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Hu Kitchen

Transforming E-Commerce Performance through Strategic Overhaul

Background:

The brand’s e-commerce performance was hindered by a high ad spend that did not translate into proportional RoAS. The frequent stockouts and listing blocks further exacerbated sales losses. Resellers were affecting the brand’s Buybox win rate, leading to a diminished presence on the platform. Additionally, the account’s health was declining due to customer complaints and other performance issues.

Our Solution:

  1. Ads Strategy and Campaign Structure Optimization: The brand overhauled its advertising approach, focusing on granular expense management to handle expenses on a monthly, daily, and even hourly basis. This allowed for more precise adjustments and better allocation of the ad budget.
  2. Product Priority Restructuring: Products were reprioritized based on their profitability levels. This restructuring influenced ad spending and discount strategies, ensuring that the most profitable products received the appropriate focus and resources.
  3. Buybox (BBX) Real-time Monitoring and Defending: A robust system was put in place to monitor the Buybox status in real-time, allowing the brand to react quickly to any threats from resellers and maintain control over its product listings.
  4. Inventory Forecast Optimization: An in-house system was developed to enhance inventory forecasting, reducing the frequency of stockouts and ensuring that popular items were always available for customers.
  5. Prompt Response to Cases: The brand committed to responding quickly to customer complaints and other account-related issues, improving overall account health and customer satisfaction.

Results:

– The brand became the #1 seller in the Candy Bars category within just three months. – There was a 35% YoY growth in the average sales price, indicating an improved value perception among customers. – GMV saw a 60% YoY increase, reflecting the overall success of the implemented strategies