Food & Beverage: Profitability Overhaul on Consumables
A 8 months engagement delivering measurable growth in the Food & Beverage category.
Category
Food & Beverage (Snacks)
Marketplace
Amazon US
Starting Point
Subscribe & Save attach <8%
Engagement
7 Months
Measurable business impact
Subscription Attach
TACoS
Repeat Revenue
Contribution Margin
What we were solving for
Subscribe & Save flywheel wasn't spinning: high acquisition costs on Sponsored Products and thin food-margin unit economics were compounding into three specific problems.
Thin Margins, High CPCs
22% TACoS was consuming nearly all of the category's already-thin unit economics.
No Repeat-Purchase Engine
Subscribe & Save attach sat under 8%, so most customers churned after a single order.
Flat Order Value
Single-SKU purchases dominated, with no bundling or cross-sell strategy to lift AOV.
How we built the outcome
Diagnose
Weeks 1–3- SKU-level contribution-margin analysis to find which products could actually support paid acquisition
- Subscribe & Save enrollment flow audited for friction points losing signups
Rebuild
Weeks 4–10- Advertising repositioned toward Subscribe & Save conversion, not just first-unit sale
- Bundle strategy launched across the top 6 SKUs to lift average order value
- Coupon strategy timed to inventory cycles to move aging stock profitably
Compound
Months 3–7- Repeat-purchase remarketing layered on top of the new subscription base
- Budget shifted toward SKUs with proven subscription attach
- Promo calendar rebuilt around replenishment cycles instead of one-off discounting
The tactics behind the numbers
Contribution-Margin Modeling
SKU-level margin math built before any spend decision, not after.
Subscribe & Save Optimization
Enrollment friction removed and messaging rebuilt around the subscription offer.
Bundle Strategy
Top SKUs bundled to lift AOV without discounting the core product.
Inventory-Timed Promotions
Coupon calendar synced to replenishment cycles to move stock at the right margin.
Cross-Sell Placements
Complementary SKUs surfaced at the moments buyers were most likely to add on.
Repeat-Purchase Remarketing
Retargeting built around the second and third order, not just the first.
“We'd been optimizing for the sale. Once we started optimizing for the second and third order, the whole P&L changed.”
Head of Ecommerce, Food & Beverage Brand
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