Struggling with High CPCs on Amazon?

It's just math.

It's challenging to navigate high cost-per-clicks.
If you lower bids you lose all visibility.

But if you keep bids high you end up with high ACoS.


Consider this Scenario:

You're selling a product at $20 with a 10% conversion rate and a whopping $3.50 CPC.

The math tells us that such a scenario leads to an unsustainable 175% ACoS (Ad Cost over Sales).

𝘌𝘹𝘱𝘦𝘤𝘵𝘦𝘥 𝘈𝘥 𝘚𝘱𝘦𝘯𝘥 = 𝘊𝘗𝘊 𝘹 ( 𝟣 / 𝘊𝘰𝘯𝘷𝘦𝘳𝘴𝘪𝘰𝘯 𝘙𝘢𝘵𝘦)

𝟥.𝟧𝟢 𝘹 (𝟣 / .𝟣𝟢) = $𝟥𝟧

$𝟥𝟧 / $𝟤𝟢 = 𝟣𝟩𝟧%


So then the question becomes what does my CPC need to be to hit my target ACoS?

Once you find that then you have two ways to play it.


1) Balance out the the account so you can achieve the average CPC

2) Prioritize optimizing for account level profitability (TACoS) and deprioritize ad level profitability (ACoS)


The best approach is typically a mixture of both.