How Jack n’ Drill Secured Amazon’s Choice Status Despite Unprecedented Events
Jack n’ Drill
Door stoppers, door springs, and security latches. These are some of the do-it-yourself tools that Jack N’Drill produces. And for over 40 years, owner Wang De-An had success selling his products to other companies.
But as a progressive businessman, he searched for other avenues to grow his business. That’s when he decided to sell directly to consumers via Amazon.
Even though his products were very similar to his competitors’ products…
…in just two months, his listings gained traction.
He then realized the massive opportunity of using Amazon advertising. He knew this strategy would bring in new customers.
Pay-Per-Click Ads Do Not Guarantee Profits
Anyone can pay for Amazon advertising.
With the wrong strategy, though, it can backfire and cost you more expenses. And many sellers only realize this after investing in PPC ads.
Wang was having none of that.
Despite gaining momentum since becoming an Amazon seller, he was in a tight spot. It’s a cutthroat niche. One wrong move and his competitors could grab the majority of the sales in the market.
He couldn’t afford to invest in PPC ads and get mediocre results.
He knew better. His decades of business experience taught him that he didn’t need to do any guesswork. Especially if he’s new to the game.
If he was going to use PPC ads, he would be doing it with someone who’s continuously shown they could break the sales’ glass ceiling.
He needed an Amazon expert who could maximize his profits and minimize his advertising cost of sales (ACoS).
That’s when he turned to TransBiz to manage his company’s Amazon seller account and boost its sales through the roof.
Research. Test. Optimize. Repeat.
First, we gathered data. This included:
- Conversion rates
- Keyword research
- Campaign set-up per SKU
These were all necessary to get the competitor’s keywords, Amazon-suggested keywords, and low-cost keywords.
Then we were able to structure a strategy that would put Jack n’ Drill ahead of its competitors in the long run.
Since the conversion rate and sales from the listings showed a slow but steady increase, we decided to focus the PPC ads on the most popular products.
This strategy was intended to increase brand awareness, sales, and organic traffic while efficiently allocating the ad spend.
Next, we started testing the campaigns. Regular keyword testing was implemented to help optimize the ads while minimizing the ACoS. Continuous testing and optimization were necessary to ensure the products were showing up in all ad placements.
After three months, we had enough data to confidently scale the campaigns, and focus on other products to increase sales.
This strategy guaranteed a steady increase in organic sales.
It was the whole point of using Amazon advertising — to support the product listings in getting the majority of the traffic.
From Just Starting Out to Amazon’s Choice in Less Than a Year
For the first month, 82% of the conversions were from the PPC ads. This meant they were doing most of the heavy-lifting, which Jack n’ Drill needed to increase organic traffic.
Three months in, the product listings’ and the PPC ads’ conversion rates were 42% and 58%, respectively.
After a year, the product listings were pulling in 53%, and the PPC ads had 47%.
For the ACoS… it started at 50.02% and peaked at 56.99%. This means that there were bumps in the road, such as COVID-19 disrupting the global market.
Despite the unforeseen challenges, we were still able to drop the average ACoS to 47.93%. Opposite to that was the average return on ad spend (ROAS) at 4.10.
It gets better…
Some of the products achieved Amazon’s Choice status. And monthly PPC sales bounced back and peaked at $93,202.94.
These optimistic numbers were due to how we managed the campaigns.
We took into account all the changes in supply, demand, and customer behavior. So even though there was a decline in sales, Jack n’ Drill still profited from the ads. And once the COVID-19 situation settled (sort of), the PPC ads were primed to accelerate overall traffic.
Here’s the bottom line…
With a solid strategy, Amazon advertising opened a new stream of customers and traffic for the product listings.
Not only that, but it also increased brand awareness, even though there were a lot of competitors selling very similar products.
“I’m thrilled to be working with a team that shares my goal of achieving our sales target!”
Owner, Jack n’ Drill