Rescuing Revenue: ARMR's Strategy Revives Sports Apparel Brand with 134% Sales Increase
Company Background
A sports apparel brand experienced a sudden drop in Amazon sales and faced increasing warnings related to account health and performance. Their existing agency partner was unable to resolve these issues and recommended continued investment in unprofitable advertising.
Concerned about the threat of suspension and the closure of their 7-figure Amazon business, the brand engaged ARMR to address account issues and get a corrective course of action to improve platform sales.
Obstacles
The brand's performance decline was driven by poor inventory management, a lack of adherence to operational best practices, and no coherent advertising and content strategy.
Slow moving inventory consumed 95% of FBA inventory capacity, and the brand’s Inventory Performance Index (IPI) score fell below 400, preventing inventory replenishment for top sellers.
Solutions
From day one of the partnership, ARMR outlined a comprehensive plan to correct operational deficiencies:
Conducting SKU sales and inventory analysis to identify core catalog offers.
An inventory reduction strategy incorporating inventory removals, promotions, liquidations, and multi-channel fulfillment offers.
Cost efficiency and program redundancy audits.
Improved detail page content and revised advertising targets to enhance conversion rates.
Overhauling campaign architecture and targeting strategies for Sponsored Ads, and establishing guidelines for product advertising-readiness.
The Outcome
81%
Reduction in overstock FBA inventory
After 30 days, ARMR's interventions halted the free-fall in platform sales; During the second month ARMR drove a 45% MoM increase to sales, and by month five the brand was seeing a 10% YoY lift in sales on Amazon.
After 12 months of partnering the brand consistently saw 15% MoM growth, and achieved 134% YoY growth.
Our adjustments to content and catalog information, along with the advertising overhaul drove an increase in detail page conversion rates from 1.6% to 4.2%, a 263% lift.
ARMR delivered a consistent and profitable advertising program, maintained an average Total Advertising Cost of Sales (TACoS) of 5%.
134%
Lift in Amazon Platform Sales
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