How to optimize ACOS for Amazon ads

How to optimize ACOS for Amazon ads
Photo by Sergey Shmidt / Unsplash

Almost all Amazon sellers judge the success of an AD campaign using ACOS (AD cost to sell ratio), which is a direct measure of AD profitability - the lower the ACOS, the lower the cost of driving AD sales; The higher the ACOS, the more expensive it is to drive AD sales.

Learning how to optimize ACOS efficiently is critical to managing AD delivery. We have compiled the following dry goods content, divided into 4 cases to help you understand the optimization direction of ACOS.

High ACOS + high conversion rate
In this case, high ACOS may be due to high advertising spending. It is suggested that the seller can slowly reduce the bidding without affecting the advertising ranking;

High ACOS + low conversion rate
The low conversion rate needs to be addressed first. To improve the conversion rate, you need to play more accurate words, accurate matching, etc.;

Low ACOS + high conversion rate
In this case, optimization countermeasures can be considered from the following two aspects:
(1) If the ranking is high, there is no need to adjust the bidding
(2) If the ranking is not high, the bidding can be slowly improved, the ranking can be improved, and the word can bring more traffic and conversion;

Low ACOS + low conversion rate
This situation appears more in high customer unit price products. The first task is to improve the conversion rate and optimize the factors that affect the conversion rate.

Seller friends can analyze and optimize countermeasures according to the above four categories according to their own situation.