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How AMZ Pathfinder Achieved 44.67% YoY Revenue Jump With A 12.6% Reduction In ACoS for a Leading T-shirt Brand

reduction in Acos case study

The Client

In this case study, we detail how we helped an Amazon e-commerce T-shirt brand grow on Amazon. The brand is known for their unique t-shirt line with designs inspired by popular beer and sweets brands. Our challenge was to build on their current success to achieve ambitious new business goals and growth. Through our expertise in Amazon advertising and market understanding, we crafted a campaign tailored to propel the brand’s growth on Amazon. We developed an engaging marketing strategy for the brand’s t-shirt line, tailored to their target audience. This is how we were able to capture the attention of a broader audience and drive significant growth on Amazon, achieve an overall increase in revenue, and a reduction in ACoS, TACoS in both Canada and the US. 

The Challenge

The brand’s journey on Amazon was marked by several challenges in both the U.S. and Canadian markets:

  • Seasonal Market Variations: Seasonality (Q4, including events such as Halloween, St. Patrick’s Day, etc), characterised by a surge in consumer activity and fierce competition, presented a challenge in terms of maintaining and enhancing sales performance.

  • Consistent Year-over-Year Growth: The brand needed to achieve steady YOY growth, a crucial indicator of success in the rapidly evolving fashion market.

  • High Advertising Costs: While their Total Advertising Cost of Sale (TACoS) and Advertising Cost of Sale (ACoS) were not excessively high to begin with, the flatlining of revenue meant that a considerable amount of potential profit was being diverted into maintaining their market presence and the values had begun to creep up. We optimised advertising costs to improve profitability while maintaining platform visibility.

  • Market Saturation: Differentiating the brand in a highly competitive apparel market was essential for making the brand stand out among the multitude of options available to consumers.

     

The Solution

AMZ Pathfinder adopted a multifaceted approach which included:

  • Customised Strategies: Recognizing the importance of seasonal events, targeted campaigns were developed to enhance brand visibility and sales. The strategy focused on identifying and scaling top-performing SKUs and targets instead of spreading ourselves too thinly. Keeping customers in our brand halo by utilising product targeting options instead of losing sales to the competition was a key component in such a busy niche.

  • Efficient Advertising Budget Management: Advertising spend was streamlined, with a priority on high-impact, cost-effective strategies. This included the expansion of campaigns to more brands, aiming for wider market reach and improved resource utilisation. Doubling down on successful logical keyword sets also promoted more efficient spend. Our granular campaign build-out style allows us to funnel spend effectively with little waste.

  • Dynamic Market Analysis and Adaptation: Strategies were adapted in real-time, based on the brand’s market position and ongoing market data analysis. We focused on optimising ad placements like TOS, PP, ROS, and SBV, to ensure a competitive and relevant brand presence. Similarly, analysis of time of day proved useful.

“AMZ Pathfinder is an engaged and hands-on partner. They grasped our goals and the challenges we faced in our crowded market segment, applying their expertise to refine our advertising strategy significantly. This approach didn’t just help us stand out—it enabled us to exceed our objectives, showcasing their capacity to make tangible changes that drive success.”  

The Results

Our collaboration with our client resulted in significant achievements

AMZ Pathfinder is an engaged and hands-on partner. They grasped our goals and the challenges we faced in our crowded market segment, applying their expertise to refine our advertising strategy significantly. This approach didn’t just help us stand out—it enabled us to exceed our objectives, showcasing their capacity to make tangible changes that drive success.

reduction in acos t&l
Increase in monthly sales (2022 Vs 2023) in the US and Canada

United States

 
  • YOY Growth

    We achieved an overall revenue growth of 19.21%, demonstrating the success of the brand’s turn toward customized strategy and effective budget management.

  • Reduced TACoS

    Initially at 9.2%, we managed to lower TACoS to consistently around 7-7.5%. This reduction signifies a more efficient allocation and utilisation of the advertising budget, leading to greater profitability. Although the % difference between the two values is small, the volume of revenue it accounts for is in the $100,000s of dollars.

  • Reduction in ACoS

    Our strategic adjustments brought down the monthly ACoS from an average of 19.2% to 12-15%. This decrease reflects a higher return on advertising spend, crucial for maintaining healthy profit margins in a competitive market.

  • Overall Market Health

    We observed an improvement in the brand’s market health, with steady growth noted month over month, indicating a stronger market position and brand recognition. This is both for ads presence and also organically, throughout the year the % of revenue from ads has remained stable.

Canada

 
  • YOY Growth

    Consistent growth was also mirrored in the Canadian market, aligning with the brand’s overall growth strategy. A YoY growth of 44.67% was achieved. 

  • TACoS Improvement

    TACoS was reduced from 9% to 5.6%, indicating a more strategic and impactful advertising approach, enhancing overall campaign effectiveness.

  • Reduction in ACoS

    ACoS saw a decrease from 17.6% to 12.6%, showcasing the success of our optimised advertising strategies in improving the cost-effectiveness of the brand’s campaigns.

  • Percentage from Ads

    A significant achievement was the reduction in the percentage of sales coming from ads, from 51.7% to 45%. This shift indicates a healthier balance between organic and paid sales, crucial for sustainable brand growth on Amazon.

Conclusion

 

This case study illuminates AMZ Pathfinder’s adeptness in guiding established fashion brands through the Amazon marketplace. We distinguish our approach by maintaining frequent communication and providing comprehensive reporting, ensuring that our clients are always informed and involved.

We specialise in crafting bespoke strategies, swiftly adapting to market fluctuations, and consistently delivering measurable outcomes. Our commitment to transparency and collaboration has been key in boosting our client’s brand presence and performance on Amazon, showcasing our capacity to not just meet but exceed client expectations in a dynamic retail environment.

Download This Case Study

Discover how AMZ Pathfinder effectively enhanced a fashion brand’s online presence on Amazon. Explore the strategies and insights behind their success. Discover strategies for reducing advertising costs and boosting YoY sales growth in Amazon marketing with this insightful case study – download now to enhance your brand’s success!
Privacy(Required)
This field is for validation purposes and should be left unchanged.
 

Elevate Your Amazon Journey with AMZ Pathfinder!

 

Transform your brand’s trajectory with AMZ Pathfinder, the driving force behind our fashion partner’s remarkable growth journey. In the U.S., we’ve achieved a substantial 19.21% increase in year-over-year revenue. Our strategic prowess has fine-tuned TACoS from 9.2% to a steady 7-7.5%, while leading to a reduction in ACoS from 19.2% to 12-15%.

In the Canadian market, our success story continued with an impressive 44.67% year-over-year growth. We were able to reduce TACoS to 5.6% alongwith a 12.6% reduction in ACoS. Additionally, we strategically managed a reduction in ad sales from 51.7% to 45%. These achievements highlight the effectiveness of AMZ Pathfinder’s targeted strategies and innovative approaches in driving brand growth.

Why choose AMZ Pathfinder?

 

We specialise in creating customised strategies aligned with your unique goals, delivering proven results,  and a dedication to a strategic partnership. Using our expertise, we’ve guided brands to remarkable growth and market positioning on Amazon.

Are you prepared to boost your brand’s presence on Amazon? Reach out to AMZ Pathfinder now for a journey that transforms and elevates your Amazon strategy!

Helpful Links

 

✋➝ Amazon Advertising Management (PPC, DSP)

:chart_with_upwards_trend:➝ Google ads for Amazon

🗨️➝ Follow us on LinkedIn

📧➝ Subscribe to our newsletter

:shopping_bags:➝ We Design Amazon Stores & Optimize Listings

🔎➝ Amazon Advertising Audits

▶️➝ Subscribe to our YouTube channel

Download This Case Study

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How AMZ Pathfinder Achieved 44.67% YoY Revenue Jump With A 12.6% Reduction In ACoS for a Leading T-shirt Brand

reduction in Acos case study

The Client

In this case study, we detail how we helped an Amazon e-commerce T-shirt brand grow on Amazon. The brand is known for their unique t-shirt line with designs inspired by popular beer and sweets brands. Our challenge was to build on their current success to achieve ambitious new business goals and growth. Through our expertise in Amazon advertising and market understanding, we crafted a campaign tailored to propel the brand’s growth on Amazon. We developed an engaging marketing strategy for the brand’s t-shirt line, tailored to their target audience. This is how we were able to capture the attention of a broader audience and drive significant growth on Amazon, achieve an overall increase in revenue, and a reduction in ACoS, TACoS in both Canada and the US. 

The Challenge

The brand’s journey on Amazon was marked by several challenges in both the U.S. and Canadian markets:

  • Seasonal Market Variations: Seasonality (Q4, including events such as Halloween, St. Patrick’s Day, etc), characterised by a surge in consumer activity and fierce competition, presented a challenge in terms of maintaining and enhancing sales performance.

  • Consistent Year-over-Year Growth: The brand needed to achieve steady YOY growth, a crucial indicator of success in the rapidly evolving fashion market.

  • High Advertising Costs: While their Total Advertising Cost of Sale (TACoS) and Advertising Cost of Sale (ACoS) were not excessively high to begin with, the flatlining of revenue meant that a considerable amount of potential profit was being diverted into maintaining their market presence and the values had begun to creep up. We optimised advertising costs to improve profitability while maintaining platform visibility.

  • Market Saturation: Differentiating the brand in a highly competitive apparel market was essential for making the brand stand out among the multitude of options available to consumers.

     

The Solution

AMZ Pathfinder adopted a multifaceted approach which included:

  • Customised Strategies: Recognizing the importance of seasonal events, targeted campaigns were developed to enhance brand visibility and sales. The strategy focused on identifying and scaling top-performing SKUs and targets instead of spreading ourselves too thinly. Keeping customers in our brand halo by utilising product targeting options instead of losing sales to the competition was a key component in such a busy niche.

  • Efficient Advertising Budget Management: Advertising spend was streamlined, with a priority on high-impact, cost-effective strategies. This included the expansion of campaigns to more brands, aiming for wider market reach and improved resource utilisation. Doubling down on successful logical keyword sets also promoted more efficient spend. Our granular campaign build-out style allows us to funnel spend effectively with little waste.

  • Dynamic Market Analysis and Adaptation: Strategies were adapted in real-time, based on the brand’s market position and ongoing market data analysis. We focused on optimising ad placements like TOS, PP, ROS, and SBV, to ensure a competitive and relevant brand presence. Similarly, analysis of time of day proved useful.

“AMZ Pathfinder is an engaged and hands-on partner. They grasped our goals and the challenges we faced in our crowded market segment, applying their expertise to refine our advertising strategy significantly. This approach didn’t just help us stand out—it enabled us to exceed our objectives, showcasing their capacity to make tangible changes that drive success.”  

The Results

Our collaboration with our client resulted in significant achievements

AMZ Pathfinder is an engaged and hands-on partner. They grasped our goals and the challenges we faced in our crowded market segment, applying their expertise to refine our advertising strategy significantly. This approach didn’t just help us stand out—it enabled us to exceed our objectives, showcasing their capacity to make tangible changes that drive success.

reduction in acos t&l
Increase in monthly sales (2022 Vs 2023) in the US and Canada

United States

 
  • YOY Growth

    We achieved an overall revenue growth of 19.21%, demonstrating the success of the brand’s turn toward customized strategy and effective budget management.

  • Reduced TACoS

    Initially at 9.2%, we managed to lower TACoS to consistently around 7-7.5%. This reduction signifies a more efficient allocation and utilisation of the advertising budget, leading to greater profitability. Although the % difference between the two values is small, the volume of revenue it accounts for is in the $100,000s of dollars.

  • Reduction in ACoS

    Our strategic adjustments brought down the monthly ACoS from an average of 19.2% to 12-15%. This decrease reflects a higher return on advertising spend, crucial for maintaining healthy profit margins in a competitive market.

  • Overall Market Health

    We observed an improvement in the brand’s market health, with steady growth noted month over month, indicating a stronger market position and brand recognition. This is both for ads presence and also organically, throughout the year the % of revenue from ads has remained stable.

Canada

 
  • YOY Growth

    Consistent growth was also mirrored in the Canadian market, aligning with the brand’s overall growth strategy. A YoY growth of 44.67% was achieved. 

  • TACoS Improvement

    TACoS was reduced from 9% to 5.6%, indicating a more strategic and impactful advertising approach, enhancing overall campaign effectiveness.

  • Reduction in ACoS

    ACoS saw a decrease from 17.6% to 12.6%, showcasing the success of our optimised advertising strategies in improving the cost-effectiveness of the brand’s campaigns.

  • Percentage from Ads

    A significant achievement was the reduction in the percentage of sales coming from ads, from 51.7% to 45%. This shift indicates a healthier balance between organic and paid sales, crucial for sustainable brand growth on Amazon.

Conclusion

 

This case study illuminates AMZ Pathfinder’s adeptness in guiding established fashion brands through the Amazon marketplace. We distinguish our approach by maintaining frequent communication and providing comprehensive reporting, ensuring that our clients are always informed and involved.

We specialise in crafting bespoke strategies, swiftly adapting to market fluctuations, and consistently delivering measurable outcomes. Our commitment to transparency and collaboration has been key in boosting our client’s brand presence and performance on Amazon, showcasing our capacity to not just meet but exceed client expectations in a dynamic retail environment.

Download This Case Study

Discover how AMZ Pathfinder effectively enhanced a fashion brand’s online presence on Amazon. Explore the strategies and insights behind their success. Discover strategies for reducing advertising costs and boosting YoY sales growth in Amazon marketing with this insightful case study – download now to enhance your brand’s success!
Privacy(Required)
This field is for validation purposes and should be left unchanged.
 

Elevate Your Amazon Journey with AMZ Pathfinder!

 

Transform your brand’s trajectory with AMZ Pathfinder, the driving force behind our fashion partner’s remarkable growth journey. In the U.S., we’ve achieved a substantial 19.21% increase in year-over-year revenue. Our strategic prowess has fine-tuned TACoS from 9.2% to a steady 7-7.5%, while leading to a reduction in ACoS from 19.2% to 12-15%.

In the Canadian market, our success story continued with an impressive 44.67% year-over-year growth. We were able to reduce TACoS to 5.6% alongwith a 12.6% reduction in ACoS. Additionally, we strategically managed a reduction in ad sales from 51.7% to 45%. These achievements highlight the effectiveness of AMZ Pathfinder’s targeted strategies and innovative approaches in driving brand growth.

Why choose AMZ Pathfinder?

 

We specialise in creating customised strategies aligned with your unique goals, delivering proven results,  and a dedication to a strategic partnership. Using our expertise, we’ve guided brands to remarkable growth and market positioning on Amazon.

Are you prepared to boost your brand’s presence on Amazon? Reach out to AMZ Pathfinder now for a journey that transforms and elevates your Amazon strategy!

Helpful Links

 

✋➝ Amazon Advertising Management (PPC, DSP)

:chart_with_upwards_trend:➝ Google ads for Amazon

🗨️➝ Follow us on LinkedIn

📧➝ Subscribe to our newsletter

:shopping_bags:➝ We Design Amazon Stores & Optimize Listings

🔎➝ Amazon Advertising Audits

▶️➝ Subscribe to our YouTube channel

Download This Case Study

Privacy(Required)
This field is for validation purposes and should be left unchanged.
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