While Amazon PPC is one of the most important tools for any Amazon seller, it's also one that's very expensive. It can potentially drain your profits if left unchecked.
Case in point: In January we spent roughly $33,000 on Amazon PPC, generated sales amounting to around $104,000, with ACOS at 30%. Deducting Cost of Goods and other Amazon fees, we incurred a net loss of $537.
You might ask what's the point of running ads if it's a loss anyway, and the answer is what I call the "Amazon flywheel effect". It's okay for me to take a hit on profits if it means getting more traffic and better conversions, because in the long run it will get me better search positions, in turn driving more sales.
While I'm generally okay with this, it would be nice to get the same results with a little less money--even if just to break even. So early this year I decided to sit down and take a good hard look at our PPC campaigns and see if there's something we can do to save some money here and there. What resulted is an Amazon PPC strategy that after a couple of months of implementation resulted in the rough stats below:
Spend: $25,000
Sales: $103,000
ACOS: 24.1% and dropping
Net profits: $6000
Yes, you read that right. We actually gained profits when we implemented this Amazon PPC strategy. The beauty of it is this strategy does not require you to monitor PPC campaigns all the time. You don't even have to do this yourself. We assigned one of our Filipino VAs to this task and it just takes her a couple of hours per week.
One of the tools that hugely helped us achieve this is Sellics. We trained our VA and taught her how to use the software and it has helped her drastically reduce the time needed to monitor our PPC campaigns. Click here to explore Sellics (affiliate link).
In this episode I discuss how we were able to do this and how you can do it too. This episode is quite technical and we might do a screencast in the future to better explain the numbers in our Amazon PPC strategy. Subscribe to our Youtube channel to get updates.
Resources mentioned:
Million Dollar Sellers
Sellics (affiliate link)
EcomCrew Youtube channel
Thanks for listening! If you have any questions, feel free to comment below.