Project Description
Understanding Amazon Performance Dynamics
Ecommerce & Amazon Performance Strategies
The Challenge
After increasing levels and investing $100,000s in AMS & AMG programs, our client’s business was not growing at the rate anticipated and profitability was declining. The business began asking several key questions: what are the driving factors of the category? Is there a positive ROI from the Amazon investment activity? Is my Amazon business profitable?
The Solution
We conducted a comprehensive analysis of all channel activity to understand the full picture. We built a layered view for our client for each ASIN capturing sales, POS, investment activity by type & dollar amounts, promotion events and item margin by month. This view provided the insight to isolate activity at given points in time to understand the key drivers of volume and provided a true view of ROI of featured items.
The Results
Several recommendations to re-focus item features, redirect investments to best performing vehicles and strategically time investments across channels have been implemented resulting in 20% YOY revenue growth on an investment base reduced by 50%.