We are happy to share the knowledge
1st - the UI
If you are selling in the US and in Europe you have two accounts. So first you have to choose an account. Then, after you are logged in you cannot get an overview of all your countries where you are selling in with this account. In addition, you cannot get an overview of all your ad groups, keywords or especially for auto campaigns no search terms are shown. Those you’ll find in the report section. Generally no comparison with previous periods and no visualisation is given. So Amazon offers you some data within the UI but makes it extremely difficult to access them and especially for analysing those, the UI cannot be the first choice.
2nd - the reports
Like we stated above, you need to download the reports to get more information out of your performance data. One look into the reports offers you already a lot more information than just shown in the Campaign Manager. But still comparison with no previous periods and visualisation is difficult. When it comes to reports there are additionally some restrictions where you have to watch out! Let’s first finish the third point and then we’ll discuss this more detailed.
3rd - Access the API
I won’t recommend to do this by yourself, because it’s really time consuming and you need to know what you are doing. If you are an expert in this field or you have enough IT resources go ahead! Otherwise there are some tools who did the whole bunch of work for you, like we did. The API allows you to access all performance data on search term or SKU level. The only missing information for now are the order information themselves including which SKUs were bought.
You need validated Data - do not exceed one SKU per ad group
If more than one SKU is in one ad group it is currently not possible to identify which keyword brought the sale or which SKU was sold. So a simple but powerful way to guarantee validated data is to split your SKUs into separated ad groups. In addition to that you should consider the different match types and make use of negative keywords.
No keywords with 0 impressions
When downloading the bulk file from the Campaign Manager keywords which did not get a single impression yet won’t be displayed. Such a pity because particularly those tell you where you could miss out the sales opportunity or where you should consider to improve your listing.
Only attributed sales after 7 days are shown
When it comes to attributed sales a seller gets only one third of the data available. Additionally to the data shown in Seller Central and within the reports the API allows you to access the attributed sales after one day, after seven days and after 30 days. Principally during Christmas season this has a big influence because many customers click on an ad in November but buy the article only in December and as a seller you won’t get the real sales and ACoS of your keywords. A click is valid for the time of 30 days after you clicked on an ad. Our experience shows that you generally receive approx. 90% of your attributed sales data within five days.
No historic data
When it comes to historic data, Amazon’s possibilities are quite limited. The support of a 3rd party application is needed to store for instance the max. bid as a historic bid over the time. This is very important to evaluate your changes and sort out keywords which did not perform well.
Amazon sometimes behaves like Pippi Longstocking
Most of all when it comes to the calculation of Average Cost of Sale (ACoS) Amazonians have a different view from their mansion and they will tell you their version of the story. Amazon does not consider tax when calculating the ACoS, perhaps because they are not used to it. If Amazon tells you, that your ACoS is X% it is times your tax rate higher. For instance in Germany where we are located, the local tax rate is 19%. So if you generated 100 EUR in Sales and spend 20 EUR therefor, Amazon shows that your ACoS is 20%. But considering the tax your spend 23,80 EUR and your ACoS is 23,8%. Please consider this when you optimise your campaigns on your break even CPC.
Sellers and vendors, get access to all your data!
We at BidX focus solely on optimising online advertisements with a great user experience. If you want to access all of your sales data and dive deeply into comparisons and visualization, contact us. We generate your individual reports and in addition to that you can save valuable time by creating customised rules. BidX makes sure to only adjust your bids based on validated data. Based on Amazon’s Advertising API we automatically pull new performance data and it is possible to check the performance for each single keyword in a specific date range to make sure you don’t waste any money. We check all your rule requirements daily and adjusts the bids for you until you hit your target CPC and ACoS. BidX is the world’s first tool which allows you to automatically adjust the bids for paid search advertisement on Amazon on an individual rule based algorithm or with our Automation.
Try it for free here.
What is Economic Clicks?
Economic Clicks describe the amount of clicks you need, to get at least one conversion with a probability of more than 80%. This amount varies and is depending on your Paid Conversion Rate (PCR) within your Sponsored Product Ads. The PCR now describes the probability that a person who clicks on your ad buys an item. To give you an example let’s assume a PCR of 10%, meaning that every tenth person buys one of your items in average. The question now is how likely it is to generate a conversion after 10 clicks for instance. Well, to calculate this we can use the theory of a random experiment with two possible outcomes. So we take the probability somebody is not buying your product which is 90% in our case and subtract that from 1. In our case no sale is 0,9 * 0,9 * … * 0,9 = X and 1 - X is the probability that somebody generates a sale.
Let’s compare this with rolling a dice!
The probability to roll a 6 is 1/6 while the probability to roll no 6 is 5/6. So if you roll the dice six times the probability to get a 6 is the probability to six times not rolling a 6 a subtracting this form 1. The probability of not rolling a 6 for six times is 5/6 * 5/6 * … * 5/6 which is 5/6 to the power of 6 which equals 33%. Meaning that the probability for rolling a 6 is 1 - 33% = 67%. Not too much, hhm? strong>
How many clicks should you wait now?
Well, this depends on how sure you want to be to not miss THE sale. From our experience a probability ≥80% gives you enough evidence to make a decision. In the example stated above with a PCR of 10% this equals 16 clicks. We can visualise this with a tree diagram as shown in the following.
|CR in %:|
|Certainty to generate a sale in %:|
Is there anything else you should consider?
Yes! Consider that paid traffic can be very expensive but also very cheap. So it makes sense to define minimum and maximum CPC whether you are increasing your bid or decreasing it. Those threshold values should be considered as CPC requirements in combination with the amount of Economic Clicks.
How BidX can support you!
With BidX you can save valuable time by creating customised rules. You can easily set up rules with Economic Clicks as a requirement. BidX makes sure to only adjust your bids based on validated data (older than 168h). Based on Amazon’s Advertising API we automatically pull new performance data and it is possible to check the performance for each single keyword in a specific date range to make sure you don’t waste any money. We check all your rule requirements daily and adjusts the bids for you until you hit your target CPC and ACoS. BidX was the worlds first tool which allows you to automatically adjust the bids for paid search advertisement on Amazon on a individual rule based algorithm.
Try it for free here.
Start competitive: BoostThe objective of the Boost strategy focuses on newly launched products to find best converting and most searched keywords and yet hidden products. In advance make sure you finished the SEO of your listings and created a keyword pool. An automated campaign generated already relevant long tail keywords from validated data. Generally auto campaigns help you to learn about how customers are searching for your items and make sure you target a wide range. Bidding should be above the market and your break-even CPC. For KPIs you can refer to your organic search (bestseller) ranking increase and how much additional traffic you generated besides your organic one. Go to Seller Central and check "Reports" > "Business Reports" > "Detail Page Sales and Traffic" for a specific date range and compare those KPIs directly to the performance data of your campaigns. This gives you transparency on how much traffic you can generate additionally. Don’t adjust your bids too early and wait until you generated sufficient validated data (older than 168h).
Adjust to break-even: BalanceThe Balance strategy is intent on generating economical sales by keeping profits and costs in balance meaning to run the campaign at the break-even point. Beforehand your campaigns should run for a couple of weeks to make sure you are not missing out any opportunities and you are able to browse and compare your advertising data. Bidding should be as high as long it is economical meaning you aim for the break-even CPC. The bid you set in Amazon might be up to 70% higher to reach your target CPC. For KPIs you may refer to additional units sold with SPA. Go again to Seller Central and check "Reports" > "Business Reports" > "Detail Page Sales and Traffic" for a specific date range and compare those KPIs directly to the performance data of your campaigns. This gives you transparency on how much sales you can generate additionally without "paying" for the advertisements. Don’t adjust your bids too early and wait until you generated sufficient validated data (older than 168h).
Maximise your profit: BenefitThe Benefit strategy focuses on maximising SPA’s profit. Start with this strategy as soon as you know your market and you gained a respective ranking. Now it is time for fine-tuning your campaigns and getting the most out of it. Generally your profit equals your revenue deducted by your costs. Use your profit as KPI to compare your sales data and check how your sales and costs varies through bid adjustments. And again, do not adjust your bids too early and wait until you generated sufficient validated data (older than 168h).
Of course there are other strategies to focus on especially if you are using Amazon Marketing Services or registered a word brand within the Seller Central you get the possibility to access Product Display Ads (“PDAs”) respectively Headline Searches (“HS”):
Boost, Balance or Benefit?Our recommendation is to start with the Boost strategy when launching new products. Later on you should find the right spot between Balance and Benefit. For all strategies you should define your target ACoS. From our experience it is useful to adjust the bid twice as much as your are distanced from your target e.g. if your target ACoS is 25% and your current ACoS is 35% the distance is 10% and you should set up a rule which decreases the bid by 20% in this case - same counts for increasing. Make sure that your target ACoS is set realistically. Too high adjustments in a single step may lead to revenue drops because one of your more competitive ads is not delivered on #1 page anymore but #2 or #3.
How BidX can support youWith BidX you can save valuable time by creating those customised rules. You can easily set up rules for all three discussed strategies and apply the rules to any of the campaigns by adding the campaign name to the “applying to” section. BidX makes sure to only adjust your bids based on validated data (older than 168h). Based on Amazon’s Advertising API we automatically pull new performance data and it is possible to check the performance for each single keyword in a specific date range to make sure you don’t waste any money. We check all your rule requirements daily and adjusts the bids for you until you hit your target CPC and ACoS. BidX is the worlds first tool which allows you to automatically adjust the bids for paid search advertisement on Amazon on a individual rule based algorithm.
Try it for free here.
Consider that the ACoS when generated by Amazon incl. VAT while their shown cost don’t.
What is the impact of a bid?
Amazon judges your position within the sponsored ranking based on your quality score and the amount you are willing to pay per click. Let’s assume that the quality score incl. the CR e.g. 5% for a specific product and keyword is given. The only way to regulate your advertisement is by adjusting the amount you are willing to pay. If the max. bid and your which is the value you set in Amazon is too high, you generate unnecessary expenses. If the max. bid is too low you lose sale potentials. To give you an idea and to come back to the example above: If your current break-even ACoS is 20% your break-even CPC is $0.5 because with a CR of 5% every 20th person who clicks on your ad will generate a sale and 20 times $0.5 equals your profit of $10,-.
Did you find the optimal bid?
After your first set up wait until you generated enough validated data (older than 168h). Check your search term reports and add new keywords. Did you hit your target CPC? That’s great; if you didn’t adjust the max. bid. Also think one step beyond: Amazon is a highly dynamic market which changes daily basis. New products are coming up, new sellers join the marketplace and additional advertisements appear. That’s why it is necessary to control the bids for all your keywords and adjust them based on the changes within the market. The target CPC today might differ from the one tomorrow.
Check your CPC on a regular basis
In general the max. bid should be up to 40% higher than your target CPC. Is your current CPC lower than your target then increase your bid - is it higher lower it. This should be done dynamically meaning that if your CPC is much higher than your target CPC lower your bid accordingly.
How BidX can support you
With BidX you can save valuable time by creating customised rules. We check all your rule requirements daily and adjusts the bids for you until you hit your target CPC and ACoS. Based on Amazon’s Advertising API we automatically pull new performance data and push the adjusted bids back to Amazon. BidX is the worlds first tool which allows you to automatically adjust the bids for paid search advertisement on Amazon on a individual rule based algorithm.
Try it for free here.