4x growth in marketplace business at 50% less ACoS

About the brand

X is a digital first personal care brand that sells skincare and haircare

products across channels like their own website, marketplaces such

as Amazon, Nykaa and Flipkart.

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Problem statement

X approached us with the challenge of scaling their Amazon channel while turning the channel profitable. The channel had remained stagnant in last 4 quarters

Solution

Spend mix between Brand, Generic and Comp keywords

The brand was spending maximum on Branded keywords (~50%). Spends on generic and

competition keywords were giving very poor ROI. We reallocated budgets in a way that

brand keywords get only 25% of the spend while reallocating the rest to generic and comp.

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Improper campaign structure

The brand did not have a structure in place to leverage long tail and relevant keywords. The brand was also not utilising all ad types (SP,

SD, SBV, SB) and targeting types (category, product, remarketing, keywords)

We implemented the following structure:

• Long tail highly relevant targets – High bids, track organic rankings

• High and mid volume targets – optimum bids optimised for category best ROAS

We also utilised 30% of the spends in testing new ad types (SD, SB, SBV) and targeting types (category, product, remarketing)

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No Hero Products Strategy

The brand was spending on all 50+ ASINs and none of the products were in Top 50 bestseller of their sub categories

We implemented a strategy to get 80% of spends on Top 10 ASINs which had a right to win. Also, optimised their listings, reviews and

ratings and prices

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Results

• Revenue grew by 4x in 4 quarters from ~65L to 2.6 Crs/qtr

• ACOS came down from 128% in FY23 to 43% in Q4’FY24

• TACOS came down from 72% in FY23 to 27% in Q4’FY24

• 6 out of top 10 products identified are in top 50 of their respective categories now

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