How this multi-channel clean home essentials brand is maximizing its profit on Amazon

The challenge

Grove Collaborative managed a diverse Amazon portfolio, but growth was not where it needed to be. The portfolio included mature owned brands and newly acquired brands such as 8Greens, each with different unit economics and performance trajectories. Grove wanted to improve ad efficiency and run Amazon as a sustainable profit engine.

Capline's financial assessment revealed that for about 40% of ASINs, advertising was actually eroding, rather than contributing to, profit on those products. Sponsored Products coverage was incomplete, keyword depth was limited, and Sponsored Display was underused, all of which pointed to both wasted spend and missed upside.

What Capline did

Capline began by focusing on advertising and pricing, where the fastest profit gains were available. The team:

• Re-architected campaigns toward a more granular, single-ASIN structure, enabling precise bidding and brand-specific strategies for Grove Co, Grab Green, and 8Greens.
• Launched the Capline methodology for selecting only profit-accretive promotions
• Layered in pricing optimization, using elasticity and cost data to identify targeted price changes on top-selling ASINs that could lift contribution profit without leading to sales decline.

All while keeping a close eye on listing health, account health and compliance issues to prevent any headwinds from limiting impact.

Results: 

Phase 1: Profit Maximization

To achieve the brand’s goals, the Capline system was active and set to profit maximization from day one.

Phase 1 Results

• Weekly Ad Sales: +15
• Weekly Ad CP: +194%

Phase 2: Sales Maximization

After working together for a few quarters, company financial objectives shifted and Grove Co wanted to shift to a growth oriented posture. The system pivoted quickly to achieve those goals.

"Capline delivers exactly what we look for in a partner: sharp people who treat our Amazon channel like their own business. Since partnering with them, we have seen a step-change in profitability across our portfolio. Several brands have seen dramatic improvements in contribution profit versus our pre-Capline baseline, with meaningful growth in both ad profit and sales. That impact shows up directly in our P&L."

- Senior Director of eCommerce