Surpassing a Brand’s Amazon Quarterly Sales Record
What We’re Celebrating:
By launching a new high-selling item, improving our client’s advertising strategy, participating in Prime Day ’23, and garnering a much-needed price increase, we were able to boost our client’s shipped cost of goods sold (COGS) by 44% year over year (YoY) when comparing Q3 ’22 to Q3 ’23. This is the highest quarterly sales that the brand has ever experienced on the Amazon platform.
Overview:
GO works with a beauty brand whose goal in Q3 ’23 was to beat the previous year’s shipped COGS performance. However, this brand has historically struggled with establishing an optimal ad approach, participating in tentpole events, and inventory issues. To achieve our client’s goal, we needed to overcome these challenges by launching a new product, elevating our advertising approach, taking part in Prime Day ’23, and acquiring a price increase.
The Challenge:
In Q3 ‘22, several aspects of our client’s business barred them from seeing significant sales growth, including:
A lack of a hero ASIN to propel the rest of their portfolio’s performance forward.
A lean advertising budget and lack of utilization of upper-funnel tools like Streaming TV (STV) and Online Video (OLV).
A hesitancy to participate in tentpole events because the client didn’t see the value of them.
Major inventory issues and a stalled price increase that resulted in canceled orders. By September ’22, one of the brand’s top-selling products was completely out of stock at Amazon warehouses.
The Strategy:
To help our client see significant shipped COGS growth in Q3 ‘23, we implemented the following tactics:
We launched a high-performing ASIN and built off its momentum by selling it both on its own and within a four-product regimen.
We began running STV and OLV campaigns that showcased the new product launch to reach more new consumers.
The client increased our advertising budget not only to support their new product and our enhanced advertising strategy with STV and OLV, but also due to our success in continuously increasing their sales. When comparing Q3 ‘22 to Q3 ‘23, the advertising budget increased by 116%.
We persuaded the client to test tentpole events by promoting two ASINs with Vendor Powered Coupons during Prime Day ’23. When comparing Prime Day ‘22 (non-tentpole participation) to Prime Day ‘23 (tentpole participation), our client saw ordered revenue grow 172% YoY on Day 1 and 153% YoY on Day 2. This performance convinced the brand to take part in all tentpoles moving forward.
We encouraged the brand to pick up the pace on supply to mitigate their inventory challenges, but the most successful solution was finally achieving the price increase we had been looking for in October ’22.
We promoted the client’s Amazon business through non-Amazon drivers, mainly utilizing their social media to drive consumers to product detail pages.
The Results:
Our strategy not only helped our client achieve their goal but went well beyond expectations, increasing shipped COGS by 44% YoY when comparing Q3 ‘22 to Q3 ‘23. Their Q3 ‘23 sales are the highest quarterly volume the client has ever had.
Want to deliver more efficient business growth for your brand?
Our GO team is always searching for new strategies to implement, opportunities to take advantage of, and challenges to overcome to achieve long-term, sustainable growth for our partners. Reach out to us to see how we can do this for you.