A successful launch on Amazon.
The Steinhoff Group has successfully established itself on Amazon through its collaboration with Nakoa Digital and has been able to achieve a massive increase in sales via the marketplace. Our experts at Nakoa worked on building a new online sales channel via the Amazon marketplace and used a marketing mix of different campaign types with ACoS optimization to increase sales for the furniture group. These measures, combined with automated scaling processes and data-driven adjustments, led to an increase in sales of over €1.2 million within 2 years.
Advertising Cost of Sales (ACoS)
During the campaign period under review, the ratio of advertising costs to the sales generated by the customer was reduced to 12%.
After the start of the campaigns, we were able to achieve an increase in sales of € 1.2 million for the customer in the following months.
The Steinhoff Group is a global B2B retailer that has been operating in the furniture industry for over 50 years. The biggest challenge for the retailer was to successfully sell via Amazon and also enable the sale of large furniture items via the marketplace. Building a successful online sales channel required not only in-depth expertise, but also continuous campaign management and automated scaling processes.
The Steinhoff Group is an international retail company with roots in the German furniture industry. The company operates over 6,500 retail stores worldwide and is best known for brands such as Poco, Conforama and Mattress Firm.
The large B2B retailer offers a wide range of furniture at affordable prices and has expanded rapidly in recent years.
In addition, the company increasingly used marketplaces such as Amazon as an additional scaling channel.
Our goal was to build a successful online sales channel for the customer. The Steinhoff Group decided to use the online marketplace Amazon as a scaling channel.
The Steinhoff Group additionally defined the following goals for our marketplace experts during the evaluation and analysis of the campaigns:
- Increase in sales to over € 1,000,000 within 24 months
- Use of a marketing budget that does not exceed the Advertising Cost of Sail (ACoS) of max. 20%.
- Sale of large furniture with high required storage capacity
In order to effectively and efficiently increase sales via Amazon, we decided to develop a clearly defined marketing mix for different campaign types and placed particular focus on ACoS optimization. Through KPI-driven account development and automatic scaling of the ads campaigns, it was thus possible to direct relevant traffic specifically to the product detail pages. Furthermore, continuous performance evaluation and data-driven adjustments of the campaigns by our experts ensured that we were able to successfully realize the client’s goals.
In the campaign period of 24 months under consideration, our agency was able to realize an ACoS of 12% for the client by managing and optimizing ads campaigns. In total, more than 13,000 products were sold during this period, resulting in a turnover of over € 1.2 million. Furthermore, more than 100 products are among the top 50 bestsellers on Amazon.