Advertising – Ads Product Costs

1. Overview

With the “Ads Product Costs” table you can set exactly what your target ACoS per product should be.

The application already downloads all your product information available on Amazon such as Price and FBA Fees.

All you need to do is complete the information with each product’s Unit Cost and your target margin for sales made through Sponsored Products.

For example, your product sells for $10. Your unit costs are $2. Your FBA Fees are $4. This means your profit is normally = $10 – $2 – $4 = $4. If you’re running Sponsored Products to drive additional sales and you are aiming to break even on those sales (target profit margin at 0%), then you’re willing to pay $4 in ads per sale. Trendle will calculate what the equivalent ACoS is so that you can drive your campaign performance on this KPI.

2. Terminology

Unit Cost: This is how much it costs you to purchase and ship your product to the Amazon Warehouses.

ACoS Calculation Period: As your advert performance will change over time as your refine it, your ACoS will also vary. With this setting you decide what time range should be considered on an ongoing basis. From this, the application will determine what is the Maximum Bid you can place in order to hit your margin targets. This Maximum Bid Recommendation will appear in the “Max Bid” column in the Performance table.

When you first start off we recommend you set this to 14days. Then as your campaign stabilises and improves you can increase this time range.

3. Updating Unit Costs & Target Profit Margin

You can either do this manually in the table by clicking on the existing Unit Cost, typing in your new Unit Cost and pressing Enter.

Or, you can download the CSV template, make your changes in the file and then re-upload the file. Make sure to only change the data in that column. Changes in the other columns will either be ignore or result in a failed upload.

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