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Case Study: Slim margins yet big results

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 A UK-based company, who sells a wide range of products in the beauty and healthcare industry successfully managed their large catalog. Through automation they found growth avenues despite slim margins and low budgets.

Trellis’ platform enabled their Health and Beauty client to take a holistic and profitable approach to sell their products using advertising automation, dynamic pricing, and the built-in video maker. 

Problem: Low budget, slim margins

The health and beauty brand had constraints while looking to get results from products with tight margins, like Walking Sticks.

Due to a wide range of products, they had to distribute tight advertising budgets across a broad range of products. This required campaign management strategies that can operate under tight budgets. 

It was difficult to manage efficiency across the entire product line.

They needed to pivot quickly without spending a lot of capital upfront for AI to train and learn. 

As an advanced eCommerce seller, they knew doing so with tight margins and a low budget would require powerful ad automation and a quality merchandising strategy. 

Quote, ‘I knew it will be hard to drive higher sales and margin without an automation solution that looks at the problem holistically and in a timely manner.’

Advertising, Pricing, & getting creative

Through advertising automation and dynamic pricing, Trellis boosted sales while increasing their margins, by keeping ACoS low and finding the top prices customers were willing to pay.

Successful campaigns with tight margins

Our ads automation platform dug deep to find the most undervalued keywords to bid on, including long-tail keyword opportunities. By spending on low-competition keywords we were able to drive numerous conversions across a range of keywords instead of consolidating budget in a few competitive targets. 

In tandem, our platform managed budgets and bids for effective placements throughout the day enabling ACoS to remain low. 

The algorithm finds these undervalued keywords through dual keyword research. Using a combination of Amazon Auto Campaigns and daily monitoring of search terms, Trellis is constantly adjusting campaigns to include new keywords.

Once we’ve established strong opportunities we layer in time, trends, competition, and purchase behavior to further improve our results. 

As we make these adjustments, in the background, our platform continues to harvest new keywords to either increase profitability or market share.

Leveraging their historical data, our AI anticipates seasonality and slow periods to run ads aggressively when competition is low.

To fuel the profits of our advertising strategy, we started harvesting data for Dynamic Pricing.

Profiling Before Pricing

Trellis’ Dynamic Pricing platform optimizes for sales or profit. We do this by modeling pricing data. Our system a/b tests different prices to understand how they affect sales and profit margins based on demand elasticity and profit sensitivity. 

Our client wanted to raise prices to allow advertising to run further with better margins but wasn’t sure by how much. Our system was able to slowly raise the price of their products to see when overall profits dropped off. Allowing us to maximize overall profits, and give more wiggle room for advertising campaigns.

With this data, our dynamic pricing system was able to increase overall margins on the entire catalog while giving the advertising campaigns more room to experiment and move into more competitive keywords to drive the volume of sales.

Streamlined video editing

To further improve conversion rates and profitability on their listing, we brought their products to life using video content. 

Using our built-in video editor and templates, they were able to streamline video creation and leverage their product photos, brand assets, and existing videos. By simply selecting a style of video and uploading content they were able to quickly build motion assets across their product lines to improve conversion rates.

Results: Increased Sales with Better Margins

Our holistic solution grew our client’s business with tight margins and a low budget.

Advertising

With our advertising platform, we boosted sales, increased margins, and maintained brand visibility.

In the last 5 months, our overall ACoS with Trellis dropped by 22%. In some categories, Trellis was able to decrease ACoS as low as 20% within 6 months. 

Dynamic Pricing

After a month of running dynamic pricing with Trellis, we started seeing an uptrend in sales and margins.

  • 15% increase in sales, margins, and demand for a dental kit product
  • 500% more profit on a water bottle product
  • 147 more units of hair brushes sold with a 40% increase in profits

“Dynamic pricing cured my decision-fatigue, and on top of that, it found new solutions in slim margin products”

Converting Video Content

We tested a video campaign with Trellis’ in-built video maker. The campaign decreased ACoS from 26% to 13% and almost doubled the sales while gradually increasing ad spending over 8-12 months. 

Videos can be time and resource-consuming, which is why Trellis made it easy for advertisers to create quick and effective videos, which relatively provide a higher return than listings without product videos.

Automating the process

We automated our campaigns on two fronts: advertising, and pricing saving time and reducing spend on competitive, margin-reducing activities. Our continuous optimizations give advertisers the ability to adapt with market dynamics and purchase behavior as they continue to change.

If you want to learn more about how our platform works, book a demo and see where Trellis can take you.

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