Exploit this Amazon Ads cost per click hack for more profit!

I stumbled on this hack a few years ago.

It’s like an Amazon profitability loophole.

I mentioned it here yesterday, but there’s more to the story. So, thought I’d elaborate today.

The principle is this:

No matter what product you sell, Amazon PPC advertising will cost $0.85 per click. That’s the average cost per click (CPC) right now. This cost will be the same whether you’re selling a $7.99 bottle of vitamin c tablets or a $150 auto part.

The core insight is that Amazon PPC does NOT scale linearly with price.

Therefore, it’s preferable to sell products that are slightly more expensive. I’d say $50+, ideally.

This way, the cost of advertising gets offset easily every time we make a sale. We’re much more profitable.

Taking this idea a step further…

If Amazon PPC is the primary distribution channel for an Amazon product, it makes sense to create the product offer with ads in mind prior to launch. You can genetically engineer your product offering to work with Amazon ads before it ever gets made.

Most sellers create a product, then look for ways to push it. Amateurs! 😉

What we can do is create a product that’s designed to work with Amazon ads by having a high enough pricepoint.

Example:

> Say we have a $0.85 cost per click.

> And a $50 price point.

> And a 10% conversion rate (1 in 10 clicks will result in a purchase).

We know we’ll need 10 clicks at a cost of $0.85 per click (or $8.50 total) to make one $50 sale. That’s a 17% ACoS. These ads are likely to be profitable from day 1. But, if we launched with a $20 price point with these same CPC and conversion numbers, we’d have a 42.50% ACoS. Once we account for COGS, all our profit is gone.

That’s the magic of finding products that are $50 plus.

They work way better with ads.

Do you have a product that you’re confident in that just needs more eyeballs?

My company, AsteroidX, has been working on your behalf for years, in a sense. We spend $13 million on Amazon Ads every year, and we’ve found what works and what doesn’t.

And now, we can apply our playbook to your Amazon business. But before we do that, we’d like to chat to make sure our system would even work for you. You can book a free call here, at your convenience:

https://calendly.com/asteroidx-chat/eval

https://calendly.com/asteroidx-chat/eval?from=slack