- 84% Increase in Sales in 7 months
- Reduced ACoS from 33% to 21%
- #1 Best Seller Ranked its category
- 45% increased ad impressions
- 15% fewer stockouts & 20% fewer lost sales
- Return rate reduced from 25% to 18%
By leveraging data-driven strategies and automation tools like Sellermate and Sellerboard, Adsify helped RICO cut costs, improve efficiency, and scale profitably on Amazon.
Industry: Electrical Appliances
Marketplace: Amazon India
Brand: RICO
About RICO
Founded in 1965, RICO is a leading home appliance brand, present in over 3 crore kitchens worldwide. We partnered with them in January 2024, to improve brand’s sales performance and ad efficiency challenges.
Challenges
Low Organic Sales:
- Organic revenue was <20% of total sales, leading to high ad dependency and customer acquisition costs.
Frequent Stockouts:
- Inventory issues caused lost revenue and disrupted sales momentum.
Poor Conversion & High Returns:
- Conversion rate: <2% (Industry standard: 4-5%).
- Return rate: 25% (Industry avg: 12-15%).
Overpriced Products:
- Prices were 25% higher than competitors, leading to lower conversion and high CPCs.
Inefficient Ad Strategy:
- 65% of budget spent on Sponsored Brands (SB) ads, limiting diversification.
- ACOS was 33%+, hurting profitability.
Approach & Execution
Boosting Organic Sales
- Optimized listings (titles, bullet points, images) → 2X CTR increase.
- Organic sales grew 30%, acquisition cost dropped 20%.
Inventory & Delivery Optimization
- Leveraged FBA + demand forecasting → 15% reduction in stockouts.
- Improved budget & stock planning → 20% fewer lost sales.
Conversion Optimization & Return Reduction
- A+ content updates + clear usage instructions of the products → Conversion rate up 2%.
- ‘How-to-use’ videos for products like Roti Maker → Return rate cut from 30% to 18%.
Product Selection with High profit potential
- Focused on key products (juicer & hand blender) → Juicer hit #1 on Amazon, blender moved from outside the top 100 to top 20.
Targeted Advertising for Efficiency
- Diversification of ad spends from Sponsored Brands to Sponsored Brands Video and Sponsored Display.
- Reallocated ad spend to better-priced products → Maintained 21% ACOS while cutting ad spend by 25%.
Ad Spend Optimization with Sellermate
- Used Sellermate for ad automation → 25% ad cost reduction by optimizing bids and placements.
- ACOS dropped from 33% to 21%, ad impressions up 45%.
Profit Analytics with Sellerboard
- Integrated Sellerboard for real-time profit tracking at the product level.
- Identified unprofitable SKUs and optimized ad spend, improving overall profitability.
Impact
