32%Ad spend reduction
VoltTech Accessories
Electronics · PPC · 60 Days
76% to 37% · ACOS
Clean PPC structure cut waste and improved profitability across Amazon US and UK for an electronics accessories brand.
Read case studyAmazon PPC · Amazon US · 90 Days
Amazon PPC case study: contribution margin 8.4% to 15.7%
Budgets were rebuilt around the contribution margin of each product instead of revenue and ACoS. Ad spend fell from $52,000 to $45,000 a month while sales grew 15%.
+114.9%
Monthly contribution amount$15,120 to $32,499 contribution per month
Headline result
Contribution amount
+114.9%Before
$15,120
After
$32,499
- Client
- Milouz
- Category
- Consumer electronics
- Marketplace
- Amazon US
- Timeframe
- 90 Days
- Services delivered
- Amazon PPC, Profitability analysis
Before and after
Milouz results, before and after
Measured at the start of the engagement and again after 90 days. Bars are drawn to scale from the reported figures.
Contribution amount
+114.9%Before$15,120After$32,499Contribution margin
+87%Before8.4%After15.7%Total sales
+15%Before$180,000After$207,000Ad spendlower is better
-13%Before$52,000After$45,000ACoSlower is better
-29%Before39.20%After27.80%TACoSlower is better
-25%Before28.89%After21.74%
The challenge
High sales, thin profit
The client
A consumer electronics seller on Amazon US with about $180,000 in monthly sales. Advertising decisions were based mainly on revenue and ACoS.
The account spent $52,000 a month on ads at a 39.2% ACoS and 28.9% TACoS. Several high-revenue ASINs had weak contribution margins, and the business kept only 8.4% of sales as contribution.
What was holding the account back
- $52,000 monthly ad spend
- ACoS 39.2% and TACoS 28.9%
- High-revenue ASINs with weak contribution margins
- Contribution margin of 8.4%
What we did
How we rebuilt PPC around profit
The work in the order it was done, with what each step changed.
- 1
Contribution margin by ASIN
- Product costs and FBA fees
- Referral fees and discounts
- Advertising cost per product
OutcomeWeak-margin, high-revenue ASINs identified
- 2
Budgets reorganized by margin
- Spend moved toward high-margin products
- Spend cut on revenue that did not earn contribution
- Monthly ad spend reduced from $52,000 to $45,000
OutcomeContribution margin 8.4% to 15.7%
More results
Other numbers from the Milouz engagement
- Ad sales
- $132,653to$161,871+22%
- Organic sales
- $47,347to$45,129
- ROAS
- 2.55xto3.60x
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