Amazon doesn’t give advertisers a good way to see whether or not ad spend is profitable on Amazon. The main metric used for tracking success on Amazon is ACoS, but this metric does not account for costs other than ad spend. 

You may not think other costs add up to a lot, but advertising on Amazon comes with many additional costs including commission, shipping fees, and FBA fees (if you use fulfillment by Amazon). Commission alone can eat up a lot of your revenue—and if you aren’t tracking it on the product-level, odds are your ads will not be profitable. 

In this white paper, we will walk you through our proven method for designing a profit-driven Amazon strategy. This strategy will help you maximize profit at every turn when setting up and running your account. You’ll learn why ACoS alone is not an effective way of measuring your advertising campaigns. Then we will look at important costs you should track, and how to account for these costs in your campaign structure.