Advertising Cost of Sales (ACOS) is one of the most critical metrics for Amazon sellers. A high ACOS eats into your profits, while a low ACOS scales your business efficiently. In this guide, we share our top strategies to reduce ACOS without sacrificing sales volume.
1. Optimize Your Keyword Targeting
Stop wasting money on broad keywords that don't convert. Focus on exact match and phrase match keywords that have a proven history of sales. Use negative keywords aggressively to filter out irrelevant traffic.
2. Improve Your Product Listing Quality
Your ad acts as the hook, but your listing is the closer. Ensure your titles, bullets, and images are top-notch. A high conversion rate naturally lowers your ACOS because you need fewer clicks to make a sale.
3. Adjust Bids Based on Performance
Don't set it and forget it. Regularly review your campaign performance. Lower bids on keywords with high clicks but low sales, and increase bids on high-performing keywords to capture more market share.
Reducing ACOS requires a combination of smart bidding, keyword refinement, and listing optimization. By implementing these strategies, you can significantly improve your ROI and grow your Amazon business profitably.