Finding success in today’s skincare market requires a commitment to staying with what works while also evolving in order to reach new markets. For this Southern California brand, its esthetician-formulated skincare products had gained popularity among professionals over the years and the time had come for it to reach the consumer market. New Target had been working with the company for a year supporting their ecommerce efforts by streamlining their website and supporting their reach to professional estheticians and spas. With this, there was still room for New Target to continue growing consumer sales while working through challenges of increased competition and third-party sellers.
As it goes, when more businesses join the e-commerce space, the competition online increases. This means that current e-commerce sellers can’t keep relying on the same strategies to grow their business. And, when more sellers begin to advertise on major platforms like Google, paid ad competition increases. We were seeing our client’s consumer sales performance plateau on Google Ads, so we decided to evaluate other advertising platforms in an effort to continue growing their consumer sales revenue.
Another challenge the client was facing was that they were seeing significant products sold by unauthorized third parties, also known as diversion. The client sells their products directly to consumers on their website, but a big portion of potential sales was going to a third-party seller who was buying product in bulk and reselling it on Amazon. While our client was making revenue from the third-party seller, they were losing out on profit margins and control of the market. So, they decided to cut out the third-party seller from the equation.
Our solution to both of these issues was to get the skincare brand on Amazon so that they could take advantage of an engaged beauty audience to grow their B2C sales. With the third-party seller gone, we helped the company focus their consumer sales on the Amazon platform. Amazon’s extensive audience and Prime members meant there was an opportunity to expand further into the consumer market. Our extensive research and experience enabled us to launch their Amazon account within 6 months from when we created the strategy, wrote the requirements, and collected the assets to build out the product detail pages, branded storefront, and paid campaigns.
The strategy focused on three main areas – the branded storefront, paid advertising, and enhanced content.
The Amazon-branded storefront was built to showcase the company’s products and was complemented by specific content and imagery that encapsulates the tone and feel of their brand. We worked closely with the client’s design team on requirements and recommendations for products to promote. As an established skincare company, the strategy behind their Amazon store buildout enabled them to more easily market and sell to their existing customers and reach new audiences.
As we understood the client had just launched their Amazon sales channel, we knew we wanted to bolster their Amazon presence with paid advertising. The client had aggressive sales goals to hit for the first year.
For our paid efforts, we built out a handful of different campaigns which included 3 campaign types. We used both manual and automatic targeting to get an idea of what people were currently searching. Then, we created separate manually targeted campaigns using the most popular keywords and other terms we wanted the products to be discovered. Here’s a quick breakdown of the campaign types we used:
- – Sponsored Products – to promote individual products in the listings based on relevant keyword searches.
- – Branded Storefront Promotion – to drive potential customers to the branded storefront to check out the rest of the products sold by the company and to raise brand awareness as a new seller on Amazon.
- – Competitor ASIN Targeting – to target similar competitor products with comparable price points.
Retail-Ready Product Pages and Enhanced Brand Content
We worked with the client to get their existing product pages “retail ready.” This meant we optimized their product listings with detailed descriptions, informative titles, images, reviews, inventory, and enhanced branded content. Enhanced branded content allows sellers to upload additional branded content and it gives sellers more real estate for product details, directions, ingredients, videos, and imagery. We found that product pages with enhanced brand content make the listings more appealing and trustworthy to the consumer than sellers who didn’t have one.
We’ve seen tremendous results so far with the rollout of their branded storefront, enhanced brand content, and paid advertising:
The branded storefront helped the company increase brand awareness on the Amazon platform and provided customers with a better shopping experience compared to other competitors that did not take advantage of the branded storefront feature available to sellers.
● We drove 5% of total Amazon sales on the branded storefront from our paid branded storefront campaigns.
● 6.5% of the sales that we brought in with paid came from people who made a purchase from the company for the first time (New to Brand Sales), which further proves the success of the additional brand exposure we were aiming for on top of growing consumer sales.
● 250 units were sold from the storefront.
● The storefront had over 3K views and almost 2K visitors.
● The branded storefront homepage drove the majority of storefront sales, which indicates that first impressions really do matter.
● As a branded storefront, it’s able to rank in organic search engine results for branded keyword searches. We were able to drive 800 additional visits through organic search and almost 4k in sales, without promoting on Google by making sure we included important keywords to the storefront content.
We’ve driven 32% of their Amazon total sales from our paid campaigns over the past 4 1/2 months. Client’s paid campaign sales ROI is 3x compared to ad spend.
● Over 9.6 million impressions.
● Averaging 35% Advertising Cost of Sale (ACOS). ACOS is calculated by dividing the total ad spend by total sales by paid campaigns. A lower ACOS is preferred as it indicates a higher ROI. We’ve seen brands that have an ACOS percentage of over 500%, so they are losing money more on ads than they are bringing in from the sale.
● We grew the client’s Amazon revenue 7x compared to our Google Ads efforts and in less than half the time.
As you can see, our threefold strategy of a branded storefront, enhanced branded content, and paid advertising was a major success and helped launch and solidify our client’s presence on Amazon. We were able to overcome the challenges they faced and build a solid foundation for them to sell to existing customers, reach new buyers, and sell more products.
As Amazon Advertising certified specialists, we can help you launch your brand on Amazon and grow sales and brand exposure. If you’re looking to take your ecommerce store to the next level, whether it’s building brand recognition, expanding into a global market, or just increasing revenue, fill out our project form with your information, and we can discuss how we can assist you with your e-commerce growth strategy. In the meantime, get a head start on your Amazon journey by reading our multi-part blog series on our Web Insights Blog. You can read part I of our E-commerce Selling Guide on how to set up your Amazon seller account.