Let’s break down ACOS first—it’s Amazon’s ad spend divided by sales generated from ads, times 100. So, if you spend $5 on ads and they bring in $50 in sales, your ACOS is 10%. To slash that ACOS:
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Ditch ads for keywords that aren’t making sales and tidy up a list of the winners.
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Use the ‘reverse ASIN lookup’ tool to peek at how top keywords are ranking every hour and how long they’re showing up in ads each day. If they’re high up, drop the bid a bit; if they’re low, bump up the bid. For the winners, tweak your daily ad budget based on how often the ads show up. For instance, if a great keyword only shows ads for, say, 12 hours a day (check out Figure 1), and it’s a top performer, think about boosting the budget. Also, snoop around and see when your competition is running ads.
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Use the ‘reverse ASIN lookup’ tool to spy on the keywords your main rivals are betting big on. If some low-rankers are doing surprisingly well for you, consider investing more in those for a better bang for your ad buck.
