Fine Jewelry Case Study: How we increased payout by 6.6% and conversion by 40% in 6 months for a high-end Jewelry brand
See how a $12M jewelry brand increased payout by 6.6% and conversion by 40% in 6 months. Learn the exact profit-first Amazon strategies that cut ad spend by 42.7%.
Quick Summary
A $12M fine jewelry brand increased payout by 6.6% and conversion by 40% in just 6 months by shifting from revenue-chasing to profit-first Amazon management—cutting ad spend by 42.7% while growing organic sales from 40% to 55%.
Key Takeaways
- Reduced TACoS from 35% to 16.8% by restructuring 700+ PPC campaigns around profit targets instead of revenue goals
- Increased conversion rate by 40% through systematic ASIN audits and product detail page optimization
- Shifted sales mix from 60% PPC / 40% organic to 45% PPC / 55% organic, dramatically improving margins
- Freed founder from 18+ hours/week of ad management to focus on product development and growth
- Achieved 6.6% payout increase within 90 days after months of declining profitability
About the Client
Niche: High-End Fine Jewelry
Revenue: $12 Million
Team: Founder-led
Hiral - a second-generation jeweler - established her e-commerce brand 17 years ago. Over the past decade, she has designed, manufactured, and sold her white-label collections online, primarily in the U.S. through Amazon and direct-to-consumer channels.
"It was refreshing - no one else spoke our language or cared about margins like this."
- Hiral
A Profit Leak Hidden in Plain Sight
By the end of December 2023, Hiral's profit margins were declining rapidly. With over 1,000+ ASINs and 700+ live campaigns, cash flow was tight as ad spend continued to climb.
"Our previous agency chased revenue growth - no one was watching the bottom line."
- Ad Spend vs. Profit Misalignment: Spend up 70% YoY; profit declined
- Organic Cannibalization: PPC share peaked at 61.8% in April 2024
- Wasted Ad Spend: 40% of campaigns at ACOS > 80%
- Operational Overload: Founder trapped in daily campaign firefighting
Hands-on Audit: Key Findings
We didn't just pull reports - we rolled up our sleeves and inspected every product in the catalog.
- Revenue pulse: Growth had plateaued and category rank was starting to slip.
- Wasted ad spend: A big chunk of budget wasn't moving the sales needle. Very little focus on organic ranking.
- Inventory pulse: Best-sellers faced stockouts while slow movers tied up cash.
- Conversion issue: Critical keywords and reviews were missing, capping organic reach.
- Account health: Stranded SKUs, hidden fees, and compliance red flags.
Diagnose First
Our Initial Conversation
"It felt like we were talking to someone who understood us."
- Hiral
- Diagnose: We deep-dived into their entire Amazon ecosystem - PPC, keywords, inventory & customer reviews - to pinpoint profit leaks and root causes.
- Tailored solution: Once we identified the problem, we crafted a profit-first roadmap - optimizing PPC bids, expanding high-value keywords and streamlining inventory.
- Fast implementation: We rolled out changes fast, tracked the numbers, and strategically managed ad-spend at the product level - so results showed up right away.
Deep Dive 1: Conversion Issue
Lots of Eyes, Few Buyers.
Double-digit drops at every stage - awareness, consideration, and purchases were all bleeding red.
Key Stat: Awareness -22%, page views -38%, carts -29%, buyers -25%
90-Day Action Plan: Audit, Fix & Scale
We didn't just pull reports - we rolled up our sleeves and inspected every product in the catalog.
- Audit every ASIN: Zeroed-in on the 20% of competitors & keywords taking 80% of sales. Competitor analysis, keyword, SEO, image, review, price and ranking audit on every ASIN.
- Fix the gaps: Overhauled Product Detail pages - fresh imagery, copy, A/B test images, refresh A+ content, test pricing, secure badges, plan deals on every ASIN.
- Scale what wins: Roll out bundles, promotions, and targeted ads; track performance and iterate weekly.
Results: +40% Conversion
We converted browsers to buyers. 40% conversion jump, 97% new buyers - now ranking in the 91st percentile.
- +40% - Conversion rate
- 97% - New-to-brand buyers (From 93% to 97%)
- 91st - Purchase percentile (From 89th to 91st)
Deep Dive 2: PPC Issue
High Spend, Slim Return
Spend ballooned: $76K to $133K in 90 days. No strategic bidding: Cash burned on broad, low-converting keywords; margins shrank fast. Client finally said, "I can't keep paying," and slammed the brakes in October. The sudden pull-back tanked impressions and rank.
Key Stat: 60% ad-spend; 40% organic
90-Day Action Plan: Focus on Organic Ranking
Use organic ranking to cut ad spend by up to 50% while trimming costs by 20%.
- Cut wasted ad spend: Identify and pause inefficient campaigns, regroup by parent ASIN, campaign & portfolio budgets (as needed).
- Rebuild and Test: Relaunch ASINs with unified naming, relevant keyword sets, and A/B tests on images, A+ content, and pricing.
- Focus on TACOS and Organic ranking: Track top keywords daily, maintain TACOS targets at ASIN level.
- Scale the winners: Push budget to converting campaigns while holding TACOS <20%.
- Day-Parting: Dial back bids once you are ranked organically to protect bottom line, pause ads in low-traffic hours.
Results: +6.6% Payout
Shifted from 60% PPC / 40% Organic to 45% PPC / 55% Organic - a complete reversal that drove profitability.
- 55% - Organic sales (Up from 40%)
- 16.8% - TACoS average (Down from 35%)
- +6.6% - Payout increase (From negative months)
- 0 hrs - Founder Ad-Mgmt (Down from 18+ hrs/wk)
Hidden Profit, Unlocked
Profit isn't a one-lever trick. We synced listings, ads, pricing, and operations so every piece pulled its weight.
- Zeroed-in on the 20% of keywords driving 80% of sales
- Built a profit-first, high-intent keyword system
- Overhauled PDPs with fresh images, razor-sharp copy & backend SEO
- Installed just-in-time inventory guardrails to prevent stockouts
- Activated smart coupon & promo campaigns
Client Testimonial
"In just six months, our brand transformed from a cost center into a high-margin growth engine. I can't point to one magic move - every part of this process compounded to explode our business."
- Hiral, Founder & CEO
We get in the trenches with you on your floor.
What makes us different?
No distant theories - we visit you onsite, watch you in action, and co-create solutions with you.
"They walked our factory floor to understand the process, rolling up their sleeves to map strategy in person on-site."
- Hiral
- Weekly 1:1 strategy sessions: Tackling real problems
- Custom feedback: Tailored to Hiral's unique catalog
- Reassurance and accountability: To trust the profit-first approach
Frequently Asked Questions
How long did it take to see results from the profit-first strategy?
Measurable results appeared within 90 days. The brand saw a 40% conversion rate increase and 6.6% payout improvement in the first quarter. Full transformation to 55% organic sales took approximately 6 months.
What was the main problem causing declining profits?
The previous agency focused solely on revenue growth, pushing ad spend up 70% year-over-year while profits declined. 40% of campaigns were running at ACoS above 80%, and PPC was cannibalizing organic sales—peaking at 61.8% of total revenue.
What specific strategies improved the jewelry brand's Amazon performance?
Three key strategies drove results: (1) Auditing all 1,000+ ASINs to identify the 20% of keywords driving 80% of profitable sales, (2) Overhauling product detail pages with fresh imagery and A+ content, and (3) Implementing day-parting to reduce bids once organic rankings improved.
Can this profit-first approach work for other Amazon categories?
Yes, the profit-first methodology applies across categories. The core principles—diagnosing profit leaks, optimizing for TACoS instead of ACoS, and building organic rankings—have been successfully applied to industrial, beauty, fashion, and home goods brands.
How much time does a founder need to invest working with ALFI?
After initial onboarding (2-3 hours), founders typically spend 1 hour per week in strategy sessions. The brand owner in this case study went from 18+ hours/week managing ads to zero hours, freeing her to focus on product development.
