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The 3 reasons why ACOS (Advertising Cost of Sale) is the most dangerous metric for Amazon ads.
A low ACOS means your ads are super productive, right? The strong connection between ad sales and organic sales makes the Amazon platform different from Google or Meta ads. You’re missing half of the equation if you’re only tracking Amazon sales from ads. Here are the 3 reasons why we don’t use ACOS to make decisions: #1. ACOS is easily manipulated: Would you have a stronger business if you slashed 90% of your sales to get to a 10% ACOS? Anyone can lower ACOS by sacrificing sales #2. Limits brand strategy: You can have an ACOS over 100% and still be very profitable. Don’t believe me. Look at supplement companies. #3 Fighting one-handed: Making decisions based on ACOS is like building your brand on Amazon with only one hand. Use everything you can to help your brand win on Amazon! Bonus reason: Your brand name is your most valuable long-term asset. If you have a strong brand then your ACOS should be very low for branded keywords. Instead of ACOS to make decisions, we look at TACOS (Total Advertised Cost of Sale). This takes into account both ad sales and organic sales on Amazon. TACOS gives me a much clearer picture of the total sales that our ads are generating to make smarter decisions. P.S. ROAS (Return on Ad Spend) on Amazon suffers from the same problems for decision-making as ACOS.
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Adjusting shipping costs
I'm having a problem identifying accurate shipping costs. I only have one product however it has 4 variations (3 pack, 5 pack, 10 pack and 100 pack). Amazon has asked me to identify my shipping costs however those costs change of course depending upon where my product is being shipped and what "pack" the customer orders. Can I have Amazon estimate the shipping costs for the locations my product is being mailed to and have them charge the customer that amount? When I "set" a shipping costs, I end up losing money on shipping as the shipping costs are higher than what Amazon will allow me to charge. For example: an order comes in for one of my 3-pack's of bucket spacers and the order is to be mailed to Mississippi. I have my shipping costs set to $4.92 for a 3-pack however, the cost to mail one of my 3-packs to Mississippi is $5.27. The customer is only charged $4.92 so I end up eating the difference. When I try to manually adjust my shipping costs, Amazon tells me that it's too high?
Big Upgrade!
Hi everyone, I've made some big upgrades to this group and we have a bunch of new members! I'll have more big upgrades to announce in the next few weeks so stay tuned. In the meantime, if you are looking for expert advice on how your biggest problems on Amazon right now. Post them in the group, we'll jump in to help. P.S Want free personalize coaching to solve your problems on Amazon? Come to one of our weekly coaching sessions! You can find more details in the calendar tab.
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Trouble indexing misspellings and brand name errors
I put my search term words as a string for backend keywords. They aren't indexing
Some phrases not indexing in bullet points
For my footrest product, I can't get the phrases "gaming laptop accessories" or "gamer gifts for men" to index. Are they too vague for my product? "Gaming equipment" got indexed. Thanks
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