Profitable Scaling through PPC Campaigns

By successful business scaling, you’re able to handle an increase in sales and most important increase your profit margins.

Those FBA sellers who have already launched products and satisfied with their existing business then ultimately next step towards profitable scaling.

In the broad overview you can scale your Amazon business by the following:

1. Add new SKUs to your account
2. Scale the existing SKUs by taking more market share

This blog is more targeted toward the second point and more specifically scaling through PPC campaigns.

Scaling your business on Amazon is not easy it depends upon the performance of your campaigns.

For scaling following questions you should ask yourself before taking any action:

1. Have I met my targeted ACOS goal on existing campaigns? More specifically How many campaigns are below and up for your targeted ACOS? Have you taken any actions on campaigns that have ACOS higher than you targeted?
2. Do you have a good bidding management system in place?
3. Have I targeted top of search placement on top keywords using existing data?
4. Are my existing campaigns properly utilizing budgets?
5. Have I graduated search terms from auto to manual?
6. Have I utilize my 30% spend from the total budget toward Sponsored Brand and Sponsored Display?
7. Have I done testing on new targets?

Importance of KPI’s:

KPI’s enable you to understand the performance and health of your business so that you can make critical adjustments in your execution to achieve your strategic goals.

Knowing and measuring the right KPIs will help you achieve results faster.

Before performing any scaling activity, you should have a system to measure the performance. To accurately measure the impact for any activity, you can take only one variable to test and keep other variables constant.

By combining the Amazon business and advertising reports you should make an Excel template and measure the result before and after performing the scaling activity.

The important matrixes are Impression, clicks, Spend, sales, ACOS, ROAS, TACOS and PPC sales ratio.

Best Practices to scale account using search term data:

Amazon search terms report gives you insights into the search terms’ visibility that are driven by shoppers’ clicks.

You can also identify negative keywords for search terms that aren’t driving traffic. You spend a lot of money to get data from Amazon so it also is important to use this data for profitable scaling.

We use data because we already have proof of conversion. Below are the following steps to use the search term data for scaling:

1. Download the search terms data
2. Filter out search terms above then 3 orders
3. Filter out unique search terms
4. Create new campaigns
5. Also utilize search terms data for creating Sponsored Brands and Sponsored Display Campaigns