Essential tips for lowering your Amazon ACoS

If you’re looking to lower your Amazon ACoS, these three tips can help:

1. Add negative keywords

Negative keywords can help your business immediately reduce your ACoS by preventing Amazon from bidding on useless keywords. For example, if your company sells red flats for women, you don’t want Amazon bidding on keywords that include colors other than red.

Browse your campaign data and look for unnecessary keywords.

You can also check different keyword metrics, like click-through rate (CTR), to find keywords that may not work well for your product, even though they seem relevant. Generally, if a keyword receives 15 clicks, but zero orders, it’s probably worth using as a negative keyword.

2. Use exact match keywords

The exact match keyword targeting option can also help your business reduce your Amazon ACoS.

With this keyword targeting option, you tell Amazon to only bid on this keyword versus variations of that keyword. For example, if you targeted, “red womens flats,” Amazon would not bid on similar keywords like, “red womens flats size 8,” which is useful if you don’t have that size currently in-stock.

You can find keywords worth targeting as exact match by browsing your ad reports. Look at the performance of different keywords. How many impressions, clicks, and sales do they have compared to other keywords?

Once you determine which keywords deliver the best return on investment (ROI), create dedicated campaigns for them. Moving these keywords into a separate campaign (and removing them from your existing one) allows you to refine your ad strategy and deliver more targeted ads.

3. Take a proactive approach to bid management

Routinely checking and managing your bids can help your business optimize your ad spend and reduce your Advertising Cost of Sale. That’s because you can respond to fluctuations, like low sales for out-of-season products or high sales during peak shopping seasons.

For example, if sales decrease for seasonal products, your business can decrease your bids. People aren’t buying the product (as expected), so why overspend to earn a sale? Save your ad spend for the peak season instead.

In comparison, if you have a high number of sales from advertising, it makes sense for your business to take a more aggressive bidding approach. With this approach, your company’s ads can earn more impressions and more chances to convert shoppers.

Either way, a proactive bidding strategy can help maximize your ROI and lower your ACoS.

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