This Episode, #28, has been in demand by Facebook members for a while. It’s a Pure Tactics, Nitty-Gritty on How to Set up Amazon Ads.
SHOW NOTES FOR EPISODE #28 – Amazon Ads: Making sense of the Numbers
EXAMPLE: (these are actual figures from a week in December for one of my products)
Product A Sales price $19.95 income per sale
TLC=$8 (including warehousing and Amazon inbound shipping)
TOTAL COGS: $13.53
So you have up to $6.42 to spend on Ads IN TOTAL average per unit, to break even
Total ad spend last week $75.50
Unit sales last week 98 units
average ad spend per sale $0.77
So Profit after Advertising per unit = $19.95 income – $13.53 COGS – $0.77 Ads
= $5.65=28 % Gross profit
And ON AVERAGE ACoS for this product across all ad campaigns= $0.77/$15=5%!
Glossary of Technical Terms:
If you’re wanting the detail, however, here it is:
URL: Simply a web address, e.g., www.amazingfba.com/27
ASIN: Amazon Unique Identifying Number (not sure what S stands for!) – within the Amazon universe, this a unique code for a product line. It is like a UPC (Universal Product Code), ie the barcode you will see on any product packaging at your supermarket, only just within the Amazon universe.
Keyword – one, two, 3 or several words entered as a search term, on Google or in the Amazon search bar. e.g. “white” “white board” “White board marker” “White board marker kids”
Keyword Match Type: Amazon will match up a search term that a customer puts in the Search bar with the keywords in your amazon ad campaign. Whether it chooses to display your ad or not depends on how precise a match you set up between a. the search term (from the customer) and b. the keywords you put in your ad campaign.
Keyword matches come in 3 types: Exact, Phrase and Broad Match.
Exact match: your ad will only display if the search term that the customer puts in is exactly the same as the keyword in your campaign.
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