Amazon sellers are facing unprecedented challenges as sales decline, advertising costs soar, and price wars intensify. Yet amidst this seemingly hopeless situation, some resilient sellers are finding ways to succeed against the odds. One such seller has managed to break through in the high-price-point product category, successfully launching a new product to the top of its rankings. How was this achieved?
The Challenge: High-Priced New Product with Poor Click-Through and Conversion Rates
The seller, a student of an advanced PPC advertising course, initially struggled with product launch. The $199 product received almost no clicks through Sponsored Display ads except for some top keywords and automatic campaigns. Single Keyword Ad Group (SKAG) performance was particularly disappointing, with insufficient click volume for meaningful analysis.
While the seller considered increasing front-page bids to improve visibility, the consulting team advised against this approach for new products, arguing that traffic growth should take priority over immediate conversions. Lowering bids would reduce exposure and prove counterproductive.
Even when clicks were achieved, conversion rates remained alarmingly low. High-traffic keywords and automatic campaigns generated substantial visits but failed to translate into actual sales, creating mounting frustration.
The Solution: Precise Adjustments and Traffic Protection Mechanisms
The consulting team implemented strategic adjustments to budget and bidding strategies, activating Bid Optimization (BO) with an 80% Advertising Cost of Sale (ACoS) target while enabling a new product traffic protection mode. This approach ensured sufficient initial traffic flow while preventing the system from prematurely optimizing away potential sales opportunities.
The strategy proved effective. After optimization, the SKAG and automatic campaign structure began producing consistent results of approximately two daily sales. While modest, this stable foundation enabled subsequent traffic expansion.
Expansion: Leveraging Existing Campaign Structures for Multi-Dimensional Traffic Growth
With stable sales established, the team developed a traffic expansion plan incorporating elements from successful existing product campaigns. They implemented broad match for previously converting SKAG keywords and launched Sponsored Display ASIN targeting campaigns.
This dual approach allowed converting keywords to uncover additional relevant search terms while benefiting from their inherent traffic volume. Simultaneously, ASIN targeting placed ads directly before customers interested in competing products, improving conversion potential.
Within one week, campaign performance scores improved significantly. While theoretical ACoS remained elevated, actual ACoS decreased to sustainable levels. The team then implemented additional traffic strategies including Related Exact Search (RES) and Product Exact Refine (PER) targeting for converting keywords to ensure precise audience targeting.
Continuous testing of new approaches—including converting automatic ASIN campaigns to manual ASIN targeting, transitioning Sponsored Product ASIN campaigns to Sponsored Display, and keyword expansion through Sponsored Products—gradually revealed the optimal promotion strategy for this product.
The Triumph: Stable Performance and Category Leadership
Through meticulous optimization, campaign performance metrics improved dramatically. Performance scores doubled while both target and actual ACoS decreased significantly, with actual ACoS stabilizing around 30%. The $199 product now consistently generates approximately 10 daily sales and has reached the top position in its new product rankings.
This case demonstrates that even high-price-point products can achieve breakout success on Amazon without resorting to price wars or inefficient advertising. The key lies in strategic planning, precise campaign management, and selecting appropriate ad types to drive sales while maintaining profitability.
Key Takeaways: The Power of Precision Management
This seller's success resulted from systematic implementation of advanced PPC strategies tailored to product specifics. Continuous testing, optimization, and adjustment ultimately revealed the most effective approach.
The case offers valuable insights for Amazon sellers navigating competitive markets: price competition creates destructive cycles, while precision management of product quality and advertising effectiveness provides sustainable competitive advantage.