Unlocking Untapped Opportunities on Amazon Marketplace
How to scale Amazon revenue by 5x with optimized ad spends, like Ruosh
To grow any retail business online and reach a larger audience, a solid presence on third-party (3P) marketplaces like Amazon has become essential. However, the question remains: how can your brand level-up?
With countless sellers vying for attention, achieving substantial growth on Amazon can be a formidable challenge. Getting your products discovered and capturing the attention of discerning shoppers in such a crowded marketplace can be daunting.
This is where performance marketing steps in and becomes a game-changer. Performance marketing puts your products in front of interested shoppers at the right moment. It provides businesses with a strategic approach to elevating their brand, promoting new product discoverability, increasing brand visibility, driving incremental sales from the brand catalog, remarketing to shoppers who have not yet converted, and ultimately driving revenue on the Amazon platform.
To illustrate the impact of performance marketing, here is the growth story of Ruosh, a leading Indian footwear brand. It discusses the brand's initial failure to generate revenues from its performance marketing strategy, the identification of gaps in the existing strategy, the development of a new strategy, the step-by-step approach to improving results on Amazon, and the efficient implementation.
How Ruosh scaled Amazon revenue by 5x with optimized ad spends
Ruosh is a homegrown Indian brand—a popular name in the footwear category. It is live on 6 marketplaces on an omnichannel model, including Amazon.
Here are some key metrics of this growth story:
Overview
Ruosh onboarded Amazon in August 2019 and started its omnichannel business on the marketplace.
To further boost its sales, the brand started its performance marketing campaign on Amazon in October 2022. However, there was no substantial impact on sales until March 2023, and the brand was simply burning money on performance marketing.
Identifying the Gaps in Performance Marketing Strategy
Understanding the futility of marketing spends on Amazon, Ruosh reached out for professional help. An audit was conducted to identify the gaps in the running strategy, and discovered the following shortcomings:
- Only auto-run campaigns
- Open-targeted campaigns
- Unmonitored campaigns
- No category and product segregation in campaigns
Solution Strategy
The collaboration with performance marketing services addressed these gaps with a new customized performance marketing strategy. Here is the step-by-step approach:
Key Highlights of the Strategy
The new strategy focused on the product category, size, and consumer persona of the potential buyers. The brand started running targeted campaigns to optimize advertising spends. Targeted campaigns are important to promote your listings to shoppers searching for products like yours. You bid on certain keywords, and when shoppers search for those terms, your ad may appear at the top of the search results.
These campaigns focused on ramping up spends during high-traffic periods and big sale events on Amazon, discounted product placements, and defining branded and non-branded campaigns.
The key elements of the strategy were:
- Creating a campaign structure for scale
- Defining branded and non-branded campaigns
- Defining ideal timelines to run or pause a campaign
- Category and targeting specific campaigns
- Customized bidding strategies
- Regular optimizations based on ROAS requirements
- Scaling up by defining campaign targeting to audience fit
Strategy Implementation
Continuous monitoring, evaluation, and optimization are the fundamental elements of implementing a performance marketing strategy. The new strategy for Ruosh adhered to these fundamentals and frequently assessed metrics like impressions, clicks, click-through rate, and conversion rate.
The brand collaboratively pre-plans the strategy at the beginning of the month, monitors it, and optimizes it frequently to complement the running campaigns and maximize ROI. When an ad isn't performing well, keywords, bids, or copy are adjusted. Unperforming ads are also paused.
After implementing the fundamentals, the brand further scales performance by promoting the successful products and campaigns identified through sales data. In addition to this, cross-selling and retargeting campaigns are used to increase revenue from existing buyers.
The Visible Impact
The impact of performance marketing is measurable and fast. Focusing on the right elements leads to dominating the competition and driving massive growth on Amazon in no time. With the huge volume of customers and data on Amazon, even small optimizations and improvements can lead to big wins.
"Our old marketing campaigns on Amazon had low ROI. Fynd helped us audit the gaps and successfully implemented the new campaigns and strategy. This is impactful and we are now getting decent ROIs."
- Chandrasekhar B, Manager - Online Operations, Ruosh
Ruosh experienced a surge in traffic and sales within a week of launching the revamped campaign. Here is a glimpse of the outcomes:
Growth Charts
Reaping Long-Term Results
In addition to immediate benefits, an effective performance marketing strategy also improves your product's ranking over time. The more shoppers engage with your ads and promotions, the more Amazon's algorithm will determine your products as relevant and in demand. The more data Amazon collects on your campaign's performance, the more optimized your ads will become. Consistently high performance over the first month can drive a significant boost in organic rankings as well. Your products will start appearing higher in search results, even without ads.
Is professional help worth the investment?
To truly outperform the competition on Amazon, partnering with a performance marketing expert is essential. They have the experience to set up effective campaigns from day one and can optimize them over time to maximize your ROI. You can handle marketing campaigns in-house, but the growth curve is slower and eats up time that could be invested in executing other strategies for your brand-building.
Role of a Consultative Partner for Performance Marketing
Partnering with a consultative performance marketing partner can become a crucial element in propelling your brand to new heights of success. Here is why:
Tailored Strategy
A good performance marketing partner will take the time to understand your brand, products, and goals. They can then build a customized strategy focused on your needs and growth targets. Instead of a one-size-fits-all approach, they will determine the right mix of paid advertising, organic ranking improvement, and conversion rate optimization tailored to your specific needs.
Staying Ahead of Changes
Amazon's algorithms and best practices are always evolving. A consultative performance marketing partner works with many brands on the platform and stays on the cutting edge of changes. They can anticipate updates to advertising, SEO, and product page rules to keep your strategy optimized. Relying on an agency means your internal team doesn't have to constantly research the latest Amazon changes.
Experience and Expertise
Navigating Amazon's advertising and organic marketing options requires a specialized skill set. A performance marketing consultative partner has the experience to set up and optimize complex campaigns across sponsored products, sponsored brands, stores, and other ad types. They understand how to improve product page SEO, rank for relevant keywords, and boost conversion rates. Their expertise will get results faster than trying to build internal capabilities from scratch.
Objective Guidance
An external consultative partner can also provide unbiased guidance. They have no allegiance to internal teams or politics. Their recommendations will be based solely on what they believe will drive the best performance marketing results for your brand on Amazon. An objective, data-driven perspective is invaluable for optimizing your strategy.
Conclusion
As an Amazon retailer, your success depends on visibility and sales. The best way to achieve both is through performance marketing. Performance marketing on Amazon really is a game changer if you play it right. Build a solid strategy, stick with it, make data-driven optimizations, and reap the rewards.
Before you know it, you'll be ranking at the top of search results and crushing your competitors. Your retail business will be unstoppable. Now get out there, implement these best practices, and show everyone why you're the best in the business!
If you are still struggling to develop your strategy or achieve a good return on investment (ROI) for your advertising spends on marketplaces, reach out to us.
As your end-to-end partner for growing your business on different 3P marketplaces, we will conduct an audit to identify your gaps and develop and execute a new winning performance strategy. We can also connect you with other partner experts so that you can leverage their knowledge and experience to gain an unbeatable advantage.
Get in touch for a consultative discussion on enhancing your performance marketing strategy and scaling your business on marketplaces.
