How to decrease your ACOS?

Quick Tips
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  1. Optimize Keywords (the fastest way to lower ACOS)

A. Add negative keywords

Block irrelevant search terms that waste money.

Examples to negate:

• Low-intent queries: “free”, “cheap”, “DIY”

• Wrong product type

• Competitor names that don’t convert

This immediately reduces wasted spend.

B. Lower bids on high-ACOS keywords

If a keyword has high clicks and no sales → lower bid or pause it.

Rule of thumb:

• ACOS > target ACOS × 1.5 → decrease bid 10–30%

C. Increase bids on profitable keywords

If a keyword consistently converts well:

→ Raise bid

→ Get more impressions

→ Lower overall ACOS

  1. Improve Your Product Detail Page (PDP)

Even great ads fail if the product page is weak.

Improve:

• Title clarity

• Images (infographics, lifestyle)

• Bullet points

• A+ content

• Social proof (reviews, ratings)

Better conversion rate = lower ACOS.

  1. Optimize Your Targeting Types

A. Start with exact match for control

Exact match → highest conversion + lowest ACOS.

B. Use broad and phrase only for keyword discovery

Then transfer converting terms into:

• Exact match campaigns

• High bids

• Dedicated budgets

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  1. Improve Your Product Price & Offers

Lowering price even temporarily can dramatically cut ACOS:

• Use coupons

• Run a small discount

• Keep Buy Box %

A more competitive price improves conversions and lowers ACOS.

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  1. Optimize Bidding Strategy

Dynamic Bids – Down Only

This is the best setting for reducing ACOS because Amazon lowers your bids when conversion probability is low.

Placement adjustments

• Lower top-of-search multiplier if ACOS is high

• Increase it when performance is good

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  1. Improve Ad Copy & Creative (especially for Sponsored Brands & Sponsored Display)

• Use high-quality custom images

• Highlight benefits

• Show unique selling points

• Use lifestyle visuals

Better creatives = higher CTR = lower ACOS.

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  1. Analyze Search Term Reports Weekly

Look for:

• High-spend, no-sale terms → negative them

• High-converting terms → move to Exact Match

• Low-impression but converting → increase bid

This report is your #1 tool for ACOS reduction.

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  1. Increase Organic Rank

High organic rank reduces dependency on ads.

Ways to improve:

• Keyword optimization

• Competitive pricing

• Maintaining reviews

• Running occasional promo campaigns

Better organic ranking → lower TACOS → also helps ACOS indirectly.

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Best Quick Wins to Reduce ACOS

  1. Add negative keywords weekly

  2. Lower bids on poor performers

  3. Improve listing conversion rate

  4. Increase bids on profitable keywords

  5. Turn off auto campaigns if wasting money

  6. Use exact match for your best converting terms