How Safe Kidz Made $207,492 with an ACOS of 14.2%

Safe kidz are a children's outdoor toys vendor in the US. They have been selling on Amazon for multiple years but this year they decided to push more aggressively. This particular account has some more iunique obstacles, the main one being they are a high ticket seller. With an average order value of $130 they are far beyond the standard $20-50 most amazon sellers are playing around.

This brings up unique issues due to the lower conversion rates which means the way we advertise has to change to repeatedly engage potential buyers.

Secondly, these products are seasonal as nobody buys a swing set in mid-November. Therefore, progress has to be made quickly otherwise we could lose out on valuable selling time, literally every day counts when you have a seasonal product

Below you can see the graph for the entire period of our management

The Plan

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Firstly we had to deal with the unique issues of the account.

1. Higher priced items: High-priced items require more views from customers in order to achieve higher conversion rates. Therefore we built out acombination of all three ad types with a focus on key sponsored brand and display placements in order to ensure we had maximum visibility on the listings. This combined with aggressive remarketing made sure customers saw the listing multiple times before clicking and then were shown the product multiple times after that to remind them of the interest. This allowed us to achieve an extremely high 5% conversion rate on a $130+ average item.
2. Seasonality: The timing on seasonal products is key. Push too early and you waste spend, but push too late and you end up trying to fight to the top when everyone else is already there and you're unable to make a profit. Therefore our strategy was to push for the first two months going into the season, allowing us to gain massive ranking and momentum, so that by peak season we were able to reap the rewards of increased organic placements by reducing overall TACOS and improving profitability.

Then we came up with our general strategy which involves funnelling of keywords to high performing exact ad campaigns, bid adjustments and all the other standard services involved in management.

Results

Below you can see the result of our work over the last 3.5 months

We were able to achieve an incredible 75% YoY growth in saleswhile more than halving the TACOS over the same period. This is because in previous years the ads were handled in hours, as most companies do, and with more complex accounts like this the inefficiencies from this are more significant. On top of this we have much more experience in dealing with seasonal items and were able to create a more effective strategy based on correctly timing each ad type and when to push it rather than a more general approach which we see is typically taken.

Our 3.5-month results

Total Sales: $207,492

TACOS: 9.2%

Comparable previous year sales

Sales: $118,157

TACOS: 24.6%

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YoY Improvement

SALES: $89,335+ (+75.6%)

TACOS: -15.4%

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