When it comes to Amazon PPC, many sellers struggle to maintain profitability with their PPC ads simply because they cannot evaluate their campaign performance. For a lack of a better alternative, sellers tend to focus heavily on their ACoS to determine if they are running a profit or loss on their campaigns.
See your real profit generated via PPC sales
With the new profit calculation integration in Sellics, it is now possible for you to see the real profit generated via your PPC campaigns. We automatically deduct ALL your costs (Amazon fees, FBA fees, Cost of Goods, and shipping costs) from your PPC sales.
This process is fully automated for you; you can now immediately see the real profit generated via your PPC campaigns when you login to Sellics.
New break-even AcoS calculator
Your break-even ACoS (Advertising Cost of Sales) is now calculated automatically for all the products in your Ad Groups, and also displayed on the keyword level.
The break-even ACoS calculator allows you to immediately see how the actual ACoS of an Ad Group or keyword compares, and whether you need to take immediate action to bring your advertising costs down (i.e. by reducing your bid).
You can drill down and see how your individual keyword ACoS compares against your break-even ACoS, and optimize the keywords that are losing you money.
What is my break-even AcoS?
The break-even ACoS refers to your profit margin before your ad spend is taken into account. As a seller, you won’t incur a loss for a product as long as your ad spend is less than your profit margin.
For example, a product that sells for $30 has a profit of $10 after your variable costs (Amazon fees, FBA fees, shipping costs, etc) are deducted. The profit margin for this product before PPC fees are taken into account is 33%.
This is your break-even ACoS, and as long as you don’t spend over 33% of your margin on PPC to promote your product, you won’t lose money.
For a campaign to be profitable, you will always want to ensure your actual ACoS is lower than your break-even ACoS.
Your break-even ACoS is also used to calculate your target ACoS (your break-even ACoS minus your target profit margin) , and you can use this new feature in your PPC Manager to help you determine your target ACoS. Learn how to calculate your target ACoS here.
Do you have any questions or suggestions for improvement? Let us know in the comments below, or email us at: email@example.com. We look forward to receiving your feedback!