Overview:
In this case study, we successfully launched a Private Label product in the UK market with a focus on achieving profitability through a meticulously crafted Amazon PPC strategy. The objective was to leverage Amazon’s advertising platform to generate sales without resorting to giveaways, external traffic, or any artificial promotional techniques. The strategy revolved around creating a well-optimized PPC campaign, supported by high-quality content and images, all while starting with zero product reviews.
Results:
The launch yielded impressive results, with the product achieving profitability from day one. Over the initial 19 days, total sales reached significant numbers, with a consistent average Advertising Cost of Sales (ACOS) of 25.5%. The product climbed the rankings rapidly, securing a Best Seller Rank (BSR) of under 10 in its subcategory and under 250 in the main category. Organic sales growth was evident, with the product ranking in the top three positions for the most competitive keywords. The profit margin began at 33% and was expected to increase to over 40% with subsequent price adjustments.
Key Challenges:
The project faced several challenges, including launching a new product without any initial reviews or organic traction. The strategy relied solely on Amazon PPC to generate early sales, which required careful management to ensure visibility against established competitors for highly competitive keywords. The absence of giveaways or external traffic added pressure to the PPC campaign to perform effectively right from the start.
Approach:
The launch strategy was executed in multiple phases, focusing on leveraging PPC from day one:
- Day 1 – Initial Launch:
- Total sales of 23 units were generated entirely through PPC with an ACOS of 26.94%, indicating immediate profitability.
- Key actions included leveraging optimized PPC campaigns with competitive keyword targeting.
- Day 2 – Organic Traction Begins:
- Sales increased to 33 units (30 PPC, 3 Organic), with a lower ACOS of 25.73%. Organic rankings began to improve, moving to the middle of page one for top keywords.
- Day 4 – Building Organic Momentum:
- Total sales climbed to 55 units (48 PPC, 9 Organic) with a significant improvement in ACOS to 22.20%. The product achieved first-page rankings for two highly competitive keywords.
- Day 10 – Significant Organic Growth:
- Sales reached 84 units (61 PPC, 20+ Organic) while maintaining a healthy ACOS of 25.33%. The product achieved the #3 organic ranking for the main keyword.
- Day 19 – Amazon’s Choice Badge & Continued Growth:
- Total sales peaked at 96 units (65 PPC, 31 Organic) with an ACOS of 25.84%. The product secured the #1 organic ranking for the second top keyword, earning the Amazon’s Choice badge.
Conclusion:
This case study exemplifies the success of a “bloodless” Amazon product launch, where strategic PPC management enabled immediate profitability and sustained organic growth. The launch demonstrated that a well-optimized PPC campaign, combined with effective product positioning and strategic bid management, can lead to successful results in a competitive marketplace. The key takeaway from this experience is that it is entirely feasible to achieve a profitable Amazon launch with zero reliance on artificial promotions, highlighting the potential for organic growth through a well-executed PPC strategy.
