What is a reasonable acos for new products on Amazon? How to optimize it?

When opening a store on Amazon, you must pay attention to the new products you have just launched. If you do it well, it is easy to cultivate a hot product for your store, so you must pay special attention to various data. What is a reasonable acos for new products on Amazon?

What is a reasonable acos for new products on Amazon?

1. Amazon in-site advertising refers to a performance advertising that obtains traffic exposure. ACoS is a very common concept in Amazon advertising. Its full English name is Advertising Cost of Sale, which refers to the ratio of Amazon in-site advertising expenses to sales revenue.

The specific calculation formula is as follows:

Advertising Cost of Sales (ACoS) = total ad spend/total sales

= (number of clicks*click bid)/(number of advertising orders*unit price P) = C*B/O*P

The smaller the ACoS value, the better the benefit of advertising investment.

2. Many people may ask, what is a reasonable ACoS? In fact, there is no unified measurement standard for the reasonable ACoS value depending on the product, industry, and purpose of the launch.

Assuming that the purpose of the seller's advertising is to promote product sales and improve the product's natural search ranking, then the ACoS only needs to break even. If it is for the promotion of new products, you can set a higher ACoS first. For mature products, the advertising will definitely not be effective if the ACoS is high.

According to foreign data statistics, the average Amazon ACoS is 30%, while a better ACoS should be between 15-20%.

3. If your ACoS is high, it may be due to inaccurate keywords, low conversion rate, lack of product diversity, etc. You can consider lowering your ACoS from the following four aspects.

4. Optimize keywords. When choosing keywords, try to consider the user's usage scenarios or search habits. You can use different keywords for multiple products to conduct short-term tests and quickly screen out high-conversion keywords. You can also use Amazon word selection tools such as Sonar to select keywords and embed them into product descriptions. Remember not to pile up keywords.

Optimize product descriptions. Amazon makes recommendations based on product information, so make sure your products meet the user's search requirements as much as possible. The more relevant the product, the higher the conversion rate.

5. Optimize product titles. The title determines the user's first impression. It must contain the most core keywords and provide relevant words as much as possible, such as product color, style, material, size, etc. The more relevant the title is, the more traffic it can attract.

Determine the right price. It is wrong to advertise too high or too low. The correct pricing method is:

Bid = (average order value * conversion rate) / (1 / target ACoS)

In fact, the smaller the Amazon acos value, the better the benefit of advertising investment, so everyone needs to find a way to lower their acos value. The calculation method of Amazon acos is also introduced to everyone, which is actually very simple.

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