Amazon Ads - How a Knife Sharpening Company Generated 299% RoAS with Minimum Budget
A sure-fire way of driving sales to your Amazon store
When it comes to online marketing, you'd probably think of Facebook, Instagram, or Pinterest advertising. Well, these are viable ways of generating leads for your business — and if you're working with the right team, you'd generate good results.
But what of Amazon ads? Yes, using Amazon to drive massive traffic to your business. It's okay if you've not considered it — but businesses across the globe are making it big with Amazon ads, and FinoEdge is one such business.
In this guide, you'd discover how to generate 299% RoAS for any product listed on Amazon.
About the company:
FinoEdge is focused on the sales of accessories and knife sharpeners. Whether you're in search of a sharpening system, retractable diamond sharpening rod, or resistant gloves, there's always something in store for you.
The resistant gloves pretty much help keep you safe in the kitchen. Aside from the safety tools like the resistant gloves, there is also a variety of sharpening systems and rods for the maintenance of cutting tools like knives.
All in all, if you need an upgrade for your kitchen tools and wear, FinoEdge is the right place to look.
Running ads for the company was not a walk in the park. The marketing team encountered some problems like the ones discussed in the next section.
FinoEdge doesn't sell generic products, they sell niche products — and that's an issue. It takes refined skills to run high-converting ads for niche products like kitchen equipment. Let's face it, professional chefs and women are more likely to be interested in the product offering of FinoEdge.
To a large extent, niche products translate to a specialized audience — and it takes lots of time and effort to discover such an audience in the marketplace. Yes, you've got to sieve through lots of eyeballs to pinpoint the right people that would be highly interested in the product offering.
2. Moving on, niche products come with limited sales — and that's an issue. Since it takes time to get through to the audience that would be interested in the product offering, generating sales will not be a walk on the cake — and that's tough!
3. Aside from the limited sales, the product offering from FinoEdge is low priced with fewer margins. Yes, having low-priced products may not be encouraging — but what's more discouraging is selling products on fewer margins. Fewer profit margins translate to low net profit at the end of the day — and that's a dreaded situation for any business person.
4. When it comes to marketing the products, another problem was encountered — Facebook ads only allow Traffic campaigns.
Setting up Facebook ads is not entirely easy. When it comes to product sales, the campaign objective should be conversions. Yes, conversion is the ideal way of turning your traffic into loyal paying customers — but that's not the case when it comes to setting up ads for the FinoEdge brand. In this case, Facebook only allows Traffic when it comes to picking campaign objectives, and that's not entirely good. After all, everyone would want some bits of conversion when running Facebook campaigns.
Don't get it twisted. Generating traffic is good, but setting up a campaign tailored for conversion is much better when it comes to the Facebook campaign.
5. Finally, tracking sales with Facebook seems somewhat impossible. It's one thing to run Facebook ads for Amazon products, it's another thing to track your sales. The former can be done using Facebook ads, but the latter is somewhat difficult to do. Since Amazon doesn't share data, tracking sales will be almost impossible.
In a bid to tackle these problems, here are some challenges encountered during the process.
Since the company sells low-priced products with low-profit margins, setting up a high ROI campaign seems to be an issue. The route taken to generate high ROI for a luxury product is somewhat different from that of a low-profit margin product.
With low-priced products, you've got to put lots of things into consideration — and that takes lots of work. Aside from the challenge of setting up a high ROI campaign, there is the need to prove that Amazon ads work.
If you're like most business owners, you've probably not used Amazon ads. Well, that's fine — but you're leaving money on the table. Just like Facebook campaigns, Amazon ads come with lots of potentials — one of which lies in the possibility of using it to drive massive sales.
However, to get to that point, the team at 0penny has to prove to the client that Amazon ads work.
Moving on, there is the challenge of working with a limited budget of $1000.
Don't get it twisted, the team at 0penny has successfully launched Facebook campaigns for brands with a low budget. But it comes to lots of effort, creativity, and maneuvering. Working with a budget of $1000 or less has always been an issue — and if you're not working with the right team, you'd most likely lose your investment.
Here is the solution to the various problems and challenges.
First things first — study the competition. What is the competition doing, and are there strategies generating enough results? One of the primary benefits of studying the competition is not necessarily to copy them but to identify what they are doing right. This way, you get to narrow down on what to focus on.
Moving on, the team used different targeting settings. When it comes to running ads online, targeting is one of the most important things to look out for. Yes, your ad copy is of the essence, but if it’s not seen by the right people, it's pretty much useless — and that's why you've got to take your targeting seriously.
By using different targeting settings, the team at 0penny pretty much reaches various audience types. This will, in turn, help them maximize their ad conversion.
When it comes to the ads bids, the team at 0penny opted for manual bids — and regularly adjusted these manual bids to maximize conversions. With manual bidding, the marketing team gets to closely monitor the campaign, and if there are any discrepancies between the campaign metrics, they get to quickly adjust the manual bids to accommodate the difference.
One of the keys to generating a good result is by researching and targeting relevant search terms. To do that, the team at 0penny had to use research tools and competitive intelligence tools. These tools help in identifying the search terms potential customers are using when making search inquiries.
Since the client was on a tight budget, the team had to set up the campaign with a minimum budget. After setting up the campaign, bidding was done using Amazon suggested bids.
But why use suggested bids?
Well, since it's a first-time client with low-priced products and a minimum budget, using suggested bids is a sure way of using bids similar to those used by competitors. This way, you'd eliminate the guesswork, and pretty much use bids that are somewhat guaranteed to generate results for you. After all, if competitors are generating results using similar bids, there's a high chance of getting the same kind of results.
Moving on, the team used relevant keywords. Keyword research is a vital part of online advertising. After identifying the keywords (or phrases) the customers are most likely to use, you've got to launch a campaign that targets such keywords. Furthermore, you could either target broad keywords or narrow down your keyword targeting. But the team at 0penny targeted both — narrow and broad keywords, and it generated results.
Here's how it works...
When a potential customer makes search queries using either narrow or broad keyword targeting, your ads will pop up. And if your ad copy is compelling, you're sure of closing the sale.
The campaign was launched and monitored for 24 hours. After the initial 24 hours, everything was re-evaluated.
By taking a close look at the campaign, you'd have to make bid adjustments based on the campaign performance and how the budget was used. If you notice that the budget was spent, then there's no need to change the bid. Everything is probably alright — and if you want to make some adjustments, then you'd have to increase your bids.
Yes, since the bids were all spent within 24 hours, it means that your ads are gaining attention. By increasing your bids, you'd most likely boost your reach and possibly draw in more eyeballs to your brand.
Finally, if your campaign is profitable, scale! Scaling is a sure way of churning out every result you possibly can.
ROAS: 2.99 Average
Impressions: 307,358 Total
Whether you have an Amazon store or a regular e-commerce store, you're sure of generating great results by hiring the right team. To generate great results, you can opt for a high converting Facebook campaign. But the story doesn't end there — you can take a step further by using Amazon ads.
Yes, just like Google and Facebook ads, Amazon ads are one of the most reliable ways of driving traffic to your Amazon store.
The best part...
The platform is user-friendly, and you can navigate through the dashboard without losing sweat. However, if you're in doubt about how to get started, you should reach out to the team of experts at 0penny.
All in all, running Amazon ads for your product is a sure way that guarantees high ROI. But the big question is, what product offers do you want to promote using Amazon ads?
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