Understanding ACoS on Seller Central
Advertising Cost of Sales (ACoS) measures the efficiency of your Amazon Sponsored Products campaigns. A high ACoS eats away at net margins, making PPC campaigns unprofitable. Here is how to lower it.
1. Negating Non-Converting Search Terms
The fastest way to lower waste is negative keyword matching. Analyze your Search Term Reports weekly. Identify terms with high clicks and zero conversions, and add them as negative exact matches.
2. Bid Tuning Based on Placements
Bidding flat rates across all placements is a waste of budget. Top of Search usually converts 3x higher than Rest of Search. Optimize your bid multipliers to prioritize top placements while lowering baseline bids.
3. Improving Listing CTR and Conversion
Advertising can only drive traffic; your listing must close the sale. Optimize listing title keywords, add clear secondary images, and configure engaging A+ content to lift conversion rates by 15% or more.
