Client Overview
A well-established UK-based general merchandise retailer with annual revenue in the mid-six figures, selling a diverse range of consumer products on Amazon UK.
The Challenge
When this established retailer joined us, they were facing significant headwinds. By H1 2024, their business had experienced a substantial -21% year-over-year decline, primarily due to external pressures including rising living costs and post-Brexit economic challenges.
Initial Situation
- Declining year-over-year performance (-21% YoY in H1 2024)
- Limited visibility in key product categories
- No active deal participation
- Minimal advertising presence
- Struggling to maintain market position in a challenging economic environment
Our Strategic Approach
1. Deep Catalog Analysis
We began with a comprehensive analysis of their product catalog, identifying that approximately 80% of their sales came from a core group of products. This insight allowed us to focus our optimisation efforts where they would have the maximum impact.
2. Data-Driven Keyword Strategy
- Conducted thorough top-down keyword research within their product category
- Analyzed historical data to identify high-traffic keywords with proven conversion rates
- Focused on search terms that demonstrated strong purchase volumes in the previous year
- Implemented strategic keyword optimisation across their top-performing ASINs
3. Advertising Optimisation
Our research revealed a crucial insight: 95% of products that received 90% of clicks in their niche used Amazon Ads in the last 360 days. Not advertising meant not showing up in search due to heavy use of ads by their competition. Based on this finding, we:
- Developed a comprehensive advertising strategy
- Increased advertising investment strategically
- Implemented targeted campaign optimisations
- Focused on maintaining efficient ACOS while scaling spend
4. Promotional Strategy
- Introduced the brand to Amazon deals programs - as deals is a good way to increase sales rank as it helps boost sales velocity especially during big deal events such as prime day.
- Successfully implemented their first Prime Day deals in 2024
- Created a systematic approach to deal participation for the rest of the year
Results
Advertising Performance
- Total Ad Spend: £70k H2 2024
- Year-over-Year Ad Spend Increase: 540%
- Total Ad-Attributed GMS: £450k
- Year-over-Year Ad GMS Growth: 477%
- ACOS: 15% (improved by 10% year-over-year even with significantly increased ad participation)
Deal Performance
- H2 2024 Deal Penetration: 8.5% (vs 0% previous year)
- H2 2024 YoY Deal GMS Growth: +36%
Overall Business Impact
- H2 2024 YoY Growth: +18.1%
- Turned around from -22% YoY decline in H1 2024 to +18.1% YoY H2 2024
Key Success Factors
- Data-First Approach
- Used in-depth catalog analysis to identify focus areas
- Leveraged historical data for keyword optimisation
- Made strategic decisions based on category-specific insights
- Integrated Strategy
- Combined organic optimisation with paid advertising
- Supplemented regular sales with deal participation
- Balanced short-term tactics with long-term growth initiatives
Sustainability and Future Growth
The implemented strategies have created a foundation for sustainable growth by:
- Establishing effective advertising frameworks
- Building a track record in deal participation
- Creating systematic approaches to catalog optimisation
- Developing data-driven decision-making processes
Client Testimonial
"Thanks for your help over Q4 - we are really glad that we've been able to slowly recoup the decline earlier this year and now on track to finish the year stronger than last year."
This turnaround demonstrates how a structured, data-driven approach can transform performance even in challenging market conditions. The combination of strategic keyword optimisation, calculated advertising investment, and deal participation created a comprehensive solution that not only reversed the decline but positioned the business for continued growth.