Case Study
Kitchenware brand Ouwo E-commerce mixes up sponsored ads strategy to help boost sales ranking on Amazon
Goals
- Keep total advertising cost of sales (TACOS) at ~25%
- Maintain a monthly profit margin of 10%
- Become a top-five best seller in the kitchenware category
Approach
- Optimized keywords by identifying high-frequency words and eliminating poor performers to lower costs
- Combined Sponsored Products with Sponsored Brands and Sponsored Display to help drive traffic and attract more customers
- Used Sponsored Display to encourage repurchases and close the customer journey loop
Results
- Broke into the top-five ranking for best-selling kitchenware, reaching sales growth of 178%
- Maintained a monthly TACOS below 15% and profit margin of more than 10%
- Increased repurchase and conversion rates to 30% and 24%
Since launching on the Amazon store in 2019, kitchenware brand Wenzhou Ouwo E-commerce (Ouwo E-commerce) has realized steady growth in product sales. However, after more than three years, they had not been able to rank among the top 30 sellers in the Kitchenware category.
Ouwo E-commerce turned to Hangzhou Sanhang Technology (Sanhang Technology), an Amazon Ads partner, to revisit their ads strategy, with three goals in mind: keep their total advertising cost of sales (TACOS) at around 25%; maintain a monthly profit margin of 10%; and become ranked a top five best seller in the Kitchenware category.
Tapping into diversified sponsored ads products
After analyzing customers’ needs through the Business Opportunity Detector function in the Amazon Ads manager, Sanhang Technology obtained insights on the keywords that buyers were browsing on Amazon.
We identified high-frequency words that appeared in titles, bullet points, and A+ pages from the top 100 brands in related categories and added them to the keyword list of Ouwo E-commerce’s flagship store.
— Miya Shen, director of operations at Sanhang Technology
Sanhang Technology also broadened Ouwo E-commerce’s ad approach from using only Sponsored Products to also including Sponsored Brands and Sponsored Display marketing. Specifically, they used Sponsored Products and Sponsored Brands to help drive traffic and attract a broader customer base, and then closed the customer journey loop by encouraging repurchases through Sponsored Display ads.
Focusing on audience reach and engagement
Based on Sanhang Technology’s strategy, Ouwo E-commerce maintained original keyword volumes but eliminated poorer-performing words, which lowered costs. “It made sense to add longtail conversion words to the mix to widen the audience and target precise customer groups,” said Shen.
Additionally, Sanhang Technology recommended that Ouwo E-commerce use Sponsored Brands to drive traffic to their flagship store and increase click-through rates across all of their Amazon standard identification numbers. By using Sponsored Brands, they were also able to introduce new customers to Ouwo E-commerce’s product collection while promoting complementary products alongside their main product line. The team also used the Sponsored Display repurchase feature to actively find customers and broaden sales coverage through regular marketing, multivariant cross-marketing, and remarketing activities.
Achieving full-funnel results
Ouwo E-commerce saw strong results from layering Sponsored Brands and Sponsored Display on top of Sponsored Products—and fast. After three months, the brand broke into the top five ranking for best-selling kitchenware, reaching sales growth of 178%.1 They also maintained a monthly TACOS below 15% and a strong profit margin of more than 10%, while increasing their repurchase and conversion rates to 30% and 24%, respectively.2
1-2 Amazon internal data, CN, 2023