9 proven ways to reduce ACOS on Amazon

What is ACOS - The advertising cost of sales is ad spend/ad sales x 100

Factors impacting ACOS.

1. CPC 

2. Conversion Rate

3. Average Order Value (AOV)

How to reduce the ACOS?

ACOS optimization consists of the following steps -

1. Measuring your current performance metrics - 

Optimization starts with meticulous tracking of all key metrics. You cannot improve something that you are not measuring. 

2. Re-arrange the campaign structure -

Each campaign should have one ad group & one ASIN ideally. Also, the keywords should be limited. You should avoid adding all the ASIN variations in a campaign. 

3. Consider rule-based bidding or dayparting - 

Your performance is not consistent throughout the day. There are times when your ads are the least converting. Implement dayparting to save on ACOS

4. Switch to a down-only bidding strategy - 

This strategy will help you get the CPC lower than or equal to your indicated bid.

Placement modifier can override & increase your bids

5. Focus on the bids

Identify those keywords/targets having ACOS higher than your desired ACOS, and reduce the bids on such keywords. 

6. Add negative targets

If any keyword/target is not converting at all or converting at a very high ACOS, consider negating such keywords/targets. 

7. Utilize Placement modifiers

Placement modifiers can help you control the ACOS considerably. They can override your bids & bidding strategy hence need to be used effectively. 

8. Create combos & virtual bundles

Create product combos, virtual bundles, packs of 2, or even higher. 

This will help you increase the average order value.

9. Work on listing optimization -

Listing optimization will help in increasing the conversion rate. Work on your product images, add usage & unboxing videos.

Optimize the title, bullet points & description to convert better. 

Add A+ content to every ASIN, this will help in conversion rate optimization. 

Reducing ACOS is not an overnight task. This is not easy as well however you need to work on campaign structure, keyword research, and bids management to get to the desired result. 

This could be a daunting task if everything is done manually. If you are a serious seller clocking 7 or 8-figure revenue, you need to consider tools such as Hector which will help you in effective data analytics, visualization & optimization. 

This will help you in saving precious time so that you can be on top of the game all the time. 

Happy selling. 

We all know the struggle: keeping that Advertising Cost of Sales (ACOS) nice and low. It's like the ultimate balancing act – spending enough to get those sales rolling, but not so much that you're losing money on every click.

How do we master this Amazon Ads magic trick? 

Here are 9 time-tested ways to slash your ACOS and boost your profits:

1. Check your stats – how much each click costs (CPC), how many clicks turn into sales (conversion rate), and how much people typically spend (average order value). These numbers are your secret sauce.

2. Clean up your campaign - Imagine an ad group with a bunch of random products – yikes!  For best results, keep it tight: one campaign, one ad group, one product.

3. Bid like a pro - Not all times of day are equal. Dayparting lets you adjust your bids for when people are more likely to buy. Think of it like a happy hour for your budget.

4. Slash those bad keywords - Some keywords just don't convert. Block them like a bad date, and watch your ACOS improve.

5. Switch to down-only bidding - This will help you get the CPC lower than or equal to your indicated bid. Placement modifier can override & increase your bids

6. Place your ads wisely - Placement modifiers are like magic controls for your ACOS. Use them to show your ads where they'll do the most good. They can override your bids & bidding strategy hence use them wisely. 

7. Bundle up for savings - Create irresistible deals like "buy 2, save more." This bumps up your average order value and keeps those sales rolling in.

8. Make your listings sale - High-quality pics, awesome videos, accurate titles, and clear descriptions are key. Don't forget A+ content – it's like adding glitter to your product info, and we all love glitter. 

9. Make the tech your best friend - Reducing ACOS can be a lot of work. Tools like Hector can analyze your data, spot trends, and help make adjustments faster. This frees you up to focus on what you do best – selling.

Remember, mastering ACOS takes practice. But with these tips and a little experimentation, you'll be an ad-crushing pro in no time.

Go ahead and conquer those Amazon sales goals.