Applying the 80/20 rules to Amazon PPC optimization

Case study

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Snapshot

Client Problem

Bedding accessories brand with inconsistent ACoS% and Stagnant sales

Client Objective

  • Increase organic sales
  • Improve keyword relevance

Results

  • Sales +300% 📈
  • ACoS% -20% 📉
  • ROI +400% 📈

Client Summary

FeelAtHome is a luxury bedding company that creates products to aid sleep and protect your mattress from moisture. They are a seven-figure brand that makes 95% of its sales on the Amazon marketplace. Their product is offered in the US, UK, EU, and Japan marketplaces on Amazon

Client's Problems and Pain Points

FeelAtHome came to SellerMetrics to solve the problems of inconsistent ACoS% and stagnant sales. They sell in a highly competitive niche (pillow & mattress protectors) where CPC (cost per click) is high, but at the same time, they do not want to lower their pricing and want to price the product above its competitors.

They understand that their current ACoS% profile (35% to 40%) is a bit high, but not completely unreasonable for their niche, They also understand that lowering their ACoS% dramatically might not be feasible, and their key aim is to increase sales and improve consistency. Lowering ACoS% would be the cherry on top.

Solution Provided by SellerMetrics

Getting to the client's goals in Amazon advertising doesn’t always involve adjusting bids up and down. Thinking strategically about what is causing the issue that the client describes is important.

Their erratic ACoS% is most likely due to erratic impressions for some of their top converting keywords. We used the SellerMetrics software to do a thorough analysis, and we found a number of keywords that have 40+ orders and a conversion rate of over 30%. These high sales and high converting keywords are exactly what we should allocate the budget to in order to get the consistent results that we want.

We ended up pausing 250+ keywords in the campaign adgroup while concentrating on making strong bids on 50 keywords.

The SellerMetrics team has a lot of experience selling on Amazon, and the 80/20 rule applies to everything on Amazon, including budgeting and choosing keywords.

Results

FeelAtHome Amazon PPC results after implementing SellerMetrics' strategy are as follows:

Client’s Response

FeelAtHome's ad performance is much more consistent, and their return on investment (ROI) is as strong as ever.

"I am really impressed with Rick's insight and the advice that he gave. I never thought there was a link between keyword selection and our top-level performance."

Melanie (Brand Manager FeelAtHome)

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