Tanya Creations - How To Handle a Ton Of SKUs
Analysis
- High volume of SKUs rather than focusing on a few products
- Similar to the print-on-demand world with constantly new products
Problems
- No distinction in ad spend allocation among products
- Incorrect products receiving large ad budgets
- Heavy reliance on automatic targeting leading to wasted spend
- Lack of sponsored brand and display ads
Plan
- Split products into clearly defined groups:
- Make campaigns for small sellers not just the large ones. Small sellers add up with high volumes
- Initial split by design to ensure relevance in ad targeting
- Further split products into ad groups based on sales volume
- Ensured relevant keywords and adjusted bids for highest performing products
- Implemented exact term separation to reduce wasted spend
First Three Months
- Achieved a 90% increase in overall sales
- Achieved a 200% increase in ad sales
- Decreased ACOS
- Reallocated budget from poor performing ASINs to top performers
- Improved conversion rate from 5.8% to 7.4% (nearly 30% improvement)
- Improved campaign structure, reducing reliance on automatic campaigns
- Increased precision in bids through more exact match campaigns
Full 12 Months
- Achieved over $750k in revenue with a profitable TACOS
- Previous year’s revenue was $400,000
- Continued monthly growth through a developed launch strategy for new products