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There are over 9.7 million sellers registered on Amazon, but only 1.9 million are active, so what happened to the remaining ones? The most common reason these sellers get lost in the complicated marketplace is due to lack of sales.
So, if you are wondering whether you are also losing money on your Amazon PPC, you must read this blog post till the end as we discuss the prime causes of this issue.
Here we are going to discuss the key signs that show whether you are losing sales and how you can address them using a professional Amazon PPC agency. So, let’s get started!
Below, I’ve listed the common reasons why most sellers go through the pain of losing money on Amazon PPC. So, let’s take a look to understand the situation in detail.
ACoS means advertising cost of sales, which shows how much you spend on advertising to get sales.
A high ACoS represents that you are spending more on advertising than you are making in sales, meaning a loss, while a low ACoS shows that your ad expenditures are paying off and you are getting an increase in sales, causing you a profit.
So, if you have stagnant sales even with a high amount of advertising, you need to put a stop to your spending and manage your finances along with ACoS. If you need help finding out the ACoS of your campaign, contact this company.
First, let’s understand these terms! CTR shows the number of clicks that your ad receives, while the conversion rate shows the number of users who have taken a desired action after clicking on the link.
So, a high CTR shows that your ad is being seen by the users and getting engagement, but a low conversion rate indicates that the users are not taking any action even after clicking on it.
It could imply a clash between what you claim to offer and what you are offering in reality.
There could be many reasons for that, and the common ones include poor user experience, ineffective targeting, low-quality images, slow websites, lack of social proof, etc.
If you find that your sales are inconsistent or declining, it could mean that your ads are not performing well as desired. It could be due to various reasons, such as poor keyword targeting, lack of optimization, low-quality hero image, and inefficient bidding strategies.
If your ad spend has reached the ceiling and your ROI (return on investment) is still static, it can be a red sign for your campaign. Even if you think of spending more, it wouldn’t result in anything, as your strategy is the same.
Thus, to see efforts, you need to bring professionals and seek their help to improve your campaigns.
If you are having trouble scaling campaigns that require deep knowledge of the audience and the ability to promote campaigns efficiently, you might have to seek expert guidance. These experts can help you scale your campaigns under your budget and bring in various benefits.
Now that you know you need an expert to help, the next step is to choose from the list of Amazon PPC agencies. But that could be challenging considering the number of agencies in the market.
Thus, to help you shortlist the one that suits your needs, here I’ve listed some factors that should be on the top of your checklist, so let’s take a look!
Look for a company that doesn’t charge you an unfair price and follows the industry’s commission structure, as you wouldn’t want to pay thousands of dollars for results that are far below your expectations.
Commission structure means that you pay the company based on its performance. There are different types of structures, so make sure you do your research before committing.
Second, make sure that the company you choose offers a free account and audit and lets you know the current health status of your business and how far it can go in the future.
It can reassure you that your campaign can succeed with the agencies’ efforts and strategies. It will also let you know whether hiring an agency will truly help you or not.
Lastly, you must know whether the company you are hiring has enough credibility and experience in the industry to help clients raise their PPC campaigns.
For that, you need to read the case studies provided by the company and learn of their achievements with the help of statistics.
In conclusion, if you think you are losing money on your Amazon PPC campaign, it’s time you seek the help of a professional Amazon PPC agency and get your ad spends to bring in the anticipated sales and profits.
However, before you reach out to a company, make sure you have done detailed research about the agency to ensure your success in the industry.
Also Read: Digital Advertising Costs
