1M$ case study within the supplement niche at a 40% Net Margin in 2022!No external traffic, no social media ads! Just Amazon Advertising!
Amazon PPC
Amazon
2021-Present
89%
Challenge: Despite making a good profit, this supplement brand struggled to scale effectively in its first year, only generating $221k in 2021. The market was unique and relatively new, posing significant challenges in expanding its reach and customer base.
Goal: Our objective was to unlock the brand’s potential to scale within the niche market, increasing profitability and establishing a dominant market presence without relying on external traffic or social media advertising.
Brand Building: We strategically built the brand around specific product keywords that are unique to our supplements, encouraging customers to search directly for our branded terms. This approach contributed to about 50% of our sales. Our branding efforts enabled us to price our products at $25, compared to competitors’ prices of $13-$20, while maintaining a 55% gross margin. With only two ASINs, we established control in the niche market, highlighted by one of our campaigns achieving an ACOS under 5%.
Save & Subscribe (SNS) Strategy: Implementing the Save & Subscribe model was a game-changer, allowing us to secure multiple sales with a 10% discount. Despite bids ranging between $6-$9 on our main keywords, this high bidding was strategically viable only because it led to subscription sign-ups rather than one-time purchases. We now boast over 1400 monthly subscription orders, reinforcing customer loyalty and consistent revenue.
The strategic adjustments and focused Amazon advertising propelled the brand to earn $1.03 million with a 39.2% net margin in 2022. We achieved this impressive milestone by spending only $112k on advertising for just two main ASINs. Our approach not only maintained profitability but also dramatically scaled the brand’s presence and dominance in the supplement market, proving that targeted, well-executed Amazon PPC can drive substantial growth without the need for external marketing channels.
