According to Jungle Scout, tools and home improvement categories are one of the most profitable industries on Amazon with 15% of sellers bringing in an over 21% margin. Over the next 10 years, this category is expected to capture 47% of the online market share as both buyers and sellers continue to shift towards ecommerce.
With such rapid growth and increasing competition, brands must refine their strategies to stay ahead. In this article, we collaborate with Spreetail channel experts to explore how brands can strengthen their presence, optimize advertising, and fine-tune content to drive success.
Nailing Your Listings
Tools and home improvement buyers are in a "needed-it-yesterday" category. Maybe the weather finally cooperates, and it's time to tackle that long-overdue backyard deck project. Or they return from vacation to discover an unexpected kitchen sink leak. Or the toilet just won’t stop running. Whatever the scenario, these shoppers are on a mission—they need the right product, fast, and they need to trust that it will get the job done.
That means your product listing must check all those boxes. But with consumers deciding whether to stay or leave within the first 19 seconds of landing on a page, capturing their attention and conveying your product’s value is no easy feat. This is where leveraging highly targeted keywords, detailed product information, and A+ content visuals come into play.
“When a customer searches on any platform, we want to ensure that when they type in something like, ‘cordless drill,’ that our listing pops up on page 1 or 2, not page 75. One way we can do that is ensure our written content has keywords and that our titles and bullets – everything – have search terms inside it. Just by making small adjustments, we’ve seen some of our brands generate impactful results including 15% sales lift, 10% traffic increases, and 16% jumps in bestseller ranking.” - Lance Correll, Director of Listing Operations
- Optimize Your Keywords for Searchability: Use a combination of primary, long-tail, and feature-driven keywords to align with customer search intent. Incorporate these strategically in product titles, bullet points, and descriptions to improve visibility and rankings.
- Craft Clear, Customer-Focused Product Descriptions: Address pain points, highlight key features with benefits, and make details easy to scan with bullet points. Focus on how your product solves specific problems and enhances the buyer’s experience.
- Enhance Visuals for Maximum Impact: Use high-resolution images, lifestyle photos, and A+ content like infographics and videos to display product features, scale, and real-world use. High-quality visuals build trust and drive conversions.
Pro Tip: We recommend images that are 1500px on the longest side and follow a specific order, including the main image, infographics, lifestyle, and product. You should use at least 6 images per listing that showcase different angles, use cases, and key features.
Promotional Strategy Blueprints
Online marketplaces have done an excellent job at establishing multiple promotional seasons that have shaped consumer purchasing behavior. But you don’t have to wait for these big marketplace events to offer deals or increase visibility with potential customers. Taking advantage of advertising opportunities, lightning deals, and seasonal timing gives your brand the best chance to show up in more places at the right time.
Seasonal Events
With roughly 150 potential events happening yearly for any given ecommerce marketplace, three big events are primed for the tools and home improvement space with Quarter 2 (April- June) being the busiest season for the category due to holidays such as Father’s Day or season trends like Spring Cleaning and Tax Returns.
Pro Tip: When running a promotion strategy around specific periods, brands should promote 1) right before your category goes into season and 2) as the season ends. This helps your brand be everywhere right when peak shopping starts while also providing an additional bump as purchases begin to slow.
Advertising
As shoppers scroll through an overwhelming number of options, well-placed sponsorship ads help brands cut through the noise and connect with high-intent buyers. This can be critical in competitive categories as brands that invest in ad campaigns can gain a significant advantage by guiding them from product discovery to purchase.
When it comes to tools and home improvement categories, these are a few advertising strategies we recommend:
- Amazon Sponsored Product Ads: Since many customers begin their search for tools and home improvement products on Amazon, Sponsored Product Ads ensure that your listings appear at the top of search results. These ads target relevant keywords and drive high-intent shoppers directly to product pages.
- Google Shopping Ads: Home improvement shoppers frequently compare options before buying, making Google Shopping Ads a powerful way to display products with images, prices, and reviews. These ads appear when users search for specific items, making them highly effective for capturing purchase-ready customers.
- Retargeting Ads: Since home improvement purchases often involve research and comparison, retargeting ads ensure that shoppers who have previously viewed a product are reminded to complete their purchase.
“Advertising is a necessary part of your strategy because it keeps you in front of the customer and is the best way to make sure you're showing up several times in those search result pages.” - Keeliegh Marr, Channels Team Manager
Pricing and Deals
Consumers who are on the fence about your product or don’t need it in a hurry will let an item marinate in their cart until a later date. Studies show that 70% of shoppers abandon their carts, causing ecommerce stores to lose $18 billion in annual sales revenue. That’s a dangerous place to be as it gives competitors a chance to pounce, and your customer may never make the purchase.
This is where pricing and promotional deals can help entice your buyer to move a little faster and with a bit more urgency. When people feel like they’re getting a deal, or they have limited time to score a discount, they will make purchasing decisions quicker.
Trade Secrets: The Home Depot and Lowe’s
While Amazon and other ecommerce platforms continue to gain traction in the tools and home improvement categories, traditional retailers like The Home Depot and Lowe’s remain essential for brands looking to succeed. With 55% of The Home Depot’s and 60% of Lowe’s online orders being fulfilled through in-store pickup, it’s clear that customers want and expect a seamless omni-channel experience. A strong brick-and-mortar presence still plays a critical role in the buying journey.
Pro Tip: We’ve found that new-to-market and lesser-known brands can excel quickly simply by selling on these world-renowned channels. Taking advantage of retailer influence is one way to build brand equity.
For brands looking to grow a relationship with these two channels, there are a few tips we recommend keeping in mind.
- Margin Driven: Category managers are held to specific margin requirements. Meaning no margin, no deal. Despite operating from a dropship model and the minimal risk associated with it, maintaining the margin their portfolio requires is critical.
- Less Pricing Flexibility: If you’re used to Amazon’s frequent pricing changes, you won't find the same flexibility at The Home Depot and Lowe’s. Updating your costs can take up to 90 days.
- Differences in Promotions: While they aren’t typically one- or two-day quick promotional lifts like Amazon tends to run, The Home Depot’s promotions typically last a full month. Two big ones for the tools and home improvement categories are Spring Black Friday and Spring Fest. The advantage of these running across an entire month is the strong halo effect that accompanies them and the great return on items that are not in the promotions.
“The Home Depot and Lowe’s take a highly selective approach to their product offerings, ensuring that every item aligns with customer needs and expectations. Their commitment to quality and performance has helped them build lasting trust with shoppers. By curating a refined selection of products both in-store and online, they maintain a seamless shopping experience—offering only the items they confidently stand behind.” - Tina Stambolis, Channels Marketplace Director
The tools and home improvement categories are experiencing a significant shift toward ecommerce, with online sales now making up nearly 29% of all home improvement purchases. This upward trend has been growing steadily over the past two years, proving that ecommerce is no longer just for small, lightweight products. Even large, bulky, and traditionally hard-to-ship items are finding success beyond brick-and-mortar stores. The real opportunity lies in capitalizing on this demand—and tools and home improvement are just the beginning.
Digital Marketer
