This Amazon seller came to us while using one of the more common Amazon PPC AI tools out there to bid on their Amazon sponsored ads campaigns.
Their challenge was simple. Their ACOS was over 40%, and they weren’t making any money.
In order to bring their ACOS down, we analyzed the account and realized that over 57% of total spending is going to Amazon keywords that didn’t bring a sale. In addition to that, 65% of spending was going toward Auto campaigns. The reason for that is that AI softwares aren’t doing any keyword and competitor research for you. They rely on Auto campaigns for keyword research.
That means you can have months of wasting thousands of dollars until the software understands the product.
The plan here was simple. First we needed to stop the bleeding. The account manager thoroughly looked through the Amazon Search Term report and negated all irrelevant and wasted spending.
Then our account manager spent hours on doing keyword and Amazon market research on the brand, being it’s an Apparel company with multi-gender, variable size, styles and lifestyles the research was more complex, but he was able to create relevant keywords and manual campaigns for all their products.
The hard work paid off! After two months their ACOS was down to 20% and sales on the account were soaring month over month.