In an ideal world, every product sold on Amazon deserves to be treated as it’s own business, but in reality – managing hundreds or thousands of SKUs manually isn’t feasible for most advertisers.

Granular product analysis requires access to advanced tools which is why we decided to invest, design and construct our own custom Amazon reporting and management technology – CAPx.

What is CAPx Amazon?

CAPx Amazon is CPC Strategy’s proprietary in-house analytics tool for managing our Sponsored Products advertising efforts.

This technology provides our Amazon experts with an enhanced suite of tools to execute a sophisticated Sponsored Products advertising strategy.

Ultimately, being able to analyze consumer & product data allows our Amazon team to build the most effective and profitable campaigns possible.

“CAPx is an advanced level approach that can’t be mimicked through Campaign Manager within Seller Central,” Pat Petriello, Head of Marketplace Strategy at CPC Strategy said.

“We are much more sophisticated than our competitors and this gives me a high level of confidence that we are managing our clients in the most sophisticated ways possible,”

“Thanks to CAPx, we can be responsive to market change through the implementation of advanced rules, rank tracking capabilities – all customized for a specific goal.”

“As the Marketplace becomes more mature, our clients are going to expect a certain level of sophistication and we know we can achieve that through the use of this tool.”

In the following blog article, we showcase how our unique CAPx Bidding Technology was able to significantly improve client performance in less than a month.

Note: In order to be transparent with our results, the third party seller’s name we reference below has been removed to protect their identity.

CAPx Amazon Success Story:

A third party seller started advertising on Amazon in mid-2016. After dialing up their spend (leading into the holiday shopping season), they realized they needed to improve their Amazon performance and decided to sign with CPC Strategy for our full-service engagement.

At launch, they were averaging $1.6K in spend at a 35% ACoS.

It’s a well known best practice to optimize Amazon Marketing campaign structure to improve management. But simply revamping Amazon campaign structure doesn’t lead to performance improvements by itself.

At CPC Strategy, we believe the real secret to success on the Marketplace is through the integration of automated bid rules.

To remedy the high Spend and ACoS%, we turned to our CAPx bidding rules for Amazon 3Ps to help bring performance back to a good spot.

Using our in-house Bid Rule template, CPC Strategy’s account managers were able to:

    1. Create custom bidding rules to optimize toward the client’s target ACoS of 10%.
    2. Upload the rules into CAPx.
    3. Schedule them to run twice a week.

 

The Results:

As seen in the data below, there was a direct impact on performance (high sales, lower ACos%) once the Amazon CAPx bidding rules were implemented:

We normalized the data to get a better idea of overall trending performance with a rolling 4-week average of sales and despite weekly fluctuations, the CAPx bidding rules successfully grew sales week after week:

Additional Takeaways:

Aside from higher sales and lower ACoS% the proportion of total sales to those from advertising doubled too:

    • Pre CPC Strategy management: 15% of total sales attributed to advertising
    • Post CPC Startegy management: 30% of total sales attributed to advertising

 

The combination of an ideal auto / manual campaign structure and CAPx bidding rules not only improve ad performance over time, but also opened up new sales opportunities.

In simple terms,  items that were previous sitting on the shelf for months were now moving and selling up to 150 units per week with a total of 1.5K in NEW sales.

Another item (previously stagnant in sales) became the client’s number 2 best seller with a high AOV totally $35K in sales in just a few weeks.

According to Ryan Burgess, Marketplace Channel Manager at CPC Strategy, “CAPx allowed me to perform at a higher level than any competitor by giving me real-time access to important data, and the ability to take action in bulk.”

“Although CAPx doesn’t replace the human analysis for the account, it does extend my reach, giving our clients an incredible advantage.”

Want to learn more about how CAPx for Amazon can improve your business?  Email tara@cpcstrategy.com.

 

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About the AuthorTara graduated from the University of New Hampshire with a B.S. in Journalism / Business. Her passion for creative publishing and quality reporting landed her work opportunities at several companies in Massachusetts, New York and California. She is a leading voice behind CPC Strategy’s Blog. See all posts by this author here.