Want Lower ACoS? Here Are 5 Proven Strategies

It’s no secret that Amazon advertising is an incredibly competitive game. That’s why it is so important to ensure that you are doing everything you can to lower your ACoS. To make sure your campaigns are profitable, there are a few strategies that have been proven to achieve positive results. If you want to lower your ACoS in the coming year, here are five things that have worked for many Amazon sellers in 2021.

Analyzing Your Product Performance

Getting the most out of your advertising budgets on Amazon starts with understanding your product performance. You need to analyze how your product is performing to identify areas for improvement and to determine what actions you can take.

To get started, you’ll want to review the following metrics:

  • Conversion rate: This metric measures how well your ads are converting into sales. It’s calculated by dividing the total number of sales by the total number of clicks. The higher your conversion rate, the better you’re doing at getting people to buy after viewing your ad.
  • Cost per click (CPC): CPC is how much each click costs you when a shopper clicks on one of your ad placements. A higher CPC may mean that there’s more competition in that ad space or that shoppers aren’t as interested in clicking on ads for this particular product.
  • Return on ad spend (ROAS): ROAS measures the return you’re getting from each dollar spent on advertising, which is determined by dividing total revenue earned through ads by the amount spent on those ads. A high ROAS indicates that you’re getting a good return for every dollar spent on placement costs, while a low ROAS means there’s room for improvement in terms of ad performance and cost efficiency.

By regularly monitoring these metrics, you can stay informed about what’s working and what needs improvement so that you can make informed decisions about how to optimize your Amazon advertising campaigns and achieve lower ACoS numbers in 2023.

Optimizing Your Brand’s Advertising Campaigns

If you want to lower your ACoS, you need to be sure your Amazon Advertising campaigns are optimized. Don’t worry–with the right strategies and tactics, optimizing these campaigns can be simple. Here are five key strategies for optimizing your Amazon Advertising campaigns:

  • Start small with just your top keywords. Use a keyword research tool to discover which words and phrases are working best for you on high-converting products, then add them to your campaigns and monitor performance.
  • Eliminate low-performing ads. Measure performance, identify ads that aren’t delivering good returns and pause them from running.
  • Bid competitively but don’t overbid. Bidding too high will drive up ACoS, while bidding too low can keep you from showing up in search results. Find the sweet spot of competitively targeting relevant keywords without bidding too high.
    • Alternatively, use automated bid strategies that adjust bids based on real-time performance data. This can help ensure you’re paying the right price for ads while also eliminating underperformance due to manual bid settings being out of date or incorrect.
  • Test new creative regularly to ensure your ads remain fresh and relevant to buyers who may rotate through different products as their needs change throughout the year.
    • Additionally, try testing different ad formats like Sponsored Display Ads or Dynamic Ads, featuring personalized or targeted messaging for different audiences—which can demonstrate a higher ROI compared to traditional ad formats like Sponsored Product Ads or Headline Search Ads.

By implementing each of these strategies in your Amazon Advertising campaigns, you’ll be able to effectively optimize them—

Finding More Profitable Keywords

Now that you know what ACoS is, let’s talk about the best strategies for boosting it. First up is finding more profitable keywords. This can help you increase your ACoS by cutting down on search expenses and reducing competition. You can start by doing keyword research and then creating campaigns based on those keywords. Using keyword tools such as Keyword Tool or Keyword Insights, you can uncover search terms and phrases related to your product. This will help you identify potential opportunities and adjust bids accordingly to maximize ROI. To make sure you’re targeting the most relevant and profitable keywords, you should also conduct keyword discovery campaigns to uncover keywords with high conversion rates but low competition – these are often referred to as “goldmine” keywords. A great tool for this is Seller Central Ads, which will show you what words the customers are using when searching for products similar to yours. Once you have identified profitable keywords, you should focus on increasing bids for them so that they show up in more searches, thus driving more sales and lowering your average cost of sale (ACoS). But remember not to go too crazy – just bump up bids by small amounts at regular intervals until your ACoS starts improving, then adjust as necessary.

Adjusting Your Amazon Ad Spend

The fourth thing to consider if you want to lower your ACoS is adjusting your Amazon ad spend. Many brands often find that they’re not allocating their ad budget in the right way—which means they’re missing out on a lot of opportunities.

You can use a process called bid optimization to fine-tune your campaigns and refine your bidding strategy, so you can make the most of your funds and get the highest ROI possible. It’s also a good idea to put some of your budget into experimentation, so you can try new strategies or tactics without risking too much.

It’s also important to remember not to make any hasty decisions when it comes to setting up or changing your ad campaigns—take time to measure the results and determine what works for you and what doesn’t. Here are some things you should keep in mind:

  1. A/B testing different bids and campaigns
  2. Analyzing campaign performance over time
  3. Adjusting bids based on performance
  4. Allocating budget across different product segments
  5. Experimenting with new campaigns and strategies
  6. Utilizing automation tools for bid optimization

By understanding how best to allocate your budget and adjusting bids where necessary, you’ll be able to control costs and get the most out of your ad spend—ultimately lowering your ACoS at the same time!

Utilizing Smart Shopping Campaigns

Are you looking for more efficient ways to increase your Amazon Ad spending and lower your ACoS? Smart Shopping Campaigns are definitely worth a try. Smart Shopping Campaigns are automated campaigns that help you get the most of your ad budget and optimize across different platforms, such as Google and Amazon, to help you reach the right audience. Here’s how they work:

Automated bidding

Smart Shopping Campaigns use an algorithm that takes into account factors such as user experience, cost-per-click (CPC), and target return on ad spend (ROAS) to determine bid levels that are most likely to achieve your revenue targets. This means you don’t have to spend time manually setting bids on individual keywords or products.

Targeted Ads

Smart Shopping Campaigns use audience targeting and automated strategies to get the right message to the right customer at the right time—all while staying within budget. This means that instead of broadcasting your ads to a wide range of people, you can narrow down your audience based on their buying behavior, demographics, and more—maximizing the efficiency of your ads.

Comprehensive Metrics

Smart Shopping Campaigns also provide comprehensive metrics so you can track performance in real-time—such as impressions, clicks, sales, and ROAS—all from one place. This makes it easier for you to continuously improve campaigns over time and ensure that your ad budgets are well spent. Smart Shopping Campaigns offer a great way for advertisers to optimize their ad budget on Amazon by leveraging automation, targeting capabilities, and metrics in order to reach their goals faster.

Set Clear Goals

Before you start tracking, decide on the goal that you want to achieve with your ACoS targets—whether it’s increasing conversions, increasing profits or something else. This will give you a better sense of context for the numbers you look at later.

Analyze Performance Regularly

Once you’ve set your goals and started running campaigns, periodically analyze your performance to see if you’re on track or not. You can use reporting tools like Amazon Advertising Dashboards to get a thorough overview of how well your campaigns are doing.

Conclusion

Cartkaboom is capable of optimizing your ACoS on Amazon by implementing five effective strategies. These strategies include optimizing ad placements, segmenting advertising, increasing purchase velocity, leveraging keyword-level bidding, and creating high-quality listing content. By analyzing your Amazon advertising performance, you can gain an edge over your competitors and enhance your ACoS to ensure your products receive maximum visibility, clicks, and conversions. These five strategies, when used correctly, can help you better comprehend and reach your intended customers, resulting in sales growth.
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Krystel Borg

Krystel possesses a unique expertise in transforming company sales, thanks to her knack for devising strategic blueprints and fostering high-performing teams. Throughout her career, she’s been at the helm of businesses that have burgeoned from mere startups to eight-figure giants. She boasts two notable exits in the CPG sector, with one being the acclaimed Swander Pace Private Equity Group.
Her profound understanding of product-centric ventures spans the entire lifecycle—from conceptualizing brands to overseeing logistics, supply chain management, and devising robust digital marketing initiatives. One of Krystel’s standout accomplishments in sales is her tenure with QVC, where she not only celebrated over 100 on-air appearances but also clinched a nomination for their coveted “Rising Star” award, sharing the limelight with industry titans like Sephora.
With a proven track record of scaling startups to monumental heights—like achieving $1.5M in revenue within a year and subsequently doubling it—and salvaging firms from deficits to enjoy $1.8M profits, Krystel’s prowess is undeniable. She masterfully steered a company to emerge as an unrivaled leader in its sector by multiplying its sales from $4M to $18M in half a decade.
In recent years, Krystel has channeled her vast experience into mentoring, playing pivotal roles as a consultant or board member to embolden fellow entrepreneurs. Her versatility is further accentuated by her engagements across diverse industries

Navin Williams

With 11 years of leadership experience in Business Management, Navin Williams has consistently delivered transformative results. His leadership has championed small businesses on their path to accelerated growth, steered large enterprises towards a surge in efficiency by up to 40%, and provided strategic direction to e-commerce companies navigating the dynamic digital marketplace.
His toolkit of expertise encompasses spearheading organizational transformations, enhancing business agility, and driving process efficiency across a spectrum of domains and frameworks, with a particular emphasis on Lean principles. Understanding the unique challenges and opportunities presented by both brick-and-mortar operations and digital storefronts, Navin is adept at crafting strategies that align with specific business objectives.
His commitment to rigorous reporting ensures transparency and data-driven decision-making, solidifying his reputation as a versatile and results-driven business leader.

Jane Sampson

Jane Sampson boasts over 15 years in the Apparel & Home Fashions sector. Throughout her career, she’s demonstrated a depth of knowledge in areas like Design, Product Development, Global Sourcing, and Market Research. Her business acumen is backed by a proven record in Procurement, Business Planning, and Sales.
Central to Jane’s professional journey is JANEEN HOME LLC. This company, under her leadership, specializes in introducing new textures, designs, and prints for bedding and soft home lines. Her brand’s presence is felt in prominent retailers such as Macy’s, Ross Stores, Hobby Lobby, Bealls, and Belk.
Beyond her corporate achievements, Jane shares her industry insights as an Adjunct Professor at Baylor University. She remains committed to fostering growth and nurturing future talents, ensuring they’re equipped for success in the dynamic world of Apparel & Home Fashions.

Archana Reddy Williams

From the corporate world to the dynamic world of Amazon, Archana’s journey has been nothing short of transformative. As a seasoned management consultant, corporate leader, and a 7-figure Amazon seller, she founded CartKaboom with a vision to demystify the Amazon maze for brands.
What drives Archana? Her passion for ensuring every brand gets a fair shot at success on Amazon. CartKaboom works tirelessly as a partner, acting as a true extension of brands, ensuring they shine in the Amazon marketplace. While she cherishes working with all types of businesses, Archana’s heart holds a special place for family-owned and women-led brands. Drawing from a wealth of firsthand insights and tailored strategies, she’s had the honour of propelling many of these businesses to 7+ figure successes on Amazon.
At the heart of CartKaboom, it’s not just about metrics. Archana delves deep into a brand’s narrative and core values, designing Amazon-focused strategies that amplify their presence. From listing enhancements and keyword optimization to effective advertising campaigns, Archana ensures that brands don’t just survive, but thrive in this ecommerce behemoth. Outside the world of ecommerce, Archana is active in real estate. As an Accredited Real Estate Investor and a CRE General Partner, she oversees diverse commercial real estate ventures, bringing the same dedication and business acumen to this vertical.
At the core of it all, Archana’s faith in God and her family remain her pillars. She resides in Dallas, Texas with her husband and three kids. For relaxation and fun, she enjoys travelling, hiking, and exploring nature, seeing it as a reflection of God’s beauty. She’s also active in local church initiatives, emphasising community growth and unity.