Case Study: How an Amazon Seller Reduced ACOS by 50% in Just 3 Months
In the aggressive world of Amazon advertising, keeping profitability up while growing ad performance is among the most difficult issues sellers encounter. Low profit margins can readily be eaten away by high ACoS (Advertising Cost of Sale), even for strong brands with good products and stable traffic.
This case study illustrates how eCom Manager assisted an expanding Amazon brand in reducing its ACoS by 50% within three months while also boosting total sales and ad efficiency.
Client Background
The client was a medium-sized home and lifestyle business selling in various Amazon categories. While their products were highly rated and sales were consistent, their advertising performance was stifling them. Their campaigns were spending budget quickly, generating volatile results, and taking a hit out of profits.
The brand came to eCom Manager with one specific objective — get ACoS in check, rebuild their ad plan, and enhance return on ad spend without compromising growth.
The Challenge
Before teaming up with eCom Manager, the client’s ad account experienced several significant issues:
- Ads were disorganized, and non-relevant products were bundled together.
- Too much dependence on broad match keywords resulted in non-relevant clicks and wasted ad spend.
- No negative keyword strategy existed to weed out underperforming terms.
- No segmentation existed between high-selling and low-performing products.
Budgets were not allocated well, with great campaigns burning out of spend too early while weaker campaigns just kept eating away at funds.
Because of these inefficiencies, the client’s average ACoS was up to 42%, significantly eroding their profit and making it hard to scale.
The Solution
eCom Manager started by performing a detailed PPC audit, reviewing performance data, search term reports, and bidding behavior. From these findings, the team developed a step-by-step optimization strategy.
- Campaign Restructuring:
Campaigns were reconstructed from the ground up, categorizing products by performance and category. This allowed for easier determination of what was working and where to budget.
- Keyword Optimization:
High-performing keywords were moved to exact match campaigns, whereas non-relevant ones were added as negatives programmatically. This action alone saved a lot of wastage of spend.
- Intelligent Bid Adjustments:
The team moved to dynamic bidding, bumping up bids on top-converting search terms and lowering bids on performing poorly.
- DSP Retargeting:
The team added Amazon DSP retargeting to target the shoppers who had been looking but did not buy. This caused the brand to capture more conversions from warm audiences.
- Performance Dashboard:
There was a live tracking dashboard created to track ACoS, CTR, and conversion rates on a daily basis. It enabled the team to make instant changes and continue steady improvement.
- Budget Reallocation:
Budgets were redirected into the top 20% of products which were responsible for 80% of overall sales, where each dollar spent yielded quantifiable returns.
The Results
In a mere three months, the turnaround was astonishing. The client’s ACoS fell from 42% to 21%, halving their ad spend while enhancing efficiency. Their ROAS was doubled, sales increased by almost 50%, and click-through and conversion rates both had consistent increases.
No longer fighting to stay profitable, the brand was now scaling with confidence — reinvesting in successful campaigns and getting more reach for the same spend.
Key Takeaways
- Organized campaigns provide control: Segmentation generates better insights and more intelligent spending.
- Negative keyword management is cost-saving: Removing irrelevant traffic can cut ACoS instantly.
- Optimizing regularly is necessary: Continuous analysis and bid updates maintain consistency in performance.
- Retargeting maximizes lost chances: DSP campaigns allow interested browsers to become buyers.
Why It Matters
Decreasing ACoS isn’t merely cost-cutting — it’s intelligently optimizing. This case study demonstrates that structure in campaigns, keyword management, and regular monitoring can transform an unprofitable account into a healthy revenue generator within weeks.
Final Thoughts
Within three months, eCom Manager assisted a lagging brand in changing its advertising from unprofitable to profitable. Through the union of data-driven insights and rigorous campaign management, the brand not only attained a 50% ACoS decrease but also freed up growth opportunities.
This example is evidence that success on Amazon is not about paying more — it’s about paying smarter.