Our customer is a family-owned supplier of kitchen appliances based in the UK. They’ve been in the industry for more than 20 years, so they know what homeowners want!
The brand is a “value for money” play: they deliver stylish, and durable kitchen appliances at excellent prices.
When AsteroidX started working with them, the brand already used Amazon as a channel. But, they thought the channel could be maximized, so they sought out Amazon specialists.
Here’s a screenshot from Seller Central Business Reports, showing an increase of over 300,000 GBP per month year-on-year (taken mid-August 2022).
CHALLENGES VS. SOLUTIONS
The main challenge?
Most markets on Amazon are competitive. This was no exception. Our existing competitors were hogging sponsored ad and organic placements. Many people think that to compete, you need to out-spend competitors (more ad spend, more Vine giveaways, etc.). But this isn’t the case. Here, we were able to increase spend while keeping acquisitions profitable.
The solution:
Everyone in this niche was bidding on similar keywords. The obvious stuff! So, we did keyword research to find underutilized keywords and bid up on those. We turned on certain campaigns later in the day once competitors were done spending. We targeted our competitors by price and review rating. We did what we could to maintain profitable growth. Because growth is easy! Profitable growth is hard.
Between Amazon Sponsored Products and Amazon Sponsored Brand Ads, we saw an increase from $100K up to $250K in monthly ad revenue (that’s British £ converted to American $). Total sales (organic and ads) increased 50%.
experience
Pay for Qualified Traffic
Ewebot stays ahead of the curve with digital marketing trends. Our success has us leading the pack amongst our competitors with our ability to anticipate change
and innovation.
RESULTS AFTER IMPLEMENTING SOLUTIONS
Over the next 12 months, our customer experienced a new era of profitable growth.
Prior to joining AsteroidX, their ACOS (which is ad spend divided by the ad revenue that the spend generated) was between 8-10%.
After 12 months with AsteroidX, the ACOS is 3.5-6%. Note: since this is in the ‘kitchen appliance’ niche with price points often above $200 USD, single-digit ACoS at scale is attainable. With products priced under $100, this is more difficult.
ROAS (return on ad spend) is 12.5X to 19X.
experience
RESULTS AFTER IMPLEMENTING SOLUTIONS
The highest ROAS was 28.9X, which means for every $1000 they spent they were earning on an average of $28,905 ad revenue.
Their Account Manager also made listing suggestions which, over time, brought their listings average quality score from 7.5 up to 9.1, which made their listings best-in-class among competitors.
Additional Benefits
By running ads, we increased their market share. And on Amazon the old saying is true: “if you’re not growing, you’re dying.”
A >100% increase in New To Brand (NTB) orders
The CPC (cost per click) before starting with AsteroidX was $0.20-$0.30, and after our implementation is now resting at $0.12-$0.18.