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Amazon Optimisation: The Need For A Profit-Focused Approach To Amazon Sponsored Product Ads

Feb 3, 2023

Why are Amazon Sponsored Ads Important?

Amazon's PPC marketing platform allows you to increase the visibility of your products and drive additional traffic to your listings. It's a key component in the toolkit of all Sellers, however, it's vital to take the right approach as costs can mount up very quickly and drive down profit.

The Correct Amazon PPC Strategy Will:

However, a poorly implemented advertising strategy will lead to inefficient ad spend, high ACOS and, ultimately, lower profit. It's a tricky balance to strike, but one that all Sellers need to get right.

Management by Experts, Not Machines

The industry is moving towards AI driven solutions and accounts managed by machines. We don’t subscribe to this approach.  We’re Sellers ourselves, and we’ve tried out most of the plug-and-play, fully automated solutions out there.  Each one of them lacks one thing: the ability to make business-focused decisions that improve your bottom line.  

We’ve seen a surprising number of PPC horror stories that are caused by the machine’s doing what they are programmed to do: working towards one (let’s face it, comparatively arbitrary) metric to the exclusion of all other factors.  

Our account management team is made up of PPC experts with years of experience in the digital marketing industry. These guys love PPC. Nothing gives them greater pleasure than diving into your accounts and making changes that will increase the amount of money that lands in your pocket each month. And importantly, each and every one of them sells on Amazon themselves: they know the ins and outs of the marketplace and are able to make the right decisions for your business as a result.  Anything that’s implemented on your accounts gets implemented on our accounts first – that’s how we know it works.

Profit Not ACOS

When you think about it, what does ACOS really tell you?  It’s a decent proxy for efficiency and profit levels, but that’s all it is: a proxy. COGS, margins, fees, tax… all of these factors are missing from the equation.  

At the end of the day, the only number that’s important is the amount of money you’re actually making. We’ve built advanced profit analytics tools and processes that factor in the multitude of costs that come with selling on Amazon. This ensures that you’ve always got visibility on how profitable your products are, and that all our optimisation decisions are taken with this in mind.

Do you need help with your Amazon strategy? Our experts would love to hear from you. Get in touch!

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