Overview

Upriver started working with Hamleys (Reliance’s subsidiary), one the biggest retailer of toys across the world, to reduce their cost of advertising and simultaneously improve sales on the marketplace.

This resulted in a 50% reduction in Cost of advertising for Hamleys in the very first month of working with Upriver.

Initial Situation

  • The client had 1,000+ SKUs’ listed on the Amazon marketplace across 10+ categories with varying price points
  • They wanted someone to re-organise the campaigns and create a coherent strategy that ultimately results in reduction of ACoS% and further improvement in sales

Challenges

  • 1000+ SKUs’ to manage across varied categories
  • Different price points
  • Lesser ads budgets compared to focus product targets
  • Multiple products to improve with same generic keywords

Upriver Strategy

SKU selection

  • Upriver team applied custom filters to create a selection of SKUs’ that would help us reach the desired sales and ACoS% level. We used the following filters including sales data for the past 6 months, ACoS%, TACoS%, Page Views and Conversion rate % to create a curated list of SKUs’ to target.
  • Auto : Manual Mix : The previous agency was working on a 80:20 split of Auto : Manual. We quickly understood the wasteful spends incurred due to over usage of auto campaigns and shifted 80% of budgets to Manual campaigns.
  • Division by category and sub-category : Campaign re-organisation was a top-most priority for us to understand the data in the long term and make quick decisions. We grouped closely related products together and dissected the whole catalogue to 8 categories.

Daily budget adjustments

  • Our dedicated amazon advertising manager readjusted budgets on a daily basis across campaigns to realise a higher ROI or reduce bad spends wherever possible.
  • Dynamic Bidding through AI advertising tool : We onboarded the client on our in-house AI advertising software for Amazon to leverage its dynamic bidding feature for continuous bid adjustment on keyword level for better ROI achievement. The AI works beautifully as there are 1,000+ sku to manage and an equally overwhelming number of keywords to bid and manage which is not possible to manage manually. The sheer volume of data is so huge that it makes it difficult to understand, digest and then take actions based on it. Here, the AI works beautifully as it is integrated to Amazon servers and keep exchanging information.

Results

50% reduction in cost of advertising in first month of working with Upriver

In the first month of working with Upriver, Hamleys managed to reduce its total advertising cost of sales (TACoS) by 12%, advertising cost of sale (ACoS) by 50% through Upriver’s advanced advertising strategy that included strategy & planning to the core.

Upriver continues to work alongside Hamleys to ensure even higher growth for the future.

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