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I’m losing money. PPC problems, nightmares and more. SHOOT. Lessons learned to save your business and see more profit.
PPC Problems and Saving your Ship
- Why PPC is harder that you think
- How I F’ed my business big time
- Why sales and revenue aren’t the endall
- Why I recommend and love Hello Profit for product tracking – $20 OFF a month
- How to control and monitor your business more effectively
- The HP problem that screwed my profits
- Why you NEED to monitor PPC constantly
- The ways to optimize sales and profits
- Why I’m using PPCScope2.0 now – COUPON: fbaallstars
- The importance of the breakeven point
- Why launching more products isn’t profitable
- How to improve ACOS a ton
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PPC has become more expensive over time. There also may have been a recent change in the Amazon algorithm. Our PPC ACOS almost doubled across the board in September. My experience with PPC is that a product needs to have 40% – 50% room for PPC expenses in its margin in order to be profitable. We have products that do better, but over time things always get worse (could be changes in competition or in the Amazon algorithm).
The calculation for a profitable product could be like this: 20% margin + 50% PPC + $5 FBA (or whatever your fee is) + 15% to 25% cost of product (manufacturing, importing, packaging, shipping) + x% for returns (if you are in apparel).
This says a lot about the kind of product that would do well on Amazon. For example, if I sold a body lotion 8oz at $12 then the lotion itself (incl. bottle, labels, packaging) cannot cost more than $2.40. Speak about the value the customer gets. Interestingly, Amazon takes in ca. $7 – $8 and you get the rest. Still profitable, but not good for the customer or for the seller.
agreed but you can do better. you just need to be smarter. i have access to some early software i will be sharing soon that kicks ass