What is Amazon ACoS?
Amazon ACoS refers to the key indicator used to measure the performance of users' advertising investment in the Amazon market, that is, the proportion of advertising expenditure to advertising sales.
Why is Amazon’s ACoS too high?
Amazon’s high ACOS is mainly affected by the following factors: low conversion, lack of diversity, existence of invalid words, and too many keywords.
(1) Waste of money caused by big words. For example: the product of sun glasses, because it is associated with the big word glasses, a large number of users may enter your store when searching for "glasses", but after entering, they find that it is sun glasses and close the page the next second. This huge volume has no meaning except affecting your data and consuming your funds.
(2) Diversity. A good product should fully understand user needs and consider the countless situations in which users search for products, such as: sunglasses - sun protection - UV protection - men - women - color - elderly - adults, etc.
(3) Invalid words. For keywords that perform poorly in the data, decisively reduce the budget, but do not stop the advertising directly. Campaigns are weighted. The longer they are open, the higher their score will be. When competing with other sellers, campaigns with high scores will receive equal exposure even if they are priced low.
(4) Too many keywords. The goal of diversity is to take into account the user's usage scenarios or search habits as much as possible, but it does not mean that a certain search habit matches too many keywords. At this point, screening becomes very important. We can use multiple products with different keywords to conduct short-term tests and quickly screen out high-conversion keywords.
How to Lower Amazon ACoS?
1. Price increase: Prices also have weights. Don’t raise prices blindly to lower Acos. You need to consider product prices, unit volume, and profits comprehensively. The price increase should not be too large each time. After about 2-3 weeks, you can basically determine a price that maximizes profits.
2. Optimize advertising: Create an effective advertising group, pay more attention to the key data such as exposure, clicks, and conversion rate in the report, optimize according to the specific situation, and find the core keywords.
3. Improve QS: The core of Amazon is conversion rate. The higher the QS score, the higher the conversion rate, and the higher the advertising weight (even if the single bid you give is not high, you will get a relatively high ranking). High conversion and low cost are the core of reducing Acos.
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