(Last Updated On: February 24, 2024)

“Help me lower my TACOS” is one of the most frequent queries we get. One important indicator to gauge the success of your Amazon advertising efforts is TACOS, or Total Advertising Cost of Sales. But before we can deal with lowering TACOS, we must determine if organic visibility or advertising is the source of the issue. In this blog, we’ll examine the crucial elements that distinguish between an organic problem and an advertising problem, as well as the best ways to tackle each.

Problem Identification

To determine whether you have an advertising problem or an organic problem, there are two important aspects to consider. First, you need to assess the percentage of your sales that come from ads. Second, you should evaluate your visibility on Amazon’s search results for your top keywords. Let’s explore these factors in detail.

Percentage of Sales from Ads:

What proportion of your sales are generated by advertisements? If advertisements account for more than half of your sales and you decide to reduce your spending, your overall revenue will decrease, which would be painful.

Organic Visibility on Amazon:

Analyzing your position for your top keywords in Amazon’s search results might give you important information about your organic visibility. If your listings don’t show up in the top eight results, you depend a lot on advertisements to be seen. The fact that you need to get more organic traffic to generate purchases indicates that the main cause of your TACOS issue is organic. Improving your organic ranking and listing optimization are necessary to resolve this problem.

Addressing Advertising Challenges

It is imperative that you take appropriate action if you have determined that your TACOS problem is caused by an advertising issue. Let’s look at some tactics for Amazon advertising campaign optimization.

Targeted Advertising Campaigns

“Am I spending too much money?”

To make sure you are not splurging on campaigns that don’t provide noticeable results, it is crucial to evaluate your advertising budget. You may determine which of your advertising campaigns are generating the most sales and concentrate your spending on them by evaluating your advertising data. Increase your return on investment and optimize your spending with targeted advertising campaigns.

Keyword Research and Optimization:

Go to Amazon and type in your top five keywords.

Performing comprehensive keyword research is essential for successful Amazon advertising. You may optimize your campaigns to target the ideal audience by finding the most relevant and high-performing keywords for your products. By using these keywords to optimize your product listings, you may also increase your organic visibility and lessen your dependency on advertisements.

Monitoring and Adjusting Campaign Performance

Making wise selections requires regular monitoring and analysis of the performance of your advertising campaigns. Important metrics like cost per click, conversion rates, and click-through rates can be tracked to help you find areas for improvement and make the appropriate changes. You can improve the results of your campaigns over time by optimizing them through this iterative method.

Overcoming Organic Visibility Challenges:

If your TACOS problem is primarily due to organic visibility issues, it is crucial to focus on improving your organic ranking and driving more traffic to your listings. Let’s explore some strategies to enhance your organic visibility on Amazon.

Listing Optimization

Optimizing your product listings is key to improving your organic visibility on Amazon. This involves strategically incorporating relevant keywords in your titles, bullet points, and product descriptions. By aligning your listings with popular search terms, you increase the likelihood of appearing in the top search results organically, reducing your reliance on ads for visibility.

Enhanced Brand Content and A+ Content

Utilizing Enhanced Brand Content (EBC) and A+ Content can significantly enhance your product listings and improve your organic visibility. These features allow you to showcase additional product information, high-quality images, and engaging multimedia content. By leveraging these tools effectively, you can create a compelling and informative listing that stands out from the competition, increasing your chances of ranking higher organically.

Customer Reviews and Ratings

Positive customer reviews and ratings play a crucial role in improving your organic visibility on Amazon. Encouraging satisfied customers to leave reviews and ratings not only boosts your credibility but also signals to Amazon’s algorithm that your product is popular and relevant. This can lead to higher organic rankings and increased visibility, reducing your reliance on ads.

Implications and Future Outlook

Understanding the distinction between advertising and organic challenges on Amazon is vital for long-term success as a seller. By accurately identifying the root cause of your TACOS problem, you can implement targeted strategies to address the specific challenges you face. Balancing your advertising and organic efforts is crucial to maximize your sales potential and drive sustainable growth on the platform. As Amazon continues to evolve and competition intensifies, sellers must stay vigilant and adapt their strategies accordingly. Regularly monitoring performance metrics, conducting thorough keyword research, and optimizing product listings are ongoing processes that require continuous attention. By staying proactive and responsive to changes in the marketplace, sellers can position themselves for success and overcome the challenges they face.

In conclusion, lowering your TACOS requires a comprehensive approach that addresses both advertising and organic visibility challenges. By leveraging the insights shared in this article and implementing the strategies discussed, you can optimize your advertising campaigns, improve your organic visibility, and ultimately drive sales growth on Amazon.

A leading Amazon Agency like SalesDuo can be a one-stop solution to manage all aspects of the Amazon and eCommerce business. This makes it easy for retail brands of all sizes to focus on what matters most while we help them set up, manage, and grow their business on multiple marketplaces across various markets. For more information, visit salesduo.com