Case Study: Non-alcoholic sales on Amazon

Abstinence: how we grew sales by 66% on Amazon with less ad spend

Abstinence is a South-African brand of non-alcoholic spirits that came to life in 2019. Their Cape Spice and Cape Citrus spirits won gold in the Non-Alcoholic White Spirits category of the Spirits Business Low and No Masters in 2021 while their Cape Fynbos spirit won silver in the same category. Meanwhile, their Blood Orange Aperitif also scored gold in the same masters in the non-alcoholic aperitifs category.

Abstinence launched on Amazon UK in May 2021 and came to us in October 2021. They wanted to appoint an expert Amazon spirits distribution agency to make sure their marketing investment in the marketplace was effective and to improve their sales performance. But they also wanted to appoint a UK spirits distributor whose capabilities went beyond Amazon and help them land off-trade listings.

When we started working with Abstinence on Amazon in early 2022, the UK was under the grip of the cost of living crisis. The brand was investing heavily into Amazon PPC, which made sense as Abstinence was then a young and unknown brand needed to attract as many eyes as possible. But the ROI on this investment left something to be desired. And this impacted the profitability of Amazon as a distribution channel for Abstinence.

Task

Together with Abstinence, we identified 4 objectives for the next two years (2022 to 2024):

  • Increase brand awareness
  • Increase the sales volume year on year
  • Increase the effectiveness of the investment in Amazon PPC
  • Improve the profitability of Amazon as distribution channel

Action

Our first action was to audit Abstinence’s Amazon storefront and Amazon listings. Amazon works like a search engine: it ranks and presents results to the buyers based on how relevant the listings are compared to the search query. So keyword optimisation is key. This also has an impact on the Amazon ad performances. We discovered through our audit that Abstinence’s listings lacked in keyword optimisation. This partly explained the low ROI for their level of ad spend on Amazon PPC.

After addressing this issue, we turned our focus to weaning the Amazon algorithm off from the reliance on the large ad spend to the slowly to optimise their PPC budget even further in an efficient way. We put together a two-stage approach. In year one, our focus was going to be growing brand awareness at the top of the funnel with a smaller PPC budget. After 2022, we’ve followed a more targeted approach focusing on optimising for conversions on paid Amazon ads.

What we did in 2022:

  • We conducted keyword research to identify which keywords needed to feature on each SKU listing and we optimised the listings’ contents accordingly
  • We decreased the PPC budget by 50% compared to 2021

What we did in 2023 and 2024:

  • We routinely conducted a keyword reviews to further improve performance of the Amazon PPC ads for each of the SKUs
  • We further reduced the monthly Amazon PPC budget by 20% in 2023 and 59% in 2024
  • We actively monitored competing offers for alternative products to adjust pricing and increase Abstinence’s share of winning the Amazon Buy Box

Result

Even though consumer spending and confidence was in dire straits in the UK because of the cost of living crisis, we completely turned around the performance of Amazon as a sales channel for Abstinence in the space of 2 years. Our approach helped Abstinence:

  • increase their share of organic sales from 65% to 75%, highlighting a greater level of brand awareness within the UK eCommerce landscape thanks to our Amazon PPC efforts
  • increase total annual sales volume
  • decrease their paid cost of acquisition per bottle on Amazon, delivering more profit for the brand from their paid marketing efforts

Here’s what we delivered in numbers:

INCREASE IN SALES VOLUME BETWEEN 2022 AND 2024

%

Increase in Amazon sales revenue from 2022 to 2024

bbb drinks distributes Abstinence Bittersweet Lemon Aperitif on Amazon
bbb drinks distributes Abstinence Blood Orange Aperitif on Amazon

%

DECREASE IN COST PER ACQUISTION FROM AMAZON PPC BETWEEN 2022 AND 2024

%

Increase in return on advertising spend from Amazon PPC from 2022 to 2024

Ready to take your Amazon sales to the next level? 

bbb drinks work relentlessly to continuously increase the sales of Abstinence on Amazon and proactively come to us with updates to our strategy to stay ahead.

Keith Stevens

CEO, Curated Beverage