Any serious product distributor would be remiss not to sell where most buyers shop. That’s what makes selling through Amazon a no-brainer for any serious purveyor or manufacturer in today’s economic climate. The Amazon marketplace is where half of all online transactions take place, but that doesn’t guarantee your products or storefront can gain favor. If anything, all that competition only raises the stakes.
Over the last few years, Logical Position (LP) has partnered with product manufacturers to find new buyers through Amazon Advertising campaigns. With the ever evolving shift in direct-to-consumer buying trends, more traditional businesses are finding it mandatory to show-up to the party…or get left behind. What we learned offers a roadmap other legacy brands can implement to generate new revenue streams.
About The Client
Specializing in cages for birds and other small animals for more than 150 years, Prevue Pet Products makes and distributes high quality enclosures and pet infrastructure to both consumers and wholesalers. With more than 800 unique products, their passion for pets is evidenced by the quality of their products and longevity of their business. Based out of Chicago, they’ve grown from a small family business into an international fan favorite for pet products that can stand the test of time.
As an organization, Prevue has been around the block a few times and experienced every trend and fad. They’ve continually adapted to the times, albeit slow and steady. Growing out of the traditional distribution to retail model, through the rise of online sales, they’ve been somewhat of a stalwart because of their fortunate position in the industry. So when they signed on with LP in 2022 to launch their presence on Amazon, there was a lot of pent up excitement on campaign potential for this account.
“In our sales relaunch on Amazon we used Logical Position to catapult our brand and accelerate the eyes on product we knew we needed after not selling to Amazon for over a year. Having used Logical for several years at another company, I trusted their approach and thoroughness needed. In less than one year we’re on pace to increase our monthly spend by 10x the original plan, while exceeding our ROI targets.”
— Grant Dean, VP of Sales, Prevue Pet Products
Amazon Goals
5 million in revenue for 2023
Establish organic search rankings
Dominatve bird cage market space
ACOS < 10%
Strategic Development
Since Prevue had already been selling their products on Amazon, but were new to the advertising end of that platform, we started by separating products out by category (31 in total) to gain better visibility into the historical data. Together, we reviewed previous gross sales volume and profit margin to determine where we could make the most immediate impact. To do this we used automated campaigns to find available demand based opportunities from Amazon shoppers. This kept our team hyper-focused on the bird cage niche, which drove immediate revenue that we could reinvest further up the sales funnel.
Build It Back Better
From there, we deployed a granular campaign build to capture the entirety of the bird cage niche, which was ripe for the taking. By focusing on their top products, we were able to dominate the marketspace on Amazon and push out competitors. This gave our strategy team the ability to corner a certain aspect of the market and work out from there, which has resulted in exponential growth in sales for the client. For example, the playpen item went from $2,400 in sales to $15,000 comparing July 2022 to March 2023. Operating from a growth perspective, we have continued to expand ad types as they become available, while occupying all available market share on Amazon.
Business Impact
Despite selling on Amazon since July 2021, Prevue Pet Supply had not invested in advertising on the platform until onboarding with LP one year later in summer of 2022. From there, our team demonstrated the growth potential by bolstering average order value (AOV) of their 31 product categories by nearly 50% in total. Finding success on Amazon has helped diversify their product portfolio and provided new growth opportunities for our client. This allowed them to make a bigger impact on Amazon Prime Day and ultimately grow their ad spend by 10x the original budget. It has also freed up bandwidth to launch additional new product lines based on the demand they’ve seen from Amazon.
Uncage The Results
With a targeted approach, we’ve been able to grow their volume through this channel by (89% growth from $196,645.84 in sales July 2021 to $371,687.26 in sales June 2023) and demonstrate the unparalleled magnitude exclusively available through Amazon.
Other KPIs Achieved:
113M
Impressions LTD
22,073
Storefront Visitors this Year
89%
Increase in Sales Volume
9.6%
ACOS
Tips To Achieving Similar Results
Trust Your Product: Don’t make life harder than it needs to be. If you’re new to a platform like Amazon, find your footing with a familiar trick. Start with your best products to find your niche before experimenting.
Treat Yourself: Use the tools available to make informed decisions on target keywords for your top selling products. Amazon’s suggestions automation tools offer insights into active searches by current users.
Bark Bigger Than Your Bite: While it’s advisable to start advertising with your best sellers, be sure to make the breadth of your offering available to consumers sooner rather than later. Taking up digital shelf space drives out competitors and effectively makes your presence bigger on Amazon, regardless of whether you’re selling out of a garage or a commercial facility.
Diversify Your Ads: There’s an old saying in marketing that it takes 3 touch points to truly reach an end user. So don’t miss an opportunity to reincarnate your messaging into various deliverables to make the biggest impact possible.
Pent Up Potential
Launching a new endeavor and expanding your reach can be a daunting task to take on alone. With no soundboard to reference, it can be intimidating to even get started, but missing out on an opportunity to reach your desired audience is never an advisable option. Some suppliers might have mixed feelings about the Amazon platform, but there’s no denying it’s massive reach and convenience for the end user. So showup where your buyers buy and make a play or you might find your distribution all caged up.
Is your business considering unleashing the Amazon windfall? If so, reach out today for a complimentary no-obligation consultation and account performance review.
