Factors affecting Amazon ACOS, 3 Optimization Tips, Boost your Amazon sales and lower your advertising costs with ACOS, the game-changing solution for optimizing your advertising campaigns on the e-commerce giant.
Many novice sellers have listed new products on Amazon, but after a period of time they find that the conversion is not ideal. The uploaded A+ is not displayed on the front desk. They open a case and ask, they are told to reply by email, and then there is no news. Amazon customer service is sometimes very unprofessional. , I often ask a question and different customer service answers have different answers. Not only is it A+, but the main image looks very poor. I need to communicate with the artist and do it again.
This case triggered two other thoughts,
First, Amazon focuses on product selection. There is a product that can sell three or four orders a day, with a profit of $10 per order and an advertising fee of $2 a day. Isn’t this kind of product great? Since there is such a product in a small category, look at it. With so many categories, there are bound to be similar models, so you still have to choose multiple products.
Second, some products offer VINE. It doesn’t necessarily cost 200 US dollars to open 30 products. You can choose 10 VINEs for 75 US dollars, which is cheaper.
Amazon ACOS Formula
- ACOS=advertising expenditure/advertising sales,
- Advertising cost = cost per ad click x number of ad clicks,
- Advertising sales = customer unit price,
- Final ACOS = cost per ad click/customer price X conversion rate,
Therefore, the lower the numerator advertising cost (cost per ad click), the better. In order to reduce the cost per ad click, you must choose products with less competitiveness. The more ad clicks, the better. The core factors are the performance of the listing and the number of ratings. Main image with high praise rate and high click-through rate, competitive price, title, and attractive coupon and prime discount settings.
The higher the denominator advertising sales (customer unit price Of course）the higher the unit price is not the better, it also depends on customer acceptance and market pricing.
So how do you determine the appropriate market price on Amazon?
1. Search keywords on the Amazon buyer homepage and look at the prices of similar models on the first 3 pages.
2. Check the prices of similar models of related products on the product details page of each competing product.
Remember, it is the price of similar models. For example, if you sell an 8-piece set, look at the price of the 8-piece set.
The conversion rate in the denominator is also based on the performance of the listing.
So let’s make a summary. The key factors that affect Amazon’s ACOS are: products with low competitiveness, unit price acceptable to customers, and good listing performance.
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