What is Amazon ACoS?
AСOS represents Advertising Cost of Sales, so ‘Amazon ACOS’ is Amazon Advertising Cost of Sales. It’s determined by dividing the money you spend on clicks from Amazon ads, by the measure of sales those clicks got.
Prior to jumping into the actionable strides for lowering Amazon ACOS, I need to momentarily discuss when you would prefer not to lower this metric, as this subject is only occasionally talked about by Amazon’s community of sellers.
When a high Amazon ACOS doesn’t matter
An Amazon seller is selling Scratchable World Maps. You know, the ones where you scratch off a nation in the wake of visiting it, revealing the word. This product is a very seasonal one. Indeed, it just sells well during present giving occasions like Christmas. This implies it’s truly important to move toward this hot period too set up as conceivable comparable to stock and Amazon Best Sellers Rank.
The strategy we effectively applied to this product was this: running Amazon Sponsored Product PPC at a misfortune for the low season.
Truly, more often than not, ads are there just to generate you additional item sales, and keeping Amazon ACOS low is an ideal business goal. Be that as it may, If you are attempting another item, making another PPC campaign, or you’re basically heating up preceding the high season, you ought to reexamine this reasoning.
Running PPC at a high Amazon ACOS over a 3 a month period of time (ordinary response time for new Best Sellers Ranking to settle) can demonstrate gainful to your general sales over the long haul. Both your PPC and Organic sales can more than cover for the misfortune in the forthcoming season
How to lower your Amazon ACOS
The way to success with Amazon promotions is to get them near or below the break-even point, if conceivable. Numerous sellers use advertisements to assist them with getting reviews or improve their best sellers rank. It’s not just about profitability.
1. Prioritize your best SKUs
A fast method to optimize your Amazon ACOS for a product with numerous variations is just advertise the top of the line one. The additional sales produced using advertising the popular one will regularly make up for a drop in sales of less popular variations.
On the off chance that this could be pertinent to you, check this approach out and check whether it works for you.
2. Analyze the effectiveness of your current keywords
By keywords, I mean the keyword you’re utilizing, yet additionally contenders’ SKUs and categories where you’re running your PPC campaigns.
Each product on Amazon has a natural pool of relevant keywords. These are the search terms clients use to discover it on Amazon. A portion of these keywords are high volume search terms and others are more specific and smaller.
A few keywords may appear to be relevant, yet really aren’t at all . These will cost you a lot to promote and you won’t see great outcomes.
To comprehend which keywords are positive or negative, you need information. Loads of information. Your Bulk Download File and Search Term Report from Seller Central should both be your main wellspring of information to empower this optimization.
3. Pause keywords than overspend ad budget
You should pause these straight away. Regardless of whether they appear to be relevant, they are simply not cutting it for you. Possibly you will give them one more opportunity later on. Yet, at this moment – simply pause them. Bulk File is the best wellspring of data for these keywords.
4. Optimize keywords slightly over break even
These keywords, from earning back the original investment to >80% ACOS can possibly bring you sales at a sensible cost. Attempt the accompanying technique to calculate a coefficient which you can use to locate a decent offer breaking point for these keywords:
- Divide your actual ACOS by your desired ACOS for a particular keyword
- Next, you take your current bid for this keyword – and divide it by the coefficient
At last, discover keywords that presented to you no sales ,however had clicks. On the off chance that there were 15+ clicks and 0 sales for some random keyword you either were VERY unfortunate, or this is a helpless choice of keyword. Whatever the reason might be – you can manage it later. At this moment just put these keywords on a pause.
5. Double down on high performing keywords
Whenever you’ve managed ineffective keywords, you should address the high performing ones.
Have a go at increasing offers for keywords with a decent ACOS so they create more sales. This is finished utilizing the coefficient we determined before in the article.
This time, your coefficient will be under 1, so the new offer will be higher than your present one for these keywords. This ought to permit your ads to show higher in search results.
6. Don’t forget keywords without many impressions
Dissimilar to keywords that have heaps of impressions yet a low CTR, keywords with low impressions may even now end up being effective in the event that they had a higher bid.
Take a stab at giving them bids as high as your well-performing ones. Give them a possibility for up to 14 days. In the event that they actually show low impressions or low active clicking factor, at that point you can simply stop them. In any case, on the off chance that they begin indicating clicks and conversions; congrats, you’ve uncovered another little precious stone to your PPC collection!
