Recent changes to Amazon's FBA fulfillment fees and rising CPCs are eroding seller margins, often invisibly. An $0.08 increase in FBA fees, compounded with rising CPCs, creates a "double squeeze," where higher fees cut into margins from the bottom and higher CPCs eat into them from the top. The standard ACoS metric fails to reflect this, leading to inaccurate profitability assessments. To recalculate breakeven ACoS, sellers must factor fee increases as a margin hit, not a static number. The recommended adjustments include lowering bids on mid-performing campaigns, shifting budgets to proven campaigns, and using dynamic bidding to protect against wasted ad spend.
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