WHAT IS ACOS?

Advertising cost of sales (ACoS) is the percentage of direct sales you made from Sponsored Products
ads. ACoS = total ad spend ÷ total ad sales x 100
For example, if you spent INR 2 on advertising and those ads resulted in sales of INR 20, your ACoS
would be 10%

 MOVEMENT IN HIGH ACOS WILL BE BECAUSE OF FOLLOWING FACTORS:

1. Drop in CVR (Conversion Rate)- Drop in CVR will lead to Higher Acos. The drop will be due to
reasons like

 Non-competitive pricing,

 Catalogue errors (Imaging, Description/content )(CAQ score)

2. High Performing Advertised Product is Out of stock OR Lost Buy Box –

 If the product goes out of stock

 If product losses Buy Box.

3. Negative Review or Rating on Advertised Product-

 If the products get Negative review/rating, the performance of product will be drop.

4. Irrelevant Keywords-

 Advertised Product will be generating clicks on irrelevant Keywords, the keywords won’t be
direct association with the product (Which we can check from search term report).

5. Low performing or non-selling products will be getting more clicks.

 Which might lead to higher Click volume with low CVR.

6. Advertising New ASIN’s

 If the product are new to platform, the product productivity in-terms of sales/CVR will be bit lower.

7. Increase in CPC Bids

 Competitors starts bidding high on relevant keywords may increase the ACoS% high than current
number

8. Top reviews are negative

82% of Amazon buyers purchase their products from mobile app and amazon display just 3 top
voted (most helpful) product reviews on top. If product showing more than 1 negative review even the
average rating is more than 4, the ACoS% may goes high.
WHAT IS AD SPEND’S?

How much the seller has spent/invested on the Advertised Product to get visibility for the products via
keywords?

 MOVEMENT IN SPENDS DROP WILL BE BECAUSE OF FOLLOWING FACTORS:

1. Budget reduction in Campaign-

 If the budgets are reduced at Campaign level

2. Bid Reduction (Automatic Campaign) –

 If the bids are reduced at Ad group level

3. Bid Reduction(Manual Campaign)-

 If the keywords bids are reduced there will be drop in spends

4. Pausing Campaigns/Ad groups/Asin’s-

 If Campaigns/Ad groups/Asin’s are paused at Ad group Level there will be drop in Clicks , which
will lead to drop in Spends

5. Advertised Asin’s In-stock and Buy Box Issue-

 If the Advertised Asin is out of stock or losses Buy box then there will be drop in Clicks. Which will
lead to Drop in spends

6. Aggressive Competition on Bids/Budget –

 If the competition is aggressive in Bids and budget, then the BD Advertised seller Product won’t
get Top slots on the High search Keywords. This will lead to drop in Clicks .Drop in clicks will lead
to Drop in spends