Too much advertising money and too few orders are all due to product page optimization and low ASIN conversion rates, which lead to poor advertising results. As the quality of your listings gets higher and higher, you will spend less money on advertising and get better results.
The better the conversion rate, the higher the placement. By constantly selecting keywords with good performance and optimizing listings, you can continuously improve the conversion rate and the performance of your ads will get better and better. Only good performance will continue to accumulate weight over time.
Why can’t Amazon spend its advertising budget?
1. All products are advertised
Although Amazon emphasizes high-quality operations, the reality is that there are still many sellers whose stores have dozens, hundreds or even thousands of products. Some sellers think that since there are so many products in the store, they should use CPC advertising on all of them to increase store exposure. Therefore, they set up advertisements for all products and then divide the budget equally among each product. In this way, every product is advertised, but the advertising budget for each product is limited. It is conceivable that the advertising effect is not ideal.
It is recommended that sellers give priority to advertising their key products when placing advertisements, concentrate their efforts on building key products, and put aside products that they have no time to take care of for the time being. After mastering CPC advertising skills, they will have the energy to slowly place advertisements for other products.
2. Only place manual ads
We all know that there are two ways of on-site advertising: automatic advertising and manual advertising. Many new sellers are worried that automatic advertising will bring invalid traffic, so they do not run automatic advertising, but only choose manual advertising, and all keyword selections are precise matches. On the surface, it seems that the advertising is accurately delivered, but it is easy to miss a lot of potential effective traffic.
3. No follow-up or optimization adjustments
Every investment in advertising first means capital expenditure. If you want advertising to add points to operations, the input-output ratio must be reasonable, so sellers need to continuously optimize and adjust the advertising during the advertising process. For ads that are currently in operation, sellers need to look at the ad data and select ad keywords based on what the data reports show. They should add what should be added and delete what should be deleted. They should also appropriately adjust the daily budgets of different ad plans based on conversion rates. Only by continuously optimizing ads can the effects of ads get closer to the desired level.
What is a reasonable advertising fee?
For example:
Price: $40
Cost (including shipping): $12
Amazon fee: $18
Profit: 40-12-18=$10
Suppose there is a product that sells for $40 USD. For each product sold, our cost and Amazon fees add up to $30 USD. The selling price minus the cost price will be our profit of $10 USD. If the selling price does not change at all, we can calculate that the break even of this product is $10 USD!
The maximum keyword advertising fee can be up to $10 without any loss. If the advertising expenses exceed this amount, we may lose money. From this, we apply the formula of Average Cost of Sales in Pay Per Click, which is profit $10 / selling price $40, and the ACoS is 25%. Of course, this is a relatively practical and simple estimation method, which is also related to the category. If you are in a popular category, you must not save money in order to secure an advertising spot.
Advertising Tips-Frequently Asked Questions:
How to raise prices? There are two approaches to raising prices.
One is to raise the price until the order is placed. One is to raise the price to the point where you feel you can spend the money every day, and the product will also receive more clicks at this price every day, even though no orders are placed. Then stop raising prices. Only then can we analyze based on the data. Thinking the bid wasn't high enough? Not enough reviews? Think the product quality is bad? (Including pictures, titles, five points, and descriptions) If there is review content, are there not enough keywords related to the review content?
How do I bid for manual ads?
The most direct way is to just multiply the suggested price by 2. For example, if the suggested price is 0.15, you bid 0.3. If the suggested price is 0.9, you bid 1.8. This is the most foolproof and direct way. If there are impressions and clicks but no conversions, check the relevance to your product. If it is irrelevant or too large, you can remove it directly. If it is relatively relevant but no orders are generated, refer to the above item.
The above is the introduction about Amazon advertising. Advertising does not mean that the more you invest, the better the publicity effect will be. There are so many advertising resources, and not every one of them is suitable for your product. Many businesses think they can reap the benefits after placing advertisements. Without following up later, how do you know whether it is good or bad, and where the problem lies?
