Client Profile
Hercules Sägemann AG is today a subsidiary of New-York Hamburger Gummi-Waaren Compagnie AG. Since 2009, the company with its approximately 200 employees has been based in Lüneburg.
With attention to detail, the employees dedicate themselves daily to the production of premium combs in the highest manufacturing quality.
At a glance
- Industry: Beauty
- Products: Hair brushes & hair combs
- Sales program: Amazon Vendor Program
Initial Situation, Goals & Challenges
Hercules Sägemann AG became a client of the Omnifox agency in 2022 and at that time had no direct business relationship with Amazon.
The product portfolio had been sold by various distributors on Amazon up to that point. This resulted in both the listing quality and the overall Prime share being improvable compared to competing brands on Amazon.
Additionally, due to the lack of a direct business relationship, there were no marketing activities by the company on Amazon. Only Sponsored Products was used rudimentarily by some distributors to increase sales.
At a glance
- Goals: Direct business relationship with Amazon, increase in sales and revenue, brand building
- Core problem: Low visibility, low Prime share
- Causes: Low rankings, non-SEO-optimized articles, low Prime share, no marketing activities
Strategy & Measures
In the first step, we extensively advised Hercules Sägemann AG on which model (Amazon Vendor vs. Amazon Seller) was the right concept for them. It's important that internal processes and wishes are always considered, as a blanket statement about which model works better cannot be made trivially. Advantages and disadvantages must be weighed and aligned with existing processes.
Together, we decided on the Vendor model in this case and contacted our representative to obtain access.
Omnifox was a strategic consultant regarding terms and price negotiations with Amazon Retail.
In the next step, a comprehensive analysis of the brand and all existing product detail pages was carried out to uncover improvement potential. It became clear that the product listings were not sufficiently optimized for the keywords relevant to the products. Therefore, following extensive keyword research, we enriched the product pages with the relevant keywords and revised the titles and bullet points.
By registering the brand with the Brand Registry, we had the write permissions to carry out this work.
Since we often have to identify a low ordering rhythm at the beginning, we use the Born to Run (B2R) program to have Amazon order our product portfolio of over 100 different brushes and combs. This ensures that we quickly have our product portfolio in stock and can start our advertising measures. The goal here is, of course, never to stock Amazon's warehouse with high quantities, but merely to give the Amazon ordering algorithm a little boost with new products.
The next step was designing and setting up advertising campaigns for the entire product portfolio. We use the full spectrum of PPC campaigns (Sponsored Products, Sponsored Brands, and Sponsored Display).
Measures at a glance
- Consulting on Amazon Vendor vs. Amazon Seller
- Consulting on Amazon terms and pricing
- Set-up of titles and bullet points, as well as upload of articles in Vendor Central
- Set-up & management of advertising campaigns
- Strategic & operational support in daily business
Results & Impact
The launch of Hercules Sägemann as a vendor was a complete success. Within 6 weeks, we were able to successfully complete all milestones from conception to launch of all products including PPC campaigns together with the client and Amazon. In total, we edited, uploaded, and launched 112 products on Amazon in Vendor Central.
The initial results are promising. Order volume is steadily increasing at 160% MoM. All processes from order acceptance to shipping are now well-established, and all operational performance metrics are ideal according to Amazon standards.
On average, the conversion rate of all articles could be increased by 8.84% compared to the previous period through Prime status and content optimizations.
The initial results of the advertising campaigns are also promising. By testing with initially low bids, all advertising campaigns are currently running with an average Return on Ad Spend (ROAS) of 6.83.
The next step is to scale these values with increasing advertising spend.