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Controlling ACoS while Selling in Supplement Category

Controlling ACoS while Selling in Supplement Category

Will32
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Controlling ACoS while Selling in Supplement Category

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  1. Controlling ACoS while selling in supplement category

  2. Follow these easy 9 steps… Break-even ACOS=( COGS / Selling Price)×100 1. Know your break-even ACoS. In this simplified formula: Break-even ACOS = COGS is your Cost of Goods Sold. (Advertising Spend / Break-even Revenue per Sale)×100 Selling Price is the price at which you sell your product. The break-even ACOS is the ACOS at which your advertising spend is equal to the profit generated from the sales. This formula assumes that all other costs are covered in the COGS and that your desired profit margin is 0%. It provides a quick estimate of the maximum ACOS you can afford without incurring a loss.

  3. Follow these easy 9 steps… 2. Capitalize on your best SKUs 3. Set a higher campaign budget and start controlling spend with lower bids Recognize which SKUs from your catalog are top performers and bring in the most sales and profit. Advertising all variations under one parent might help you take over more ad placements in search results, but it is only sometimes the most profitable. Capitalize on best-selling SKUs and advertise on them. Start campaigns with higher budgets and with lower bids. Amazon will take this as you are ready to spend on your product and push it in front of customers. With lower bids, you might not always win top of search placements, but sometimes, being lower in the search results may lead to customers with higher intent to buy.

  4. Follow these easy 9 steps… 4. Analyze the effectiveness of your current targets 5. Pause targets that overspend but bring no sales Have different match types separated in different ad groups - keyword and product match types work differently, and it is easier to see the difference and impact of each match type if you separate them. Analyze the performance of your targets and try to recognize targets that bring in sales - those will be your stars leading to sales with low ACoS. While analyzing the bulk file, pay attention to targets bringing your profits down. Consider pausing targets with a lot of clicks that are not generating sales. There might be a time in the future when they will perform better, but if they are only increasing spend while you are trying to keep ACoS under control, consider pausing them.

  5. Follow these easy 9 steps… 7. Optimizing targets over break-even Don't shut down all targets above break-even ACoS. It could be a bad week. Always keep testing. Sort your targets into different brackets. For those only slightly above break-even ACoS, 10% or 20% above, depending on your profit flexibility - set bids just below CPCs for a couple of cents. Come back next week, and if performance doesn't improve, continue decreasing or consider pausing. On others that are way higher than break-even ACoS, set bids even lower than that first bracket of targets. And come back next week to check it. Repeat. 6. Utilize negative match Take time, at least once a month, to analyze search terms in your discovery campaigns - with automatic targeting, broad and phrase match, and expanded product targeting. Negate everything that gets lots of clicks but no sales. Those will drive spending up, as will your ACoS in the last instance. An easy way to do so can be to schedule a Search term report to regularly pop up in your inbox directly from your advertising console for both Sponsored Products and Sponsored Brands.

  6. Follow these easy 9 steps… 9. Adjust bids by placements to your advantage 8. Bet on high-performing targets At last, remember to adjust your bids by placements. Amazon recently introduced the option to adjust bids for the rest of the search placements inside the advertising console. Different placements work differently across various campaigns and targets; take notice to analyze it. You can do so in that bulk file you downloaded in step 4 or inside campaigns in the advertising console. Take advantage of your star targets, those mentioned in step 4. Keep bidding above CPC to ensure you win ad placements on targets with the most ad sales. But don't go too crazy. Find the sweet spot. If you bid too high, your spending will increase, but you will get the same sales. Increase it gradually in search of that sweet spot.

  7. Unpopular opinion: When high ACoS doesn't matter Know your product and your audience. If you have a seasonal product, keeping your spending at a certain level is beneficial to save listings and BSR by keeping traffic live on them, usually at higher ACoS. However, protecting your BSR in the low season will lead to higher profits during the busier season and pay out your earnings loss.

  8. Questions, comments, experiences?

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