When Higher Total ACOS Means More Profit

In this episode of the PPC Den podcast, Michael Erickson Facchin and Olena Shmaiun discuss the common misconception that a lower Total ACOS (Advertising Cost of Sales) always equates to higher profitability for Amazon sellers. They explain that focusing solely on reducing Total ACOS can be detrimental, as it doesn't account for the relationship between ad spend, organic sales, and overall revenue. They argue that a higher Total ACOS, resulting from increased ad spending on relevant keywords, can lead to greater sales velocity, improved conversion rates, and ultimately, higher net profit due to increased organic rankings and sales. They emphasize the importance of tracking various metrics, including organic sales, ad sales, and profitability, to make informed decisions and optimize Amazon PPC strategies effectively.