饾棓) 饾棯饾椀饾棶饾榿 饾椂饾榾 饾棓饾椇饾棶饾槆饾椉饾椈 饾棓饾棖饾棦饾棪?

A小OS stands for Advertising Cost of Sales. It is calculated by dividing the money you spend on clicks from Amazon ads, by the number of sales generated through those clicks. Before diving into the practical steps for lowering Amazon ACOS, I want to briefly talk about when you don鈥檛 want to lower this metric, as this subject is rarely discussed by Amazon鈥檚 community of sellers.

饾棔) 饾棯饾椀饾棽饾椈 饾棶 饾棝饾椂饾棿饾椀 饾棓饾椇饾棶饾槆饾椉饾椈 饾棓饾棖饾棦饾棪 饾棗饾椉饾棽饾榾饾椈鈥欚潣 饾棤饾棶饾榿饾榿饾棽饾椏?

Let鈥檚 start with an example to explain a situation where high ACOS Amazon sales aren鈥檛 necessarily a bad thing. An Amazon seller is selling Scratchable World Maps. You know, the ones where you scratch off a country after visiting it, uncovering the word. This product is a quite seasonal one.

In fact, it only sells well during gift-giving occasions like Christmas. This means it鈥檚 really important to approach this hot period as well prepared as possible in relation to inventory and Amazon Best Sellers Rank. The strategy we successfully applied to this product was this: running Amazon Sponsored Product PPC at a loss for the low season.

Their seasonal ACOS looked like this:Low-season: 50-70%High-season: 15-25%Break-even: about 35%9 out of 12 months are low season. And still, resultant high-season sales are covering the losses five-fold. This is due to the SKUs being top of the Amazon Best Sellers Rank at the right time. The example above demonstrates that it鈥檚 important to be thoughtful about your overall objectives for your PPC sales.

Yes, most of the time, ads are there just to generate extra product sales, and keeping Amazon ACOS low is a perfect business goal. However, If you are trying a new product, creating a new PPC campaign, or you鈥檙e simply warming up prior to the high season, you should reconsider this thinking.

Running PPC at a high Amazon ACOS over a 3-4 weeks period of time (typical reaction time for new Best Sellers Ranking to settle) can prove beneficial to your overall sales in the long run. Both your PPC and Organic sales can more than cover the loss in the upcoming season. Okay, so we鈥檝e discussed the scenarios in which a high Amazon ACOS is acceptable, or even beneficial. Now let鈥檚 take a look at how to achieve low ACOS Amazon sales

饾棖) 饾棝饾椉饾槃 饾榿饾椉 饾棢饾椉饾槃饾棽饾椏 饾槅饾椉饾槀饾椏 饾棓饾椇饾棶饾槆饾椉饾椈 饾棓饾棖饾棦饾棪?

The key to success with Amazon ads is to get them close or below the break-even point, if possible. Many sellers use ads to help them get more reviews or improve their Best Sellers Rank. It鈥檚 not just about profitability. With that in mind, let鈥檚 jump into the six ways by which you can really lower your Amazon ACOS.

1. 饾檵饾櫑饾櫈饾櫎饾櫑饾櫈饾櫓饾櫈饾櫙饾櫄 饾櫘饾櫎饾櫔饾櫑 饾櫁饾櫄饾櫒饾櫓 饾檸饾檰饾檺饾櫒:

A quick way to optimize or reduce your Amazon ACOS for a product with many variations would be to only advertise the best-selling one. The extra sales made from advertising the popular one will often compensate for a drop in sales of less popular variations. If this way falls in your relevance, then you should at least give it a try.

2. 饾樇饾櫍饾櫀饾櫋饾櫘饾櫙饾櫄 饾櫓饾櫇饾櫄 饾櫄饾櫅饾櫅饾櫄饾櫂饾櫓饾櫈饾櫕饾櫄饾櫍饾櫄饾櫒饾櫒 饾櫎饾櫅 饾櫘饾櫎饾櫔饾櫑 饾櫂饾櫔饾櫑饾櫑饾櫄饾櫍饾櫓 饾櫊饾櫄饾櫘饾櫖饾櫎饾櫑饾櫃饾櫒:

By keywords, I mean not just the keyword you鈥檙e using, but also competitors鈥 SKUs and categories in which you鈥檙e running your PPC campaigns. Every product on Amazon has an inherent pool of relevant keywords. These are the search terms used by customers to find your product on Amazon.




Some of these keywords are high-volume search terms and others are more specific and short (these keywords help you in making more conversions). Some keywords might seem relevant but actually aren鈥檛 at all. These will cost you too much to advertise on and you won鈥檛 see good results.

To understand which keywords are good or bad, you need data. Lots of data. Your Bulk Download File and Search Term Report from Seller Central should both be your number one source of information to enable this optimization.

Download them for the longest period possible (after the last major changes in your Amazon PPC campaign, of course) and sort the data by ACOS.

3. 饾檵饾櫀饾櫔饾櫒饾櫄 饾櫊饾櫄饾櫘饾櫖饾櫎饾櫑饾櫃饾櫒 饾櫓饾櫇饾櫀饾櫍 饾櫎饾櫕饾櫄饾櫑饾櫒饾櫏饾櫄饾櫍饾櫃 饾櫀饾櫃 饾櫁饾櫔饾櫃饾櫆饾櫄饾櫓:

You will need to pause some keywords straight away. Even if they seem relevant, they are just not cutting it for you. Maybe you will give them another chance in the future. But as of now 鈥 just pause them.

4. 饾檴饾櫏饾櫓饾櫈饾櫌饾櫈饾櫙饾櫄 饾櫊饾櫄饾櫘饾櫖饾櫎饾櫑饾櫃饾櫒 饾櫒饾櫋饾櫈饾櫆饾櫇饾櫓饾櫋饾櫘 饾櫎饾櫕饾櫄饾櫑 饾櫁饾櫑饾櫄饾櫀饾櫊 饾櫄饾櫕饾櫄饾櫍:

These keywords, from break-even to >80% ACOS have the potential to bring you sales at a reasonable cost. Try the following method to calculate a coefficient that you can use to find a good bid limit for these keywords:

1. Divide your actual ACOS by your desired ACOS for a particular keyword. For example, if your actual Amazon ACOS is 65% and your desired ACOS is 25%: 65/25 = 2.6.

2. Next, you take your current bid for this keyword 鈥 and divide it by the coefficient (2.6 in our example).

3. Let鈥檚 say the bid was $3.70. So 3.7/2.6 = 1.42.

4. Ta-da! You should set your bid at $1.42 or lower.

This way you will retain some sales, but roughly at the desired ACOS. Again, use the Bulk file for this. Finally, find keywords that brought you no sales (i.e. have no Amazon ACOS), but had clicked.




If there were 15+ clicks and 0 sales for any given keyword you either were VERY unlucky, or this is a poor choice of keyword. Whatever the cause may be 鈥 you can deal with it later. Right now just put these keywords on a pause.

5. 饾樋饾櫎饾櫔饾櫁饾櫋饾櫄 饾櫃饾櫎饾櫖饾櫍 饾櫎饾櫍 饾櫇饾櫈饾櫆饾櫇 饾櫏饾櫄饾櫑饾櫅饾櫎饾櫑饾櫌饾櫈饾櫍饾櫆 饾櫊饾櫄饾櫘饾櫖饾櫎饾櫑饾櫃饾櫒:

Once you鈥檝e dealt with ineffective or irrelevant keywords, you should address the high-performing ones. Try increasing bids for keywords with a good ACOS so they generate more sales.

This is done using the coefficient we calculated earlier in the article. This time, your coefficient will be below 1, so the new bid will be higher than your current one for these keywords. This should allow your ads to show higher in search results.

6. 饾樋饾櫎饾櫍鈥欚潤 饾櫅饾櫎饾櫑饾櫆饾櫄饾櫓 饾櫊饾櫄饾櫘饾櫖饾櫎饾櫑饾櫃饾櫒 饾櫖饾櫈饾櫓饾櫇饾櫎饾櫔饾櫓 饾櫌饾櫀饾櫍饾櫘 饾櫈饾櫌饾櫏饾櫑饾櫄饾櫒饾櫒饾櫈饾櫎饾櫍饾櫒:

Unlike keywords that have lots of impressions but a low CTR, keywords with low impressions might still turn out to be effective if they had a higher bid. Try giving them bids as high as your well-performing ones.

Give them a chance for a week or two. If they still show low impressions or low click-through-rate then you can just pause them. But if they start showing clicks and conversions.

Congratulations, you鈥檝e mined another little diamond to your PPC collection!