Profitably Scaling Mexico’s Top Amazon Seller’s Facebook Campaign to $1000/Day
Solving the classic problem of going beyond Amazon
With Re****on standing tall as one of the most reliable and trustworthy Mexico-based online gadget stores (Source: marketplacepulse.com), the one big problem they faced throughout their journey was expanding beyond Amazon.
Prior to getting in touch with our agency, most of their online sales came through Amazon. And while they have had tremendous success on Amazon, too many products and categories, plus their inability to pinpoint who their target audience really was, were the factors that refrained them from expanding beyond Amazon.
Prior to shaking hands with our agency, the Re****on team had hired numerous advertising agencies to help them conquer their goals. But the end result was always the same – all promise and no action.
Our team had conducted thorough research and reviewed their pain points and the problems they have faced, and based on our research, we proposed a cost estimate & strategy – which could help them understand how we plan to tackle their problem.
Their biggest challenge was expanding beyond Amazon. Throughout their journey, most of their sales came through Amazon prior to getting in touch with us. While they were one of Mexico's biggest retailers on Amazon, the number of people purchasing their products through their website was low.
And the reason why they found it extremely hard to achieve their goals was that they had just too many products and categories on their website. The number of products they were selling on their website was downright insane. Obviously, they didn’t have that huge of a budget to advertise every single product in their inventory. Also, due to the extremely high number of products and categories, they were unable to pinpoint their target audience accurately.
After carefully reviewing their business model, conducting thorough competitors' analysis, and gaining insights into their past advertising ventures, we figured out that there was no point in advertising all the products they had in their inventory. Doing that would simply exhaust all our advertising budget within no time. So, what we did was picked out the top categories and products based on Google Analytics and created individual ad sets for different products and categories. Also, we ran a prospecting campaign parallel with retargeting to eliminate any guesswork. This helped us efficiently figure out who their target audience was and create different customer avatars based on the top products and categories.
After the Re****on team handed over their advertising operations to us, we first picked out the top categories and products based on Google Analytics. At first, we couldn't afford to exhaust our advertising budget on all the products they had in their inventory. They had a lot!
So, out of the top categories, we narrowed down a handful and crafted two campaigns:
Initially, we wanted to test out different approaches before diving into the deep waters. So, we set:
Prospecting Ad Budget: $75/day
Retargeting Ad Budget: $25/day
For those who aren’t familiar with prospecting, it’s a top-of-the-funnel marketing approach that’s focused on identifying the prospects who are most likely to purchase a business’s products or services.
Our prospecting targets were none other than lookalike audiences of Re****on’s existing customers. Here, the heavy lifting is done by machine learning – as the algorithm itself identifies commonalities among the seed audience and, based on that – identify a new set of prospects that are highly likely to purchase.
Now, with the prospecting campaign, we targeted and engaged the users who are most likely to make a purchase. And that's how we began attracting a gigantic-sized wave of traffic towards the Re****on website.
Our primary aim was to turn as many of them into paying customers as possible. While the conversion rate itself was satisfying, the ones who bounced off the website, we ran retargeting campaigns to bring back those lost people to the website. We retargeted those lost website visitors with Dynamic Product Ads.
We ran these test campaigns for a few days where we tested out different approaches, and just when we found out what's working and what's not, we kickstarted the first leg of scaling. And then, we repeated the same process, and just when we started achieving the desired results, we kickstarted the second leg of scaling, where we gradually increased the advertising budget to $1,000/day for all campaigns over a period of 3 weeks.
Another big problem we faced was witnessing a massive surge in the number of people abandoning their carts. So, we set up another retargeting campaign to bring back cart abandoners and ultimately make them swipe their credit cards and successfully make a purchase.
Next, we began setting up ads for other categories. At the same time, we scale the advertising campaigns even further to help the Re****on team efficiently conquer their business goals.
Total Spent: USD 12,915
Campaign Duration: 28 days
Total Sales (Excluding sales not tracked by Facebook due to new privacy laws): 320
Average price of product: Less than $20
Average Return on Spend (Excluding sales not tracked by Facebook due to new privacy laws): 108% (8% higher than estimated)
We've helped numerous businesses skyrocket their sales and scale their businesses with Facebook Ads throughout our journey. And we'd love to help you with the same. Tap into the power of 0-Penny A-Z Managed services that'll help you run and scale your business with Facebook Ads efficiently.
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