figure and requested additional consultations to improve their brand’s overall P&L.
Solution Provided by SellerMetrics
CTR Optimization
To position By Madee as premium, we need to make sure we give this impression as quickly as possible and make sure the shopper will stop the scroll when searching for their products. What we did was add unique selling point indicators on the main image, specifically on the heaviness and thickness of the product.
The change was done in early April 2024, and by Sept 2024, the CTR has increased by +50%.
P&L Analysis
We analyzed that a considerable chunk of the expense was on long-term storage fees. The % of storage to revenue has been steadily rising since last quarter. We then go a step deeper and look at the specific SKUs that are going to incur the highest long-term storage fees.
With this information in hand, we can now come up with a clear game plan on which SKUs to clear out. By leveraging 1) Pricing, 2) Deals, and 3) Amazon Advertising, we brought down long-term storage fees by 60% and reversed the Profit Margin compression.
Amazon Store Rebranding
We have rebranded the Amazon store to make it more occasion-focused. Showing the product for key life events such as weddings, bridal showers, and Bar Mitzvahs.
Keyword Ranking using Amazon Ads
Ranking keywords on Amazon using ads is not rocket science, but it requires granular data analysis to identify the keywords for which to rank with the following attributes.
Relevancy (via CTR and CVR metrics)
Competitiveness (via CPC and ACoS metrics)
Search Volume (via Helium10 and Brand Analytics)
After identifying high-potential keywords, we would setup Single Keyword Campaign, where there is only one exact match type keyword inside the campaign. This allows for consistent impressions to appear for the selected keywords with a dedicated budget instead of a budget scattering across a dozen keywords.
Results
A full year’s results after implementing SellerMetrics' strategy are as follows:
+60% Sales YoY in 5 months ($2.6M to $4.2M📈)
-15% TaCoS reduction 📉
+40% Profit since account ownership📈
+50% CTR 🎯
Client’s Response
"What I love about SellerMetrics is that they are a boutique firm, so you are in touch with the principles all the time and they are part of the team that manages your entire account directly."