Thrive Services Used
Amazon Marketing
Project Overview
This family-owned ginseng company in Wisconsin partnered with Thrive Internet Marketing Agency to build a strong brand on Amazon and grow repeat customers.
Before Thrive, its owner managed everything from creating Amazon listings and building a basic Amazon Brand Store to Amazon advertising. Although his efforts delivered substantial results, the client needed a professional Amazon marketing agency with expertise in everything Amazon so he could focus his time and efforts on other areas of the business.
Additionally, the client wanted to reduce their advertising cost of sales (ACOS) and exceed $1 million in annual sales in 2023.
After Thrive took over the company’s Amazon marketing in January 2023, the company achieved lifetime high dollar sales consecutively in March, April and May. The ACOS for May stood at 20%, with a continuous reduction from the start of the engagement. Ad sales also increased to $42,000, with repeat purchases at 5% in May.
The Results
-55%
Advertising Cost of Sales
in 4 months
+23%
Repeat Purchase
in 4 months
+35%
Ad Sales
in 4 months
20%
ACOS for May 2023
Thrive conducted a comprehensive audit of the client’s Amazon account and its competition to create a strategy that would deliver on the ACOS and sales numbers the client was looking for.
The ACOS at the start of the engagement in January 2023 was 45%, while ad sales stood at $31,000. Amazon’s algorithm was also flagging the listings for medical claims every now and then, and brand analytics showed repeat purchases at only 4%.
Within only four months since the campaign launch, our Amazon marketing strategy generated remarkable results:
Key Metric: ACOS
The client’s ACOS decreased month-over-month, standing at 20% in May 2023. This number continues to decline as we implement a more targeted Amazon advertising approach.
Key Metric: Sales Generated from Ads
Ad sales also increased by 35%, generating a repeat purchase of 5% in April and a 5% increase in May.
The Execution
Initially, we did a content refresh to highlight the key messages that the brand wanted to relate to. This included creating new infographics, A+ content and Brand Store. Thrive also implemented a strong advertising strategy that involved:
- Segregating the bottom-of-the-funnel and top-of-the-funnel customers.
- Allocating budget and goals for Sponsored Products, Sponsored Brand and Sponsored Display to build conversion and expand into untapped opportunities and competitor space.
- Building New-to-Brand (NTB) customers.
- Targeting product categories, such as mushroom supplements and Ashwagandha that offer similar benefits to that of Ginseng.
- Leveraging videos and creatives in ads to send the right message to the top-of-the-funnel audience.
These strategies and close coordination with the client to ensure a high in-stock percentage of FBA inventory, helped build repeat customers and achieve the client’s goals.
