A UK-based brand aimed to scale its Amazon presence beyond national borders in August 2022. With 20% of its revenue generated from Amazon, 55% from wholesale, and 25% from direct website sales, expanding its marketplace footprint presented a significant growth opportunity. The primary directive was clear: double sales while maintaining profitability.
Prior to expansion, the brand maintained a stable but under-optimized presence on Amazon UK. The advertising strategy, while functional, had not yet been fully leveraged to penetrate the European market. The challenge was twofold:
Leveraging a data-driven methodology, the expansion strategy was tailored to each market while maintaining core principles from the UK playbook.
A 20% increase in the advertising budget was allocated to fuel entry into new markets while sustaining UK campaign performance.
Implemented adaptive bid strategies to optimize CPCs and maximize CTRs across varied marketplaces.
Applied insights from UK operations to refine initial campaign structures in European markets, ensuring efficient spending utilization.
To maintain profitability throughout expansion, the following mechanisms were deployed:
Leveraged automated bid adjustments to ensure competitive ad placements while maintaining target ACOS.
Integrated demand modeling to prevent stockouts and overstock issues, maintaining operational efficiency across fulfillment networks.
The structured expansion strategy yielded significant results:
The European expansion has established a replicable framework for further market entry. Next-phase initiatives include:
This case study demonstrates how a data-driven market expansion strategy, combined with continuous performance monitoring, can effectively transform a UK-focused brand into a pan-European competitor while maintaining strict profitability and operational efficiency benchmarks.
