Why does ACoS remain high for a long time?
The full name of ACoS is Advertising Cost of Sale, which is the cost of advertising and a percentage of direct sales from advertising. A low ACoS value represents small advertising investment, and high sales, correspondingly better advertising effect. ACoS is a key metric to measure the performance of advertising inputs in the Amazon marketplace.
Why does ACoS remain high for a long time?
1, high price
Since the advertisement has exposure and clicks, but it is not converted, the first reason may be that the price is not competitive, others and you similar products sell much lower than you, how can you prompt buyers to order?
At this point, some sellers will say that my selling price is almost out of profit, how can they still say that my price is too high? Is it possible to sell at a loss? I certainly do not recommend selling at a loss. Any business must be for profit, otherwise it will be a bully. There is a reason here, as long as you go to investigate, you know why others sell lower and profit than you, think for yourself, believe there is an answer, and then communicate with the factory, either change suppliers or change product materials or increase quantity to get better purchase price.
2, the page has no reviews or the home page has a bad review
Most buyers dare not purchase a product without a review because they do not know how the product looks exactly. This is the same mentality as when we shop on Taobao and JD.com. In the same way, with a negative review in hand, the buyer sees the negative review as soon as he comes in. How do you make the customer feel?
3, the product description is too bad
The buyer clicks into your details page through your advertisement, indicating that your picture is OK, but after entering, you find that your description is not ideal, which simply disappoints your beautiful and attractive main picture. Seeing this, the buyer does not want to continue purchasing.
[Amazon AcoS Computing Example]:
产品 A Campaign · 每单位收入:$50 · 支出:$10 ÷ 销售单位 2 = CPA:$5 · 支出:$10 ÷ 销售收入 $100 = ACoS: 10%。
In other words: You exchanged $1 in advertising costs for $10 in sales Product B Campaign · Revenue per unit: $10 · Spend: $10 ÷ Units sold 2 = CPA: $5 · Spend: $10 ÷ Sales Revenue $20 = ACoS: 50% In other words: you exchanged $1 in advertising costs for $2 in sales.
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