Let’s talk Amazon Strategy | $50M+ in Amazon Sales Growth | Founder @ AMZ bees | Amazon Expert for 7+ Years
Being a part of a complete Amazon business transformation is an irreplaceable feeling. Laser-focused actions always pay off even more than your bravest expectations.
In the following paragraphs, you will know how the AMZ bees team scaled 1 product brand from $50k a month to nearly $20M a year on Amazon.
The road was challenging with its ups and downs, but the long-term strategy helped us achieve every milestone through the journey.
We started to work on this account on June 1st, 2020. We initially saw the brand’s enormous potential, but it was heavily under-optimized.
We rolled the circle by unblocking a few listings and connecting everything under one variation. This allowed us to focus on the parent rather than the multiple child ASINs.
As a result, we had a shot at reaching best-sellers in the subcategory.
Knowing the importance of quality optimization, we dove deep into the back-end SEO (search terms, filters, browse node correction, and whatnot) and started slowly testing the waters with PPC.
For PPC, we started with a few dozens of primary 3rd level campaigns, which helped us 2x our sales in the first month.
During the first three months, we upgraded our infographics, created decent A+ content, storefront, and upgraded our listings copy with better SEO. We started posting Amazon posts every single day.
During July and August – we built and fortified our PPC structure (3rd level optimization). After we had good Sponsored Products campaigns foundations, we started growing Sponsored Video, Sponsored Brands, and Sponsored Display. Our ad spending increased, but this only helped us gather more keywords in preparation for Q4.
Thankfully our partners have seen the potential and started ramping up production.
In September, we had two 15 and 30 days product suspensions. Amazon has removed one of the best-selling child ASINs in Japan (we are only selling in the USA), and the listing has disappeared worldwide. We didn’t even have the option to appeal. This issue has cost us $1,500/day in lost profit. Another problem was much easier to solve – Amazon required us to do a few additional safety tests and provide certifications.
We solved both issues before the beginning of Q4.
Q4 of 2020 was incredibly challenging but also rewarding. We managed to get the best sellers badge and move into the top 100 of our main category. This resulted from our well-built structure for all advertising types with constant everyday testing, improved listing quality, and relatively OK stock limits. They weren’t enough, though,
By the end of November 2020, we were 70% out of stock. Luckily our manufacturer has offered an excellent option to solve this issue. We managed to ship a 4 unit variation from China. We were charging $15 in additional shipping charges when the product itself cost $80-85. People still bought out our total capacity every single day. Because we didn’t have a proper FBM shipping structure, all orders had to be filled manually.
In December 2020, we realized that we reached the ceiling for the 3rd level optimization. After Christmas, we began expanding our PPC structure with 2nd level campaigns.
On the last day of the year, we were featured on national TV. This move helped us sell absolutely everything we had in FBA and FBM. Customers who bought our product needed to wait 1-2 weeks before Amazon or we delivered it.
On that particular day, we sold $100k, and it was our biggest day yet.
The beginning of 2021 was very slow – we didn’t have any stock after a great Q4, and this problem persisted until the end of August. We were about 90% in stock only in September 2021.
It was time for planning and incorporating new strategies. We were dedicated to this process during Q1 of 2021.
We did a full update for the listing copy, infographics, and A+ content in January. This front-end update looked much better than the first one, and it converted better as well.
In February 2021, we began testing lighting deals. They worked well for us, and I knew that we would greatly benefit from them in Q4.
We also partnered up with TopRated for 2 daily lives on the Amazon Live platform, bringing us more brand awareness.
Until Q3, we went all in for the 2nd level campaigns and structure. We refined it as much as possible with all the data after Christmas.
During the Summer of 2021, we managed to join the Launchpad program. This step has enabled us the Premium A+ content and a SAS core manager that would later improve our stock limits for the estimated $6M Q4 (boy, were we wrong again…).
In July 2021, we started using DSP advertising. Our budgets were 80-90% dedicated to retargeting since this was the lowest hanging fruit in 2021. DSP helped us bring in an additional $1,5M in sales at 10% ACoS. We started with a $10k budget/month and kept increasing it every month until December. This part definitely paid off and helped us with visibility and brand recognition.
It took us about two months to prepare a stunning Premium A+ content that converted about 15% better than the old one. We joined all available Launchpad promotional programs.
To sum up the first two quarters of 2021 – we were optimizing, optimizing, and optimizing.
Since we had our first ”real” Prime day this year, we wanted to test it without any ongoing deals, just with a standard 4-hour lightning deal. It was relatively a disappointment for us. We learned that we MUST have a prime exclusive deal going during these types of holidays in our category. Still, we had an $86k day.
Q3 is the perfect time for PPC structure updates. We followed this rule and the lessons learned helped us apply everything we knew to update this account’s structure.
In August 2021, we finally fully upgraded to the 1st optimization level. This was the real game-changer.
The performance was noticeable after the first month, and our ACoS has quickly shrunk from 15-20% to our new normal (10-12% ACoS). We reached peak optimization WHILE not pushing due to stock issues. We were never entirely in stock.
We were sure we could have done more, but there was no point. We knew we would go out of stock either way. Since there’s no point in wasting money, we improved our profitability.
We introduced a few new designs during Summer and created a two-level variation, including purchasing multiple units of the same design. This helped us bring in an additional $1,2M in sales in 2021.
2021 Q4 was the most intense quarter for this brand so far. Every week we would hit new highs.
We had lightning deals every week, and we were testing every detail, from child ASINs selected for the deal, quantities dedicated for it, and sales built up with PPC and DSP before the deal for more exposure and Deals page ranking. We would reach the first deals page almost every time.
Our advertising structure was running at the best performance ever, and we were creating dozens of new campaigns every day. We usually had 6-8k campaigns running at the same time. This required at least 4-6 hours of daily attention to keep things running smoothly.
This structure is highly volatile, but it allowed us to move very swiftly, testing and killing keywords continuously
Unfortunately, stock problems weren’t entirely fixed. We were estimating a $10M/year, but we reached our year goal in October thanks to our fully utilized strategies for this revenue level. We generated an additional $10M in the last two months of the year. It might go without saying – we definitely ran out of stock. Even with 60 people running two assembly lines and working 24/7, everything we manufactured in 2021 wasn’t enough to cover our sales.
We’re thankful to our partners (the client) responsible for keeping us in stock, flying in 20-30k unit shipments every week.
A lot of the stock arrived on time for 2021 Black Friday. During the T5, after lessons learned during the “Prime day”, we combined lightning deals and Prime-exclusive discounts, thus hitting our new all-time high day – $675k in sales.
December was relatively quiet. We stopped running lighting deals. Amazon has started selling some of our products at 20% lower prices, thus taking away our buy box or forcing us to lower the price. After selling all the inventory they had for 2 of our ASINs, they took our buy box away and forced us to lower the price we didn’t. This problem goes away after some time, but it always comes back.
On December 13th, we appeared on national TV again and sold 95% of our remaining stock.
The rest of December was about slowing our campaigns as much as possible because we didn’t want to waste ad dollars to send traffic to products that could be delivered only on January 5-10th.
We received a couple of 20k unit shipments by the end of December that helped us prepare for January.
In January 2022, we did almost $1M in sales. We were focused mainly on the PPC campaigns, and once again, we have updated our infographics to reflect the brand image even better. We only ran one lightning deal during January. Due to Amazon lowering the minimum product price, we couldn’t profitably run lighting deals for the best-selling variations.
We will not be able to do any deals for the upcoming two months as we are working with our Launchpad SAS core manager to get a DOTD (Deal of the Day) spot in March.
For 2022 we are predicting $40M in Amazon.com sales. Follow our journey to see it happen!
There’s just one more thing! We were 700k short of reaching the $20M mark in 2021, We reached this milestone in the last 12 months 🙂
AMZ Bees is an e-commerce agency that grows and manages brands on Amazon with advanced PPC strategy, listing conversion optimisation and problem solving.
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