Protein Powder Amazon FBA Brand Deep-Dive: 3 Easy Wins For 30% Growth

In this issue of the Amazon FBA deep-dive, we are analyzing an 8-year-old supplement brand, TGS Nutrition. This brand has a dominant position in the very competitive supplement niche.

It is well positioned currently but there are multiple easy wins to propel growth to the next level.

The estimated monthly revenue for this brand is $52,000. With the easy wins, we envision it can be increased by 30% equating to $67,600/mo.

This is what we cover in this deep dive:

  • Business Summary
  • Highlights
  • Setbacks
  • 3 Easy Wins to increase revenue
  • What is the exit valuation of this brand?
  • Actionable takeaways

Let’s get into it!

TGS Nutrition Brand Overview

TGS Nutrition was first established in 2015 with its unflavored whey protein powder offering. They offer 2 sizes (2 lb and 5 lb) and have seen steady revenue in the 40K-50K/month range from this core product over the past couple of years. However, despite strong positioning, they have not been able to increase revenue past this threshold.

✅ Highlights

  • Core product has a 4.6 star rating and 3,100 reviews
  • Simple to operate with 1 hero product and 2 additional listings

❌ Setbacks

  • High revenue concentration – if the main listing goes down, revenue will drop 95%
  • High competition niche – the supplement category has the highest CPCs and is rife with black hat tactics between sellers

3 Easy Wins To Grow TGS Nutrition By 30%

There are opportunities to significantly grow this brand. We break down the following easy wins:

  1. Change the main image to increase click through rate
  2. Add virtual bundles to cross sell other products
  3. Use advertising campaigns to increase organic ranking

Let’s get into it!

➡️ Win #1: Change main image

The supplement niche is where I go to find main image ideas. Because of how competitive this niche, sellers here use the latest techniques to stand out in search results.

In this niche, 3D product renderings are commonly combined with extra graphics that point out key features.

Look at the first 4 organic results for the term “unflavored whey protein powder” to see what I mean. Nearly every image has at least one of the following 3 elements: appearance of depth (shadows), highlighted nutrition facts, or a 3D product rendering.

Sellers should be utilizing all 3 to stand out.

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When we look at the main image for the TGS whey protein powder, we see multiple opportunities to improve and make it stand out more on the page.

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In this niche, changing the main image could increase traffic and revenue by 5-10% and increase the efficiency of the advertising strategy.

Takeaway: Take inspiration from the supplement niche if you need ideas for a main image. The best main images have an appearance of depth, point out key features, and differentiate themselves from others on the page.

➡️ Win #2: Create Virtual Bundles to increase Cross Selling

When a brand has a hero product, it should be used to help cross sell the other products in the catalog. Virtual Bundles appear on your Amazon listing and help customers purchase more of your products and increase your average order value.

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A good virtual bundle for this brand would be the protein powder (B00HBFZNAO) and the Vitamin D3 supplement (B09F5T8RVX). These items are already frequently bought together so a virtual bundle would make sense and increase overall sales.

Takeaway: Add virtual bundles to increase sales of similar products and take up more space on your Amazon listing. Virtual Bundles can increase revenue by between 5-10% – more if they are included in your advertising strategy.

➡️ Win #3: Use advertising to increase organic ranking

On Amazon, your organic ranking is determined by the number of purchases and how well you convert on a given keyword. You can use specific advertising campaigns to drive purchases across a targeted keyword.

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I would target 2 keywords “unflavored whey protein powder” and “whey protein powder unflavored” in Exact Match in separate Amazon Ad campaigns.

CPCs in this niche are expensive so expect to pay $3-$5/click.

Run these campaigns for at least 2 weeks and monitor the organic ranking. As your organic ranking rises, overall sales will rise as well.

Takeaway: Use advertising against specific keywords to improve organic rank. The best results come from targeting keywords where your organic rank is position 5 – 20. Most of the traffic on Amazon goes to the top 4 products so breaking into this range can be highly lucrative.

In the past, I’ve seen ranking campaigns increase revenue up to 15-20%.

How Much Is this Amazon FBA Brand Worth?

With an estimated monthly revenue of $52,000, the annual revenue rate equates to $624,000. The reason the supplement niche is so competitive is because the margins are higher than normal. However, most of the time the increased margins are offset by more competitive advertising costs.

Assuming a net profit margin of 25% gives us an annual profit of $156,000.

The business does have a dominant position in one of the most competitive niches on Amazon. This commands a premium in the valuation.

Valuation: Given it’s positioning and category, this brand warrants a higher multiple than normal. At a 3.5 – 4x multiple, this brand is worth between $546,000 – $624,000.

3 Actionable Takeaways

Here are actionable takeaways that you can apply to your business today:

  1. Amazon is not a passive business. Constantly iterate on your main image and listing photos to stay ahead of competition.
  2. For brands with complementary products, virtual bundles are a simple way to increase cross-selling and your average order value.
  3. Advertising impacts your organic position on Amazon. Use advertising to target keywords where you’re ranked 5 – 20 and watch your organic rank increase as you spend more on ads.

David Holmes

Analyzed by David Holmes

David has acquired, grown, and exited 2 Amazon-based businesses for 6 figure sums. He has been in the Amazon space for over 6 years and has experience with Amazon print-on-demand and all manner of Amazon FBA businesses. He currently consults for multiple 7 figure brands while developing a new FBA brand of his own.