For several years now, I've been advising and guiding Amazon sellers, and one of the biggest pain points for any Amazon seller is the never-ending battle with ACoS (Advertising Cost of Sales).
Many sellers don't truly understand the significance of this metric and often approach it in the wrong way, ultimately causing harm to their product's exposure, promotion, sales, and profitability.
The world of advertising on Amazon is vast and highly specialized. I've written about it extensively in my daily tips because there's no doubt that it's one of the areas that has the most significant impact on the success or failure of a product on Amazon.
Every product goes through four distinct stages in its product lifecycle, and therefore, the advertising strategy, budgeting, and data analysis must align with the stage in which the product currently resides.
Launch Stage: Exposure, educating Amazon's algorithm, keyword research, high budgets, organic promotion support - ACoS is not a significant concern at this stage.
Growth Stage: Increasing exposure, boosting sales, improving organic rankings - High ACoS begins to balance out.
Maturity Stage: Maintaining stability, maximizing potential, increasing profitability - Balanced ACoS.
Decline Stage: Boosting sales turnover, reducing inventory - ACoS is not a significant concern.
Now, onto the critical part:
Each stage can last from weeks to years, so it's crucial to understand which stage your product is in and tailor your campaigns to align with your goals accordingly.
