Amazon provides a wide range of data points to help vendors optimize their marketing strategies. While all marketing metrics can be informative in the right context, average cost of sale (ACoS) is one of the most important stats for Amazon vendors to track.
ACoS represents how much you spend on each sale. For example, spending $200 to generate $1,000 in sales would lead to an ACoS of 20%. Lower ACoS values indicate more efficient campaigns. In this article, we’ll cover five of the most effective ways for vendors to reduce their Amazon ACoS.
Every niche has certain top keywords, and the brands that appear in the first few results will perform significantly better than the rest. Identifying and optimizing for critical keywords is one of the most reliable ways to minimize your ACoS.
Amazon vendors can choose from numerous tools to streamline keyword research. Popular third-party keyword research tools such as Cerebro – Reverse ASIN research tool by Helium 10 can help lower your ACoS. You can start optimizing product pages to improve your search engine visibility once you’ve identified the top keywords.
Related: Amazon Keyword Targeting
Search engine optimization is important throughout each listing, but it’s particularly relevant for product titles. The title is the first thing buyers see when viewing your product, and it’s crucial to make a good first impression.
Strong bidding strategies are key to long-term success in Amazon advertising, but finding the perfect bid isn’t always straightforward. Paying too much for poor keywords can be inefficient. On the other hand, it’s sometimes better to outspend the competition for the most important keywords.
Related: Amazon Bidding Strategies
Just as targeting the top keywords will reduce your ACos, avoiding the worst keywords will have the same effect. Spending money on views that are unlikely to lead to sales will negatively impact any campaign.
You will need to identify negative keywords if you want to improve your ACoS. These keywords are common in a wide range of fields, and they’re heavily dependent on context.
If you’re listing iPhone cases, for example, you’ll want to avoid spending money on ads for searches that include “Samsung” or “Google.” Keyword research is incredibly useful in identifying both positive and negative keywords.
Related: Negative Keyword Targeting
Consistently auditing your own strategies will go a long way toward improving your ACoS, but you should also keep an eye on any competitors. Researching leaders in your field will help you identify their advantages and find ways to start making up ground.
There’s no shortcut to an amazing ACoS, but these strategies will help you identify inefficiencies and make the necessary adjustments.
Keep in mind that optimizing your ACoS is an ongoing process—consistent attention to detail is the best way to stay ahead of the competition.
Start your free trial of RevenueWize to see how you can improve your ACoS and become a better Amazon seller!