How Shengyouwang Network benefits from MFN and sponsored ads

About Shengyouwang Network, an MFN seller

The China-based homeware brand, Shengyouwang Network, began selling on Amazon in 2017. As a Merchant Fulfilled Network (MFN) seller, the brand managed shipping logistics and customer relations in-house.

The 3 challenges the brand faced

By selling on Amazon in North America, Europe, and Japan, coupled with competitive prices, the brand received a high quantity of orders for their wide range of products.

However, they faced several challenges:

  1. Firstly, being an MFN seller had an impact on the shipping options and deals they could run.
  2. Secondly, the brand saw new ASINs needed support to maintain the high traffic volume they received in the initial seven days post-launch, and extend this success beyond this first week.
  3. Thirdly, the brand identified a new opportunity for Amazon Ads to help promote its brand during peak shopping events, beyond the initial organic traffic received.

Opportunities with Sponsored Products

Shengyouwang Network saw Sponsored Products as an opportunity to help grow their brand and product awareness to help reach more customers on Amazon. By using Sponsored Products, the brand was hoping to help increase visibility with customers shopping for products similar to theirs, plan ahead better to ensure they are more discoverable during key sales days, and lastly, to help maintain a consistent sales volume with a flexible budget throughout the year.

Their tactics for adopting Sponsored Products spanned three core areas:

  1. Group similar ASINs in separate campaigns: The brand grouped their ASINs into three categories: products priced $10 or more, popular ASINs or growing new ASINs, and seasonal products. This enabled the brand to set up and optimize in accordance with what worked best for each different group, such as different budget settings and bidding prices.
  2. Manage budget to enable competitive pricing: The brand capped their ad budget at 3% of their revenue. In controlling their budget, the brand was able to maintain their low price point for a better customer experience, which helped with conversions.
  3. Use reporting for campaign optimization: Right from the beginning of using Sponsored Products, the brand ran multiple tests and closely analyzed their data to ensure they were running as effectively as possible. For example, based on their analysis, the brand adjusted their advertising cost of sales (ACOS) target to 15%, seeing this as a more accurate target.

The result highlighted a lift in brand awareness

After using Sponsored Products automatic targeting, Shengyouwang Network saw the number of unique visitors to one of their advertised ASIN product detail pages increase by 46% more than average.* This was compared to just four days before the launch of their advertising campaign. The brand believed that this result not only indicates more shoppers were visiting the page than before, but also highlights the increase in brand awareness.

quoteUpAds can help MFN sellers support their business. By controlling your budget and developing a good habit of studying report analysis, MFN sellers can see remarkable results.quoteDown
– Mr. Zhou, Operations Manager

* Data in Spain four days after launching Sponsored Products ads compared with four days before launch.