From $3k to $60k monthly gross profit in 2 weeks!

Overview

Product: Electronic device for homeowners in home and kitchen category. Average selling price is $40-$60, while the cost of goods is around $20/unit.

Challenge: Product had been neglected for a while. It was still making $100/day in gross profit, but could perform much better with some professional help.

For most FBA sellers, the biggest challenge of all is managing their time.

This is the problem that our client had. Years ago, he’d launched a successful product that amassed over 3,000 reviews. Having so many other business tasks to handle, the product had been neglected. It was still making $100/day of gross profit, but no-one was managing it. 

From previous sales history, the client knew that the product had a lot of untapped potential but he had no time to try to learn the latest PPC methods himself.

That’s why the client turned to aNavigator’s ‘done for you’ service for expert help.

Approach

Ambitious target: raise gross profit from $3,000/month to $20,000/month.

To achieve this, we focussed on a few core areas:

  • Refocusing the PPC budget on the highest-converting advertisement tools
  • Leveraging promotions
  • Monitoring and increasing organic positions
  • Price optimization

When we started working with the client on September 24th, we allocated $500/day to the PPC ad budget, which we continued to do up until October 12th. After we had gained some initial conversion data from the ads, we decided to ramp it up.

From October 12th until October 22nd, we increased the PPC budget 4x to $2,000/day. We also refocussed all the ad structures towards our goal of conquering the main organic positions in the niche, which would help achieve our main goal of drastically increasing profitability.

As you can see from the graph, on our first day of doing this we lost $1,500. Then, 3 days after that, we lost a further $700.

Results

42%

under CPA action

21%

conversion rate

162

conversion tracked across all interactions

Conclusion

Gross profit increased 20X from $100/day to $2,000/day, while organic sales trebled from 30 units/day to 100 units/day.

More details

Despite a couple of days with heavy losses, we could see that the product’s organic positions were improving. From October 23rd until 30th October, we tested this by stopping the PPC campaigns. And as you can see, we continued to make an overall gross profit of $1,200 – $1,500/day, with organic sales of approximately 70 units/day.

Big moment! In early November we noticed that product’s organic positions were now stable, and increased the unit price from $57 to $60, and then a week later, up to $64.

This led to the product’s most profitable day – November 11th – with over $2,500 in gross profit and more than 100 units sold organically. Back in September, it was barely making $100/day in gross profit, but now we had almost made more in one day, than in a previous month.

Results in 1 month

  • Smashed our goal of reaching $20,000/month of gross profit – with most days seeing a gross profit of between $1,700 – $2,000.
  • Increased the organic conversion rate from ~10% to ~18%.
  • Grew organic sales from 30 units/day to a peak of over 100 units/day.
  • Kept the total average cost of sales (TACoS) to below 10%.
  • Increased the selling price from $54 to $64.

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