What's a Good ACOS for Amazon Seller Central? Advertising Cost of Spend. Break Even Ads Produce SEO

TL;DR

Successful Amazon advertising doesn't have to be profitable, focus on breaking even to increase organic sales.

Transcript

what's a good advertising cost of spend for your advertising on Amazon we'll cover that question today my name is Steven Pope and I'm the founder of my Amazon guy so this question comes up a lot probably with almost every single client that we work with where we have a friction and it's a good healthy friction between a growth strategy where you're... Read More

Key Insights

• 🫠 Balancing ad spend and profitability is essential for success on Amazon.
• 🧑‍🦽 Tools like SELEX can provide valuable insights into net profitability, but manual efforts may yield better results.
• 🥺 Break-even advertising can lead to increased organic sales and improved business rankings.
• ❓ Industry standard ACOS varies by category, highlighting the importance of understanding competitive benchmarks.
• 🥺 Prioritizing all products in advertising efforts can lead to overall portfolio growth and profitability.
• 💐 Overcoming stock out issues and optimizing listings can boost sales, even for lower-performing products.
• 🐢 Continuous advertising, even during slow sales periods, is crucial for maintaining momentum and organic traction.

Questions & Answers

Q: Why is finding the right balance between ad spend and profitability important on Amazon?

Finding this balance is crucial because it determines whether you prioritize growth through increased traffic or profitability on each item, ultimately impacting your overall business success.

Q: How can tools like SELEX help in understanding net profitability on Amazon?

SELEX provides insights into FBA fees, Amazon fees, unit costs, and advertising margins to help sellers make informed decisions on their advertising strategies and profitability goals.

Q: Is break-even advertising a successful strategy on Amazon?

Yes, breaking even on ads can lead to increased organic sales, higher keyword rankings, and improved SEO, contributing to overall business success and growth.

Q: Why is it essential to advertise all products on Amazon, even if they are not top sellers?

Advertising all products, even weaker ones, at a break-even status can help elevate their performance and potentially turn them into best sellers over time, boosting overall sales and profitability.

Summary & Key Takeaways

• Finding the balance between ad spend and profitability is crucial on Amazon.

• Tools like SELEX can assist in determining net profitability, but manual efforts may be more effective.

• Break-even advertising can lead to increased organic sales and overall business growth.