What is the Average Advertising Cost of Sale for Amazon PPC?

As an Amazon PPC software tool, we try to set our customers up for success the best way we know how. One of the best ways to hook Amazon sellers up is to provide Amazon PPC benchmarks for all your advertising needs.

I’ve written about how to tell the difference between a good and bad ACoS, how to hit your break-even ACoS, and now I’ll discuss what the average ACoS for Ad Badger users is. 

Why Supply ACoS Benchmarks?

Apart from it’s the right thing to do, we like educating Amazon sellers on the best time to sell and bid on keywords. Amazon’s Seller Central makes it hard enough on sellers to be successful, so we want to make things easier. 

Since Black Friday of last year, we’ve been providing Amazon advertising stats for our users and those who want to take their Amazon selling to the next level. 

Here area the metrics for last month: 

Amazon Metrics May vs June
These numbers are per Ad Badger user, per day.

This data is taken from our pool of users that sell everything from apparel items to food products. These numbers are per Ad Badger user, per day. 

The Average ACoS of Amazon Sellers

The average Advertising Cost of Sale for Ad Badger users is 30.1%.

Remember, the ACoS Formula is Ad Cost/Sales:
Average ACoS and ACoS formula

What is the Recommended ACoS?

So, is 30.4% ACoS good or bad? 

We dedicated a whole ACoS post on this topic, but let’s recap. ACoS is all relative to a user’s account and their strategy of maximizing profit (low ACoS), maximizing visibility (high ACoS), or finding a balance. 

30.4% is right in the middle of being profitable and maintaining a good amount of visibility. 

Average ACoS Month-by-Month

 

Average ACoS in 2018
Here is the ACoS month-by-month comparison so far in 2018. These numbers are per Ad Badger user, per day.

There has been a big fluctuation in ACoS in 2018. The ACoS is loosely correlated to consumer trends centered around holidays and big shopping days, increasing on high-traffic months on Amazon and decreasing on low-traffic months. 

Now I’m going to throw some other metric tables at you to show you how they relate. 

Here is Ad Badger user’s conversion rate in 2018:

Here is the Conversion Rate month-by-month comparison so far in 2018. These numbers are per Ad Badger user, per day.

Conversion Rate is inversely related to ACoS. If Conversion Rate increases, ACoS decreases and vice versa. 

Average Sales Per Ad Badger User for Amazon PPC
Here is the Sales month-by-month comparison so far in 2018. These numbers are per Ad Badger user, per day.

This sales chart shares a similar relationship to ACoS. The more competitive the Amazon marketplace becomes with increase sales, ACoS decreases. These tables show it is better to advertise in the Spring months than the afterglow of the holidays and the slow Summer months. With a lower ACoS and increase in sales, sellers saw an increase in profit. 

Sellers saw a decrease in sales and increase in ACoS in February, most likely due to the increase in competition for Valentine’s Day and customer’s recovering from the holiday season. I actually found this interesting article explaining February is a bad month to sell and even breaking down month-by-month eCommerce product trends. There’s also Amazon Seller Forums dedicated to this topic (keep in mind this forum was created in 2015).

More Amazon Advertising Metrics to Come

This isn’t the only analysis we provide! Keep checking back on our Amazon advertising stats post which we update monthly. Additionally, constantly check our Amazon PPC Questions section, where we often discuss ACoS. We’ve already posted about lowering your ACoS, how Ad Badger helps lower ACoS, and more

If you haven’t already, download our Amazon PPC Starter Kit to go deeper into the world of Amazon PPC. 

Au revoir badgers.

Share on facebook
Share on linkedin
Share on twitter