Cosmetics Brand Overcomes Sales Decline on Major Marketplaces

Summary

Sources

habr.comselsup.ru

A prominent cosmetics brand recently encountered significant hurdles while transitioning from its proprietary online store to major and niche marketplaces such as Wildberries, Ozon, and Yandex Market. This shift was not merely a strategic choice but a necessity driven by declining sales on their own website. The marketplace ecosystem posed its own set of challenges, characterized by high competition and distinct promotional dynamics. Initially, the transition did not yield the expected results. Sales continued to decline, prompting the need for a comprehensive reassessment of their strategy. The brands initial foray into these marketplaces was marred by ineffective advertising campaigns and suboptimal visibility among a sea of competing offers. This led to a stark realization: simply listing products on these platforms was insufficient to capture consumer interest and drive sales. The brand recognized the need for a robust strategy to enhance its presence and competitiveness on these marketplaces. Understanding the unique promotional mechanisms and consumer behavior on each platform was crucial. They needed to optimize their advertising budget, refine their bidding strategies, and ensure their products were prominently displayed to potential buyers. Thus, a new strategy was imperative, one that leveraged the strengths of each marketplace while addressing the brands specific challenges. The following steps and insights are derived from their journey, shedding light on the effective content marketing strategies employed to not only recover but significantly boost their sales across these platforms. The first step in tackling the challenges faced by the cosmetics brand was to conduct a thorough audit of their previous advertising campaigns. This analysis revealed several critical issues hindering their performance on the new marketplaces. One of the primary problems identified was low competitive bids. For many products, the bids were insufficient, resulting in limited visibility and a consequent lack of sales. Some items were barely getting any exposure, essentially rendering the advertising efforts ineffective. Another significant issue was the high cost-per-click, or CPC. The brands CPC was recorded at twenty-four rubles and twelve kopecks, far above the acceptable norm of ten rubles or less. This excessive CPC contributed to budget overruns, eating into the potential profitability of the campaigns. Moreover, there was a lack of sufficient data for click-through rate, or CTR, analysis. Several products had minimal impressions, making it difficult to assess the effectiveness of the ads. For algorithms to provide accurate data with minimal statistical error, at least ten thousand impressions are required. Although the overall CTR was reasonably good at four point seventy-five percent, the insufficient data hampered a thorough and reliable analysis. Addressing these issues necessitated a strategic approach. Optimizing bids was crucial to ensure that the products were competitive enough to appear in relevant searches. This involved adjusting the bids to meet or exceed the competition, thus increasing the chances of the products being shown to potential buyers. Reducing the CPC was another essential step. By lowering the cost-per-click to more manageable levels, it was possible to stretch the advertising budget further, allowing for more extensive and consistent promotion across the marketplaces. This also meant reallocating resources to ensure that high-performing ads received adequate support without overspending. Gathering sufficient data was equally important. To make informed decisions, the brand needed a robust dataset. This required running campaigns long enough to accumulate the necessary impressions, thereby enabling a comprehensive analysis of what was working and what needed adjustment. SEO optimization played a pivotal role in this strategy. By focusing on high-frequency and branded keywords, the brand could significantly enhance its visibility on the marketplaces. High-frequency keywords are terms that many users search for, thus using them increases the likelihood of the products appearing in search results. Branded keywords, on the other hand, attract a more targeted audience already familiar with the brand, leading to higher conversion rates. Implementing these changes created a solid foundation for the brand to build upon. With optimized bids, reduced CPC, and a focus on gathering sufficient data, the brand was well-positioned to improve its performance on Wildberries, Ozon, and Yandex Market. The strategic use of SEO ensured that their products were not only visible but also appealing to the right audience, setting the stage for a significant increase in sales and market share. To effectively address the identified issues and capitalize on the opportunities presented by each marketplace, the cosmetics brand implemented a series of targeted strategies designed to enhance their product listings, improve conversion rates, optimize logistics, and boost customer engagement. On Wildberries, the brand focused on enhancing product listings through the creation of visually appealing images and infographics. This approach was guided by Amazons well-established graphic funnel standards. The process began with a comprehensive overhaul of the product illustrations, utilizing media files provided by the client. Each image was carefully crafted to address potential questions and objections from users, progressively immersing them in the products features and benefits. The structure of the graphic funnel for cosmetics, designed according to Amazons standards, included several key components. Initially, the product name, volume, and unique selling proposition, or USP, were prominently displayed. For instance, Gentle Cleansing Foam might be highlighted, with its key benefits, such as Does not dry out the skin, Gently cleanses, and Does not irritate the eyes, clearly outlined. Subsequent slides delved deeper into the products unique formulation, mechanism of action, and suitability for different skin types. Detailed application instructions and a full ingredient list were also provided, which is particularly important for cosmetics. Finally, the visual presentation concluded with a showcase of other products in the same line, encouraging cross-selling. On Ozon, the strategy included the use of video covers, promotions, and discount codes to improve conversion rates. The first step involved updating the visual content, starting with the creation of video covers that effectively captured user attention during searches. The brand opted for a minimalist design that emphasized the products quality and unique features without distracting visual elements. The video covers demonstrated the product, its packaging, texture, application methods, and the before and after effects on the skin. Following the visual content update, the brand participated in marketplace promotions and set up discount codes that appeared directly on the product pages. These discounts could be combined with promotional offers, leveraging the products high margin. By participating in these promotions, the product listings were boosted to higher positions in search results, increasing visibility and driving sales. Logistics optimization on Ozon was another critical focus area. To reduce costs and prevent stockouts, the brand implemented a regional supply distribution strategy. By analyzing historical sales data and forecasting demand, the brand identified the most effective distribution points for each region. This approach not only reduced transportation costs by minimizing travel distances but also sped up delivery times, positively impacting customer satisfaction and sales. The logistics strategy also included constant monitoring of stock levels to avoid out-of-stock situations. Orders were placed proactively to maintain adequate inventory levels, ensuring that products were always available for purchase. On Yandex Market, the brand introduced loyalty programs, cashback offers, and actively participated in marketplace promotions to boost sales and customer engagement. The first step was to ensure that all necessary products were consistently stocked, thereby preventing stockouts and maintaining search position rankings. The loyalty programs included additional cashback options. Customers could earn cashback on their purchases, which could be used across various Yandex services, enhancing the attractiveness of the offers. Points were also awarded for product reviews, fostering increased customer interaction and trust. Furthermore, the brand created its own promotional campaigns and joined existing Yandex Market promotions. These activities drew additional attention to the products and increased sales. The combination of these strategies led to a substantial increase in the brands revenue and order volume across all three marketplaces. By focusing on visually engaging content, strategic promotions, optimized logistics, and innovative customer engagement tactics, the brand successfully navigated the complex marketplace landscape, ultimately tripling its sales within a three-month period.