Get real-time competitor data while you browse. Download our FREE Amazon Chrome extension.

  • Platform
    Back
    • Advertising

      Benefit from smart, AI-powered ad scaling for your listings.

    • Dynamic Pricing

      Set automated pricing using the power of machine learning.

    • Workflow

      Optimize multiple e-commerce campaigns with one click.

    • Content

      Let our algorithm generate SEO-rich content for you.

    • Promotion

      Harness cutting-edge software to drive higher conversions.

    • Market Intelligence

      Gain access to game-changing data and dashboards.

    “I am able to automate the implementation of data-driven decisions.”

    Tobi O, Luxe Weavers
    Read success stories

    Ready to get started? Book a demo

    PricingChat to sales
  • Solutions
    Back
    • Growing brands

      Small team? Let us to be your virtual CMO.

    • Established brands

      We help seasoned marketers automate tedious decisions.

    • Agencies

      Turbocharge your clients’ ads, giving you room for more business.

    • Brand Aggregators

      Optimize your investment and prepare for a profitable exit.

    ecommerce merchandising strategies for merchandising experts

    How optimizing the same variables over and over again is stagnating your eCommerce store.

    Merchandising Strategy
    Building a Merchandising Strategy

    Ready to get started? Book a demo

    PricingChat to sales
  • Pricing
  • Marketplaces
    Back
    • Amazon

      Sell more on the world's largest eCommerce marketplace.

    • Walmart

      Optimize your listings with the world's largest retailer.

    • Google Shopping Beta

      Join the waitlist. Change the way your brand runs ads on Google.

    “For a data guy, I also knew that AI and machine learning were the answer to my ability to successfully advertise on Amazon.”

    Map Sherpa
    Read success stories
  • Free Tools
    Back
    • Amazon Sales Estimator

      Free tools for product research.

    • Amazon Listing Analyzer

      Insights to optimize your listing.

    • Amazon Keyword Discovery Tool

      Keywords to accelerate growth.

    • Amazon ACOS Calculator

      Setup profitable campaigns.

    • Price Elasticity Calculator

      Find your optimal price.

    • Amazon Competitor Analysis

      Outcompete with real-time data.

    Your free chrome extension for keeping up with competitors on Amazon.

    Free Amazon Chrome Extension

    Ready to get started? Book a demo

    PricingChat to sales
  • Resources
    Back
    • Blog
      • Amazon FBA Private Label: A Complete Guide for Sellers
        Amazon FBA Private Label: A Complete Gui...
        Amazon Product Inserts: A Guide for Sellers in 2024
        Amazon Product Inserts: A Guide for Sell...
        What Is The Amazon RMA Number
        What is the Amazon RMA Number?
        Amazon Peak Season Key Dates for Sellers in 2024
        Amazon Peak Season: Key Dates for Seller...
        Read All
    • eBooks
      • Amazon PPC Strategy ebook
        Advanced Amazon PPC Strategy eBook
      • Ecommerce Quadrants: Interlock Your Amazon Growth Strategy
      • Subtle Art of Pricing Amid Economic Downturns
      • Real Data Rundown: Increasing Ad Spend During BFCM
    • Success Stories
      • Case Study: Slim margins yet big results
        Using strategic ecommerce automation
        Case Study: 450% Growth With Strategic 4...
        Walmart Advertising Software Case Study
        Case Study: 12X Luxe’s Sales With ...
        Case Study: World Products Increases Sal...
        READ ALL
    • Trellis Training
      • Platform Overview
        Creating a Media Plan
        setup and configuration ads automation
        Setup and Configuration
        Media Plan Optimization
        Read More
    • Guide For Profit
      • Merchandising Manifesto
    • Benchmark Reports
Login Schedule a demo

Category

  • Amazon SEO

How to improve your ROAS on Amazon?

Share
Fahim Sheikh

Fahim Sheikh

  • August 3, 2021
How to Improve Your Amazon ROAS

Advertising has become a must if you want to sell on Amazon. Several different types of advertisements exist; however, the bottom line is to maximize the return on your ad spend. So, what are the few simple yet effective things you can do to increase your ROAS (Return on Ad Spend)?

Let’s first look at ROAS and how it is calculated:

ROAS = Ad Sales / Ad Spend

Therefore, if you spend $100 per day on ads, and it generates $500 per day in ad sales, you have a ROAS of 5. A lot of us may be more familiar with ACoS. ACoS is simply the inverse of ROAS:

ACoS = Ad Spend / Ad Sales

Using the same example, ACoS would be 20%.   

[/et_pb_text][/et_pb_column]

To improve your ROAS or ACoS, you either need to increase your Ad Sales or decrease your Ad Spend.  How can we improve Ad Sales at the same fixed ad spend?

Ad Sales will go up if you focus on the following simple changes:

  1. Focus on keywords that convert better
  2. Don’t get sucked into a keyword bidding war
  3. Discover Ad types that convert better
  4. Improve your content
  5. Frequently optimize bids
  6. Consistently harvest new keywords
Table of contents
  1. Focus on keywords that convert better
  2. Don’t get sucked into a keyword bidding war
  3. Discover Ad types that convert better
  4. Improve your content
  5. Frequently Optimize bids
  6. Continuously harvest new keywords

Focus on keywords that convert better

  • Every combination of keyword and match type will have a different conversion rate
  • Let the data guide you by focusing your spend on keywords that convert better
  • Regularly calculate the Click-Thru-Rate (CTR), Conversion Rate (CVR) for each keyword in your campaign and make sure bidding higher on keywords that convert and soft-negate (bid down) keywords that don’t
  • This requires discipline and some good spreadsheet skills 🙂
  • How to calculate CTR and CVR?

CTR = Clicks / Impressions

CVR = Orders / Clicks

Don’t get sucked into a keyword bidding war

  • Amazon sellers often worry about ranking for certain keywords, driving up bids and reducing ROAS will do the trick; remember only Amazon wins in a bidding war
  • Whether you have top of the funnel or long tail keywords, only bid on keywords at the bid value that meets your target ROAS
  • Hint: Did you know that you are able to get sales for a keyword at a bid value much lower than the recommended bid  
  • What should you bid for a keyword?

Bid Value = Product Price x Target ACoS x Conversion Rate

Discover Ad types that convert better

  • Each ad type caters to a different part of the shopper funnel
  • Humans are lazy, so when it comes to reading or watching a video, humans will always watch
  • Our data has shown that Sponsored Brand Video ads outperform Sponsored Product and Sponsored Brand banner ads by as much as 30%
  • Invest in video content to drive engagement that will lead to conversion and generate more sales

Improve your content

  • Objective of ads is to drive traffic to your listing
  • If the consumer is on your listing and does not hit the “Buy Now” button, then your content is not working
  • Features bullets, A+ content, images, and videos that highlight the benefits, tell your story, engage the consumer drive better conversion
  • There is a science behind how shoppers look at content and make decisions on purchases
  • Work with an expert that is well versed in shopper design and claims and improve your content
  • Trellis offers a free Google chrome extension, to help you analyze and improve your Amazon listings

Frequently Optimize bids

  • Marketplaces are very dynamic, always changing
  • You could be losing sales because you are bidding too low
  • Your ACoS could be unnecessarily high if you are bidding too high
  • You need to continuously monitor and frequently optimize your bids to get an edge!  Gone are the days where you can set the bid and adjust it after a few weeks; this needs to be done daily if you want to compete

Continuously harvest new keywords

  • Keyword harvesting on Amazon is the act of taking keywords from the search terms reports and adding them to your own campaign
  • By doing so this increases the number of keywords that can potentially generate a sale
  • Harvested keywords tend to be longer tail and as such likely have a lower bid value
  • Driving more sales from a wide range of keywords that have a lower bid value will naturally increase your ROAS or lower your ACoS
Fahim Sheikh

Fahim Sheikh

CEO Fahim's overarching mission revolves around equipping brands with the tools for profitable growth. His strategic approach melds the powers of data science and automation, seamlessly aligning with the pivotal elements propelling demand: Advertising, Pricing, and Promotions. As an advocate for thriving brands, Fahim's legacy resonates in his dedication to harnessing innovation for sustainable success.

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Trending Posts

Amazon FBA Private Label: A Complete Guide for Sellers

Amazon FBA Private Label: A Complete Guide for Sellers

December 6, 2023
Amazon Product Inserts: A Guide for Sellers in 2024

Amazon Product Inserts: A Guide for Sellers in 2024

November 30, 2023
What Is The Amazon RMA Number

What is the Amazon RMA Number?

November 28, 2023
Track your competitors and their keywords.

Get insights about your category and keywords with our Free Amazon Chrome Extension.

Download Extension

Choose To Sell More With Trellis

Book a Demo

Subscribe for growth tips and tricks straight to your inbox.

Facebook Instagram Linkedin Twitter Youtube

Get Started

  • Schedule a Demo
  • Sign Up
  • Pricing

Product

  • Advertising Automation
  • Dynamic Pricing
  • Product Content
  • Promotion

Solutions

  • Growing Brands
  • Established Brands
  • Agencies
  • Brand Aggregators

Company

  • About
  • Partners
  • Contact Us
©Trellis Corporation 2023 •  Privacy Policy •  Terms and Conditions
cross