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Notes on Amazon
📝 TACOS goes beyond ad performance
Most sellers confuse TACOS with ad performance. But it reflects both ad and organic sales - making it an overall product performance metric.
Tip: Use a dashboard that shows how organic sales trend alongside your ACOS. Avoid adjusting ad spend when the real problem is rank or conversion.
Remember: traffic x CTR x CVR = sales
📝 Higher ACOS can mean you’re gaining market share
Chasing a low ACOS might make you feel efficient, but it can limit scale. If ACOS increases slightly while sales and rank grow, you’re likely taking market share.
Tip: Monitor Total Sales and TACOS over time - not just ACOS - to spot healthy growth behind the ad spend. Don't just watch net margin % but if total contribution dollars have grown YoY.
📝 When ACOS spikes, diagnose the right variable
A rising ACoS is a symptom, not a cause. Break down what’s driving it: is it a drop in impressions, CTR, or conversion rate?
Remember: traffics x CVR x CVR = sales
Tip: Use Amazon’s reports or third-party tools to analyze each layer. If CTR dropped, test new main images. If CVR fell, check your pricing or reviews.
Scale Insights is my favorite place to see all these metrics together WoW. Super easy to see how CTR/CVR change with promos, price changes, etc
Scale Insights Screenshot
📝 Intent matters - match ad strategy to customer behavior
Not every keyword means someone’s ready to buy. If someone searches “large dog house,” they probably know what they want and are ready to make a purchase. But if they just search “pants,” they’re still browsing or figuring it out.
It’s like the difference between someone walking into a store saying, “I need a size 10 hiking boot” - versus just saying, “I’m looking for shoes.”
Tip: If your niche has low conversion intent, start with broad and phrase match. If it’s high intent, use exact match keywords.
📝 Align keyword match type with product specificity
Your match type should reflect not only customer behavior but also how specific your product is - and how it performs against the market average.
Tip: For high-CVR, niche products, go aggressive on exact match keywords. For broader products, use phrase and broad match to gather data first.
Featured Posts from X and LinkedIn
Interesting take on how Amazon's AI compliance bot is developing
I heard a brand talk about this recently, and it stuck with me...
They launched a tiered subscription program with a simple “VIP Subscriber” option for early access to new drops, surprise gifts every quarter, and personalized offers.
The result? They claimed it led to an 85% increase in retention.
