Your and our time is valuable and we want to make the most of it. We would be happy to make an appointment, put it on the calendar and talk in person or online.
But we will need to prepare for the meeting. To do that, we'll start communicating via email and send you a brief.
We boosted an online tool store’s profit 10 times in just 2 years.
In February 2022, we were contacted by the Kulibin online store to increase sales for the B2B segment. During our work, the task was transformed into a comprehensive sales growth for the online store.
As a result of the cooperation, the average order value grew 1.7 times, the number of transactions increased by 36%, and the net profit in USD increased 10 times.
Kulibin is an online store of the Molotok group, whose primary focus is on selling tools and providing system solutions for entrepreneurs.
The group includes a 450m2 retail store in Vinnytsia, a service center, and a B2B department that cooperates with more than 7,000 legal entities and sells 300 brands throughout Ukraine.
Kulibin is an authorized Hoegert dealer and distributor of Bosch, Makita, Metabo, Stihl, DeWALT, Stanley, and others.
SERVICES
PPC ads
Search Engine Marketing
Dynamic remarketing
PMax/Shopping campaigns
Social media PPC
Web analytics audit
End-to-end analytics and Bi
Ecommerce module setup
Tools:
Google Ads · Facebook Ads · Google Analytics/GA4 · Google Looker Studio · Esputnik · Recreativ · Viber
TASKS
Client’s initial request was to increase sales for the B2B segment. In the course of the work, the task was transformed into a comprehensive growth of online store sales.
When searching for a product it is difficult to understand whether a user is from the B2C or B2B segment. Hence, we decided to scale the sales of an online store as a whole, which leads to an increase in B2B sales for the Client by broadcasting B2B benefits on product pages.
Key challenges
Online sales scaling
Increasing ROMI in advertising
New B2B customers attraction
FEATURES AND CHALLENGES
Client’s desire is to attract B2B buyers, as Kulibin has services to fully provide enterprises with all the necessary equipment
Intense competition in the tools, equipment, and household goods niche, with price undercutting by major players
An influx of counterfeit goods imitating popular brands
A product catalog with a wide range of prices (from $0.5 to $30,000)
Decreased demand compared to previous years (small and medium-sized businesses closure, reduced consumer opportunities since the beginning of full-scale invasion of Ukraine)
SOLUTIONS
The Client had long used an ABC/XYZ Analysis to segment their products. In this system, ABC tracks product turnover, while XYZ measures sales stability and seasonality (how many months of the year a product is in demand).
The ABC/XYZ Analysis is useful for purchase planning by managers and for managing the product assortment both online and offline, but it has weak correlation with search demand, competition, and the market offerings of the business. Additionally, these metrics are often lagging indicators and face a chicken-and-egg problem (no product sales, so no advertising for it).
As a result, this structure doesn’t account for the nuances of online demand and the rapid growth of specific categories (for instance, electric generators and heat guns in 2022.
To drive profitability and sales, we centered our efforts on finding the best structure for the product feed and PMax campaigns.
For PMax campaigns, it is crucial to group similar products based on their parameters (such as price, margin, demand, availability, and category) while also ensuring a sufficient volume of conversions. Additionally, both the feed and campaign structures must be highly customized to fit the specific business.
We revamped the entire Google Ads structure and developed a new approach to organizing the Client’s product catalog, focusing on product value and profitability. We disabled the old campaigns and launched new PMax campaigns aligned with the new catalog segmentation logic. This allowed for a significant increase in store revenue while staying within the same budget.
A similar growth was later observed in Facebook advertising, where we applied the same catalog structure as we did in Google.
RESULTS
As part of our sales and profitability analysis, we identified and highlighted for the Client the issue of a high order cancellation rate. The Client reorganized their sales department and conducted internal audits, resulting in a 38% reduction in order cancellations, with an upper trend toward further improvement. The financial losses due to cancellations were also cut in half.
The average order value increased 1.7 times, the number of orders grew by 36%, and net profit in dollars surged tenfold, all while maintaining nearly the same marketing expenses and with only a slight increase in workload for the sales department.
Comparison: February 2022 vs. April 2024
Order volume, turnover, and expenses in USD Canceled orders in both quantity and monetary value.
As a result of implementing the new structure, we were able to exceed the targets set by the Client. In terms of turnover, average order value, and net profit, we achieved record-breaking figures for the entire history of the online store’s operation.
Interested in working together?
We pick our clients carefully — we only start a collaboration when we are confident that we can add value and improve your results.
Your and our time is valuable and we want to make the most of it. We would be happy to make an appointment, put it on the calendar and talk in person or online.
But we will need to prepare for the meeting. To do that, we'll start communicating via email and send you a brief.
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