It’s time to talk Amazon profitability and Amazon Pay-Per-Click advertising.
We’re not just talking about struggling businesses, either. Even successful companies turning over 6 figures per month on Amazon aren’t always clear on their exact Amazon PPC profitability.
PPC strategy is often set by someone in the business who does not have P&L responsibility. Other times, PPC is outsourced to an agency which will never ask you about your net profit goals.
Amazon Advertising is probably the biggest challenge we hear about when speaking with Senior Management and CEOs. Our years of working with businesses selling on Amazon has equipped us with the knowledge and expertise to advise you on how to achieve the maximum results for your investments.
Is TACoS or ACoS the right way of managing your PPC?
Deciding which metric to use to analyse the success of your PPC advertising isn’t straightforward, but our specialist team will talk you through the options and make recommendations.
If the terms TACoS and ACoS are new to you, let us explain.
ACoS can help you see how effective specific campaigns are and will inform future campaigns, but TACoS is an indication of how your brand is performing overall, and how advertising is impacting organic (non-paid) sales.
These metrics – and others – should have a role to play once you have set clear goals for your business performance. Our team will help you put in place a business plan of action which will shape your PPC strategy and the scores or metrics you choose to measure success.
As the business owner or CEO, we believe you need to look beyond the technical jargon of Amazon advertising and look for opportunities for profitable growth over the long term.
If you are giving one KPI (such as overall TACoS or ACoS) to an employee or an agency, you could drive the wrong decisions on Amazon if you’re not clear on how these metrics can help you achieve your business goals.
Are you ready to review your Amazon PPC advertising strategy?
Amazon PPC advertising strategies
Some business owners have simply not had enough time to examine the Amazon PPC numbers in the monthly reporting or the P&L. Some don’t understand the impact of PPC on Amazon financials, and why Amazon advertising is very different to advertising on Google or social media. Others simply don’t know where to start.
Free Amazon training session: Sell Beyond’s Phil Revitt and Dr Heloise Finch walk you through how to make your Amazon Pay-Per-Click advertising profitable.
Through no fault of their own, many CEOs, business owners and Amazon managers have just been too busy making the business work on Amazon, focusing on product, pricing, logistics, stock, and getting sales, and hoping the PPC strategy will sort itself out.
But at some point, the situation needs to be addressed.
Without a business-first Amazon PPC advertising strategy, you’d be better keeping your money in your bank account. With our help you will be able to plan a successful campaign.
Most importantly, we will start with the business basics that all Financial Directors and CEOs need to understand:
Goals: Why are you advertising on Amazon?
Profit: Calculate unit profitability and cost of acquisition
Reach: Decide where to focus
Net income: Understand PPC conversion
Once you understand how Amazon PPC works, and its impact on your Amazon financial health and business profitability, you’ll begin to see and feel your Amazon business potential with clarity and positivity.
Once you see and understand the numbers on Amazon, you will be able to see how they provide opportunities, and you can then effectively delegate Amazon advertising strategies efficiently.