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How Pregmate achieved 40% growth in 4 weeks

Pregmate distributes ovulation and pregnancy testing kits and other in vitro diagnostic products. Their over-the-counter fertility tests are known for excellent quality and user-friendly design. Pregmate’s mission is to construct first-class products while providing outstanding customer service. They want to accomplish this while enjoying life and maintaining exceptional health.

Pregmate uses Deliverr to fulfill their products on multiple channels, so we spoke to Pregmate Owner Victor Marozau about sourcing, advertising, business, and overall growth.

A little bit about Pregmate

Pregmate manufactures their products in the USA, China, and Canada, with assembly and packaging done in Hollywood, FL.

They were selling on Amazon since 2014, with sales growing on average 100% each year. This year, their sales reached $5M on Amazon alone.

In addition to Amazon, they sell on eBay, Walmart, and their own Shopify store.

Back when they first launched on Walmart in 2017, they earned around $100K in 12 months (compared to around $1M the same year on Amazon). Their Walmart sales consisted of around 10% of Amazon sales, showing the same growth rate of 100% each year.

They use a combination of fast shipping and advertising to help boost their sales, so we’ll break a few of those tactics (and results) down below.

Building a direct-to-consumer channel

Pregmate didn’t stop at just selling on the big marketplaces. Knowing that having their own website would put them in a competitive advantage, help them nurture customers into followers, and allow them to set their own rules of engagement, they also grew their Shopify store.

Using Google Shopping ads to build a a D2C business that can compete with marketplaces

As nice as it is to have your own store, you still need to compete with the popular marketplaces out there. Amazon gets 206 million visits every month, and more than 50% of consumers begin their online shopping journey directly on Amazon.

Amazon alone already takes a large slice of the pie, so what happens when you throw other popular marketplaces like Walmart.com and eBay? There isn’t much left for D2C brands.

However, that doesn’t mean you should give up hope. There are a few ingenious ways that you can sustain an independent online store even with marketplace competition.

Let’s take a page out of Pregmate’s book. Pregmate utilizes a few different strategies to help them get conversions to their Shopify store, including Google Shopping ads and 2-day delivery.

Partnering with Deliverr, Pregmate was able to offer free 2-day delivery to all of their Shopify customers, and remove marketplace fees from the equation. They use their Shopify store in conjunction with Google Shopping ads to drive traffic and customer acquisition.

Moving beyond defense (protecting your customer base from being stolen by others) and into offense (enticing shoppers to your website from elsewhere), Pregmate also offers free NextDay delivery in certain areas, at no extra cost to Pregmate or their customers, thanks to their partnership with Deliverr.

NextDay Delivery

Since Pregmate uses Deliverr to fulfill Shopify orders, their shoppers are also eligible for NextDay delivery in certain areas, at no additional cost to Pregmate or their buyers.

Reclaim consumer search results with Google Shopping ads

Remember how we mentioned that most consumers begin their online searches on Amazon? Well, plenty of them (around 20%) still turn to Google when they want to make a purchase. That means you have a chance to grab shoppers before they even make it onto a marketplace — if you introduce your items in the right place.

Google Shopping now accounts for 65% for all Google Ads clicks and Google Shopping ads has grown 29% year-over-year, compared to only 13% for paid search. This indicates that eCommerce sellers are waking up to the benefits of this specific type of ads for their bottom line.

Pregmate opted into free and fast on Google Shopping via Deliverr. Their ads are shown to consumers who search for keywords on Google, alongside fast shipping badges that announce 2-day or next day delivery.

In summer 2019, Pregmate used Google Shopping ads to direct traffic to their Walmart and Amazon stores. This meant that they were able to direct traffic to their marketplace stores organically and through ads, then fulfilling those orders with their different services (FBA and Deliverr).

Today, since they’ve added Google Shopping ads for Shopify, they capture more buyers directly to their website and are able to retain more of their revenue that would otherwise go to a marketplace.

Make your purchasing flow as short as possible

Once someone searches for a key term Pregmate has invested in, their Google Shopping ad shows up right at the top of search results in the leftmost position: the first thing people tend to see.

In the example above, when searching for a “pregnancy test” on Google, Pregmate.com is right at the top of search.

Once someone clicks on their product in Google, it takes them through to their own Shopify website, where they display fast shipping badge, product details, and can capture the sale.

Why is this so critical to conversions?

The shorter your conversion process, the easier it is to make a sale. With Google Shopping, Pregmate not only captures buyers on their own store, they do it in as few clicks as possible.

Instead of a shopper having to go into a marketplace, search through multiple products, compare and contrast, then finally make a choice, Pregmate’s purchase process through Google Shopping is:

  1. Click on the Pregmate product in Google Shopping results
  2. Click “Add to Cart”
  3. Purchase

This seamless transition to get a conversion in as little as 3 steps means Pregmate is making it as easy as possible for shoppers to put in their orders – something all eCommerce sellers should strive for.

Combine next day shipping and Google Shopping ads

But Pregmate doesn’t stop there. You may have noticed above that Google Shopping ads highlights Pregmate’s delivery speeds. This gives them a big advantage, because the first thing shoppers see is not only their product, but also their speed standards.

Even better, since they have next day delivery enabled for certain zip codes, shoppers in those areas see Free 1-day delivery tags on their products in Google Shopping ads.

Measure your Google Shopping ad efficiency

Once you have everything set up, it’s important to continually measure your cost per acquisition (CPA).

Companies like JanSport were able to boost their conversion rate by 13% by using Google Shopping ads for back-to-school sales.

Look at things like what your CTR and conversion rates are, how your CPA changed, and what your top performing ads are.

Being able to lower your CPA for your Shopify store means acquiring customers on your owned platform, without having to pay marketplace fees. This is a vital way to increase revenue and get more autonomy of your business.

Continually optimize for CPA

Here are a few tips to increase clicks and decrease CPA.

Follow Google Shopping ad best practices. There are many ways to optimize your Google Shopping ads, including tweaking your search terms, using high quality photos, and creating user-friendly product titles and descriptions.

Use 2-day and 1-day delivery. Based on what we’ve seen at Deliverr, having 2-day shipping increases your conversions across channels like Walmart and Shopify.

By bringing that increased conversion rate factor to your Google Shopping ads, you put yourself in the best position to increase conversions.

Early findings from one Deliverr merchant show a significant drop in CPA based on a study of their ads paired with standard shipping ($30 average CPA), 2-day delivery ($24 average CPA), and 1-day delivery ($18 average CPA).

Invest in high purchase intent keywords. Remove the top-of-funnel search terms and eliminate ad spend wasted on casual shoppers who aren’t ready to make a purchase. Look at the keywords with the highest buyer intent and conversion rates, and double down on those instead of vague generic terms.

Keep tracking and optimizing your CPA. Continually revisit and revise your ad strategy to get the lowest CPA for your Shopify store. Monitor sales trends and which keywords do better throughout the year, and plan accordingly.

250% sales growth and rising

When Pregmate first began working with Deliverr to fulfill their Shopify orders in October 2019, they saw 300-400 orders per month. In November, they activated 2-day delivery and turned on Google Shopping ads with Deliverr. As a result, their sales shot up 250% to 50 orders per day, and 1,000 orders per month on their Shopify store alone.

Thanks to the strategic moves that Pregmate made, their sales volume is rising sustainably month-over-month. Today, they’re doing 6,000 orders monthly on Shopify and Walmart (more on that below).

Multi-channel advertising

Pregmate got access to Walmart sponsored ads and enhanced content through Deliverr, and uses those to advertise their listings and boost conversions on Walmart.

With Walmart Sponsored Products, Pregmate can bid on keywords to show their listings to shoppers who search for certain phrases indicating they’re ready to buy. Since this program is CPC, Pregmate only has to pay when their ad performs.

Enhanced content allows Pregmate’s Walmart listings to feature special media, such as a comparison chart and FAQs – versus the simple imagery that’s standard across all listings. This type of media can help listings stand out, engage shoppers once they land on your item, and boost conversions by 10-20%.

They also run Amazon Sponsored Products, bidding on keywords such as ovulation test strips, ovulation kits, pregnancy test strips, and the like.

Activating 2-day delivery on Walmart for 40% growth

“We saw a 40% growth in gross merchandise volume after activating 2-day delivery.” – Victor Marozau

Before activating Walmart 2-day delivery, Pregmate had $300K of sales on the marketplace. Within 4 weeks of activating 2-day delivery on Walmart, Pregmate saw a 40% growth in sales.

Victor attributes their rapid success to “Availability of 2-day free shipping became one of the main factors in making a purchase decision by customers.”

The Deliverr advantage

According to Victor, their favorite part of working with Deliverr is our fast and simple integration and ease of use.

This ties in with our aim to make 2-day delivery easy and accessible to merchants, regardless of platform or size. With fast onboarding and a hassle-free experience, we hope you test out the power of 2-day delivery for your own sales and reach the annual run rate you’re aiming for.

Pregmate uses our GeekSeller integration.

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