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Canopy Management’s Ad Strategy Skyrockets Partners’ RoAS from 280% To 719%

Making your own transition on Amazon’s volatile marketplace? Find out how Canopy Management’s experts can smooth out the process for you!

  • September 25, 2024
  • /
  • Brian R. Johnson
A dark haired woman in a field of sunflowers throws her hands up in the air in triumph

We’re pretty certain that Amazon customers don’t know (or care) what type of seller account was behind their recent purchase. They’re shopping for a product and simply want it delivered as soon as possible. 

However, Amazon buyers are often buying from two very different selling platforms, Amazon’s Vendor Central, and Amazon Seller Central. 

The main difference between Vendor Central and Seller Central is who is selling those products. With Seller Central, (probably using the Fulfillment by Amazon (FBA) platform), sales are made directly to Amazon shoppers. 

On the other hand, Amazon Vendor Central is an invite-only portal created to allow manufacturers and customers to connect. In this platform, Amazon is functioning as the distributor or middleman. Referred to as 1P (or first party), this means that participants sell their products directly to Amazon. Amazon then turns around and sells those products to customers.

Key Elements of Amazon’s Vendor Central Platform

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What are the Potential Downsides of Amazon’s Vendor Central?

One of the biggest e-commerce challenges that a long-time Canopy partner faced was actually taking the big step of LEAVING Amazon’s Vendor Central selling platform. Between the ability to seamlessly transact such large quantities and Amazon’s quick payment terms, departing what had been a profitable business model was not easy. 

Selling on Amazon’s Vendor Central Platform isn’t without its own challenges. Here’ a quick look at a few of them:

Limited Pricing Control: Amazon sets retail prices, which can lead to issues like:

Strict Logistical Requirements and Chargebacks: Vendors face strict fulfillment guidelines, which may result in:

Loss of Brand Control and Customer Interaction: Vendors experience reduced control over:

The Partner’s Challenge

As the new partner struggled to make the move to Seller Central, their advertising cost of sales was averaging 36%. For the Canopy partner, it wasn’t working. They wanted more control over their business trajectory and reached out to the team at Canopy Management to help them navigate the transition. 

Our initial audit found that the partner’s Amazon advertising lacked sufficient structure, a contemporary blend of ad placements, and ultimately, a well-calibrated marketing target. 

At the top of their wish list was more control over product pricing, inventory management and product launches. They also understood that they lacked an emotional connection with their end users that would help inform their advertising campaigns.

Ultimately, the decision was made to reach out to Canopy Management. 

Canopy’s Pay per Click advertising experts have found that when it comes to competitive product niches, Amazon advertising offers the best value at any level of e-commerce ad campaign investment. 

A first step that Canopy always takes is to make sure that we’re completely aligned with our partners when it comes to their desired outcome. 

The Partner’s Wishlist:

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Canopy’s Partners Achieve an Average 84% Profit Increase!

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How Canopy Management Solved the Problem

Canopy Management was determined to structure a full-funnel strategy, taking advantage of Amazon Sponsored Products, Sponsored Brands, and Sponsored Display. That helped expand the brand’s product visibility to a much wider range of potential customers, both sponsored and organic. 

That first step required a detailed, in-depth analytical investigation of the partner’s competitive landscape in order to fully capitalize on the knowledge gained from the advertising investment. 

Canopy then took the following steps:

The results were almost instantaneous. In the very first month . . .

RoAS (Return on Ad Spend) Skyrockets from 280% to 719%

In the very first month the partner’s overall profitability skyrocketed from an existing average Return On Ad Spend of 280% to 719%. As indicated in the screenshot below, Canopy’s ad strategy went on to average a 680% Return On Ad Spend.

Sales Increase of 30% in the First Month and 15% each month since!

Not only did sales increase by almost 30% in the first month, the new partner has averaged a Month Over Month sales increase of between 10% to 20% every month since.

Amazon Advertising spend has functioned as the engine of their success and it’s still growing. Below, you can see that they increased their Amazon advertising spend 47% in the first month and have continued to boost their spend between 20% and 30%, month-over-month each successive month since that time.

One month before partnering with Canopy Management, the partner’s sales had plateaued at $72,000.00 with Advertising Cost of Sales of 36%. After Canopy’s extensive restructuring of the advertising campaign, sales more than doubled to $158,000.00 and Advertising Cost of Sales plummeted to 14%. 

Winning Amazon Choice badges is always a good sign that Amazon sellers are heading in the right direction. Canopy Management very quickly helped the partner to dominate the categories that refer back to key terms that were previously identified. 

At the present time, as shown below, the partner has earned Amazon’s Best Seller badges for their pivotal products. 

A “Rising Tide” of E-Commerce Success

More importantly, as the series of screenshots below show, the “rising tide” of success was driving sales and pulling the remainder of the partner’s product catalog towards the top of Amazon’s first page as well.

Notice a trend in the above screenshots? One of the best things about establishing powerful sales momentum for your principal ASINs is that kind of success doesn’t happen in a vacuum.

In many cases (like this one), your entire Amazon business will benefit!

How Canopy Management Can Help

What would adding 67% more organic sales mean for your brand?

Turns out that when you combine the massive experience of Canopy’s Amazon Advertising Experts with smart tools and tech, you get industry-leading results like this:

Canopy Management is a full-service marketing agency for Amazon and Walmart sellers. Our team consists of former Amazonians, multi-million dollar sellers, and award-winning experts.

When you consider the many ways that Canopy Management can help you grow your business, you’ll see why selling on Amazon is much easier “under the Canopy.”

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