11% to 3.8% TACoS in Under 30-days (Part 1)
A recently onboarded client was on the verge of going out-of-stock. They needed our help keeping products in stock until the arrival of new inventory. All whilst improving profitability.
Challenges:
👉 Lowering the average daily units being sold
👉 Improving TACoS for better cash flow
How we achieved it:
1. Identified that advertising sales represented 60% of all sales. They were overleveraged.
2. Restructuring bids and adjusting frequently, to ensure daily sales unit was hit whilst profitability increased.
3. Drastically reduced spending on low converting keywords and targets.
4. Reduced spending on keywords with a strong organic presence.
5. Kept the focus on defensive and branded campaigns.
6. Recommend the client to keep increasing the price steadily which not only helped us to slow down the daily sales but also increase the profitability.
Our next challenge is to scale some of these early wins now that the product is back in stock. All whilst maintaining the higher margins.
Bookmark this post and follow Rohit to hear how we get on.
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