The Amazon marketplace has become highly diverse yet challenging. For sellers, their main target is to increase sales and reach potential customers. There are ways and strategies through which they can accomplish this. One of the methods is lowering their Amazon TACos.
Increasing product views and improving brand recognition through pay-per-click ads is highly crucial. This is where the role of reducing the Amazon TACos comes in. In this article, we will tell you everything you need about TACoS: what it is, the role that it plays, and most importantly, how to reduce Amazon TACoS.
What Is Amazon TACoS?
TACoS stands for Total Advertising Cost of Sales, and this is used to measure the number of sales for your brand. This can be done regardless of whether it is through direct sales or sales through advertising. l. However, the metrics that you get from the TACoS can help you analyze how ads are affecting your sales, the revenue that you need to put into sales further and monitor how the ads are affecting your sales and overall brand recognition.
Hence, overall, you must calculate your TACoS as it helps you determine and manage your spending on ads as compared to sales. From the metrics, you can derive how the ad spending affects your organic sales and revenue growth.
There is no specific number that states having this percentage of TACoS is good. However, the aim should be to keep the percentage lower. If it’s high, then there might be a few reasons as to why it’s showing that particular number.
Read ahead as we tell you how you can keep your TACoS percentage lower.
Ad Spending And Organic Sales
To keep your TACoS percentage lower, your target should be to lower the amount of revenue you spend on ads. On the other hand, focus on increasing your organic sales. You can cut down on ad spending by making a proper budget revenue. In the opposite direction, the product you are promoting their organic sale percentage should increase.
Making Relevant Ads
This is where the concept comes in, where quality matters more than quantity. Rather than increasing the number of ads, improve ad efficiency. Optimize the ads according to what you are selling so they appear when customers are trying to search for them. For this, focus on a high click-per-rate, improve the cost per click by not overspending on the ad, and lastly, make the average sales price higher, which will result in high profits.
Increasing Organic Sales
This can be done through the optimization of your product listings. Use relevant keywords, titles, images, and attractive headings. Use bullet points and ensure that the descriptions are up to date.
Hence, keeping your TACoS percentage is very important for you to become successful on Amazon. If you want expert help or advice, then contact us today at Pro Active Plus PPC. Our professional team will assist you in keeping your TACoS metric lower and PPC Setup and Management.
