Know your profitability!
This article is step 4 of our step-by-step guide to Amazon PPC Advertising
Know your SKUs true profitability
Before you perform any marketing activities, you need to know what your true profitability is per product. Once you have established this you can set your campaign spending targets down to the keyword level to carefully manage each keyword bid (and therefore ACoS (Average Cost of Sales)).
If you don’t know your true profitability then you will not be able to determine if your campaigns are performing well or not.
Within Trendle Analytics you can add your product purchasing cost here: www.trendle.io/productscosts
We automatically input the current selling price of your product and the estimated Amazon Fees for that SKU at that price point. The result is your true estimated profit margin for that product.
You can then define how much profit you would like to make from PPC sales.
All of this information will result in giving you the target ACoS you should be aiming for in order to achieve your goals.
You can read more about the various advertising strategies later on in the guide.
Continue to Step 5 “Recommendation engine & Automation: Example rules to get you started”!