What should I do if Amazon ACOS is getting higher and higher? How can I reduce it?

After opening a store on Amazon, merchants will definitely check their store data every day. Based on the data, they can analyze the actual development of their store. What should they do if Amazon ACOS is getting higher and higher?

What to do if Amazon ACOS is getting higher and higher?

Many sellers' Amazon ACOS is even higher than 100%, which means that advertising can't make any profit at all and is in a loss-making state. If they are in this state, then most of the non-advertising sales are also in a loss-making state. In fact, the conversion rate of natural ranking and the conversion rate of advertising are not independent of each other. How can products with poor sales in Amazon advertising sell well in natural ranking? Therefore, we urgently need to achieve better results in the conversion rate of advertising, so as to drive the conversion of natural ranking and natural search. You must know that on the Amazon platform, the better the product performs, the better the platform will let you sell, and the poorly performing products will constantly force you to withdraw from the store.

We can try to reduce Amazon ACOS in several ways:

1. Optimize advertising bidding

Properly adjusting the bidding price for advertising is a common method to control advertising performance. Starting from CPC (cost per click), sellers can screen out keywords that can bring high conversion and low conversion through analysis of advertising, filter out invalid ad clicks, and adjust the objects of advertising in a targeted manner. Sellers also need to ensure that there is more supply inventory for products corresponding to high-conversion keywords. If high conversion rates lead to an increase in orders but sales are affected due to insufficient inventory, it will not be worth the loss.

2. Adjust product prices.

The adjustment of product prices mentioned here does not mean an endless price war, which will only result in losses for both sides. The adjustment of product prices is not simply raising or lowering prices, but making buyers aware of the value in a targeted manner. For example, the value of the product can be rendered (material upgrades, function upgrades, production process upgrades, etc.); if there are sellers with brand records, the design of the brand flagship store can make consumers who enter the flagship store have a stronger desire to browse and buy more goods, thereby increasing the chance of joint sales; coupons and discount coupons can be used to stimulate buyers' consumption; and bundled sales can be used to increase product prices in disguise.

3. Optimize product listings.

As we mentioned in the previous article, poorly made listings will directly lead to customer loss. Buyers cannot touch the physical product. If you don’t work hard on the product description, the conversion rate can be imagined. So how can we optimize listings on Amazon to reduce our ACOS? We can improve buyers’ desire to buy and thus increase conversion rates by optimizing product titles, streamlining and refining the details page, displaying product images in high definition, and enriching product specifications and dimensions as much as possible.

Amazon's ACOS is getting higher and higher, even higher than 100%. This means that there is no way to make a profit from advertising and you will always be in a state of loss. Therefore, you must find a way to lower Amazon's ACOS.

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