Find Your True ACoS &
Optimize Your Sponsored Products Ads

Today’s Logistics
● Session Recording & Slides Will Be Sent Out
● Submit Questions to Our Panelists
● Resources Available as Handouts
● Join in the Poll Question!
Analicia Santaella
Webinar Coordinator

Overview
Founded in 2007
Google Premier Partner
400+ Active Retail Clients
Top 50 Fastest Growing Company San Diego
D E L I V E R I N G
L A S T I N G
R E S U L T S F O R O U R
C L I E N T S
Solutions
Retail-focused PPC & Shopping
Amazon Sales Acceleration
Facebook Performance Marketing
Creative Services
About CPC Strategy

Today’s Speakers
Stuart Dooley
Marketplace Channel Analyst
Jennifer Acosta
Marketplace Channel Analyst
Greg Mercer
CEO of Fetcher & Jungle Scout

Overview
Founded in 2015
Over 200,000 active users
Leader in the Amazon SaaS Space
“The Most Useful Amazon Software in the Space” - Huffington Post
Solutions
Jungle Scout: Amazon Product Research
Fetcher: Profits Analytics Dashboard
Jump Send: Product Launch and Email Review Generation
Forecastly: Inventory Management
Splitly: A/B Test Amazon Product Listing and AI Powered Repr
About Jungle Scout

● Understanding true profitability of product
● Debunking the question: “What is a good ACoS?”
● Holistic approach to ACoS by goals
● Different advertising levers to achieve the best ACoS
● Keyword harvesting tips
Today’s Agenda

Poll Question

The Top 3 Mistakes Amazon Sellers Make

Not staying on top of expenses: Ongoing
1) Buying multiple expensive courses from “gurus”
2) PPC cost is out of control
“More sales don’t always mean more profit”
3) Stop hustling to get a lower product cost
4) Storage & Long term storage fees (Brown Box Ninja - Hubbard, Texas)
#1 Mistake That’s Eating Into Your Profit

#2 Mistake That’s Eating Into Your Profit
Not Projecting Sales correctly: New Launch
1) Overestimate sales velocity which overestimates profit
2) “Forgotten fees”: duty/customs, shipping, reorder fees
3) Forgetting to place FNSKU label
4) Shipping with pallets from overseas (best to palletize in
market country)

#3 Mistake That’s Eating Into Your Profit
Not paying attention to “the person”
1) Who are you selling to? It’s not just a product but a person
2) Know what products to re-stock and what products to get
rid of
3) Take advantage of free marketing resources
4) You won’t be sucked into the “PPC or nothing” game

Financial Metrics That Every Seller Should
Know

What Metrics Should Sellers Be Looking At?
● What’s my overall business profit?
● How am I doing today?
● Best & Worst performing days this year?
● How do I spot potential declines, seasonality or profit trends?
● I want to review days where I ran out of stock to prevent future stock
outs, how do I do that?
● What’s my current sales velocity for each item?
● How many days of inventory do I have left?

What Other Metrics Should Sellers Be Looking At ?
● It’s year-end and I need to report on any unsold inventory to my
accountant (as inventory will transfer to the next year), how do I figure
it out?
● What’s my best performing & worst performing item?
● How do I do my taxes?
● What do I need to do to increase my profit margin?
● How do I keep track of my expenses outside of Amazon?

Copyright 2017 - Q4 Amazon Virtual Summit
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How To Calculate Your Profits Using Seller
Central Reports

Net Profit Calculation
Sales
◍ Revenue
◍ Reimbursements
◍ -(Refunds)
◍ -(Promo Rebates)
Expenses
◍ Amazon Fees
◍ Cost of Goods Sold
◍ Pay Per Click
◍ Other Expenses
Profits

Amazon Seller Central Reports
Sales
◍ Revenue
◌ Business Report
◍ Reimbursements
◌ Reimbursement
report
◍ -(Refunds)
◌ Transactional
Report & Orders
Report
◍ -(Promo Rebates)
◌ Transactional
Report & Orders
Report
Expenses
◍ Amazon Fees
◌ Transactional
Report & Orders
Report
◍ Cost of Goods Sold
◌ Manual Excel
◍ Pay Per Click
◌ PPC report &
Service Fees for
historical
◍ Other Expenses
◌ Manual Excel
Profits
◍ Take your Sales &
Expenses data and
Calculate Profit

ACoS 101

ACoS =
Total Ad
Spend
Total Ad Sales
x 100
125% =
$50
$40
x 100

What is a good ACoS?
It depends...

Depends on Your Account Goal
ProfitabilityVisibility Sales Volume
When to use:
● Drive more profit for a
product later in its life-cycle
When to use:
● Product launch
● Generate traffic
When to use:
● Liquidation
● Move old inventory
Metrics to view:
● ROAS
● CVR
Metrics to view:
● Impressions
● Clicks
Metrics to view:
● Sales
● Orders

Holistic Approach to ACoS
Consider the Following: Product Goal
Profitability vs.
Visibility vs. Sales
Volume
Time of Year:
Month vs. Quarter
vs. Seasonal
Metrics:
by Account vs.
by Product
Product’s Life Cycle:
Launch vs. Mature

Factors that Play into your ACoS
1. Product’s Price & Margins
2. Granular Campaign Structure
3. Ad Content
4. Lifetime Value & Ranking
5. Newness
6. Product Detail Page Content (Reviews, Rating)
7. CPC

Copyright 2017 - Q4 Amazon Virtual Summit
Single Screenshot Template
Bulleted Content
Use this slide for bulleted topics
● In odio dolor proin montes ad ac.
Parturient nisl sit purus egestas
● ut condimentum ut voluptate
sodales. Est erat et amet nec purus
● Sodales magna amet orci posuere,
lectus id, fermentum sed bibendum
vitae est tristique odio, erat aptent
justo.
How to Approach ACoS by Goals

Amazon Advertising Console Funnel: Shopper’s Journey
Sponsored Brands
(SBs)
Sponsored Products
(SPs)
Product Display Ads
(PDAs)
Awareness
Consideration
Purchase intent
Purchase
experience
Purchase
Visibility &
Sales Volume,
High ACoS
Profitability,
Low ACoS

Visibility
Goal: High Visibility
Solution: Increasing Impressions & Clicks
Levers to achieve this goal:
● Bids - High (above average)
● Keywords - Broad Approach (non-branded/generic)
● Spend Allocation - “Always-On” Philosophy
● Ad Types - All
● Content - Well-Hydrated (EBC/A+ Content, Images, Bullet Points, Product Description,
Storefront)
To gain
impressions &
brand
awareness

Profitability (& Ad Efficiency)
Goal: High Profit
Solution: Low ACoS
Levers to achieve this goal:
● Bids - Average Converting CPC (Market Approach)
● Keywords - Efficient Harvesting (branded/non-branded)
● Spend Allocation - Top-Performing Campaigns
● Ad Types - Sponsored Products
● Content - Well-Hydrated (EBC/A+ Content, Images, Bullet Points,
Product Description, Storefront)
Use later in
product’s life,
once you have
reviews
Be aggressive:
Consider best-
seller campaigns
for best
performers

Sales Volume
Goal: High Sales
Solution: High Order Volume
Levers to achieve this goal:
● Bids - Maintain Market Share (Aggressive)
● Keywords - Performers (branded/non-branded)
● Spend Allocation - ASIN-Focused
● Ad Types - All
● Content - Well-Hydrated (EBC/A+ Content, Images, Bullet Points, Product Description,
Storefront)
To sell-through
as much
product as
possible

How to Keyword Harvest

Discover Keywords Used to Find Your Products
1. Download Search Term Report &
Sponsored Products Bulk File located
within Advertising Reports in Seller
Central & AMS for Vendors
2. Download Review Report and select
the top-performing keywords looking
at:
a. Customer Search Terms
b. Keyword & Match Type
c. Clicks
d. Order Numbers
e. Product Sales

Set-Up Manual Campaigns with Harvested Keywords
3. Upload document with top-performing keyword
Search Term Report to Amazon including:
a. Keyword & Match Type
b. Maximum bid
c. SKU
4. Set-up Manual Campaigns and bid on specific
keywords based on ACoS goals

Keyword Harvesting Pro-Tips
● Keyword Harvesting is a continual process
● Continually run the search terms report to pick up new trends & seasonality changes
● Sellers should start with at least 25 to 40 keywords
● We recommend building your campaign structure with 1 SKU per ad group
● Minimum for running Search Term Report: 7 days

● Sales - Expenses = Net Profit
● Having a “Good ACoS” is relative to your marketing and business goals
● ACoS is the output of myriad inputs, not just advertising levers
● Lower ACoS for Profitability
● Higher ACoS for Visibility & Volume
Key Takeaways

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Questions for Today’s Speakers?
Stuart Dooley
Marketplace Channel Analyst
Jennifer Acosta
Marketplace Channel Analyst
Greg Mercer
CEO of Fetcher & Jungle Scout