Sellozo’s Blueprint for Amazon Advertising Success

Successfully scaling your Amazon business requires more than just listing products and running ads—it demands a well-structured strategy that balances ad spend, profitability, and growth. That’s where Sellozo comes in: our proven strategies make it easy to fine-tune your ACoS, lower your TACoS, increase conversions, and drive more traffic to your listings. With powerful automation, data-driven insights, and intuitive campaign management tools, Sellozo helps you optimize every aspect of your Amazon advertising. In this guide, we’ll walk you through the key strategies that, when combined with Sellozo’s tools, will help you take control of your ad performance and scale your business with confidence.

🎯How Do I Determine My ACoS & What Is a Good ACoS?

ACoS (Advertising Cost of Sale) is calculated as:

ACoS = (Total Ad Spend / Total Ad Revenue) x 100

A “good” ACoS depends entirely on your goals—whether you're aiming for aggressive growth, a balance of profit and scale, or maximum efficiency. If you're already running campaigns before joining Sellozo, the best starting point is to set your target ACoS within 5% higher or lower than your current ACoS. Adjusting up or down depends on whether your priority is to push for more sales (aggressive) or improve profitability (efficient).

Once you've set an initial target, a gradual approach works best. If your campaign is consistently hitting your ACoS goal and you're looking to lower it further, use a "stair-step" strategy—reducing your target ACoS in increments of 5-10% over time. This allows your campaigns to adjust smoothly without sudden performance drops.

⚠️However, setting a target ACoS too low too quickly can have unintended consequences. If your ACoS goal is drastically below what the campaign can realistically achieve, the system may lower bids too aggressively. This can significantly reduce spend and even cut off sales entirely, limiting your campaign’s ability to perform.

By taking a strategic and measured approach to ACoS adjustments, you can optimize your advertising efficiency without sacrificing momentum.

📉How Do I Lower My ACoS?

Lowering your ACoS requires a combination of smart automation, bid adjustments, and strategic budget allocation. Here are the most effective methods to optimize your campaigns and reduce wasted ad spend while maintaining performance.

1) Turn on the Optimizer 🤖

Sellozo’s Optimizer is a powerful tool for automating bid adjustments and improving efficiency. To start:

Enable the Optimizer on your campaigns.
Set a target ACoS slightly below the current 30-day ACoS—around 5-10% lower.
Focus on high-converting keywords while reducing spend on underperforming ones.
Use negative keywords to block irrelevant traffic and prevent wasted clicks.
Continuously monitor performance and let the Optimizer make bid adjustments based on real-time data.

2) Perform a Wasted Spend Check 🔎

Eliminating non-converting keywords is a fundamental step in improving ACoS. The Wasted Spend Check helps identify high-click, low-performance keywords that drain your budget without delivering results.

How to perform a Wasted Spend Check:

Analyze keywords over a 30- to 90-day period.
Identify keywords with zero conversions that have accumulated 10 to 20+ clicks.
Pause or remove these keywords from your campaigns.
Use the filter PPC Profit < 0 to find and pause targets that generate sales but result in negative PPC profit.

By consistently removing non-converting keywords, you'll immediately see a reduction in wasted ad spend and a positive impact on ACoS. We recommend performing this check weekly for optimal results.

3) Anchor SKU Approach ⚓

The Anchor SKU Approach is particularly effective for sellers with multiple variations of a product or a limited advertising budget. This strategy ensures that ad spend is directed toward the most profitable SKUs.

How to implement the Anchor SKU Approach:

Analyze performance across different product variations.
Identify top-performing SKUs that meet your ACoS goals.
Pause advertising for low-performing SKUs to prevent wasted spend.
Allocate your budget to the most profitable SKUs.

By concentrating ad spend on the products that deliver the best return, you maximize efficiency and lower ACoS while ensuring your budget works harder for you.

4) Hero Campaigns 🦸‍♂️

Hero campaigns allow for greater control over ACoS by separating high-performing keywords from lower-performing ones.

How to set up Hero Campaigns:

Identify top-performing keywords that consistently meet ACoS goals.
Move these keywords into a dedicated campaign with an appropriate budget.
Place lower-performing keywords into a separate campaign for testing, allocating a smaller budget.

This method ensures that high-performing keywords receive the budget they need to drive profitable sales while allowing room to test and optimize weaker keywords separately.

5) Lower Target ACoS 🎯

Once your campaigns are optimized, gradually lowering your target ACoS can help reduce costs further.

What happens when you lower Target ACoS?

The Optimizer will begin lowering bids on keywords that don’t meet your ACoS criteria.
Your Cost Per Click (CPC) will decrease over time as the system adjusts.
Lower CPC—assuming your conversion rate stays the same—naturally leads to a lower ACoS percentage.

6) Optimize Budgets 💰

A well-optimized budget ensures your campaigns run efficiently without overspending or missing opportunities.

How to optimize campaign budgets:

Identify campaigns that run out of budget too early in the day—this means they are missing out on profitable sales.
If the ACoS is acceptable, increase the budget to allow more sales.
If the ACoS is too high, lower bids by either:
- Setting a lower Target ACoS for the campaign.
- Manually decreasing bids on high-spending targets.

Lowering CPC allows your campaign to stay within budget for longer, leading to a lower overall ACoS. Repeat this process every 2-3 days until your campaigns run efficiently throughout the entire day.

By implementing these strategies, you can systematically lower your ACoS while keeping your campaigns profitable and scalable.

📊How Do I Lower My TACoS?

Total Advertising Cost of Sales (TACoS) measures ad spend as a percentage of total revenue—including both ad-driven and organic sales. While lowering ACoS helps reduce TACoS, the key to long-term improvement is increasing organic sales.

1) Lower ACoS First 🎯

Since TACoS includes ad spend, reducing your ACoS naturally helps lower TACoS as well. Follow the strategies outlined in the previous section to eliminate wasted spend, optimize bids, and refine campaign structure to make your ad dollars more efficient.

2) Increase Organic Sales 🔥

A rising share of organic sales lowers your reliance on paid ads, which in turn reduces TACoS. One of the best ways to track this progress is by monitoring your Best Sellers Rank (BSR) in ProductVu.

Why BSR Matters: The better your BSR, the higher your product ranks in its category, leading to more organic visibility and sales.
How to Improve BSR:
- Increase your daily sales velocity—higher sales volumes signal to Amazon’s algorithm that your product is in demand.
- Maintain competitive pricing and strong conversion rates to outperform competitors.
- Leverage promotions, deals, and external traffic to drive more total sales.

By balancing efficient ad spend with organic growth, you’ll lower TACoS over time while scaling your overall profitability.

💰How Do I Increase My Sales?

Boosting sales requires a strategic combination of advertising, listing optimization, and pricing tactics. To maximize visibility, conversion rates, and overall sales growth, follow these key steps:

1) Optimize Your Product Listings 📸

Before ramping up advertising, ensure your listings are fully optimized to convert traffic into sales:

Use high-quality images that showcase your product from multiple angles. The main image should be captivating. Lifestyle (product in use) and infographic photos highlight the best features of your product. A video can enhance the listing even further.
Write compelling descriptions that highlight key benefits and features. Make sure listing titles are full of relevant, rich keywords and distinguishing characteristics about the product.
Implement A+ Content to enhance your brand presence and improve engagement.

2) Run Smart Advertising Campaigns 🚀

A well-structured ad strategy is essential for increasing both paid and organic sales. Campaigns should be launched in the following order for best results:

Sponsored Products – The foundation of Amazon advertising.

Run low-bid catch-all campaigns to capture additional traffic.
Increase budgets on campaigns that are hitting their daily limits if ACoS is acceptable.
Use Sellozo’s Launch Campaign flow to create a structured campaign system.
Link Auto to Manual campaigns for efficient keyword and ASIN harvesting.

Sponsored Brands – For brand awareness and engagement.

Launch Sponsored Brand Headline and Sponsored Brand Video campaigns to capture high-intent shoppers.

Sponsored Display – For retargeting and category dominance.

Run defensive campaigns targeting your own ASINs to prevent competitors from stealing conversions.
Launch category targeting campaigns to reach relevant shoppers.
Use Sponsored Display campaigns for offensive, defensive, and category targeting strategies.

3) Advanced Campaign Strategies 💡

Ranking Campaign for a Top Keyword
- Select a high-value keyword and create a new Exact Match campaign.
- Set a high bid and lock it in to aggressively rank for that term.
Defensive ASIN Targeting
- Protect your own product listings by targeting your own ASINs within your campaigns.
- Feature the same ASINs as product ads inside the campaign to maintain control over your traffic.

4) Optimize Pricing for Competitiveness ⚖️

Utilize Sellozo’s Repricer to dynamically adjust pricing and stay competitive in the marketplace.
Run coupons and promotions to increase sales velocity and boost conversion rates.

By implementing these strategies in a structured and prioritized manner, you can increase sales while maintaining efficiency, ensuring long-term growth and profitability.

🔄How Do I Increase My Conversion Rate & What Is a Good Conversion Rate?

Amazon’s average conversion rate typically ranges between 10-15%, though this varies by category and product price point. Competitive categories tend to have lower conversion rates, and higher-priced products often convert at a lower rates than more affordable ones.

To improve your conversion rate, focus on the following key areas:

1) Optimize Your Product Listing for Conversions 📌

Craft clear and persuasive product titles and bullet points that highlight key benefits.
Use high-quality images and videos to showcase your product in the best possible light.

2) Leverage Customer Reviews & Ratings 🌟

Customer reviews are the biggest factor influencing conversion rates—shoppers trust products with strong ratings.
If eligible, enroll in Amazon Vine to get up to 30 initial reviews from verified reviewers.
Encourage satisfied customers to leave feedback through post-purchase emails and great customer service.

3) Ensure Competitive Pricing & Fast Shipping 🚚

Price your product competitively within your market to avoid losing conversions to lower-priced competitors.
Offer fast and reliable shipping—FBA (Fulfillment by Amazon) provides Prime shipping, which significantly boosts conversion rates.

By optimizing these factors, you can increase your conversion rate, making the most of your traffic and turning more visitors into paying customers.

🚦How Do I Increase Traffic to My Listings?

Driving more traffic to your Amazon listings requires a combination of strategic advertising, external marketing, and promotional tactics. Here’s how to maximize your listing’s visibility and attract more potential buyers:

1) Run Well-Structured PPC Campaigns 🎯

Target high-intent keywords with Sponsored Products, Sponsored Brands, and Sponsored Display campaigns.
Increase your Target ACoS—a higher target ACoS allows for higher bids on valuable keywords, leading to more ad impressions and increased spend.
Utilize Sellozo’s campaign patterns to launch structured campaigns designed for maximum traffic potential:
- Medium Discovery – Balanced approach to scaling traffic.
- High Discovery – Aggressive strategy for rapid visibility growth.

2) Drive External Traffic 📢

Leverage social media and influencer marketing to bring in off-Amazon traffic.
Use email campaigns and brand-owned channels to drive existing customers back to your listings.

3) Run Promotions & Deals 🎟

Attract more visitors by offering coupons, Lightning Deals, and time-sensitive promotions to increase product visibility and engagement.

By combining advertising, external traffic strategies, and promotions, you can significantly increase traffic to your listings and drive more potential customers to your products.

Final Thoughts: Scale Your Amazon Business with Sellozo 🚀

Growing a successful Amazon business isn’t about using a single strategy—it’s about layering multiple tactics that work together to drive sales, improve efficiency, and increase profitability.

With Sellozo’s automated optimization, campaign structures, and real-time analytics, making smart advertising decisions has never been easier. Whether you're fine-tuning existing campaigns or launching new ones, Sellozo simplifies the process, ensuring your advertising works smarter—not harder.

⚡ Take control of your Amazon advertising today with strategies designed to maximize results while saving you time and effort! 💰

Click here to get a free demo today!