In the world of Amazon Ads, understanding and reducing your ACOS (Advertising Cost of Sales) is crucial for scaling without losing money. A high ACOS can be eating away at your margins without you even realizing it, while an optimized ACOS converts advertising into sustainable sales.

But… what exactly is ACOS?

ACOS = (Advertising Expenditure / Sales Generated by Advertising) x 100

Example: If you spend $100 and generate $500 in sales, your ACOS is 20%. The goal is for this number to be lower than your product's net margin, so that advertising is profitable.

Strategies to reduce ACOS on Amazon:

1. Optimize your keywords

• Eliminate keywords with many clicks and few sales (sold-out words).

• Focus on the ones that have good conversion rates.

• Use negative keywords to avoid irrelevant traffic.

2. Improve your listings

• An ad brings traffic, but a listing converts it.

• Make sure you have clear titles, persuasive bullet points, professional images, and A+ Content if you have Brand Registry.

3. Adjust the bids

• Reduce the budget for campaigns that don't convert.

• Investment is increasing in those with a low ACOS.

• Use manual campaigns to have total control.

4. Use defensive and offensive campaigns

• Defensive: Protect your brand from the competition by bidding on your own name.

• Offensives: target competitor products with good reviews and high prices.

5. Segment your strategy

• Don't put everything into a single campaign. Create specific campaigns for each keyword type: branded, generic, competitor, long tail.

6. Analyze performance constantly

• Evaluate at least once a week.

• Cut out what doesn't work without mercy.

• Reinvest in what actually converts.

Reducing your ACOS isn't just about spending less, but about investing more wisely. Amazon advertising can be your best ally or your worst expense if it's not optimized properly.