Pets Favorite·2024
TACoS From 16.8% to ~10% While Sales Grew +70% YoY: Pets Favorite's Profitable Scaling on Amazon
16.8%
TACoS (Before)
~10%
TACoS (After)
+70% YoY
Sales Growth
<30%
ACoS
~20% of total sales
Subscribe & Save
4 months (May to early Sept, Prime Day included)
Timeframe
Pets Favorite was already growing at +44.7% YoY when Adverio came in. The problem was that TACoS had breached the 13.5% guardrail and was sitting at 16.8%, meaning the faster the brand grew, the more margin it was bleeding. Over four months including Prime Day, Adverio cut TACoS to ~10%, kept ACoS below 30%, grew Subscribe & Save to roughly 20% of total sales, and pushed YoY growth to +70%.
Challenge
Fast revenue growth and rising ad costs were happening at the same time, which is a margin compression trap. TACoS at 16.8% on an accelerating revenue base means the dollar bleed widens every week. Buy Box gaps and stockouts were suppressing real conversion and creating false efficiency signals in the data. Prime Day was approaching, which had the potential to compound an already-inefficient base by 3 to 5x in a single week. And without a strong repeat-purchase base, every new dollar of revenue required buying a new customer, keeping TACoS structurally elevated.
Solution
Adverio installed governance before touching spend levels. Waste thresholds were reset immediately: underperforming search terms, targets, and product ads were pruned fast. Spend was constrained to segments that had already proven profitability. Buy Box gaps and inventory issues were escalated through account management so conversion constraints were removed before scaling resumed. Prime Day was handled with dayparting and real-time SOP resets rather than reactive budget increases. Subscribe & Save was expanded with coupon mechanics to build recurring revenue and reduce new-customer acquisition pressure. Only after the base was clean did Adverio layer in Sponsored Brands and Sponsored Display video to amplify proven winners.
Results
TACoS dropped from 16.8% to ~10% across four months. Sales grew +70% YoY. ACoS held below 30% throughout. Subscribe & Save reached approximately 20% of total sales, making the revenue base structurally stickier. Prime Day was absorbed without a margin spike. Every month showed TACoS compression alongside accelerating revenue growth.
Month-by-Month Progression
TACoS 16.8%, sales +44.7% YoY. Guardrail breached. Revenue growing but margin thinning. June: TACoS 14.5%, sales +45.9% YoY. Buy Box and inventory gaps addressed. July (Prime Day): TACoS ~12%, sales +58% YoY. System held through the event without runaway spend. August to early September: TACoS ~10%, sales +70% YoY. SB and SD video layered in only after efficiency base was clean. Every month moved in the right direction on both metrics simultaneously.
Project Details
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