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Case study · Amazon · Amazon

Paper Supplies Achieves Multi-Million Dollar Revenue on Amazon with One Egg

Multi-million dollar revenue on Amazon US.

Paper Supplies case study
62%Increase in Revenue YoY
70%Increase in Gross Profit Margin
20%Increase in Avg. Conversion Rate
01 · Overview

Overview

Paper Supplies launched on Amazon US in mid-2019 and has worked with One Egg from the start. The business has grown from a handful of products to more than 40 SKUs and annual revenue above $4 million. In the most recent year, revenue rose 62%, gross profit margin improved by 70% and the average conversion rate across the range went up 20%.

02 · Challenges

Challenges

  • Market penetration Paper supplies is a commodity category: big brands, private label sellers and price-driven shoppers. A new seller has to earn visibility against listings with years of reviews.
  • Profitability growth Expanding the range while lifting margin. Paper products are heavy and low priced for their size, so fees and freight decide whether a SKU is worth having.
  • Conversion optimisation Traffic alone was not enough. Listings had to convert at a rate that kept paid traffic profitable.
03 · Solutions

Solutions

  • Amazon growth strategy Managed and optimised the day-to-day Amazon operation, with a plan for which products to launch next and when, based on demand and margin rather than guesswork.
  • PPC management Campaigns structured by product line, with search terms harvested into exact match and bids managed against the margin of each SKU instead of one blanket target.
  • Conversion rate optimisation Rewrote titles and bullets, upgraded images and content, and tested price points so more of the traffic we paid for turned into orders.
  • Product expansion Scaled the range to more than 40 SKUs, adding variations and adjacent products where the sales data showed demand.
04 · Impact

Impact

  • Revenue expansion A 62% increase in annual revenue, taking the business above $4 million a year.
  • Profitability improvement Gross profit margin up 70%.
  • Higher conversions Average conversion rate up 20% across the range.
05 · Why it worked

Why it worked

Conversion came first. Every improvement to a listing lifts the return on both organic and paid traffic, so we fixed what happened after the click before scaling what happened before it. The 20% lift in conversion rate is what made the PPC spend profitable enough to expand.

Expansion was selective. Each new SKU had to clear a margin bar after Amazon fees and freight before it launched, and the ones that did not were dropped. That is why the range could grow to more than 40 products while gross profit margin went up rather than down.

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