Avoid the “Set & Forget” Strategy on Marketplaces
Over the past few months, I’ve been auditing an increasing number of Amazon and Bol accounts. A common trend I notice is the so-called “Set & Forget” strategy. This involves adding all products to a few advertising campaigns, selecting certain campaign types and keywords, then leaving everything to run on autopilot. High ROAS campaigns stay active, while low ROAS campaigns are simply turned off.
Why Doesn’t This Work?
I often compare advertising on marketplaces to maintaining a garden. Everyone knows a garden needs regular care to thrive. You rake the leaves in autumn, and in spring, you clean the tiles. But if you skip clearing the leaves one autumn, it becomes nearly impossible to clean the tiles the following spring. Marketplaces work the same way.
What Does Work?
I like to call this the “Refine & Scale” strategy. Instead of simply focusing on what is or isn’t profitable, you dig deeper into why something isn’t working. This involves taking the following three steps:
- Monitor Your Key Metrics Weekly
Track your most important KPIs on a weekly basis. Automated reporting tools can help you quickly identify changes and take action to improve your results. - Keyword & Search Term Analysis
Analyze underperforming search terms to identify negative keywords that should be excluded, but don’t forget to focus on high-performing terms. These can be added as new keywords to maximize visibility and results. - Test, Analyze & Optimize Campaign Types and Structure
Experiment with different ad types and avoid sticking solely to Sponsored Products. Keep testing your campaign structure as well. While you might start structuring campaigns by category or price, over time, it’s often more effective to focus on metrics like margin or ROAS. Testing ensures you find what works best for you, and continuous analysis and improvement lead to significant performance gains.
Pro Tip: Automate Where Possible
Within the “Refine & Scale” strategy, automation is key. Leverage tools to automate repetitive tasks, freeing up your time to focus on analyzing and improving your campaigns.
Are you looking to scale your marketplace efforts, or would you like a second opinion to see if things can be improved? Feel free to contact us for a no-obligation consultation.