{"id":2940,"date":"2017-12-30T09:36:56","date_gmt":"2017-12-30T09:36:56","guid":{"rendered":"https:\/\/www.sellerapp.com\/test\/?post_type=article&#038;p=2940"},"modified":"2023-03-18T17:36:59","modified_gmt":"2023-03-18T17:36:59","slug":"calculate-profitability-amazon-ppc-ads","status":"publish","type":"docs","link":"https:\/\/www.sellerapp.com\/help\/article\/calculate-profitability-amazon-ppc-ads\/","title":{"rendered":"How to calculate the profitability of Amazon PPC ads"},"content":{"rendered":"\r\n<p><span style=\"font-weight: 400;\">The ACoS is indeed a measure of the profitability of the PPC campaign, however, to calculate the true profitability of the product, along with the PPC campaign costs you\u2019d also want to consider the entire cost structure of your product including the: <\/span><\/p>\r\n\r\n\r\n\r\n<ul class=\"wp-block-list\">\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the selling price of the product<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><a href=\"https:\/\/www.sellerapp.com\/blog\/amazon-fba-fees-calculator-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon FBA fees<\/a> (if it is FBA fulfilled)<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the manufacturing cost per unit<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the shipping cost<\/span><\/li>\r\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">the discounts offered<\/span><\/li>\r\n<\/ul>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">The profit value is dependent on the product and the profit margins are based on all the factors that we listed above. <\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">If you are making a <strong>profit margin of 30%<\/strong> without the PPC campaigns, as long as you are not spending <strong>over 30% off your profit margin<\/strong> then you are breaking even from your PPC campaigns.<\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">You wouldn\u2019t want to run PPC campaigns if you are making zero profits isn\u2019t it?<\/span><\/p>\r\n\r\n\r\n\r\n<p><span style=\"font-weight: 400;\">If your PPC campaigns are not working towards increasing your profits then you must either work on your PPC keywords or make better strategies for your PPC costs. If your sales rate increases along with an increase in the profit margin that&#8217;s when you can call your PPC campaigns to be profitable.<\/span><\/p>\r\n\r\n\r\n\r\n<h4 class=\"wp-block-heading\" id=\"want-to-learn-more\">Want to learn more?<\/h4>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/www.sellerapp.com\/blog\/amazon-seo-guide\/\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon SEO Guide &#8211; for Search Rank Optimization<\/a><\/p>\r\n\r\n\r\n\r\n<p class=\"r\"><a href=\"https:\/\/www.sellerapp.com\/blog\/amazon-backend-keywords\/\" target=\"_blank\" rel=\"noopener noreferrer\">Optimize Backend Keywords for PPC<\/a><\/p>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/www.sellerapp.com\/blog\/amazon-ppc-basics\/\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon PPC Guide<\/a><\/p>\r\n\r\n\r\n\r\n<p><a href=\"https:\/\/www.sellerapp.com\/blog\/amazon-ppc-basics\/\" target=\"_blank\" rel=\"noopener noreferrer\">Amazon PPC Strategy<\/a><\/p>\r\n","protected":false},"excerpt":{"rendered":"<p>The ACoS is indeed a measure of the profitability of the PPC campaign, however, to calculate the true profitability of the product, along with the PPC campaign costs you\u2019d also want to consider the entire cost structure of your product including the: the selling price of the product Amazon FBA fees (if it is FBA [&hellip;]<\/p>\n","protected":false},"author":1984,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"open","ping_status":"closed","template":"","doc_tag":[],"doc_category":[300,301],"class_list":["post-2940","docs","type-docs","status-publish","hentry","doc_category-advertising","doc_category-sellerapp-features","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/docs\/2940","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/docs"}],"about":[{"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/types\/docs"}],"author":[{"embeddable":true,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/users\/1984"}],"replies":[{"embeddable":true,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/comments?post=2940"}],"version-history":[{"count":0,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/docs\/2940\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/media?parent=2940"}],"wp:term":[{"taxonomy":"doc_tag","embeddable":true,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/doc_tag?post=2940"},{"taxonomy":"doc_category","embeddable":true,"href":"https:\/\/www.sellerapp.com\/help\/wp-json\/wp\/v2\/doc_category?post=2940"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}