The best way to use our software is to have a proper campaign structure. At Profit Whales, our parent company, we developed the Amazon PPC Structure that brought us 1+ Billion in Amazon Revenue for our clients. We call it Zero to Hero.
This is the best Amazon Advertising structure to manage your ads and squeeze as much profit as possible. You can learn more about Zero to Hero Structure in this article:
By understanding how Zero to Hero works, you can set up perfect Automation for each campaign with our AI machine.
To optimize a chosen product, you must first calculate your break-even or target ACOS. To calculate the Amazon break-even ACOS (Advertising Cost of Sales), follow these steps:
Determine your product's cost per unit: This includes the cost of manufacturing or sourcing the product, shipping, and other expenses associated with producing the product.
Determine your target profit margin: This is the profit you want on each sale. For example, if your cost per unit is $10, and you want to make a 20% profit margin, your target profit per unit would be $2.
Determine your selling price: This is how you will sell your product on Amazon. Ensure to include any Amazon fees such as referral, fulfilment, and storage fees.
Calculate your break-even ACOS: To do this, use the following formula:
Break-even ACOS = (Target Profit per Unit / Selling Price) x 100%
For example, let's say your cost per unit is $10, your target profit margin is 20%, and your selling price is $15. Therefore, the target profit per unit would be $2, and the break-even ACOS would be:
Break-even ACOS = ($2 / $15) x 100% = 13.3%
This means that if your ACOS is below 13.3%, you profit from each sale. Conversely, you lose money on each sale if your ACOS exceeds 13.3%.
Once you have figured out this information, you can set the target ACOS for the chosen products.
IMPORTANT INFORMATION: algorithms make changes to achieve target ACOS for specific keywords, not for ASIN or entire accounts. Ensure you understand each of the automation settings to achieve desired ACOS.
By changing target ACOS up or down by a few %, you can control the optimization by squeezing more profit or allowing higher CPA to get more advertising sales to influence organic ranking.
Okay, now you understand that our software will get you the desired ACOS. So let's talk about how it operates and what kind of settings we are giving you to perform the optimization.
We have nine settings to work with:
Bid Optimization Keywords - this part uses AI to find the most profitable bid for your keywords.
Bid Optimization PAT - this is the part that uses AI to find the most profitable bid for your ASINs and Categories.
Activate Keywords - this algorithm helps you to scale keywords and targets that do not bring enough traffic to scale or pause keywords.
Activate PATs - this algorithm helps you to scale keywords and targets that do not bring enough traffic to scale or pause ASINs and Categories
Pause Bleeding Keywords - this algorithm identifies unprofitable keywords and eliminates wasted spend to allocate the budget where it can make higher ROAS.
Pause Bleeding PATs - this algorithm identifies unprofitable ASINs and Categories and eliminates wasted spend to allocate the budget where it can make higher ROAS.
Remove Duplicates - This algorithm finds duplicate search terms and pauses one with worse performance to ensure we are not competing inside our structure.
Harvest and Rank New Keywords - this algorithm scans your search term report and finds the keywords and targets that are already bringing you profit and scales them further.
Add Bed ST to Negatives - this algorithm finds the keywords that are highly unprofitable and irrelevant and negates them to prevent future spend.
NOTE! There are 2 optimisation features that can be turned on only on a PRODUCT LEVEL not on a CAMPAIGN LEVEL.
MAKE SURE THEY ARE ALWAYS TURNED ON!
If you use our Automation algorithm in combination with Zero to Hero campaigns, here are some best practices on how to set up each campaign for better performance:
Make sure you do it in the Campaign Configuration Tab:
This is where you decide which optimization settings you want to use for each campaign for a specific product.
Here is the list of Zero to Hero Campaigns and best practices on how to set up optimization for them.
TPK - this is a campaign that consists of keywordsthatbringus 80% of the profit, so if you are using placement adjustment of 70% + or higher, be careful with bid optimization for this keyword. TURN OFF Pause Bleeding Keywords & PATS for this campaign for the first 2 weeks. After 2 weeks, you can turn it on but make sure to monitor it closely.
DPK - this is a campaign where we test the semi-relevant keywords with high search volume. Use all optimization settings for this campaign.
BroadNegative - it's better not to use bid optimization for keywords and PATS for this campaign once you found the most profitable bid.
AutoNegative - same as "BroadNegative".
ExactSimple - use all optimization settings.
ExactOther - use all optimization settings.
STE -use all optimization settings.
TCA/TPA/CA/DA/ASINS - use all optimization settings.
Categories - same as"BroadNegative".
Broad/ExactVariations - use only Pause Bleeding Keywords&PATs and Add Bed ST to Negatives as this will be the most profitable campaign.
OwnBrand-use only Pause Bleeding Keywords&PATs and Add Bed ST to Negatives as this will be the most profitable campaign.
CompetingBrands-use all optimization settings.
We use this setup inside our agency for dozens of 8&9 figure brands. Set it up and enjoy the results!
Make sure you hit us with online chat if you have any questions.