In the business world of e-commerce, Amazon is arguably the king. With over 300 million users, it is the ideal online marketplace to showcase your products in front of a vast range of people. Selling online via Amazon is something that a lot of businesses do as a result. When done right, it can seriously boost the amount of sales and revenue you can generate digitally.
Of course, as with everything in life, it is not quite as simple as you might think. Simply slapping up any old listing on Amazon now will not cut the mustard. There are other key factors to learn about first, and a very important one is ACoS.
What is Amazon ACoS exactly?
To really maximize your sales on Amazon, ads are becoming ever more important. ACoS is a way to measure how successful your ads in Amazon are – this is ACoS explained in a nutshell. Standing for “Advertising Cost of Sale”, it is simply a metric provided by Amazon that shows your ROI for a campaign. A higher ACoS score means that you are paying more for advertising for each dollar made in sales.
How can you improve your ACoS score?
The good news is that it is entirely possible to improve your ACoS score if need be and bring it down. Here are a few simple was to go about it:
- Improve your keyword targeting – one common cause of a high ACoS is poor keyword targeting. This is usually done by using a keyword in your ads that is relevant enough for people to click on but not relevant enough for them to make a purchase. To fix this, check the data for which customer search terms generated clicks but not sales to exclude in future. You could also try using more exact match keywords to tighten up further.
- Misleading advertising – you may not have done this on purpose, but your ads or listings could contain information that makes people click on them, only for them to find that what is on offer is not quite what they thought it was. This will naturally lead to no sale, but you will still be charged for the click. Make sure that your listings are fully optimized and that your sales information is precise and accurate.
- Increase the sales price of low-ticket items – one cause of a high ACoS score can be that your CPC rate is unbalanced when compared to your sales price ratio. Even low-ticket items can be affected by this and soon see it hard to make a good ROI on the campaign. To fix this, the easiest thing is simply to increase the price at which you are selling these goods.
Getting to grips with your ACoS score is vital
To really get the best return you can on any investment into Amazon ad campaigns, keeping an eye on your ACoS is essential. If you find that yours is looking a bit high, then the above tips will give you some easy ways to sort it out. Once this is done, you will be on the right track to making the most of selling your products on Amazon.