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Grew Sales 120% and Increased Profit with FBA Catalog Expansion

Digital Pedigree partnered with Nectar Bath Treats, a manufacturer of premium vegan body skin care products, to grow sales 120% YoY on Amazon, at higher profit margins, by diversifying Nectar’s FBA catalog away from its top-selling products.

CHALLENGES

1

Sales
Sales weren’t growing fast enough to reach the end-of-year topline goal.

2

Small Profit Margins
Profit margins were thin on the top-selling FBA products due to ingredient costs.

3

Resource Allocation
Internal resources were spread thin across all teams.

4

Diversification
Nectar was at risk of losses should their top-selling products face unexpected headwinds.

Strategy

When confronted with a problem, start where you are and get to the “why”.

Digital Pedigree assessed Nectar’s ecommerce business and advertising program.

Our deep data analysis identified key challenges standing in the way of faster, more profitable sales growth.

  • About X% of Traffic (Sessions) was concentrated in just a handful of low-priced FBA SKUs with slim profit margins. These SKUs were the catalog’s standout performers in Conversion Rate (CVR), and Units Sold, but not in Average Sales Price (ASP) or Profit Per Unit (PPU).
  • Comparably little traffic reached Nectar’s high-priced, fat-margin SKUs, which contributed less than forecasted to the business. The majority of these were not listed as FBA, limiting their reach and conversion potential.
  • Product Detail Page (PDP) content lacked quality across the board. Approximately 80% of basic content elements like Imagery, Titles, Feature Bullets, A+ Content, and Attributes did not meet our requirements for completeness.
  • The company lacked internal resources to transition more listings to FBA, optimize product detail pages (PDPs), grow customer reviews, and drive sufficient traffic.

Our analysis, grounded in simple math*, determined it would impossible to grow sales and profit without growing ASP.

Other products in the catalog contributed very little to the business despite their popularity off Amazon. Nectar needed a strategic approach to the rebalance the sales mix toward and ignite profitable growth.

  • Catalog Expansion: Digital Pedigree worked closely with Nectar Bath Treats to identify areas where catalog selection could be expanded strategically into FBA, focusing on high-ASP with strong profit margins.
    • Body Scrubs
    • Body Butters
    • Multipack bundles
    • Gift sets
  • Driving Traffic: To ensure the success of the expanded catalog, Digital Pedigree implemented several programs:
    • Amazon Vine to build customer review equity for products with low review count.
    • Targeted advertising campaigns driving traffic specifically to the high-ASP products, increasing their visibility and attracting potential customers.
    • Brand store redesign and aggressive merchandising within the brand store environment to pique awareness and capture interest.
    • Amazon Posts
    • Engagement Emails
  • Customer Experience Optimization: Digital Pedigree emphasized providing a great customer experience on the product detail pages. By optimizing these pages for search engine optimization (SEO) and enhancing the user experience, Nectar Bath Treats maximized the chances of converting website visitors into customers over the longer term.

Results

Digital Pedigree’s strategy of catalog expansion and customer experience optimization delivered exceptional results for Nectar Bath Treats:

  • Sales Growth: Nectar Bath Treats experienced an impressive 120% YoY increase in sales. The focus on increasing traffic to higher ASP products, combined with strategic catalog expansion, contributed to significant growth in overall sales volume.
  • Profit Margin Improvement: Through the emphasis on high-margin products, Nectar Bath Treats achieved a 10% YoY increase in profit. By driving traffic to these products and maximizing the customer experience, Digital Pedigree helped the company achieve sweeter profit margins.
  • Mitigated Risk: The catalog expansion strategy diversified Nectar Bath Treats’ product offerings, reducing the risk associated with relying heavily on a limited range of products. This diversification allowed the company to adapt to competitive pricing pressures on legacy products and maintain a stronger market position.

Conclusion

Digital Pedigree’s catalog expansion and customer experience optimization strategies proved highly effective for Nectar Bath Treats. By increasing traffic to higher ASP products, diversifying the catalog, and focusing on a great customer experience, Digital Pedigree facilitated a remarkable 120% YoY increase in sales and a 10% YoY increase in profit.

Nectar Bath Treats now serves as a compelling example of how strategic catalog expansion, targeted advertising, and a customer-centric approach can drive revenue growth and improve profitability in ecommerce.

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