Managing profitability in a competitive Amazon marketplace is no small feat, especially when advertising costs spiral out of control. This case study showcases how we helped an 8-figure Amazon seller reclaim their margins and exceed their goals by optimizing their PPC strategy, cutting waste, and delivering measurable results.

The Challenge: Advertising Costs Erode Profitability

The client, an established Amazon seller with 8-figure annual sales, faced significant profitability challenges due to inefficient ad spending. Their total advertising cost of sales (TACOS) was 16.5%, over double their target of 7%. With an average advertising cost of sales (ACOS) of 25.05%, their ads were eroding margins, turning what should have been profitable sales into losses.

Our Approach: Targeted Optimization for Sustainable Growth

We were brought on board to optimize the client's Amazon PPC strategy and align their advertising performance with their 7% TACOS goal. Our focus was on restructuring campaigns, refining keyword targeting, optimizing bids, and reallocating budget to high-performing ads. Recognizing the seasonal impact of their product line, we also accounted for the holiday off-season in our analysis.

Results: From Losses to Profitable Advertising

TACOS: Reduced from 16.5% to 6.5%, bringing it below the client's target of 7%.
ACOS: Decreased from 25.05% to 14.46%, cutting it nearly in half.
ROI: Improved from 16.8% to 34.7%, more than doubling their return on investment.

Key Impact: Exceeding Goals with Precision

By aligning their ad spend with their target TACOS, we not only restored profitability but also positioned the client for sustainable growth. This transformation allowed them to scale confidently, knowing their ad strategy was working in their favor instead of against them.

Through strategic campaign restructuring and ongoing optimization, we turned a struggling PPC account into a highly efficient and profitable advertising machine, demonstrating the power of expert management for Amazon sellers.