How to Reduce ACoS on Amazon – Proven Strategies for Maximum ROI
Running ads on Amazon is essential for visibility, but high ACoS (Advertising Cost of Sale) can eat into your profits. If you’re struggling with high ACoS and low returns, you’re not alone. Many sellers face this challenge.
At E-com Grow Support, we specialize in reducing ACoS while boosting your overall sales and brand presence on Amazon. This blog shares practical, data-driven strategies to help you cut down your ACoS and improve your profit margins.
📌 What is ACoS?
ACoS (Advertising Cost of Sale) is the ratio of ad spend to ad revenue, calculated as:
Example: If you spend ₹1000 to generate ₹2000 in sales, your ACoS is 50%.
Lower ACoS = Higher Profit.
Higher ACoS = Lower Profit or Loss.
✅ Top Strategies to Reduce ACoS on Amazon
1. 🎯 Use Targeted Keywords (Not Broad Terms)
Using broad match keywords often brings irrelevant traffic. Focus on Exact Match or Phrase Match keywords that align with your product’s core value.
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Use Amazon’s Search Term Report to find high-performing keywords.
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Eliminate keywords with high spend but no conversions.
2. 🔥 Negative Keyword Optimization
Add negative keywords to prevent wasted ad spend on irrelevant searches.
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Regularly check your search terms.
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Block irrelevant queries that don’t convert.
3. 📈 Optimize Product Listings for Conversion
Even if your ad brings traffic, your listing must convert. Ensure:
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High-quality images
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Clear product title & bullet points
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Competitive pricing
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Positive reviews and ratings
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Mobile-optimized layout
4. 💡 Adjust Bids Based on Performance
Don’t blindly increase your budget. Analyze:
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Reduce bids for high-ACoS keywords
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Increase bids on keywords with low ACoS and high sales
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Use dynamic bidding – down only for more control
5. 📊 Segment Your Campaigns
Split campaigns by product type or keyword match type. This gives you better visibility and control over what works and what doesn’t.
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Run separate campaigns for branded vs non-branded keywords
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Separate auto campaigns from manual ones
6. 🛒 Focus on Profitable Products
Only advertise products that:
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Have a good conversion rate
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Offer enough profit margin to support ad costs
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Are in stock and have good reviews
Stop ads for low-performing products.
7. ⚙️ Use Auto Campaigns for Discovery, Not Scaling
Auto campaigns are good for discovering new keywords but not for scaling. Always:
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Run low-budget auto campaigns
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Transfer converting search terms into manual campaigns
8. 🧠 Analyze Performance Weekly
ACoS optimization is not one-time. Weekly or bi-weekly analysis is key.
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Review keyword data, click-through rate (CTR), and conversion rate
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Remove or reduce bids on underperformers
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Scale winners
💼 Want Help Reducing ACoS?
At E-com Grow Support, our PPC experts help Amazon sellers reduce ACoS and increase their Return on Ad Spend (RoAS). We provide:
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Complete ad account analysis
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Weekly reporting and adjustments
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ACoS reduction plans tailored to your profit margins
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Campaign setup, optimization, and scaling
📞 Contact Us Today!
Let us take your Amazon ads to the next level.
📧 Email: sales@ecomgrowsupport.com
📱 Call/WhatsApp: +91-8745039476
🌐 Visit: www.ecomgrowsupport.com