How to Reduce Amazon PPC Costs

Managing your Ad account on Amazon and having total control of your ads is crucial to succeeding as a business on Amazon. Without Amazon Ads, your chances of growth, profitability, and reaching every seller’s dream are meager, as the odds are not in your favor. 

Why’s that? Because of many products’ varieties, new competitors keep on appearing daily. We must not forget sellers that already have a sizable community and constantly expand on the Amazon platform. You can admit that the struggle to keep up with the competition is significant and tangible. 

Most of your competitors are running campaigns and ads as well as you, but are yours profitable? Are you following your targeted ACoS? What are your monthly Amazon PPC costs? Do you know how to reduce them and where to invest more? These questions need to be answered to improve your account and keep your profits at a desired level. 

Running ads can seem very easy, right? You have to create all possible campaigns and let them run, and your Ad account and business will be fine. But, in reality, it’s not. Having many campaigns in your advertising account is great, but that isn’t enough to improve your overall performance. 

What Are Your Next Steps? 

You need to have your targeted spend and ACoS to know at what stage of profitability your account is and what your weaknesses and advantages are. 

What does that mean? Well, you have to reduce the spending everywhere where you throw your money away, in other words, where your campaigns are just spending and not getting sales, and invest all of that in other ads that are performing better. 

There are several ways to reduce your spend on Amazon. 

Search Terms Report

First, focus on the Search Terms Report and eliminate what is unprofitable in the long run. Put to negative exact all unprofitable search terms that have a high number of clicks along with high spending without sales. 

You can take a period of 60 days to clean your search terms and reduce the spending as much as you can. You can do the same thing for the period of 30 days so you can be up-to-date with the latest spenders and block them as soon as possible. That way, you’ll avoid overspending on search terms that are not giving you any sales. 

You can find many valuable data going through your account in the Search Terms Report. Besides excluding unprofitable keywords, you can exclude those with a high click-through rate that are not getting you any sales. This is also important to have in mind. 

Bulk Files

Another thing that you can do is to download the bulk file for the 60 days and analyze all targets that have high spending and a high number of clicks without sales. You can pause all unprofitable targets through the bulk file with one click. So you can reduce your spend and eliminate all targets that are not profitable for your account. You can do the same thing for a shorter period depending on the size of the account, CPC, number of clicks, etc. 

With this bulk file for the period of 60 or 15 days, you can also find all targets with really high ACoS that are not profitable. You can pause these targets or just decrease bids for them so you can let them run and try to make them profitable. This decision depends on your targets. 

Analyzing your bulk files and your search term report can be beneficial. It can help you reduce your Amazon PPC costs and invest your money in targets that have more chances to be profitable. In the advertising console in the Tab Targeting, you can find fast all the targets in one place for the whole advertising account. This will also help you track what brings money to your business and what drains it from your wallet. 

Top Spenders

Another really important thing that you have to analyze is your advertising console to find the top spenders. You just need to put a period you want to analyze and the filter: Spend (from largest to smallest). You will find top spending campaigns with top spending targets with this action. It will give you a clear picture of where your spend is the highest and if the top spending targets are at a profitable level. You’ll see if you need to decrease or increase your bids to make them more profitable.

Every account has top spending campaigns, and you need to focus on them so your ads can beat your competitors, which will bring you better results. 

Conclusion

By following the steps above, you can reduce your Amazon PPC costs, focus on the most relevant and profitable targets and campaigns, grow your business, and increase profits. 

If you want to lower your Amazon PPC costs, our PPC specialists at Sellers Alley would be happy to help you. Feel free to contact us and discover how to make your business on Amazon successful and profitable in 2022.

About the author

​​Nikola Đorđević is a PPC specialist at Sellers Alley. Since he joined the company, Nikola has continued expanding his knowledge and delivering outstanding results. Besides PPC advertising, he has a strong passion for writing and photography, and his creativity helps him solve different problems in the marketing world.