Analysis Of Situation

Ella Health is a 7 figure seller on the Dutch market bol.com and was looking to launch into the amazon space.They had done their research, had plenty of stock and were ready to launch but needed help doing so as efficiently as possible.

We had multiple conversations to determine an accurate budget and to set realistic goals for what wecould achieve during this launch phase. They were launching into a competitive space, pregnancy pillows, and therefore needed a relatively significant spend to get sales volume as fast as possible to increase organic ranking.

We ended up deciding on an initial €5,000 euro spend with the option to increase that depending onperformance

Month 1 - Launch

Launching is a key time for an amazon business. Do it right and everything get's easier from there, do it wrong and you'll be fighting an uphill battle.

Our launch period went better than anticipated and we were able to scale spend very rapidly. This resulted in a massive amount of sales in the first three weeks and gave us a good foothold in the organic ranking as we saw just over €3000 in organic sales during this period.

The launch almost went too well as we ended up having issues getting stock into amazon and we had to pull back on ad spend significantly for the last few days of the month. Regardless, this shows us the effectiveness of having an aggressive launch as we ended up with a solid organic placement, multiple reviews and we established the product in the amazon marketplace.

Month 2 - Launch

Month two was hard as the stock situation worsened. There were issues getting the products shipped into the warehouse so we had to delay any further spending for most of the month. By the last 10 days the stock situation was resolved and we were almost running a second launch of the product. Therefore we pushed aggressively and regained as much sales velocity as we could.

We were able to clear nearly €9,000 in sales with nearly €4,000 in organic sales our reduction in organic placement was minimal

Month 3 - Growth

Month three was all about keeping up the momentum and growing the account as much as possible so that we could establish Ella health as one of the major competitors in the space. Ad spend and ACOS remained aggressive to ensure maximal sales, aiming to nail Ella health to the top of the organic rankings.

Over the course of the month we manged to increase organic sales to nearly €20,000 which represents around 50% fo the sales. This is a fantastic benchmark for established but still growing brands. The plan from this point onwards is steady growth with a lower need for highly aggressive spend.

Month 4 - Growth

Month four aimed to continue the trend of month three but at a more long term sustainable level. We wanted to continue scaling revenue, building reviews and establishing Ella as a major competitor but companies have to make profits to thrive. Therefore we implemented a more ACOS-efficient ad system that will allow for consistent scaling without losing profits.

The result was a further 10% reduction in costs and an additional 25% in top line revenue.

Overall Analysis

Overall we were able to achieve over €100k in top line revenue with nearly half coming from organic sales meaning an established position in the market. All of this was done with a TACOS below breakeven meaning the entire launch phase ran at an overall profit.

The plan going forward is to continue scaling the revenue by looking for keywords that have opportunity for high organic sales while running the ads a lower ACOS level for increased profitability.

We would expect that within another three months Ella Health will be running at a TACOS below 25% with €100,000 a month in top-line revenue.

Total Revenue - €117,680.11

Total Organic Sales - €50,774.39

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