Scaling up your business strategically with Amazon Advertising should effectively be processed in the right manner. If you are losing sales and search ranking to your competitors, it means you are running out of inventory on Amazon. So, running out of inventory can place you in a dangerous position and it is also scathing to maintain enough inventory. But it also helps increase the sales as it meets the demand of your potential customers.
Focus on your true ACoS and the Ad Spend Margin Impact, as it is through which we will get to know that your Amazon ad campaign is scaling up or not. SKUs that are Stock Keeping Unit is determined by the measurement of the ACoS to see if it is profitable and effective. Your marketing strategy mostly determines whether your ACoS is up to the mark or unfavourable.
To increase the sales velocity, the ACoS should be good with 20%. The goal is to have acceleration in sales without a loss. So, ACoS is quite an important tool to judge the profitability rate and for a successful Amazon Ad Campaign.
For each of your SKUs, a customized budget should be set up in order to make sure that budgets have been allocated before the launch of new products and ongoing SKUs. Optimisation should be done on a weekly basis to ensure the expansion of Ad campaigns picking out new opportunities.
Tracking of the progress
The metrics and data of your Amazon business should be tracked and looked through. Various other factors like that of Return of Advertising Spend (ROAS), Advertising Cost of Sales (ACoS), Cost Per Click (CPC), Impressions, etc., should be measured from time to time. This measuring of your results helps you fine tune your ad and increases the success level.
It’s a simple observation that if an ad keeps on running without noticing your metrics, then probably you’ll end up losing some unnecessary ad spends. On the other hand, analyzing your ad campaign will help improve your keyword targeting, your ad copy and lower the ad spends and increase the sales. So, tracking your metrics is one of the crucial parts as it has quite a meaningful impact on your Amazon business.
The audience should be observed about What are their habits? What is in their cart? What are the search terms they are looking through? After these observations, a refined ad can be created which will help in scaling up of your business.
Strategies to Scale up Sales
Bidding: Bidding is one thing which needs to be experimented from time to time in order to observe which bid is giving out good results. The traditional Amazon bidding system ‘Dynamic Bids-Down Only’ was used by most of the Amazon sellers. It’s like if a bid is less likely to convert then the bid is reduced to 100%.
But sellers who like to have an increase in sales should also try ‘Dynamic Bid-Up and Down’ in which if a click is less likely to convert, Amazon will raise the bid upto 100% for placement at the top page of the search results and upto 50% for other placements. So, adjustment of the bidding should be done in order to test the best situational results.
Keywords: Examine your search term reports as you will get to know which search terms are converting tremendously well. Single keyword campaign should be created unlike the multiple keywords in an ad campaign. Usage of placement modifiers, Dynamic bidding, and various other match types should be focused upon while optimizing keywords. A single keyword campaign will help tweak the flexibility of one keyword in various other ways.
ACoS: By delving deep into the search term reports for finding the search terms and ASINs that have converted is done by scraping of the ACoS. It then can be used by all other types of ad through which automatic and research oriented ad campaigns will start to nourish other ad campaigns. ACoS basically discloses what is being converted so that the information can be used to scale up your sales.
Budgets: Uncapping of the budget becomes important in situations where a particular ad is doing well but is of low budget. In such a situation uncapping gives Amazon the freedom to exhibit the ad wherever they can in order to increase your sales.
Analysis: Scanning should be done on a weekly basis so that you can be ahead of your competitors. And in order to attract potential customers which can help increase the sales then some brainstorming should be done weekly and videos, posters, headlines, images, etc., should be improvised.
Competitors strategy should be studied to gain knowledge of their processes and how you can model it in your own way. Look at your review at what the customers are saying about your product which will let you know the areas where you have to improve your ad campaign and discover different search terms used for your products. All these factors will definitely help increase your Amazon sales.
Targeting: Sponsored Product, Display and Brand are three types of ASIN Targeting which Amazon uses. ASIN targeting enables sellers to target specific competitors’ product detail page on which they want their ad to appear. Through this they have certain command over the products which allows them visibility.
Category wise targeting is also available in ASIN targeting where targeting is done with pure refinement. In this the sellers are given the opportunity to target as many products according to their price, brand, and ratings. For instance, sellers can target those products which are similar to their competitors’ products but consist of lower ratings.
So, these refinements are done specifically when their ad is being presented. As these refinements increase the competitiveness among those Amazon sellers who have quite a good understanding of the current trends and prices points in the market. These data driven decisions permits sellers to have additional information while optimization of their ad campaigns. For scaling up their Amazon business, they are associated with what’s profitable and what’s lowering down the ACoS.
Research: As discussed earlier, there should be a regular research of the Search Term Reports by being aware of the ongoing trends and purchasing behaviour. In order to reduce the ACoS to increase profits, sellers can filter the reports of their search terms that drive conversions according to their Ad spends.
After the research work of the Search Term Reports, sellers can make use of this information in optimization of Product targeting, of the Keywords, targeting done by PPC and various other factors which increases sales. As these search terms give quite a lot of information about what your customers are looking for? What products are they searching for? So, sellers should utilize this information and optimize either PPC campaigns to have better results. These discoveries indeed help scale your Amazon businesses in a better way.
Amazon Advertising isn’t just about setting up your campaign and leaving it on its own. It definitely helps increase your business sales if some strategies are brought into labor. And in order to finally scale up your sales, you should focus on monitoring, analyzing, testing and trying out other effective strategies.